Quarterly profit surged 35 percent as the All-Day Breakfast menu and McPick 2 prove a hit with McDonald's diners. Fred Katayama reports.
More signs Mac is back. McDonald's quarterly profit surged 35 percent. Beefing up sales: the All-Day Breakfast menu that allows you to get that Egg McMuffin at any time of day. Also proving popular: the McPick 2. That promotion allows diners to choose any two items such as Big Macs and Quarter Pounders for $5. Both helped fuel McDonald's comparable store sales in the U.S., its biggest source of profit. The world's largest restaurant chain is also seeing its operations in China and Japan recover after a series of food safety scandals rocked the region over the last two years. Quarterbacking the comeback: Steve Easterbrook, who took over as CEO in March last year. He has focused on simplifying its bloated menu, altering its value menu, and improving service. He has added hit new items like a crispy buttermilk chicken sandwich. Easterbrook said, the " ... turnaround is taking hold." Technomic food consultant David Henkes agrees. SOUNDBITE: DAVID HENKES, SENIOR PRINCIPAL, TECHNOMIC (ENGLISH) SAYING: "What we've seen to date is that rather than bringing check average lower by converting people from Big Macs or Quarter Pounders down to a breakfast sandwich, it is bringing in new consumers. And anecdotally, I know that a lot of people are using McDonald's for the first time in several years simply because of all-day breakfast." Investors just lovin' it. McDonald's shares have risen 27 percent since Easterbrook became CEO. The company plans to open about 1,000 restaurants this year, and it expects that will add 1 percent to sales growth.