Waffle tacos and ribs: Rivals go after McDonald's
The new offerings are about to make the fast-food landscape even more hostile for Ronald and company.
Just as McDonald's started plying China with Egg McMuffins and teasing Americans with the prospect of all-day breakfast, Yum Brands (YUM) strikes back through its Taco Bell restaurants by testing a fried, scrambled-egg-and-sausage-stuffed waffle taco on the breakfast menu in select California markets. At 89 cents, it's even cheaper than the items on Taco Bell's prototype value menu that's being prepped to go head-to-head with McDonald's Dollar Menu.
This might tempt McDonald's to go nuclear and relaunch the McRib sandwich (pictured) yet again to shore up numbers. Even that sandwich has prompted a fast-food arms race, however, as Burger Business notes that Burger King (BKW) is including a boneless rib sandwich of its own in a limited-time summer menu that also includes a Carolina BBQ sandwich, a pulled pork sandwich and sweet potato fries.
This is the corner McDonald's has been backed into. McDonald's first-quarter same-store sales, a key restaurant metric of sales at locations open for at least one year, were off 1% worldwide. While the chain cites the loss of an extra sales day from 2012's leap year, the spit-take reaction to its new Fish McBites here in the States and competition from fast-casual chains like Panera Bread (PNRA) and Chipotle Mexican Grill (CMG) certainly haven't helped.
Instead of turning competitors' strengths against them, as it did with Starbucks (SBUX) and Jamba Juice (JMBA) by launching McCafe coffee drinks and smoothies a few years back, McDonald's is now forced to react to its foes' slightest tweaks as costs rise. Angus burgers get replaced with cheaper Quarter Pounder styles. Its CEO starts pondering delivery at shops in some U.S. cities after Burger King launched delivery service last year.
With Panera, Chipotle, Five Guys and In-N-Out Burger battling McDonald's for the high end of the fast-food market as Taco Bell keeps filling the basement with Doritos Locos taco shells, McDonald's is feeling the pinch. Now that it has to battle for breakfast and battle a McRib competitor, it has to make a choice: deep reinventing away from its original model or going back to its burgers-and-fries roots. Its roads in both directions are looking pretty clogged.
More on moneyNOW
The McRib was great, about 10 years ago. Now it's like all of McD's food - bland and poorly made.
Most everything on their menu tastes great if you're drunk or stoned at 3am. Otherwise, eat somewhere else.
Didn't Burger King have that pulled pork sandwich last summer? How is the introduction of a boneless rib sandwich seizing "the low ground"? Because McDonalds had a rib sandwich first and BK is "copying" them? Didn't McD do essentially that with the McCafe coffees and smoothies?
I always preferred the food at BK over McD but the prices were too high.
Mcdonalds I love u and I hate u!
and what was in it. It stated that in making the McRib, TRIPE (Stomach lining),
and other parts that have nothing to do with rib meat were pressed and used to make these little nuggets of goodness.
Not in a million years wouls I eat at McD's............
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The good news: Bad weather means fewer drivers on the road, and they're going slower than usual. The bad news: It's still dangerous.
- 8 questions to ask before Mom and Dad move in
- High deductibles fuel new worries of Obamacare sticker shock
- How to use your credit card to donate to charity
- Try this instead of raising the minimum wage
- People left $500,000 in coins at airports last year
- How your driving can affect your credit
- Obamacare projected to cost hundreds of billions less
- November jobs report: Winners and losers
- Student loan debt climbs for 5th year in a row
[BRIEFING.COM] S&P futures vs fair value: -3.60. Nasdaq futures vs fair value: -5.30. U.S. equity futures hover near their lows after spending the past hour in a steady decline with comparable price action across European indices. The S&P 500 futures trade lower by 0.2% while markets in France, Germany, and the United Kingdom display losses close to 0.4% apiece.
The retreat in futures has coincided with a continuation of an overnight bid in the Treasury market. The benchmark ... More
More Market News
Poor sales numbers disappointed investors. What's worse, the fast-food chain might also be facing long-term headwinds.