RESTAURANT INDUSTRY (QSR) - EXTREME DISCOUNTING ALL DAY LONG

11/09/09 02:47PM EST

MCD is so competitive at breakfast it’s tough to imagine that a typical McDonald's store can support more customers during that day-part (you can only get so many people through a drive-thru).  The major QSR competitors don't have a competitive breakfast offering and those competitors who serve breakfast don't have a drive-thru that's competitive.

It looks increasingly like MCD will be rolling out a nationwide $1 menu at breakfast.  The first test market for the new $1 menu was Chicago. 

Today, Dunkin' Donuts is debuting a new 99-cent menu at 500 Chicago locations and handing out 20,000 cards pre-loaded with $2 each. 

The 99-cent menu includes a sausage, egg and cheese wrap; bacon, egg and cheese wrap; egg and cheese wrap; raspberry Danish; hash browns; and a pack of five Munchkins.  As part of its 99-cent menu, Dunkin' is offering a new wrap -- a sausage version -- available only in Chicago. 

According to the company, the 99-cent menu at Dunkin' will only last through Dec. 26, but the reality is that it will be a permanent fixture on the menu.

Extreme discounting is now moving to the most profitable part of the day.

© 2024 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.