Why fast food is going big on breakfastAugust 17, 2021
New York (CNN Business)McDonald’s is adding new bakery items for the first time in a nearly a decade as the breakfast wars heat up during the pandemic.
Beginning October 28, the McCafé bakery lineup is expanding with three new options: an apple fritter, a blueberry muffin and a cinnamon roll. They will be available all day across participating restaurants in the United States.
“We know our customers deserve a break now more than ever, and are excited to give them another reason to visit their favorite breakfast destination by offering delicious flavors they crave, any time of the day,” said Linda VanGosen, vice president of brand and menu strategy, in a statement.
The additions come as McDonald’s finds itself struggling in a part of the day it was once dominant. Its most notable competitor is Wendy’s (WEN), which launched its breakfast menu earlier this year with a mix of sweet and salty items such as the Breakfast Baconator and Frosty-ccino. Breakfast now accounts for 8% of Wendy’s total sales. Taco Bell and other rivals have also launched expanded breakfast menus and are taking share of the market away from McDonald’s
McDonald’s CEO Chris Kempczinski said in the company’s most recent earnings call that breakfast “was one area of pressure” because of new competitors. The chain also temporarily eliminated its all-day breakfast, among other items, to help restaurants’ maintain costs. It hasn’t said when, or if, All Day Breakfast will return.
“Any final decision will be made in partnership with our franchisees, based on consumer demand, and designed to drive the business while minimizing operational disruptions,” a McDonald’s spokesperson said.
Recently, McDonald’s has slowly been rolling out new menu items and promotions once again. In September, McDonald’s added its first new McNugget flavor in nearly 40 years: Spicy Chicken McNuggets. New meal deals from singers Travis Scott and J Balvin have also been added to the menu as limited time promotions.
Investors will learn how strong sales have rebounded from their earlier lows when McDonald’s (MCD) releases its third-quarter earnings, likely later this month.
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