McDonalds Plans to Introduce More Menu Items to Its Highly Popular All-Day Breakfast

Mar 18, 2016 07:10 AM EDT | By Mark Jason Alcala

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Riding on the success of its All-Day Breakfast campaign, McDonald's recently announced that it would expand the breakfast items available throughout the day, and would include the platter-type items that are currently discontinued when the restaurant switches to its lunch offerings.

Mc Donald's Chief Financial Officer Kevin Ozan told investors at a conference that the new more inclusive new all-day breakfast menu is currently being tested in selected outlets according to an article in the Restaurant Business Online written by Peter Romeo. Systemwide implementation is set to follow after operations streamline the new menu, which could mean elimination of other items, according to Ozan. He did not elaborate what particular items might be stricken off from the list.

Speaking at the Bank of America Merrill Lynch Consumer & Retail Tech Broker Conference in New York City, Ozan explained that most outlets will continue to sell the biscuit or muffin-based breakfast items in the meantime.

Ozan acknowledges that the all-day breakfast campaign is credited to the spectacular turnaround of McDonald's finances. He observed that former customers who stopped going to McDonald's are now back queuing, thanks to the current lineup in the menu as well as the whole day availability of the well-loved breakfast items. What further fueled McDonald's surging sales is the observed trend that a lot of customers are now ordering sandwiches on top of their usual lunch and dinner options.

Apparently, there was a gap in the pricing tier of previous McDonald's lineup which the all-day breakfast menu filled nicely, according to Ozan. He explained that there were menu items priced closed to a dollar, which was then followed by the premium products. The all-day breakfast menu filled the price gap between those two.

And it seems Wall Street agrees that the all-day breakfast strategy is doing is a job, according to Fortune article by Michael Addady. Citing a study done by NPD group, a third of the new McDonald's crowd actually came back to the golden arches' fold because of the all day offering. The study significantly helped McDonald's bottom line as it found out that each customer spent an additional 61% more because people now order an all-day breakfast item as well as lunch or dinner.

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