In reaction to rising beef and cheese prices, McDonald's reportedly is testing pricing and product changes on its popular $1 double cheeseburger sandwich, as well as other items on its Dollar Menu.

In an interview Monday with the Wall Street Journal, McDonald's USA President Don Thompson said the company is experimenting with a number of variations that will trim costs from the $1 burger. One variation includes cutting back the number of cheese slices from two to one, then billing the sandwich as a "double hamburger with cheese."

Some franchisees are offering a $1 double hamburger and holding the cheese altogether. Still others are selling the traditional sandwich, but raising the price as high as $1.19.

The double cheeseburger is the lynchpin of McDonald's Dollar Menu, which has been an important sales driver for the chain, especially during consumer spending slumps. But franchisees frequently complain that while the menu is great at driving traffic, much of that traffic is unprofitable.

Thompson told the Journal that even if the double cheeseburger is eventually removed from its Dollar Menu price position, it would be replaced by some other $1 burger product.

By Bill McDowell on 8/5/2008