McAlester News-Capital, McAlester, OK

Community News Network

February 24, 2014

Taco Bell to take on McDonald's breakfast with eggs in waffles

Ident: X4271

Selector: tmlaa

Priority: r

Slug: bc-tacobell

bc-tacobell 02-24 619

(bbg) (ATTN: Financial editors)

//Taco Bell to take on McDonald's breakfast with eggs in waffles//

By Leslie Patton

(c) 2014, Bloomberg News.



Americans will soon be able to get their morning eggs wrapped in a waffle taco.

Yum Brands' Taco Bell chain will introduce breakfast foods such as waffle tacos, egg burritos and the bacon A.M. Crunchwrap nationwide on March 27. The move expands on a trial run that began in some locations in 2012, bringing a breakfast menu to 5,500 of Taco Bell's more than 5,700 U.S. restaurants.

 In pursuing morning diners, the chain is going up against McDonald's, the maker of the Egg McMuffin and the industry's top breakfast seller, said Bob Goldin, an executive vice president at Chicago-based industry research firm Technomic. McDonald's accounts for 31 percent of all fast-food sales in the morning, according to Technomic data.

"No one has come up with an Egg McMuffin killer," Goldin said in an interview. "It's an iconic product; it's hard to compete against."

For Taco Bell and other chains, breakfast represents a bright spot in an industry battered by competition and slumping consumer confidence. At fast-food and fast-casual restaurants, revenue from breakfast items grew 4.8 percent annually on average from 2007 to 2012, climbing to $31.7 billion, according to Technomic. That outpaced total sales growth of about 2.5 percent a year during that time.

As chains struggle to attract diners and boost same-stores sales, McDonald's and Burger King Worldwide have said they're focused on improving and advertising their morning menus. Starbucks also plans to revamp its breakfast sandwiches next month.

Taco Bell began testing breakfast foods in some locations about two years ago, offering items such as scrambled egg- stuffed waffles. Taco Bell's test items, which will now be offered nationally, include the $2.49 bacon A.M. Crunchwrap, which packs 650 calories, and a $1.79 coffee. That's pricier than the fare at McDonald's, which sells sausage burritos, sausage biscuits and cups of coffee for $1 each in its 14,100 U.S. restaurants.

Most Americans aren't willing to spend more than $3 on a fast-food breakfast, Goldin said. It's hard to challenge McDonald's, where "you can get breakfast really cheap."

Past attempts at selling breakfast food haven't gone well. Wendy's tested morning foods such as home-style potatoes and chicken biscuits in certain U.S. markets from 2010 to 2012. The company said last year that it was discontinuing breakfast because it wasn't satisfied with its financial performance.

Shares of Louisville, Ky.-based Yum, which also owns KFC and Pizza Hut, have decreased 3.7 percent this year through the close of trading last week. McDonald's, based in Oak Brook, Ill., is little changed this year, while Burger King has gained 14 percent.

Like Taco Bell, Burger King is trying to boost sales by appealing to consumers in the morning. In January, the Miami- based company gave away free cups of Seattle's Best coffee when customers bought one of their 18 different breakfast sandwiches. They also sell French toast sticks, sausage burritos and fruit smoothies.

"Breakfast is an opportunity," Alexandre Macedo, president of Burger King's North American unit, said during an earnings call earlier this month. "We started to work in breakfast in January, and we expect to continue to do that by the end of the year."

Burger King posted a 0.2 percent fourth-quarter gain in same-store sales in the U.S. and Canada, a better performance than McDonald's and Yum, which both reported declines.

"Doing breakfast right is very difficult," said Gary Stibel, founder and chief executive officer of the Norwalk, Conn.-based New England Consulting Group, which has advised restaurants such as McDonald's and Taco Bell in the past. It's not just about the menu, he said. Speed is critical.

"You've got to be able to get people in and out," he said.



 

1
Text Only | Photo Reprints
Community News Network
  • Dangerous Darkies Logo.png Redskins not the only nickname to cause a stir

    Daniel Snyder has come under fire for refusing to change the mascot of his NFL team, the Washington Redskins. The Redskins, however, are far from being the only controversial mascot in sports history.  Here is a sampling of athletic teams from all areas of the sports world that were outside the norm.

    July 28, 2014 3 Photos

  • 'Rebel' mascot rising from the dead

    Students and alumni from a Richmond, Va.-area high school are seeking to revive the school's historic mascot, a Confederate soldier known as the "Rebel Man," spurring debate about the appropriateness of public school connections to the Civil War and its icons.

    July 28, 2014

  • Fast food comes to standstill in China

    The shortage of meat is the result of China's latest food scandal, in which a Shanghai supplier allegedly tackled the problem of expired meat by putting it in new packaging and shipping it to fast-food restaurants around the country

    July 28, 2014

  • wd saturday tobias .jpg Stranger’s generosity stuns Ohio veteran

    Vietnam War veteran David A. Tobias was overwhelmed recently when a fellow customer at an OfficeMax store near Ashtabula, Ohio paid for a computer he was purchasing.

    July 28, 2014 1 Photo

  • Screen Shot 2014-07-28 at 1.33.11 PM.png VIDEO: High-dive accident caught on tape

    A woman at a water park in Idaho leaped off a 22-foot high dive platform, then tried to pull herself back up with frightening results. Fortunately, she escaped with only a cut to her finger.

    July 28, 2014 1 Photo

  • CATS-DOGS281.jpg Where cats are more popular than dogs in the U.S.-and all over the world

    We all know there are only two types of people in the world: cat people and dog people. But data from market research firm Euromonitor suggest that these differences extend beyond individual preferences and to the realm of geopolitics: it turns out there are cat countries and dog countries, too.

    July 28, 2014 1 Photo

  • How spy agencies keep their 'toys' from law enforcement

    A little over a decade ago, federal prosecutors used keystroke logging software to steal the encryption password of an alleged New Jersey mobster, Nicodemo Scarfo Jr., so they could get evidence from his computer to be used at his trial.

    July 25, 2014

  • cleaning supplies Don't judge mothers with messy homes

    I was building shelves in my garage when a neighbor girl, one of my 4-year-old daughter's friends, approached me and said, "I just saw in your house. It's pretty dirty. Norah's mommy needs to clean more."

    July 25, 2014 1 Photo

  • Arizona's prolonged lethal injection is fourth in U.S. this year

    Arizona's execution of double-murderer Joseph Wood marked the fourth time this year that a state failed to dispatch a convict efficiently, according to the Constitution Project, a bipartisan legal group.3

    July 24, 2014

  • Police Brutality screen shot. Technology plays key part in battling police brutality (VIDEO)

    Allegations of police brutality are nothing new -- as long as there has been law enforcement, citizens have registered claims that some officers cross the line. But in the last few years, the claims of excessive force are being corroborated with new technology from cell phone cameras, police dash-cams and surveillance videos. 

    July 24, 2014 1 Photo

Seasonal Content
AP Video
Raw: 2 Shells Hit Fuel Tank at Gaza Power Plant Raw: Massive Explosions From Airstrikes in Gaza Giant Ketchup Bottle Water Tower Up for Sale Easier Nuclear Construction Promises Fall Short Kerry: Humanitarian Cease-fire Efforts Continue Raw: Corruption Trial Begins for Former Va Gov. The Carbon Trap: US Exports Global Warming UN Security Council Calls for Gaza Cease-fire Traditional African Dishes Teach Healthy Eating 13 Struck by Lightning on Calif. Beach Baseball Hall of Famers Inducted Israel, Hamas Trade Fire Despite Truce in Gaza Italy's Nibali Set to Win First Tour De France Raw: Shipwrecked Concordia Completes Last Voyage Raw: Sea Turtle Hatchlings Emerge From Nest Raw: Massive Dust Storm Covers Phoenix 12-hour Cease-fire in Gaza Fighting Begins Raw: Bolivian Dancers Attempt to Break Record Raw: Israel, Palestine Supporters Rally in US Raw: Air Algerie Flight 5017 Wreckage
NDN Video
Staten Island Man's Emotional Dunk Over NYPD Car - @TheBuzzeronFOX "The Bachelorette" Makes Her Decision 'Hunger Games: Mockingjay Part 1' Sneak Peek GMA: Dog passes out from excitment to see owner Chapter Two: Designing for Naomi Watts Baseball Hall of Famers Inducted Florida Keys Webcam Captures Turtles Hatching Morgan Freeman Sucks Down Helium on 'Tonight Show' Robin Wright Can Dance! (WATCH) She's Back! See Paris Hilton's New Carl's Jr. Ad Big Weekend For Atlanta Braves In Cooperstown - @TheBuzzeronFox Chapter Two: Becoming a first-time director What's Got Jack Black Freaking Out at Comic-Con? Doctors Remove 232 Teeth From Teen's Mouth Bradley Cooper Explains His Voice in 'Guardians of the Galaxy' Deja vu: Another NYPD officer choke-holding a suspect 'Fifty Shades of Grey': Watch the Super Sexy First Trailer Now! Reports: Ravens RB Ray Rice Suspended For 1st 2 Games Of The Season Air Algerie plane with 119 on board missing over Mali Diamond Stone, Malik Newman, Josh Jackson and others showcase talent
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.