Yum! vs. McDonald's: The Breakfast Battle

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April 22 (Bloomberg) -- McDonald’s free coffee may have slowed diners’ rush to check out Taco Bell’s waffle tacos. Bloomberg's Julie Hyman examines the breakfast competition between McDonald's and Yum! Brands on Bloomberg Television's "Street Smart." (Source: Bloomberg)

The battle of breakfast.

The battle of the bulge, seriously, right?

It is.

We're talking about mcdonald's and yum brands.

Yum owns taco bell that came out with the waffle taco and is now offering breakfast.

Mcdonald's recently had been offering free coffee in an effort to solidify its commanding lead in breakfast and has about 25% market share when you look at q.s.r., quick service restaurants and its breakfast share and mcdonald's came out with its numbers today and it still, you know, it's still not doing fantastic in the united states, although it's doing less worse, you could say, and i saw a lot of talk today about sort of stabilization.

So it still saw a negative .6% read for its com probable sales in the month of march.

However, it's been incrementally getting better if you look over the past several months.

And there's a lot of talk among mcdonald's analysts about execution in the second half of the year that they've been expanding their menu.

We talked a lot about that.

Franchisees aren't happy with it and customers aren't necessarily real happy with it but that mcdonald's is really going to focus on with that expanded menu, with more customization, getting the orders right, getting them out faster and getting the kitchens to operate better.

What they might want to do, i noticed taco bell is serving a waffle-stuffed taco for breakfast.

Yesterday we had the kentucky fried chicken has the double down.

Right.

The fast food companies are trying to get attention by going over the top by serving food that's incredibly unhealthy, not just normally unhealthy but in your face like michelle obama go sit on it unhealthy.

And if mcdonald's came out with like the artery clogger or the guaranteed heart attack or the you'll do poorly in school happy meal, maybe they'd sell more.

To be fair, the double down which you ate yesterday as much as you're saying is unhealthy it is.

I was starving.

It is about the same caloric count as well as fat count and sodium count as a big mac.

So, you know -- just the image of it being very bad for you.

It is incredibly unhealthy but everything is incredibly unhealthy.

That's the base.

Yum is coming out after the close and for yum it will continue to be the china story, it saw a big hit to the china sales because of concerns about the quality of poultry at k.f.c.'s and it saw a big hit to its com probable number there is and doesn't report monthly numbers anymore but if you looked late last year you saw improvements in the china numbers and you're looking at a single-digit percentage increase in china sales so that will be the number to watch.

I can understand starbucks giving these guys a lot of competition.

Mcdonald's has a huge breakfast share and a lot of people go to starbucks.

Apparently taco bell is taking some of that.

Is it really working, taco bell?

It's early to say.

Waffle taco just recently came out.

You recently could argue starbucks is going to a slightly different market than mcdonald's in term of how much the stuff costs.

We don't know yet exactly how successful taco bell has been.

For the sake of research, i will try a waffle taco but i'm recommending people don't eat these things on a regular basis.

Such a committed journalist.

Thank you, julie hyman.

We'll report those numbers to you as they come out.

Stay with us here on bloomberg.

This text has been automatically generated. It may not be 100% accurate.

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