All-day breakfast key to McDonald’s recent success

January 27, 2016

According to CNN Money, McDonald’s has reported fourth-quarter revenues and earnings that topped analysts’ forecasts, led by a 5.7% jump in same-store sales in the United States. CEO Steve Easterbrook, who took over at McDonald’s nearly a year ago, said the company’s introduction of its all-day breakfast menu in October was the main reason that U.S. sales did so well. He also said that mild weather in the quarter helped. This was the second consecutive quarter of domestic same-store sales growth for the fast-food giant.

Additionally, the company reported that same-store sales rose 5% worldwide during the fourth quarter. The company said there was broad strength across Asia and Europe—and solid sales gains in emerging markets like Russia and China.

McDonald’s was one of the top stocks in the Dow last year and has held up well so far in what’s been a volatile 2016. The company has outperformed rivals such as Burger King owner Restaurant Brands, Wendy’s, and KFC/Taco Bell parent Yum Brands. It also has done better than some popular fast-casual restaurants, such as Panera and Chipotle.

In addition to the all-day breakfast push, the company is experimenting with new menu offerings, such as mozzarella sticks, mac and cheese, and sweet potato fries.

“We took bold, urgent action in 2015 to reset the business and position McDonald’s to deliver sustained profitable growth,” said Easterbrook. “We ended the year with momentum, including positive comparable sales across all segments for both the quarter and the year—a testament to the swift changes we made and the early impact of our turnaround efforts.”

CNN Money article

McDonald’s press release