While businesses routinely pay incredible sums of money to track down elusive secrets to success, the golden solution is often right there in front of your nose. For McDonald’s, it seems the golden was apparently hiding in an Egg McMuffin all along. Or should that be, a pretty huge torrent of them.
Bouncing back in a big way, the burger chain’s earnings announced Friday painted a picture of the kind of prosperity even the most optimistic analysts hadn’t predicted. Announcing Q1 earnings of $1.23 per share on $5.90 billion in revenue, the company credited its new all-day breakfast drive with much of the positive performance.
Initially outed as an experimental venture, it proved to be an unstoppable success nationwide.
“I’m pleased to report that our turnaround is taking hold,” beamed CEO Steve Easterbrook.
The company’s performance beat out the expectations of analysts by quite a margin, having predicted in the region of $1.16 a share on $5.83 billion revenues. With competition having intensified from all corners, the all-day breakfast concept was first outed in the Unites States last October, at which time it became apparent it was a move millions of diners had been waiting for.
It has since gone on to play a decisive role in helping McDonald’s regain its strong position and beat quarterly earnings estimates.
“Breakfast all day is a platform for them, not just a promotion, and it’s driving good traffic growth, it’s driving some good check growth. I think it’s going to continue,” said Peter Saleh, restaurant analyst at BTIG, in an interview with CNBC.
As for where to go next, many analysts believe the key to long-term growth and stability lies in improving the company’s core menu, over and above changes to operational policies and special promotions. Despite having made enormously improvements over recent years, McDonald’s continues to be near-universally interpreted as a brand of low prices and equally low product quality.