Why McDonald’s Is Adding a New Breakfast Item

February 11, 2019 by Chris Lange

McDonald’s Corp. (NYSE: MCD) announced early on Monday that it would be introducing a new item on its breakfast menu. The Golden Arches is introducing McCafé Donut Sticks, which will only be available for a limited time starting February 20.

This move seems to be engineered by management after the burger chain announced that it saw its all-day breakfast sales fall off in its most recent quarterly results.

Linda VanGosen, McDonald’s Vice President of Menu Innovation, commented:

We are proud of our breakfast offerings, and excited to share new Donut Sticks with our customers. Donut Sticks are the perfect complement to our existing breakfast lineup, and pair deliciously with our fresh brewed premium roast McCafé coffee. We initially tested them in select Illinois restaurants in early 2018, and then again in October 2018, as it was critical that we perfected them before we brought them to our customers nationwide. We looked at several donut shapes, tested a variety of doughs and even worked to get the amount of cinnamon sugar just right for the recipe. We are thrilled to be making breakfast at McDonald’s even more delicious by introducing Donut Sticks.

McDonald’s has underperformed the broad markets, with its stock down about 1.6% year to date. In the past 52 weeks, the stock is actually up 5.5%.

Shares of McDonald’s closed Friday at $174.75, in a 52-week range of $146.84 to $190.88. The consensus analyst price target is $196.78.

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