It took eight years, but McDonald’s Corporation (MCD) is finally doing it: All-day breakfast is here. In a press release today, Mickey D’s admitted that it had been bombarded with customer requests for all-day breakfast on Twitter (TWTR) since 2007.
“All Day Breakfast is the number one request we hear from customers,” the press release said.
Well, your tweets have been answered, and starting today, you’ll be able to get your coveted McMuffins after 10:30 a.m. The top brass at McDonald’s is hoping this new flexibility will help reverse its notorious same-store sales woes and send MCD stock through the roof.
Breakfast Wars Get Serious
Before anyone gets too excited, you should know that the McDonald’s All-Day Breakfast initiative won’t feature the full breakfast menu. Instead, locations will either focus on McMuffin or Biscuit items, maximizing the efficiency of the kitchen.
The fate of your local store’s breakfast menu will depend on customer preference. So make your voice heard if McMuffins are being served in place of your coveted Bacon, Egg & Cheese Biscuits.
Investors shouldn’t lament the limited menu, though. After all, efficiency is what has made MCD stock a long-term winner, and it’s the reason MCD is a cash-cow, boasting a 3.4% dividend.
Not to mention that McDonald’s All-Day Breakfast is an “all hands on deck” approach to the fast-food industry’s breakfast wars, wherein Burger King (BKW), Wendy’s (WEN), Jack in the Box (JACK) and even Yum! Brands’ (YUM) Taco Bell are duking it out.
The flurry of competition has been bad for MCD, which saw same-store sales in the U.S. slip 2% in the second quarter. The company even stopped reporting monthly same-store sales earlier this year, as fresh-faced CEO Steve Easterbrook tried to avoid constant scrutiny from MCD investors.
Although McDonald’s stock has actually fared well in 2015, gaining 9% to the S&P 500’s 3.5% drop, the company as a whole is approaching a new era in its corporate history. This year, for the first time in more than 40 years (or perhaps ever), MCD will actually close more U.S. locations than it opens.
Not to mention that MCD, as one of the largest and most prominent multinationals in the U.S., is facing serious currency headwinds as a result of the stronger U.S. dollar.
While it’s true McDonald’s All-Day Breakfast won’t be able to stem the stubborn ascent of the greenback — if the dollar wants to get stronger, that’s what it’s going to do — it can get more foot traffic in its stores.
All things being equal, that should be a boon to U.S. same-store sales, and to MCD stock as well.
As of this writing, John Divine did not hold a position in any of the aforementioned securities. You can follow him on Twitter at @divinebizkid or email him at firstname.lastname@example.org.
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