McDonald’s (NYSE:MCD) bringing longer breakfast hours with new ‘McBrunch’

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By Thomas Copeland on September 17, 2014 Consumer Staples

McDonald’s (NYSE:MCD) is one of the most popular fast food chains worldwide. Its breakfast market is huge and people have been enjoying it for quite some time now. However, now McDonald’s (NYSE:MCD) is trying to sign a deal which will enable them to offer brunch to its cusotmers who wake up late in the morning.

McDonald’s (NYSE:MCD) is trying to make the name ‘McBrunch’ a trademark and make a statement in the breakfast market. Adding the option of brunch to the morning deals will definitely attract more customers as there are very few restaurants who have that option available. It will target and attract those who choose to rise and shine a little later in the day.

According to a letter written on 23^rd July by the maker of Egg McMuffin, he indicated that he wants to expand the breakfast window, as it is the company’s most popular segment of the day. For more than 30 years, McDonald’s (NYSE:MCD) has excelled at delivering a winner breakfast, causing it to become the most successful time of the day.

Peter Benson, McDonald’s (NYSE:MCD) CEO declared that breakfast has been their most substantial trait and they are working on taking it even further. Due to the strong demand, it is no wonder that the company is focusing on expanding the breakfast menu and not anything else.

About one quarter of McDonald’s (NYSE:MCD) earnings is generated by the morning flow. People on their way to work tend to buy breakfast and McDonald’s (NYSE:MCD) breakfast is one of the most favorites and hence very popular during that time.

Choices at the breakfast menu have increased over the years due to the immense growth in the fast food market. Competition forces the company to always be on its toes and innovate nonstop. Though McDonald’s (NYSE:MCD) has enjoyed their share of at least one third of the fast food sales, it is now encountering more competition. This is why McDonald’s (NYSE:MCD) is looking to add more to the breakfast options, in the hope of attracting more customers to the fast food restaurant. They cannot relax and rest – the race is on at all times.

Food chains like Starbucks (NASDAQ:SBUX), Taco Bell, and Burger King (NYSE:BKW), amongst others, are all expanding their breakfast options to deal with the growing competition. Starbucks (NASDAQ:SBUX) included a wide variety of sandwich options last spring in order to diversify and expand their breakfast menu. While Taco Bell only started giving breakfast in March, it is still considered a worthy competitor and is expected to make its presence felt by introducing a breakfast taco soon enough. Burger King (NYSE:BKW) believes that if people were provided with an option of having a burger for breakfast, it would work brilliantly. Which is why, they are now arranging for breakfast burgers, which people can grab on their way to work in the early mornings.

Benson said that a lot of their competitors have already taken up the breakfast market and every year more and more competitors keep entering the market with their offerings. This trend illustrates the demand from the market as well as the response from big companies that wish to cater to these demands in their unique ways and menus. In today’s ever increasing busy schedules, a breakfast on-the-go is most people’s choice; this feat is giving the market the perfect reason to react.

In the US breakfast market, the fast food chains are said to gather $50 billion per year. In fact, they were the big reason behind the 90% boost in industry sales, between the years 2007 and 2012. This data delivers a fair picture of the immense breakfast market thriving in the US.