McDonald’s Corporation (MCD): It’s Difficult to Beat This Fast Food Behemoth

The Wendy’s Company (NASDAQ:WEN) is trying to play the game a little differently. Given the aggression that McDonald’s is showing with the menu, Wendy’s is trying to differentiate itself with more upscale items like the flatbread grilled chicken sandwich or the upcoming pretzel-bacon cheeseburger.

In Europe, McDonald’s Corporation (NYSE:MCD) has mostly stuck to staples like fries, burgers, and nuggets, but it is preparing to roll out more options. In China, it recently rolled out rice based options to appeal to the local taste. Although the reviews have not been too flattering, the launch does indicate the company’s intent.

The late night game

So far, the “Fourth Meal” has been Taco Bell’s territory. Wendy’s (NASDAQ:WEN) is also a pioneer in the late night segment with its “eat great, even late” campaign almost 20 years back. Now, McDonald’s is planning to invade this space with full gusto.

Approximately 50% of the 14,000 odd McDonald’s outlets in U.S. are open 24 hours a day. And the company has said that it would roll out dinner and breakfast options from midnight to 4 a.m. in some of these restaurants from this month.

While the whole breakfast menu will not be available before standard breakfast hours, favorites like the Egg McMuffin (and its Egg White Delight variant), sausage burritos, hot cakes, oatmeal, and hash browns will surely be there. They will co-exist with staples like Big Mac burgers and chicken nuggets.

The “After Midnight” menu has the potential to take share from some of the late-night competitors due to the popularity of the breakfast items that McDonald’s offers.

Last word

Some executives from the fast food industry are saying that this is the toughest competitive environment they have ever seen. But given McDonald’s recent performance as well as the depth of its strategies, I feel confident that the Golden Arches will continue to shine bright and investors will reap the results.

Gaurav Basu has no position in any stocks mentioned. The Motley Fool recommends Burger King Worldwide and McDonald’s Corporation (NYSE:MCD). The Motley Fool owns shares of McDonald’s. Gaurav is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article It’s Difficult to Beat This Fast Food Behemoth originally appeared on Fool.com and is written by Gaurav Basu.

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