Will McDonald’s Expanded Breakfast Increase Business?
This month, McDonald’s (NYSE:MCD) will begin to offer breakfast from 12 a.m. to 4 a.m. at an undisclosed number of restaurants around the country. While McDonald’s has entertained the idea of expanding breakfast hours in the past, it appears they are committed this time to expanding the hours of their breakfast menu. In an email to Bloomberg Businessweek, Donya Proud wrote, “This is not a test.”
The “McDonald’s After Midnight” menu will offer Egg McMuffins, Sausage McMuffins, Egg White Delight McMuffins, Fruit ‘n Yogurt Parfaits, Hotcakes with Sausage, Fruit and Maple Oatmeal, Sausage Burritos, Hash Browns, and McCafes. Normal items, such as burgers and french fries, are still included and can be mixed and matched with breakfast items. For example, customers can order an Egg McMuffin with French Fries or a Big Mac with hashbrowns. Likewise, customers can order either soft drinks or coffee with their meal.
The mix and match menu has been tested in northern Delaware and College Station, Tex, where Texas A&M is located. Undoubtedly, McDonald’s was pleased with the success of their new menu and the opportunity for increased business is obvious, seeing as half of the McDonald’s restaurants in the United States are open 24 hours, according to Reuters. That’s a lot of potential business.
Other food chains such as Sonic Drive-In (NASDAQ:SONC) and Taco Bell (NYSE:YUM) have capitalized on the possibilities of late-night consumers with the “Happy Hour” and “Fourth Meal” menus, respectively. But will McDonald’s sooner or later introduce breakfast all-day like Jack in the Box (NASDAQ:JACK) does? “There are lots of possibilities!” Proud told Businessweek Bloomberg.
According to data, the hours of 2 a.m. to 5 a.m. account for only 0.5 percent of fast-food business while the hours of 9 p.m. to 2 a.m. account for 6.4 percent. If McDonald’s was able to gain a foothold in these hours, they would have a great opportunity to expand their profits through an otherwise unprofitable time-frame.
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