By Alex Veiga
The Associated Press

MIAMI - When Richard Steinig opened his first of four South Florida McDonald's restaurants in the 1970s, the fight for burger chain supremacy could be summed up this simply: Which was tastier - the Big Mac or Burger King's Whopper?

Thirty years later, No. 1 McDonald's Corp. and No. 2 Burger King are still brawling. But profits are being sapped by discounts and menu duels, not to mention new competition, a saturated market and changing consumer tastes.

"You can't make money selling a Big N' Tasty at $1," Mr. Steinig said. He was referring to the chain's biggest quarter-pound burger, which is supposed to sell for more than $2 but has been discounted since October.

"The new Dollar Menu is bringing in customers ... (but) it hasn't necessarily brought the profits," he said.

The war has led to changes in leadership in both companies this month, and the first order of business for the new CEOs will be to decide whether to pull out of the pricing race.

Burger King has all but asked for a cease-fire.

"With the new management at McDonald's we hope the first thing they do is stop" the price war, said Rob Doughty, Miami-based Burger King's vice president of corporate communications.

The feud has opened opportunities for other competitors. No. 3 Wendy's International has remained out of the price war and has made steady gains.

McDonald's, with more than 13,300 restaurants in the United States and 43 percent of the market, has posted lower earnings in seven of the past eight quarters.

It expects to close out 2002 with the first quarterly loss in its 47-year history.

Burger King, with 8,146 U.S restaurants and an 18 percent market share, watched operating profit fall $27 million to $250 million in fiscal 2002, which ended June 30.