MCD has dabbled with the idea of extending breakfast hours before. In 2006, then-CEO Jeff Skinner tried to figure out how to fix its restaurant operations so that it could make breakfast available all day. The biggest problem is that it pre-cooks its eggs and sausage in the restaurant on a grill and then makes them available for Egg McMuffins, etc.
As soon as the lunch hour rolls around, people are ordering things that also need to be cooked on the grills, meaning something’s got to give. Up until now McDonald’s has felt breakfast was the right choice. But MCD stock holders might think otherwise.
MCD should rethink that decision, given the $31.7 billion that limited-service restaurants generate from breakfast annually. To me it’s a no-brainer. Add another grill that’s used exclusively for cooking breakfast and start banging out Egg McMuffins at four in the afternoon.
I, for one, would eat at McDonald’s more often because I only like their breakfast items. Logistically, I realize there’s only so much, room but when your competitors are trying to steal a part of the day that you basically created for the fast food industry in the first place, I think you have to take corrective action.
If you own MCD stock and you’re looking at a third straight month of negative U.S. comps, you’d be smart to fire off an email to their investor relations department. The introduction of all-day breakfast would stop the bleeding almost immediately.