McDonald's to roll out dollar breakfast menu in U.S.

McDonald's will roll out a variety of breakfast items for only $1 in the U.S. early next month. The move is expected to provide a kick-start to falling breakfast sales.

Heavy job losses, economic downturn, and the discount war amongst fast-food chains to lure cash-strapped consumers in the U.S., have taken their toll on breakfast sales at the world's largest hamburger chain, McDonald's. According to a financial press release, McDonald's sales increased 0.7 per cent in November worldwide but were lacklustre in the U.S., showing a decline of 0.6 per cent in the same month. McDonald's blames higher unemployment resulting in fewer commuters stopping by in the morning for breakfast items for the slump. According to the Bureau of Labor Statistics, when the U.S. recession officially started in December 2007, there were 7.5 million people unemployed. By November, 2009, unemployment had more than doubled to 15.4 million. But beginning in January, 2010 McDonald's will feature two sausage sandwiches, a sausage burrito, a hash brown and a 12-ounce coffee on the new breakfast dollar menu. Some variations may occur in different markets. Chief Executive Officer Jim Skinner said in the press release, "Customers continue to find what they want at McDonald's - menu variety, convenient locations and compelling value. We remain focused on growing market share with a disciplined pricing strategy to provide great tasting food at an affordable price." McDonald’s spokesperson Danya Proud said to NACS, “We know now, more than ever, our customers continue to look for everyday affordability wherever and whenever they choose to eat out." Burger King has already jumped into the discount breakfast ring, and Taco Bell which already offers items as low as 79 cents is planning to expand its discount menu offerings, reports Reuters. McDonald's will also spend more on advertising in 2010 in hopes of boosting its fast-food sales.