Here are the winners and losers of breakfast fast food

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Because so many people stayed home for their breakfast and morning coffee, Taco Bell, Starbucks, and Tim Hortons suffered. Yet, over time, there have been signs of a comeback, primarily at McDonald’s and Wendy’s.

Here’s who wins and loses at breakfast based on a recent streak of earnings:

Mcdonalds (MCD) saw increased sales in stores open for at least a year for September and October for all parts of the day, including the morning. This is a reversal after several months of declining breakfast, even before the pandemic.

Although it did not launch anything new in the morning in the third quarter, the recovery was supported by stronger sales throughout the day. McDonald’s added celebrity meals and new flavors of chicken nuggets, which helped U.S. sales at stores open for at least a year to grow 4.6%.

Looking ahead, McDonald’s is focusing more on its McCafé line with new pastries and selling “hotter, faster and fresher coffee in a more consistent manner” that has “huge growth potential,” he said. said at a recent meeting of investors. However, plans to bring back All Day Breakfast have not been announced.

Winner: Wendy’s

Breakfast is always booming for Wendy’s. The meal, launched days before the pandemic hit the United States, accounted for 7% of sales in the third quarter. Although this is a slight decrease from the previous quarter, it remains a success for Wendy’s.

The meal “provides a layer of sales and profits that we didn’t have before,” noted CEO Todd Penegor in a November 4 earnings call. “We also find that our customer satisfaction scores are highest during breakfast day because customers love the offer we have on offer.

Notably, critics worried that the breakfast launch would cannibalize its sales for lunch and dinner. This is not the case, Penegor claiming that “the message around the quality food we deliver at breakfast is back to support our activities for the rest of the day.”

Wendy (MAGNIFYING GLASS) said he continues to develop the breakfast with more advertising and promotions.

Loser: Starbucks

No channel has been more disrupted by the sudden change in morning routines than Starbucks (SBUX). Sales in the United States in the last quarter at stores open at least one year fell 9%. It improved in September, when sales in stores open for at least a year fell just 4% due to the return of pumpkin and spice lattes.

However, the chain is optimistic for a recovery next year when it expects sales from stores open at least a year to drop to between 17% and 22%. Suburban and drive-thru locations recover faster than city locations.

Loser: Taco Bell

Breakfast sales, which historically accounted for 6% of Taco Bell’s sales, fell to 4% in the third quarter. This is the result of the fact that a significant portion of its American restaurants stopped selling it during the pandemic.

Yum! Brands (YUM) CEO David Gibbs said during his October 30 earnings call that he “is committed to having a long-term breakfast and expects to come back to it with all stores over time.”

Despite this, quarterly sales of stores open for at least one year increased by 3%.

Loser: Tim Hortons and Burger King

The two chains, owned by Restaurant Brands International (QSR), had a dismal third quarter. At Burger King, sales in the United States at stores open for at least a year fell 8%, in part because of its breakfast offerings.

CEO Jose Cil said “the pandemic disruption of morning routines and mobility contributed to our smoother performance in the morning,” in a call for results. He added that there were “areas for clear improvement in our breakfast offering” and will be rolled out in early 2021.

Tim Hortons, which is best known for its breakfast and coffee, also had a tough quarter. Sales fell 14% in Canada, where it is located and has approximately 5,000 restaurants.

“The spread of Covid-19 and the resulting home orders have had a particularly significant effect on routine high-frequency morning visits, which are a particularly important part of our business in Canada given our high rate of visit, ”Cil said.

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