This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

The Fight to Win Your Breakfast Dollar




By Darren Rovell,CNBC Sports Business Reporter

NEW YORK ( CNBC) --The fight is on to make your breakfast.

Why? Because it's the fastest growing segment of the quick service restaurant business.

Market research firm NPD Group says that 80% of morning meals are purchased from fast food establishments and research shows that people care less about the price of their breakfast than any other meal because it's so much about convenience and speed.

The way to a consumer's stomach might be through their coffee. Market research firm Technomic says that 33% of consumers who buy coffee are loyal to that brand or restaurant that sells it to them. That's up from 25% in 2009.

More from CNBC
Cyr: Food Inflation Squeezing Juice Business
Is Coconut Water Headed for a Boom or Bust?
Why Chipolte is Too Hot, Why One Trader Can't Stand Morgan Stanley

Starbucks (SBUX) has boosted sales by selling more breakfast sandwiches and wraps to go along with its standard fare of bakery items.

Earlier this month, in order to get a bigger piece of the market, Dunkin' Donuts (DNKN) re-did its bagel recipe calling it a chewier, "artisan" bagel, testing the response to new flavors like sun dried tomato.

Fast food breakfast has come a long way since McDonald's (MCD) introduced its Egg McMuffin in 1971. Almost every fast food player is ready to serve breakfast by 6 a.m. Even Taco Bell, which had been a breakfast holdout, has joined the game, unveiling its "First Meal" menu in February.

While bacon, sausage and ham are the traditional breakfast meats, turkey and chicken are on the morning rise. Technomic data indicates that younger consumers are more likely to buy those non-traditional breakfast meats, which is a good sign for establishments like Chick-fil-A, which has been serving chicken in its breakfast since 2004. Last year, the privately held Atlanta-based company, which did $4 billion in sales, boldly started serving its spicy chicken biscuit during morning hours.

The fight to win your breakfast dollar is also very competitive in the supermarket. Ready-to-drink coffee sales are up more than 40%, with Starbucks dominating the marketplace. Single-cup coffee sales, driven by Keurig machines, are up more than 90%. The single- cup business is now a $600 million business, according to SymphonyIRI Group, a Chicago-based market research firm.

One of the fastest rising breakfast food categories are cereal and granola bars, which reached $5.7 billion in U.S. retail sales, according to Packaged Facts.



--Written by Darren Rovell at CNBC

CNBC is a world leader in business news, providing real-time financial market coverage and business information.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs