Breakfast Wars: McDonald's vs. Taco Bell

Fast-food restaurants battle it out for a $50 billion share of the breakfast business.
3:00 | 03/31/14

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Transcript for Breakfast Wars: McDonald's vs. Taco Bell
Okay. It is Monday march. 31 the markets are open -- New York City and it's a buy one get one for big number today starting with one dollar and average up to fifty billion. Here's on this map works out McDonald's charging a dollar per -- -- so the question is why so she. Well because overall the breakfast market alone is worth fifty billion dollars each year. To the fast food chains so jumping -- everyone -- Cutler in New York for more on the eye opening number -- -- -- finance -- good Monday morning TJ over the weekend. And how about you I certainly that I had a great -- -- although I'm not too pleasant -- some snow flurries here in the north east because frankly I'm done with winter. -- done with winter deadly winter but are you Democrat that's not our. I you know I've actually just started off right now so I dialect the fact that I'm here that's -- -- dollar for coffee. Deanna I'm gonna one up you want -- it actually last if you go for the next few weeks. McDonald is giving away at free small copy of participating stores during the -- hours now that copies typically on the dollar menus so we're gonna say they're saving about a dollar. And the point is -- their competing in an amber increasingly competitive space. Among fast food restaurants that are competing for the fifty billion dollar share of the fast food breakfast business which is seen as the one growing area that fast food dining -- Rick fifty billion dollar and that is the fastest rate that while it's -- And there are new competitors on the landscape is Weldon. Yes so the reason McDonald's is seen to be doing it is because the newest competitor in that fight for fast food breakfast is talk about -- I don't know if you sonic commercials stand where they have the 25 Ronald McDonald's that they found that -- actual real life Ronald McDonald's that are talking about how much they love the new Taco Bell -- -- that that was a direct shot it. The real obvious Lee Ronald McDonald the clown the which is that the mascot at McDonald. So talk about getting into the -- they have the commercial as they debuted their new breakfast which include things like a waffled aka Dan it's so -- -- It's in the hold your hand witness and -- and -- and some other -- -- it -- every nine -- breakfast -- you're gonna -- when I tell you this so so they -- items. That there millennial base could. Hold in one hand while they hold their cell phone in the out there. So soon this is Taco -- rolling out the new breakfast menu last week items are from a dollar to 249 and very new entry into this space they're taking McDonald had online and sent down McDonald's. I is firing back with the freak hockey and they also fired back on social media ascended -- eight tweet and they had. Picture a Ronald McDonald squatting down over Chihuahua which is obviously aimed at Taco Bell saying imitation is his sincerest form of flattery so this is really fast -- ward and I love this does not see is the latest. -- This this is fantastic eyes on the fact that that that that companies are looking at the user experience for millennial as far as the -- ability. That you can multi -- -- the other hand with your found. And it can you believe it it would it it is amaze us -- -- I can -- McDonald's problems right here in the fact that you -- me an egg muffin at 2 o'clock in the afternoon. Problems solved right. Yes you know so that's something that McDonald's has thought about there have been reports have come out in the last few months that this is something that they're looking at. It was seen -- too logistically different and are difficult rather but they're they're looking at in seeing if they can do -- because. Your complaint is that -- that we have heard about -- time immemorial when it comes to McDonald's breakfast people just want it -- 10:30 AM. So that might be something that McDonald's we'll have to resort to doing next I should say that they really have and released a strong hold on and ask a breakfast business they. Dominate at got 25%. Since there trying to it to -- -- at that point 5%. Grow that 25% by getting more people in this store lord by the free coffee for a couple weeks. So really they are the winners in this space but -- -- so many new entrants we have you know Starbucks -- expanded Wendy's and Burger King is in this face some -- now in this space and now talk about also they're probably feeling heat especially because. There's have been struggling a bit in February there comp sales which hurt sales in stores open more than a year this is seen as a good gauge for retail. They felt point 3% and and that's been a trend for four consecutive -- of slumping sales as McDonald's has battled you know what they would say is. The bad weather but what other people what what other people would worry about is just media -- product pipeline it needs improvement which in fact the CEO has sad but. I am I gonna from the other side of the spectrum that because we're talking about breakfast and -- also looking at late night I mean Taco -- seemed to also be dominated late night wars as well. Starbucks you brought up is also venturing into the evening hours of service where they operate. -- -- start offering alcohol in a number of stories it's gonna take some time to roll out. But that is one and -- and initiatives is -- try to expand their afternoon food and beverage business and if it gets pretty Smart I feel like -- -- always been. A space in -- casual dining landscape for people who won it. Seen in that kind of an atmosphere where they're not served a copy shop atmosphere -- enjoy a glass of wine so that is something that they're going to be dealing. You probably -- been to a to -- -- and that's another place where you go in you know it's it casual dining asked that experience where you order your breed of it can be there they've got alcoholic to fully so. Start axes is entering its imagine. And in some places they have margaritas as well I speak from experience I love you you know better than I. We're at a golf -- some time Iowa we'll test this all -- that we can actually get some journalist of the journalistic heft. -- hi yes reports that big number today one or actually free. And fifteen billion from the breakfast wars going on right now large list of Yahoo! finance -- thank you so much appreciate that Dan thinking of of course you give up latest headlines right here abcnews.com you've been watching the big number. And in York.

This transcript has been automatically generated and may not be 100% accurate.

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