McDonald’s May Be About to Supersize its All-Day Breakfast Menu

Provided by The Street

McDonald’s successful all-day breakfast menu may be about to become supersized.

McDonald’s is currently testing an expanded all-day breakfast menu at 72 restaurants in the greater Tulsa area, a McDonald’s spokeswoman toldTheStreet. The new menu called “All Day Breakfast: Bigger Menu” features McGriddles, McMuffins, biscuits, pancakes and other breakfast items.

In addition, 84 restaurants in and around Greensboro, Winston-Salem, and High Point, North Carolina will also soon start testing the expanded breakfast menu.

When McDonald’s originally launched all-day breakfast back in October, it only consisted of Egg McMuffins and pancakes as the fast food giant sought to ease franchisees into handling the new menu.McDonald’s CFO Kevin Ozan said at an investor conference on Wednesday that some items would have to be pulled from the menu to accommodate more all-day breakfast items. But the McDonald’s spokesman did not disclose what items, if any, have been pulled from the menu in its test markets.

“We’re still in a testing phase, gathering feedback from the restaurants,” said the spokeswoman.

So far, the all-day breakfast platform has energized McDonald’s once sagging sales. The Golden Arches reported that fourth-quarter same-store sales in the U.S. surged 5.7%, the second consecutive quarterly increase. It was the best performance by McDonald’s since it reported an 8.9% same-store sales gain in the U.S. in the first quarter of 2012.

The expansion of the breakfast menu to include more items, potentially nationwide this year, may add a further jolt to sales.

“People are re-trying McDonald’s, and it’s adding a layer of sales to some meals,” Ozan said at the investor presentation. Ozan pointed out that people are adding Egg McMuffins to their lunch orders, which is boosting the average check value. Moreover, the availability of breakfast around the clock has led to people trading up from cheaper fare on the menu, according to Ozan.

Written by Brian Sozzi of The Street

(Source: The Street)

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