The fast-food breakfast war is on

|By:, SA News Editor

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.