McDonald's all-day breakfast: Is the thrill wearing off?

McDonald's slightly beat fourth-quarter profit expectations Monday despite a drop in sales as it faces signs that the novelty of its all-day breakfast option, which has been a huge hit, is wearing off.

The fast-food chain posted net income of $1.19 billion in the fourth quarter, down 1% from a year earlier and equating to earnings of $1.44 per share.

Over the past couple years, McDonald's took fast-food rivals by surprise by expanding availability of its breakfast items to all day, which paid off with an earnings boost that extended into several quarters.

But the one-time surge in revenue is just that: a one-time boost. Now, CEO Steve Easterbrook needs to find a new avenue for growth.

That could involve home delivery, for example. Easterbrook told analysts in a conference call that the "food-away-from-home market" may present an opportunity. He said the company is in "very, very early stages" of testing home delivery in Florida.

"We are curious as to whether the market there for food-at-home is something that we could also play a part in," he said.

Although offering all-day breakfast was a positive move, it has had some downsides, says Conlumino retail analyst Neil Saunders said in an analysis. Because breakfast items can be cheaper than some lunch and dinner options, customers may not be spending as much when they visit. And, to some extent, all-day breakfast isn't driving new customers into McDonald's. Rather, it is offering the regulars more choices -- while making the menu more complex.

"These changes were supposed to drive a steady and sustainable uplift in spending rather than a one-off spike in sales, but it is increasingly clear that this strategy is not delivering through," he said.

As a result, McDonald's now lacks "a clear forward strategy of driving customer traffic, it also means the menu and service options have been made more complex – with the costs and franchisee discontent that this entails – without a compensatory uplift in sales volume. Such a position is not particularly sustainable."

Still, there were some encouraging signs in the fourth-quarter results. The company's profit beat S&P Global Market Intelligence expectations of $1.18 billion and $1.42 per share.

McDonald's reported a 1.3% decline in U.S. sales at stores open at least a year. The company blamed the decrease on a tough comparison due to a temporary surge in sales in the 2015 fourth quarter from the introduction of all-day breakfast.

The chain's stock (MCD) bounced up and down in pre-market trading. It was down 0.8% to $121.30 at 8:40 a.m.

More coverage:

You can get McDonald’s delivered to your door in January

McDonald's waffle fries? Yes, please

Would you eat cheese curds from McDonald's?

Total revenue fell 5% to $6.03 billion for the quarter. Globally, same-store sales increased 2.7%.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.