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For McDonald’s Breakfast Is the Most Important Meal of the Day

McDonalds To Offer Its Breakfast Menu All Day LongMcDonalds To Offer Its Breakfast Menu All Day Long
A McDonald's Egg McMuffinPhotograph by Justin Sullivan — Getty Images

McDonald’s (MCD) U.S. sales clocked yet another quarter of major gains as customers flocked to its All-Day Breakfast and McPick 2, as the company’s turnaround plan continues.

The world’s largest restaurant chain said U.S. comparable sales rose 5.4%, their third straight increase after what had been two years of declines.

CEO Steve Easterbrook, who took the reins in early 2015, credited changes to the menu and good deals for bringing people back.

“The ongoing investments we’re making in running great restaurants and delivering what matters most to our customers are beginning to yield sustained positive results,” Easterbrook said in a statement.

Globally, comparable sales, which are sales at restaurants that have been open at least 13 months, rose 6.2%. McDonald’s called out Britain, Australia, and Canada—markets where many of the company’s U.S. changes were first deployed—as standouts. Still, business was hard in markets like France, McDonald’s second-biggest after the U.S.

“We are on the right path to make even greater progress,” Easterbrook said.

On his watch, McDonald’s has sought to simplify its menu, shedding items that were either unpopular or slowed down the process in the kitchen. Easterbrook brought back All-Day Breakfast in the U.S. in October, finally yielding to what McDonald’s loyalists had been clamoring for for years. McDonald’s also introduced McPick 2 late last year; customers can pay $2 for two items among a selection of the McDouble and McChicken sandwiches, and other items.

 

The restaurant chain is looking to build on its momentum with ongoing tests of new products and tweaks to old ones. For example, in Columbus and Dallas, it is testing different sized Big Macs.

McDonald’s reported earnings per share of $1.23, higher than the $1.16 analysts were expecting. Shares have been trading around all-time highs of late.