Can Breakfast Give McDonald's A Boost?

McDonalds Corporation (NYSE: MCD)'s beloved breakfast is about to become a menu staple at locations around the country after customer demand gave the fast-food chain reason to pilot a 24-hour breakfast offering at select locations.

The company's test runs in several U.S. states proved positive, and beginning on October 6, customers arriving at 10:31 at any U.S. location will no longer be denied an Egg McMuffin.

Breakfast Demand

For years, customers have called for all-day breakfast options at McDonald's, but the firm said that serving both breakfast and lunch at the same time would be too great an operational challenge. However, after interest in McDonald's began to decline, the firm has decided to make all-day breakfast work.

Saved By The McMuffin

Over the past three years, McDonald's sales have been on the decline as consumers move away from the fast-food chain. However, the firm is hoping that polishing its image and improving its service will help revive the brand name.

The Most Important Meal Of The Day

While customers have been pleading with McDonald's to sell breakfast later in the day for years, some analysts are skeptical about whether or not the offering will revive the company's bottom line. For one, breakfast items are significantly cheaper than lunch menu offerings, so it could encourage patrons to order cheaper items in the afternoon.

Some say that although McDonald's breakfast is popular, it is unlikely to draw in a huge crowd in the afternoons. While 24-hour breakfast may encourage late-risers and partiers on their way home from the bar to indulge, it may not draw in a meaningful number of new customers.