Q3 Spending Analysis Suggests Competitors Preparing for McDonald’s All-Day Breakfast

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Breakfast-centered chains, Denny’s and IHOP, substantially increased their Q3 ad spending
McDonald's Breakfast

Flickr / Hungju Lu / CC BY 4.0

Experts predict a record high Q4 ad spending with the debut of new menu items.

The announcement of McDonald’s all-day breakfast affected not only consumers and franchises but its competitors, as well. Burger Business reports that ad spending for quick-service restaurants declined by 2.5 percent in Q3, which Kantar Media attributes to spending cutbacks by McDonald’s and Subway. McDonald’s decrease in ad spending was reportedly in anticipation of the introduction of all-day breakfast in the beginning of Q4.

The overall decrease in ad spending in Q3 did not mean all restaurants cut their ad spending. Two breakfast-centered chains, Denny’s and IHOP, increased their Q3 ad spending by 46 percent and 25 percent, respectively. Kantar says, “Their amplified marketing support appears to be a reaction to higher breakfast spending from several QSR chains and the anticipation of McDonald’s launch of an all-day breakfast menu.”

Burger Business predicts record-setting ad spending in the final few months of 2015 because of new menu items. These include a Flame Grilled Chicken Burger from Burger King and a Black Bean Burger from Wendy’s.

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