Apr. 4, 2014, 9:08 AM
- Burger King (BKW) isn't sitting out the all-out war for fast-food breakfast traffic, observes Hedgeye's Howard Penney.
- As Taco Bell (YUM) aggressively markets its new breakfast menu and McDonald's (MCD) promotes a free coffee week, Burger King has numerous breakfast items on sale at the $1 price point.
- Restaurant analysts see the three chains fighting for the same early on-the-go crowd, while Starbucks (SBUX) maintains its market share.
Mar. 31, 2014, 9:32 AM
- The breakfast war between McDonald's (MCD) and Taco Bell (YUM) has gone viral with both sides taking their online marketing spin to higher levels.
- The entry by the Yum Brands chain into the $50B fast-food breakfast market hasn't gone unnoticed by McDonald's which is vigorously defending its turf.
- This week and next, McDonald's is offering a free small coffee to all customers at participating restaurants.
Mar. 28, 2014, 10:30 AM
- McDonald's (MCD +0.4%) announces it will run a free coffee promotion from March 31 to April 13 across the U.S.
- Customers can receive their free small coffee during breakfast hours at participating restaurants.
- What to watch: The initiative appears to be a direct shot at stealing the thunder away from Taco Bell's large breakfast push. Taco Bell has coffee, but is still working on upgrading stores to sell premium coffee products.
- Earlier this week, an exec with Taco Bell (YUM) said the company will push marketing lever it has to win breakfast share. It appears the next lever for the chain is free coffee.
Mar. 27, 2014, 1:53 PM
- Taco Bell (YUM) rolled out a breakfast menu to 5.5K restaurants today.
- A new national marketing campaign from the company takes dead aim at McDonald's, while prices on breakfast items were also strategically set with a goal to take a bite out of the Golden Arches' market share.
- It marks the biggest bet the fast-food chain has ever made in the competitive daypart.
- "Every marketing lever we have, we’re going to pull for breakfast," says Chief Marketing Officer Chris Brandt.
Mar. 27, 2014, 7:28 AM
- Yum Brands (YUM) has launched a new menu for its KFC chain in China in an attempt to restore confidence with consumers after a flap over its chicken sourcing.
- The new additions include three rice dishes.
- Yum is also trying to freshen up the KFC brand with new store designs and packaging.
- In Q4, same-store sales fell 4% for the company in China.
Mar. 27, 2014, 3:57 AM
- Yum Brands (YUM) unit KFC intends to overhaul its menu in China, launch a marketing campaign involving celebrities and digital initiatives, and revamp its restaurant design as part of an attempt to escape the effects of a food scandal that has hit sales for well over a year.
- Yum, which generates a large part of its revenues in China, intends to open 700 stores in the country in 2014. (PR)
Mar. 20, 2014, 6:55 AM
Mar. 12, 2014, 2:53 PM
Mar. 12, 2014, 7:08 AM
- Breakfast traffic at restaurants increased 3% last year to easily outpace lunch and dinner visits which both showed declines, according to NPD data.
- Quick service restaurants accounted for close to 80% of all the breakfast visits by consumers.
- McDonald's (MCD) and Starbucks (SBUX) strengthened their breakfast market share position during the year, but a host of companies including Taco Bell (YUM) and Chipotle (CMG) are testing new formats and breakfast items.
Mar. 6, 2014, 9:12 AM| Comment!
Feb. 24, 2014, 2:35 PM
- 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.
Feb. 4, 2014, 9:11 AM
Feb. 3, 2014, 4:58 PM
- Same-store sales declined 4% in China, and 2% in the U.S. They grew 2% at YRI.
- In China, KFC same-store sales fell 4% during the Q and 15% for 2013. Pizza Hut same-store sales grew 5% in the Q and 4% for the year.
- Worldwide restaurant margin fell 20 basis points to 14.2%, including a 30 bp decline in the U.S. and 140 bp decline at YRI. Margins 40 bps higher in China.
- CEO David Novak: "We are confident we have the people and resources to deliver at least 20% EPS growth in 2014 and re-establish our track record of double-digit EPS growth."
- 10.9M shares repurchased during 2013 at an average price of $69 each.
- CC tomorrow at 9:15 ET
- Press release, Q4 results
- YUM +3.6% AH
Feb. 3, 2014, 4:43 PM| Comment!
Feb. 3, 2014, 12:10 AM
Feb. 2, 2014, 5:35 PM
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