McDonalds has been slowly reinventing itself over the last few years. Big menu changes and and healthier items have been a major part of that shift. Now the restaurant chain is doubling down on one its recent focus areas—breakfast. A few years ago McDonalds decided to make a handful of breakfast items available all day. The change was a hit with customers and investors and helped grow sales for the year. However, recently, McDonalds has blamed it for slowing sales as its morning business has actually weakened because consumers can get breakfast items all day. Now it is changing its tact by offering breakfast sandwiches starting at just a Dollar and offering extra-meat breakfast sandwiches all day.
FINSUM: It seems all day breakfast has cannibalized some sales for old Mickey D’s. The dollar menu approach in the morning should help.
It seems like McDonalds’ new CEO has made a success of his young tenure at the hamburger chain. The company’s stock is sizzling after a great earnings report showing increased customers after a long period of declines. Big changes to McDonald’s policy, such as all-day breakfast, seem to be reaping gains for the company. Now they are about to take another big step—revamping the Dollar menu. McDonald’s has had trouble with franchisees not liking Dollar menu items because of low margins, but the new menu has a combination of items which will hopefully appeal to customers. Franchisees have already signed up in droves to the new menu, which will have $1-$3 items.
FINSUM: We think McDonald’s is on a very good path right now and we believe reviving the Dollar menu will propel it even further.