Mountain Dew and Orange Juice: Taco Bell Breaks Into Breakfast
Another day, another food invention that the public never saw coming. Now, fast food diners not only have the option of topping off their dinners with Burger King's (NYSE: BKC) bacon sundae, but they can begin their day with YUM Brands' (NYSE: YUM) latest invention: the Taco Bell A.M. Crunchwrap paired with an A.M. drink.
The latest dish to be served up at Taco Bell includes a mixture of cheese, scrambled eggs, bacon or sausage, and hash browns. The ingredients will be wrapped up in a warm flour tortilla -– an essential differing piece of the meal that sets the breakfast wrap apart from McDonald's (NYSE: MCD) reigning Egg McMuffin sandwich.
Perhaps the most head-scratching factor of "FirstMeal" is the beverage designed to accompany it. Staying true to Taco Bell colors, Mountain Dew will be served alongside the A.M. Crunchwarp –- however, it will come with Tropicana Orange Juice mixed in.
“For those who have been stuck with boring breakfast sandwich options, Taco Bell now gives them a compelling reason to break their breakfast routine,” said Taco Bell's Chief Marketing and Innovation Officer Brian Niccol in the company's press release.
Friday marks the inauguration of Taco Bell's sure-to-evolve breakfast menu, which might explain why YUM was up about 0.16 percent in afternoon trading.
“Over the past four decades, Americans have lulled themselves into a breakfast routine. In the spirit of our tagline, Live Más, we want to offer consumers a chance to change up that routine with the reinvention of traditional breakfast – the A.M. Crunchwrap,” Niccol noted.
The routine Niccol is likely referring to was pioneered by McDonald's back in 1972. Still serving warm breakfast sandwiches to this day, McDonald's has maintained a strict cut-off time where the drive-thru and in-house menus flip to lunch at 10 a.m.
Taco Bell customers will not experience the same punishment for showing up late. Whether hung-over or simply craving a few extra hours of shut eye, customers that have a hankering for Taco Bell's FirstMeal won't be cut off until 11 a.m.
The A.M. Crunchwrap is just an additional part to YUM's strategy to ramp up sales. Approximately 815 Taco Bell locations will now open between 8 and 9 a.m., a full hour or so earlier than before.
According to Jefferies, although incremental news was limited at the recent analyst day, YUM's plan to erect more locations in emerging markets will further poise the company to experience growth. Perhaps with its new caliente breakfast menu, YUM investors will become further encouraged that the company will meet its annual target growth of 10 percent.
The A.M. Crunchwrap is available for $2.49 at participating locations, while the Mountain Dew A.M. thirst quencher sells for $1.69 (regular) and $1.99 (large).
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