TOY MAKERS LAND MCDONALD'S DEAL MGA, MATTEL SHARE IN PROMOTION.

Byline: Brent Hopkins Staff Writer

NORTH HILLS - They've already hit the mall, now Bratz are heading for McDonald's.

The big-eyed dolls, which are billion-dollar sellers for MGA Entertainment, snared a key deal with the hamburger giant that will land them in Happy Meals for most of May.

Starting Friday, eight miniversions of the sloe-eyed, hip-huggered and navel-baring figures will be available for free in more than 13,000 McDonald's nationwide.

The Bratz line has had a two-year run at the top of the fashion doll category, but toy experts said the new promotion could lead to yet another spike in their popularity.

``Everybody loves to work with McDonald's,'' said Jim Silver, publisher of Toy Wishes. ``They're the largest fast-food company and their promotions are huge. The PR you get gives you tremendous exposure.''

It is an odd twist that the promotion pairs MGA with its archrival, Mattel. The El Segundo-based toy behemoth's He-Man and Masters of the Universe will be the free boys' toys in the meals, a situation that obliges the two competitors to work together for this launch.

Mattel did not comment on the deal and an MGA spokesman was unusually circumspect in his remarks.

``Bratz are the most popular fashion dolls in the United States,'' said MGA's Dave Malacrida. ``This promotion is for all the fans with a passion for fashion. These are cool collectibles, the fans will be thrilled.''

Isaac Larian, MGA's mercurial chief executive who normally relishes an opportunity to champion his hot-selling toys, declined to comment. Industry watchers speculated that the friction between the two firms may have contributed to the unusual silence surrounding the deal.

``Barbie's always been a very carefully guarded brand - she's a '50s-era brand and they've been very careful to use her respectfully,'' said Becky Ebenkamp, West Coast bureau chief for the marketing trade magazine BrandWeek.

``Then MGA puts out an older, sassier, sluttier doll. They'd be the ones smoking in the bathroom at school, while Barbie's the homecoming queen,'' Ebenkamp said. ``There's two distinct doll personalities, which is where the rivalry began. MGA really went after them with their statements and didn't pull any punches, but that's been backed up by sales figures.''

The sales figures motivated McDonald's to sign MGA to the license - MGA claims sales of 14 million dolls since their August 2001 launch. McDonald's licensed the rights, then produced the series of dolls itself, paying MGA an undisclosed fee.

``At McDonald's, we're always looking to tap in to the latest trends to feature in our Happy Meals,'' said Palmer Moody, a spokesman for the fast food giant. ``Bratz is one the hottest toys on the market right now, so we're very happy to have them.''

The partnerships proved profitable in the past, setting off runs on already popular toys. The mid-1990s promotion featuring Beanie Babies created such a phenomenon the toys still carry a premium for collectors.

``You'd hear stories of grown-ups buying out the restaurant, then running back to their cars, throwing out the food and looking for the beanie babies,'' Ebenkamp recalled.

There could be a downside to the promotions as well, Silver pointed out. If the toys are too compelling, they can satisfy a child's desire off the bat, thus discouraging actual sales rather than fueling growth. But given that this promotion features a scaled-down version of the full-size doll, experts predicted success.

``Bratz have done very strongly, but the first kids who made it a phenomenon are starting to grow out of it,'' said independent toy analyst Chris Byrne. ``They need to find a way to get new dolls into the hands of kids and there's no better way to do this than that. MGA's banking on this for four weeks, that they'll really get kids into the Bratz brand.''

That spike could provide a much-needed competitive edge to MGA, which has battled to retain its position on top of the fashion doll category despite fierce pressure from Mattel. Any small advantage could prove decisive, according to Maria Weiskott, editor-in-chief of Playthings Magazine.

``The competition is really hot right now,'' she said. ``The toy market is flat, which is so, so unusual - it's a marker of the economy, because toys are never flat. ''

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Photo:

(1 -- 2 -- color) At right, Isaac Larian, chief executive of MGA Entertainment in North Hills, shows a few of the company's hot-selling Bratz dolls. Below, a miniversion of popular Bratz dolls will be the free toy for girls in McDonald's Happy Meals. The Happy Meal toys for boys will be Mattel's He-Man and Masters of the Universe. Partnerships with McDonald's has proved profitable in the past, setting off runs on already established toys.

Evan Yee/Staff Photographer