The fast-food breakfast war is on


Taco Bell (YUM) plans to sell breakfast items such as waffle tacos, egg burritos, and a bacon wrap in a national roll-out that begins on March 27.

The initiative is a direct challenge to McDonald's (MCD +0.3%) which is exploring ways to expand its breakfast hours in order to meet later demand for morning fare.

In test runs in selects markets, Taco Bell had some success with breakfast offerings priced higher than McDonald's. But the adventures of Wendy's a couple of years ago in the breakfast category is a cautionary tale in assuming McDonald's and its +30% morning market share can be easily defeated.

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Comments (9)
  • Richard Adams
    , contributor
    Comments (271) | Send Message
     
    Due to already high volumes McDonald's will not be able to make extended breakfast operations work without further slowing service. It appears that McDonald's executives are so far removed from of what's really going on in the restaurants that they'll actually consider destructive changes like extending breakfast.
    24 Feb 2014, 02:38 PM Reply Like
  • roydye
    , contributor
    Comments (3) | Send Message
     
    I have to wait in line EVERYTIME at McDonald's. RA is right. Executives ought to go Mystery Shopping. They'd be shocked.

     

    Wendy's does not have breakfast HERE. If they did, they backup at McDonald's would shift t Wendy's.

     

    Roy. Memphis.
    24 Feb 2014, 02:50 PM Reply Like
  • Richard Adams
    , contributor
    Comments (271) | Send Message
     
    Wendy's has started and stopped a breakfast roll-out three times. Don't think it's ever going to happenn.
    24 Feb 2014, 03:03 PM Reply Like
  • SteveTheHawk
    , contributor
    Comments (2170) | Send Message
     
    I agree. Mostly, it was that WEN's breakfast food was just not that good, especially for the price.
    24 Feb 2014, 03:43 PM Reply Like
  • tomlos
    , contributor
    Comments (1299) | Send Message
     
    I can't say I sit in line too long whenever we decide to get some MCD breakfast... Anytime we do sit in line, it's not a big deal, not sure where you guys are though so it might make a difference.
    24 Feb 2014, 02:58 PM Reply Like
  • brucex50@mac.com
    , contributor
    Comment (1) | Send Message
     
    Yep, The MD execs would be SHOCKED at the slow pace and waiting periods in their " fast food" restaurants!
    24 Feb 2014, 03:16 PM Reply Like
  • rambler1
    , contributor
    Comments (1054) | Send Message
     
    With a menu so varied these companies are taking themselves back to calling them "Diners".
    24 Feb 2014, 03:23 PM Reply Like
  • GaryTB
    , contributor
    Comments (3) | Send Message
     
    McDonalds still dominates breakfast for fast food. Others have tried it and failed to capture anywhere near the share McDonalds has. They may have slowed service and made operations more complex but they have solved issues like this before. The McDonalds brand dominates the fast food space and will continue to be the leader decades into the future. The momentum play may be stalling but the long term buy and hold with reinvesting dividends still looks attractive.
    24 Feb 2014, 08:22 PM Reply Like
  • Richard Adams
    , contributor
    Comments (271) | Send Message
     
    You are right, McDonald's will continue to be the leader and that's why there is so much press coverage when a competitor makes a move. The headlines use words like "battle" or "war".
    25 Feb 2014, 01:16 PM Reply Like
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