McDonald's Arbitrage

As you would probably be aware from all the advertising going on, McDonald's Australia has been promoting a series of Value Picks menu items.

One of the items available from the Value Picks is the Deluxe Cheeseburger, which retails for $1.95. It would appear that the Deluxe Cheeseburger is deluxe because it contains lettuce and a mayonnaise dressing. The regular Cheeseburger, which does not contain lettuce, but has a tomato-based dressing, retails for a bit higher.

This is confusing to me---it looks like the Deluxe Cheeseburger costs more than a regular Cheeseburger. If this occurs in the financial markets, then there would be fascinating arbitrage opportunities.

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