Increasing the McDonald’s app’s user base is “key,” according to Morningstar analyst R.J. Hottovy, because Monday’s promotion could result in building customer loyalty: Customers might be enticed to come back because of future offers.
Hottovy also that said offering free Egg McMuffins will keep the chain “top of mind” because Wendy’s is spending big — upwards of $80 million this year — to promote the new menu.
“It’s more of a defensive move rather than an offensive move,” he said about the promotion.
“National Egg McMuffin Day” is McDonald’s second breakfast promotion, which is a time of day when sales are growing for fast food chains. It already began offering two breakfast sandwiches for $4 for a limited time.
McDonald’s, which started serving breakfast all day in 2015, boasts that it is a leader in the category. “We win at breakfast,” Linda VanGosen, vice president of menu innovation at McDonald’s, previously told CNN Business. “We’re frequently innovating and adding new breakfast offerings.”
The McDonald’s holiday “is the day that the Egg McMuffin and other old breakfasts are laid to rest. No longer will people have to suffer stale, tired, old sandwiches with folded eggs and microwaved bacon,” Carl Loredo, Wendy’s chief marketing officer, told CNN Business.
Regardless of the growing competition, Hottovy thinks Wendy’s “will stick” this time after failing previously. “This is a case where Wendy’s being in the market will lift everybody,” he said.
–CNN Business’ Danielle Wiener-Bronner contributed to this report.