All-day McDonald’s breakfast has been a long sought after goal and has been requested by millions of Americans via tweets dating back to 2008. This may not come as much of a surprise since McDonald’s does 25 percent of its daily business during breakfast, according to Technomic, a consumer survey company.
Offering all-day breakfast is a new vision, which was set into motion by McDonald’s new chief executive, Steve Easterbrook, who took charge of the hamburger conglomerate in March of this year. His hope is that the approval of an all-day breakfast will turn around the decrease in sales that McDonald’s has been recently experiencing. McDonald’s president, Mike Andres, was noted as saying in a recent interview that this was the biggest shift they have undertaken since McCafe began brewing coffee in 2009.
Though the all-day Mcdonald’s breakfast may bring more profits, the investment in infrastructure to handle an increase in demand for Egg McMuffins and McGriddles is quite notable as well. A $500 to $5000 investment will come out of franchise owners’ pockets according to a Mcdonald’s spokeswoman. However many franchises are already set to pump out sausage biscuit after sausage biscuit on October 6th, which will go down as an infamous day in Mcdonald’s history.
Mcdonald’s has been suffering from a slow bleed, with their first drop in monthly same-store sales in 2012, which shook the corporate burger world. Last year Mcdonald’s reported a 2.4 percent decline in revenue and a 15 percent decrease in net income. Still, their revenue last year was over $27 billion, which is nothing to shake a stick at.
RBC Capital Markets analyst David Palmer said in an interview with The Wall Street Journal, “The question is, can they use breakfast to find other things to keep the momentum going?”
Mcdonald’s has been long scrutinized for its unhealthy food choices, and with the obesity crisis on the rise, is encouraging all-day breakfast the best route for McDonald’s revenue and net income? People may begin making healthier choices, leading to profits slipping even further down the rabbit hole.
More than one-third of American adults are obese, approximately 78.6 million according to the Centers for Disease Control and Prevention (CDC). This may come as no surprise, and fast food chains have been scrutinized with regards to obesity — and much of this is due to marketing.
A 2007 study published in the Journal of Consumer Research suggests marketing and shifts in menu items may be to blame for the “low-calorie” thought process induced by fast-food marketing. The study poses the question, “Why is America a land of low-calorie food claims yet high-calorie food intake?”
The McDonald’s all-day breakfast has caused quite a stir over the twitter-sphere and in social media. It has certainly been a marketing whirlwind. However, what will McDonald’s do next, once people begin making healthier choices? Why not stay ahead of the storm, instead of creating one.
—Stephen Seifert
Stephen Seifert is a writer, professor, adventurer and a health & fitness guru. His flare for travel and outdoor adventure allows him to enjoy culture and traditions different than his own. A healthy diet, routine fitness and constant mental development is the cornerstone to Stephen’s life.
Sources:
http://www.wsj.com/articles/mcdonalds-set-to-offer-all-day-breakfast-1441134058
http://www.marketwatch.com/investing/stock/mcd/financials
http://www.mcdonalds.com/us/en/food/full_menu/breakfast.html
http://www.cdc.gov/obesity/data/adult.html
http://jcr.oxfordjournals.org/content/34/3/301.abstract