McDonald’s Launches Donut Sticks to Entice New Customers

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In an effort to continue to reinvent itself, McDonald’s (MCD) has launched a new breakfast item that it hopes will re-energize its morning business.

The new Donut Sticks will be offered in a pack of six or a dozen. The treats are served warm and are sprinkled with cinnamon and sugar. Although McDonald’s serves breakfast all day long, this specialty item will only be available during breakfast hours. The company also hopes that these donuts will entice consumers to buy coffee to go along with them.

Although the fast-food giant was one of the first to enter the breakfast market in 1971, its market share has begun to slip as of late. The increasing competition is coming from rivals such as Taco Bell and Dunkin’s.

Breakfast is typically the hardest sell in the fast-food industry. Unlike lunch and dinner, most people are content to prepare breakfast at home. This is also the time of the day that shows the greatest promise for expansion since it is not as cluttered with other vendors.

Because of this potential, more restaurant executives are pouring their time and financial resources into growing this segment. Although McDonald’s has been largely successful in convincing existing customers to spend additional amounts of money, it is not attracting new customers during this morning time period.

Although the company will continue to test new items on a national scale, it is also giving local franchises the liberty to experiment with their own distinct breakfast items. The company hopes that this leeway will allow the franchises to compete directly with local businesses catering to the community.

McDonald’s also plans to continue to invest resources into expanding its McCafe line of breakfast beverages. In addition to new coffee drinks, the company plans to expand its line of bakery items.

The Donut Sticks were tested at various restaurants in Illinois earlier last year before the recipe was revamped. The item will debut nationwide on February 20.

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