The McDonald’s (NYSE:MCD) Dollar Meal has found a new home in the morning. A number of press reports quote the fast food chain management as saying that it will offer $1 breakfast meals beginning early in 2010.

McDonald’s most recent domestic sales figures show that its same-store sales have stopped growing. The new $1 AM menu is probably meant to offset that. The recession may be over, but unemployment and the downturn in consumer spending are not.

McDonald’s low-priced morning meal will include the Sausage McMuffin, a sausage burrito, a sausage biscuit, a small coffee and a hash brown.

McDonald’s is probably looking at the competitive landscape as it makes the move. Burger King, Wendy’s, Pizza Hut, and other large national fast food chains have cut the prices on many of their offerings. McDonald’s is likely to be concerned about its market share and has the balance sheet to weather what could become a fast food price war.

McDonald’s does not want to have to confront a Wall St. backlash due to falling sales. The firm’s stock trades at over $61 which is close to an all-time high. The financial world has applauded McDonald’s for turning around its business over the last five years and using the yield from that turnaround to increase dividends and stock buy-backs that have returned billions of dollars to shareholders.

The $1 breakfast is for customers and investors alike.

Douglas A. McIntyre

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