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Aetna’s $37 Billion Humana Takeover Blocked by Judge
Photographer: Daniel Acker/Bloomberg
McDonald’s All-Day Breakfast Push No Longer Fueling Growth
by Craig Giammona
January 23, 2017, 8:06 AM EST January 23, 2017, 9:59 AM EST
Expanding breakfast had given chain a boost over past year
Company now looking to technology upgrades to increase sales
All-day breakfast is beginning to lose its novelty for McDonald’s Corp.
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When the company’s U.S. restaurants started serving Egg McMuffins and other morning fare at all hours in 2015, the change elated customers and fueled a yearlong sales surge. But now the effect is waning: While overall earnings beat analysts’ estimates last quarter, domestic same-store sales fell 1.3 percent.
The slowdown from all-day breakfast leaves McDonald’s in search of its next big source of U.S. growth. The company is looking to technology, such as touch screens and mobile ordering, to help fuel domestic sales. But it’s not clear how quickly that will pay off, said Michael Halen, an analyst at Bloomberg Intelligence.
“We still don’t know where the sales are going to come from,” he said. “People are in wait-and-see mode.”