McDonald’s Corporation (NYSE:MCD)’s All Day Breakfast Help Boost Its Sales, And The Momentum Is Set To Continue


McDonald’s Corporation (NYSE:MCD)’s All Day breakfast helped it record the highest sales in four years. McDonald recorded a 5.7% rise in the U.S in 4Q. This was the second quarterly increase after it had suffered a two-year decline. The rise also marked the highest quarterly growth in about four years. Much of the quarterly growth was attributed to the rollout of the All Day Breakfast, which performed better than the company had anticipated.

McDonald launched their all-day breakfast in October, with the aim of serving an Egg McMuffin for lunch or dinner. This service was one of the main factors, which was driving new customers to the restaurant and also bring back those who had not visited it for a while. Marketing of this service started with a Twitter Inc (NYSE:TWTR) campaign and in September, it was followed by TV commercial from DDB and Leo Burnett. The company also received a boost from its multicultural agencies Alma, IW Group and Burrell Communications Group LLC.

Peter Saleh, who is a BTIG analyst, stated that the chain market gain was something worth noting. He said that when market share turns and a company starts to gain market share, this momentum can continue for an extended period. Saleh said that he thought the company will continue to take market share for a long period.

Apart from the All Day Breakfast, Steve Easterbrook, the new CEO was also a principal factor in the turnaround. Easterbrook became in charge only under a year ago, and he focused on rectifying various issues in the company. These include the difficult menu, long lines at drive thru and costly mistakes. He also managed to support of its franchise.

McDonald stated that it looks at joining other markets and also spreading its All Day Breakfast services. In China, it plans to open more than 250 restaurants. In Australia, it is planning to take All Day Breakfast nationally after it a 300-restaurant test.In Germany, McDonald is planning to introduce a new value strategy in their menu. In U.K, they plan to introduce rolling out tables in all the restaurants.