How high can McD’s go with all-day breakfast?
McDonald’s is lovin’ its decision to go to a limited all-day breakfast menu after posting a 5.7 percent increase in comparable sales in the first quarter since making the change. The decision appears to have worked so well that McDonald’s is now planning to test adding its popular McGriddle sandwiches to the menu of breakfast items available all day long.
The recent quarter marks the second consecutive period of same-store growth (previous quarter was up 0.9 percent) for McDonald’s, which is in the process of executing a turnaround plan under its president and chief executive officer, Steve Easterbrook. The company pointed to all-day breakfast and unusually mild weather in the U.S. as factors behind its improvement.
“We took bold, urgent action in 2015 to reset the business and position McDonald’s to deliver sustained profitable growth,” said Mr. Easterbrook in a statement. “We ended the year with momentum, including positive comparable sales across all segments for both the quarter and the year — a testament to the swift changes we made and the early impact of our turnaround efforts.”
According to an Associated Press report, McDonald’s is adding the McGriddle to its all-day menu at 72 locations in Tulsa, OK. The company will test the sale for a two- to three-month period before deciding its next step.
In October there were reports of grumbling among some of McDonald’s franchisees over the company’s decision to make some of its breakfast menu available for purchase throughout the day. Franchisees pointed to more complicated kitchen operations and other factors. Those same concerns are surfacing with the McGriddle test.
The AP report said McDonald’s locations would need to figure out how to work McGriddles into their post-breakfast workflow since the buns used in the sandwiches would be kept warm in the same ovens used to heat apple pies, cookies and mozzarella sticks.
- McDonald’s to test expanded all-day breakfast with McGriddle – The Associated Press/CNBC
- McDonald’s Reports Fourth Quarter And Full Year 2015 Results – McDonald’s Corporation
- Does McD’s have a breakfast (civil) war on its hands? – RetailWire
Are you ready to call McDonald’s switch to all-day breakfast a success? Will the addition of McGriddles to the all-day menu take McDonald’s to an even higher level?