McDonald's To Test All-Day Breakfast To Boost Sales
Geann Pineda | | Mar 31, 2015 02:19 AM EDT |
(Photo : Reuters) Brogan Geurts of Littleton, Colorado uses a computer terminal called a kiosk
to order breakfast at a McDonalds restaurant in his town July 10, 2003.
McDonald's will soon serve breakfast all day, in what is Chief Executive Steve Easterbrook's latest experiment to boost sales.
McDonald's will begin its experiment in April at some branches in the San Diego area. The company is still uncertain if the project will expand nationwide.
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"We look forward to learning from this test, and it's premature to speculate on any outcomes," said spokeswoman Terri Hickey.
Once the project begins, customers will see hash browns, Egg McMuffins and other breakfast sandwiches still on the menu beyond the breakfast hours.
McDonald's breakfast items are some of the most popular in its list of products and account for about 25 percent of the company's sales. Analysts say having them in the menu all-day is seen as a wise decision because the french fries and breakfast items are the most "craveable" ones on their menu.
New York-based Mark Kalinowski, an analyst at Janney Montgomery Scott LLC, explains: "Having those breakfast items available to sell all day would also serve as a reminder to customers (and the media and Wall Street) that McDonald's does indeed have craveable food to sell."
There had been calls for McDonald's to serve breakfast all-day in the past, but the fast-food chain had said its kitchens are not big enough to cook its entire menu all at the same time.
The breakfast project aims to reignite McDonald's sales that had slumped in the last two years. McDonald's January global sales dropped almost 2 percent, dragged by sales in China and Japan amid food safety scandals.
In February, McDonald's sales in its U.S. restaurants, which were open at least 13 months, fell 4 percent from last year.
Just this month, the fast food company also announced it will stop the use of antibiotics in its chicken products that can have an impact on human health.
Easterbrook, who was appointed CEO in March, had stressed the need for change and to experiment with a wide range of measures to boost flagging sales. Easterbrook aims to transform McDonald's into a modern burger company.
TagsMcdonalds, breakfast, Steve Easterbrook, breakfast all day
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