Thu Sep 17 08:33:00 -0400 2009

Reuters (Los Angeles)

- Subway’s $5, foot-long sandwich deal has given birth to the biggest restaurant pricing trend since McDonald’s Corp’s (MCD.N) 2002 Dollar Menu debut, but some to wonder whether it will make it harder to break diners’ discount habit.

Since Subway’s introduced the deal in early 2008, ”$5 has emerged as the second most important price point” in the fast-food industry after $1, said Telsey Advisory Group analyst Tom Forte. “I would not be surprised if Subway was outperforming many of its peers” due to the promotion, he said.

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