Taco Bell Breakfast War With McDonald's Has No Winner, Just a Loser

Tuesday, 29 Apr 2014 06:19 PM

By Angela Deines

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There is no clear winner yet as Taco Bell and McDonald’s continue to battle it out for breakfast supremacy, but there does appear to be a loser in the war for consumers’ morning taste buds.

Because both mega chains are facing stiff competition from other restaurants, it’s too soon to know when or if either of the mega chains will "win," but for now, the loser appears to be the shareholders, The Fiscal Times reports.

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McDonald’s same-store sales and company earnings have continued to fall for eight months in a row, according to The Fiscal Times, and expensive marketing campaigns against the growing field of competitors are eating into profits. McDonald's CEO Don Thompson has announced he will be introducing a new marketing campaign soon, which expected to tout that McDonald’s prepares breakfast fresh without using microwaves.

Taco Bell rolled out its waffle taco and other breakfast options in March, but according to Business Insider, Taco Bell isn’t expected to blow away their competition any time soon, either.

Yum Brands Chairman and CEO David Novak told analysts last week that he expects his company to gain about $100,000 in “incremental business” in their Taco Bell breakfast sales which would constitute about 7 percent of the chain’s overall sales revenues. That compares to 25 percent that McDonald’s has in breakfast sales and Hardee's' 45 percent.

While McDonald’s and Taco Bell may be trying to win the breakfast wars, they continue to get stiff competition from “fast casual” chains like Panera and Chipotle that are beginning to offer healthier menu options.

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