McDonald’s Corporation MCD will reportedly begin testing of breakfast items throughout the day at some of its outlets in the San Diego area beginning April. Its popular breakfast items like hash browns, Egg McMuffins and other sandwiches are now expected to be available throughout the day. The move comes in response to customers’ demand for breakfast foods beyond the typical morning hours.
BigMac fans have long waited for this option. However, given space constraints at its restaurants, the company was unable to serve the breakfast menu all day long. Nevertheless, it seems that the company is gearing up to provide food that is customized to suit individual preferences and timings.
In fact, Steve Easterbrook, the newly appointed chief executive officer of the company – is leaving no stone unturned to pull the restaurant chain out of the sales slump in the U.S. Just after his appointment, the company announced plans to discontinue the use of chicken raised with antibiotics that are important to human medicine within the next two years. (Read: Will Antibiotic-Free Chicken Revive McDonald's Fortunes?). Also, the company is reportedly planning to add kale to its menu offerings this year, keeping in mind its health conscious consumers. (Read: McDonald's Going Healthy by Adding Kale to Menu?). In Dec 2014, the company had come up with a “Create Your Taste” program that would allow customers to create burgers of their own choice for the first time. (Read: McDonald's Brings Customized Burgers, November Comps Dip).
McDonald’s breakfast accounts for approximately 25% of its total sales. As more Americans eat breakfast away from home, the battle for the breakfast daypart has intensified. A number of fast food restaurants have launched breakfast dayparts over the past few years while others are busy adding new items.
The list of fast food chains competing to make the most of the demand for breakfast includes Dunkin' Brands Group, Inc. DNKN, Yum! Brands, Inc. YUM, Jack in the Box Inc. JACK and Starbucks Corporation. While Dunkin' Brands is focusing on speedier restaurant operations as well as continued menu innovation, Starbucks revamped its breakfast sandwiches and other food offerings in Mar 2014, which boosted sales at this coffee chain. Taco Bell, a unit of Yum! Brands, began offering breakfast in 2014. Jack in the Box, meanwhile, has been offering breakfast for more than 20 years and benefiting from the same.
Other players in the industry that have capitalized on the demand for breakfast include Sonic Corp., Cracker Barrel Old Country Store, Inc. and Denny's Corporation.
McDonald’s has a Zacks Rank #4 (Sell).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment