This Day On The Street
Continue to site
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

Can Taco Bell Win The Breakfast Wars Against McDonald's?

NEW YORK ( TheStreet) -- The breakfast wars have gone nuclear. Yum! Brands' (YUM - Get Report) Taco Bell launched its breakfast menu last Thursday, treading on turf long dominated by hamburger king McDonald's (MCD - Get Report)

The Tex-Mex chain entered the mix with no holds barred, kicking off its breakfast debut with a cheeky advertising campaign featuring real-life Ronald McDonalds extolling the menu's virtues.

That one-two punch was countered by condescension from McDonald's.

Then, the fast-food chain revealed its hidden trump card. In its latest offensive, it will offer free McCafe coffee in stores for two weeks from March 31 to April 13, a loss-leading bet to encourage store traffic. This marks the first time the company has offered a nationwide coffee promotion. 

The chain throwing its weight around is understandable given how important breakfast sales are to overall revenue. According to Associated Press estimates, sales between the four-and-a-half-hour stretch to 10:30am comprise 20% of total revenue. Research firm Technomic notes the burger giant holds a 31% share of a robust $5-billion on-the-go breakfast market.

The Oak Brook, Ill.-based chain has maintained this strong foothold since it launched its first Egg McMuffin in 1975. Sure, Wendy's (WEN) has its own fast-food lineup and Starbucks (SBUX) and Panera (PNRA) have their cafe-style fare, but for convenient, on-the-move offerings before 11am McDonald's has reigned supreme. Can Taco Bell end that decades' long winning streak?

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MCD $101.17 1.38%
YUM $83.05 1.78%
AAPL $110.78 0.36%
FB $94.01 2.11%
GOOG $641.47 2.32%


Chart of I:DJI
DOW 16,776.43 +304.06 1.85%
S&P 500 1,987.05 +35.69 1.83%
NASDAQ 4,781.2640 +73.4890 1.56%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs