It’s now been a little over three months since McDonald’s introduced all-day breakfast—the menu addition that customers had long clamored for—across the US.
It’s now been a little over three months since McDonald’s introduced all-day breakfast—the menu addition that customers had long clamored for—across the US.
And were there any doubts about the magical powers of the Egg McMuffin, just-released fourth-quarter results from the burger giant should be quashing them.
Join 500,000+ readers who start their day with Quartz.
By subscribing, you agree to our Terms of Service and Privacy Policy.
McDonald’s said Monday (Jan. 25) that sales at stores open for at least 13 months jumped 5.7% for the quarter ended Dec. 31. That’s the best US same-store sales figure the chain has reported in almost four years. Shares opened up nearly 3%, and were hovering around $120, near an all-time high, as of early afternoon.
“All-day breakfast was clearly the primary driver of the quarter,” Steve Easterbrook, McDonald’s CEO, told investors on a post-earnings conference call. “We knew it would be.”
The strong US results are a crucial affirmation for Easterbrook, who has now spent the better part of a year attempting to rebrand McDonald’s as a “modern, progressive burger company.” When Easterbrook took the reins last March, McDonald’s was in a grim state. Sales had plunged. Workers were protesting. Ronald McDonald had gotten a terrifying makeover. Defeat was palpable. The signature “I’m lovin’ it” slogan was tweaked to ”lovin’ beats hating’.”
Under Easterbrook, McDonald’s has dramatically changed course. The chain has pushed out a slew of initiatives designed to make its fast-food offerings appeal to health-conscious and sustainability-minded consumers. Those are the same consumers who, in recent years, have gravitated to fast-casual chains such as Chipotle $CMG and so-called “better burger” retailers like Shake Shack and Five Guys. McDonald’s is trying to bring back some of those customers with commitments to things like cage-free eggs and reduced antibiotics in chicken.
That said, the single most important change McDonald’s made wasn’t about any of those values. It wasn’t about “fresh” or “healthy.” All-day breakfast was simply about giving the core customer something they really, really wanted. And it’s working.
