Fast food chain McDonald’s has recently released quarterly sales figures that were better than expected, with the success being put down to the chain’s introduction of all day breakfasts. It was revealed that the all day breakfasts, which were introduced in the United States last October, have proven to be a big hit with consumers in America and there has also been increased demand for them in China. The figures were based on same restaurant sales and the chain has now seen its shares increase by 3 percent to $121.90, which is an all-time high.
Previously, the restaurant only served breakfast for a few hours in the morning after which popular options such as sausage & egg Mcmuffins and hash browns were no longer available for purchase. However, the move to introduce all day breakfasts has enabled diners to enjoy these breakfast options at any time during the day and this has proven to be a big hit.
Stiff competition from other food chains
According to reports, the reason behind the introduction of the all day breakfasts at McDonald’s was to try and combat increasing competition from other popular food chains such as Burger King and Wendy’s amongst others. Some of these competitors are said to have doubled the items that they offer for breakfast, which left McDonald’s at risk of losing customers. However, it seems that the move to give consumers the chance to opt for McDonald’s breakfast items all day long as helped to reduce the stiff competition as well as boosting the burger chain’s share prices.
Steve Easterbrook, the new CEO at McDonald’s said that the introduction of all day breakfasts had enabled the company to claw back some of the market share that it had lost over recent years. Some officials have said that things could be looking up for the chain as a result of new leadership with one analyst stating that he was particularly impressed with how quickly things were changing now compared to under previous leadership. He said that at one time McDonald’s was pretty slow on the uptake when it came to making changes and bringing out new products but that this was something that now seemed to be improving.
In the final quarter of last year, sales at McDonald’s branches in the United States that had been open for at least thirteen months increased by 5.7 percent, which reflected the highest quarterly growth in four years.