McDonald's introduced all-day breakfast at its U.S. restaurants in October in a bid to attract more diners in the face of growing competition from rivals such as Chipotle Mexican Grill and Shake Shack. The move boosted sales last quarter and appears to be a factor in the Golden Arches' earnings beat.
"Breakfast all day is a platform for them, not just a promotion, and it's driving good traffic growth, it's driving some good check growth. I think it's going to continue," Peter Saleh, restaurant analyst at BTIG, told CNBC's "Squawk Box."
Much of the benefit is now built into the stock, with shares trading at 13 times forward earnings, but with fundamentals improving, growth should not stall any time soon, he said.
First quarter comparison sales for McDonald's rose 5.4 percent, fueled by the company's latest value deal, the McPick 2, in addition to the all-day breakfast, the burger giant said.
During the quarter, McDonald's offered two of its premium products, including the Big Mac, for $5.
RBC Capital Markets analyst David Palmer on Friday credited McDonald's for shaking up the McPick 2 promo to move more premium products. The company switched to the five-for-$2 model featuring premium products like the Big Mac and McNuggets, abandoning an earlier two-for-$2 promotion that offered nonpremium items like McDoubles and mozzarella sticks.
The next step is to improve the core menu, Palmer said. "They have a long way to go in terms of just improving their quality perception. Their quality is viewed by consumers to be at the bottom rung," he told CNBC's "Squawk on the Street."