According to data from Placer.ai, fewer consumers are visiting quick-service restaurants for breakfast since the start of the pandemic. Bernstein analyst Danilo Gargiulo told Yahoo Finance: "A lot of competition is now stepping up to win." Fast food giants like McDonald's (MCD) and Wendy's (WEN) have been stepping up their breakfast game to win over customers.
Yahoo Finance Reporter Brooke DiPalma joins Yahoo Finance to explain how these companies will adapt operations to continue to grab customers' attention.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Nicholas Jacobino
Video Transcript
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JULIE HYMAN: McDonald's, Wendy's, and other fast food Giants are vying for diners morning dollars. Duking it out when it comes to enticing customers at breakfast time as foot traffic has declined since the pandemic. But not all are getting sweet results.
So Brooke DiPalma has been digging into new data joins us now. So where are people going for breakfast?
BROOKE DIPALMA: Good morning, Julie. Good afternoon. I'm thinking morning. I'm thinking breakfast. Good afternoon, Julie.
McDonald's is still taking the cake here. It's important to note that McDonald's does still dominate the breakfast game with their coveted.
Egg McMuffin, really a known brand among so many consumers. They currently have roughly 35% of total market share here when compared to other fast food chains, coffee, breakfast, bakery, and dessert shops, when compared to all those. And that's followed by long breakfast players, Starbucks and Dunkin'.
And then a newcomer Burger King holding 4.4% share leaning into value with its March promotion. That customers can get a free breakfast item with any purchase of $1 or more. That's then followed by Wendy's.
And now, Wendy's really doubling down on increasing morning visits. They introduced breakfast back in 2020. And they're now investing $55 million in advertising in the US and Canada to increase that sales. Those sales, the morning daypart.
That's followed by Taco Bell. They currently have 1.9%. But they're leaning on innovation with breakfast tots, as well as value offerings like the Bell Breakfast box.
But all of these companies are really looking to tap into a new customer here. Not necessarily take away a customer from another daypart. And the street thinks that this addition could really benefit companies.
They could see incremental foot traffic here. Once again, additional foot traffic, not taking away from another daypart. Perhaps someone who is looking to step away from that pricey brunch, and also, still go out.
In addition to that, breakfast requires lower staffing needs. And you're tapping into lower cost food. Think eggs. Think bread. But execution is really key here, given the additional inventory that's needed.
You also do need staff to man these hours. They need to make sure that there is a sufficient demand here in order to make sure the margins don't deteriorate here and make sure that it works out.
JARED BLIKRE: Taco Bell Breakfast. I have yet to take that plunge. Sounds interesting though. Thank you for that, Brooke.
