I was
always told breakfast was the most important meal of the day. Apparently not
during a pandemic. While consumers have kept paying up for certain cravings --
pizza, in particular -- my colleague Teresa
Rivas notes that Americans are still not venturing out for breakfast, at
least not as they once did.
McDonald's said today that its U.S. comparable sales were down 5% in May from a year ago. That's pretty impressive given the ongoing work-from-home trends, and things would have been a lot better if not for breakfast. Some 95% of the company's restaurants are now open worldwide.
"In the U.S. right now the breakfast daypart is more than half of our comp sales decline," McDonald's CFO Kevin Ozan told investors at a conference Tuesday. "Lunch and dinner are relatively flat. Breakfast is, obviously, driving the overall comp negative.
The company isn't giving up on breakfast, but so far it's not pressing the matter either. "Breakfast is a habitual daypart," CEO Chris Kempczinski said at the same conference. "Once you disrupt that routine, it takes time to sort of rebuild it."
Sure enough, the restaurant chains most exposed to breakfast are struggling more than others. Shares of Starbucks and Dunkin Brands Group are both down about 13% in 2020, while Domino's Pizza is the best performing restaurant stock, up 29% on the year. Papa John's and Chipotle Mexican Grill come in second and third, with year-to-date gains of 27% and 22%, respectively.
McDonald's stock is down 4% on the year.
McDonald's said today that its U.S. comparable sales were down 5% in May from a year ago. That's pretty impressive given the ongoing work-from-home trends, and things would have been a lot better if not for breakfast. Some 95% of the company's restaurants are now open worldwide.
"In the U.S. right now the breakfast daypart is more than half of our comp sales decline," McDonald's CFO Kevin Ozan told investors at a conference Tuesday. "Lunch and dinner are relatively flat. Breakfast is, obviously, driving the overall comp negative.
The company isn't giving up on breakfast, but so far it's not pressing the matter either. "Breakfast is a habitual daypart," CEO Chris Kempczinski said at the same conference. "Once you disrupt that routine, it takes time to sort of rebuild it."
Sure enough, the restaurant chains most exposed to breakfast are struggling more than others. Shares of Starbucks and Dunkin Brands Group are both down about 13% in 2020, while Domino's Pizza is the best performing restaurant stock, up 29% on the year. Papa John's and Chipotle Mexican Grill come in second and third, with year-to-date gains of 27% and 22%, respectively.
McDonald's stock is down 4% on the year.
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