Many consumers would be sadden by changes to the dollar menu but I do think that McDonalds will be able to maintain a decent profit for some of the items on the menu.

If each customer who orders off the dollar menu gets an 'entree', fries, and a drink, it seems like the teeny tiny drink is probably a pretty high profit item. Take off the double cheeseburger and leave its smaller counterparts, the cheeseburger and hamburger.

Also, looking at other companies in the industry, it seems like the dollar menu items don't have to be exactly $1.. just a lot cheaper than other items (look at Wendys and Taco Bell).

Great article-- the situation really is symbolic of the shrinking standard of living.