I'd say their doing that is a loss leader.
Probably person or people with the big breakfast buyer doesn't get a paper/treats as well.
Plus, look at the volume they do...
What's in a BB again? 2 eggs, hash brown, toast & jelly, and they charge $2.50, minus $1.50 paper?
Just looked at the USDA website, and the average wholesale price over 2007 came to $1.05 a dozen, .09 an egg.
So.....18 for eggs, .15 for hash brown, .10 for bread, .02 for jelly, .05 for tea bag...that leave 50 cents for dog treats.
Well, plus the 3 minimum wage workers and the total of 3 minutes it took to put the average breakfast together.
Many companies don't make a penny off their basics.
I worked at a car wash as a cashier at one time. On the managers computer it tracked the average cost of the washes. The average wash....this was 12 years ago, cost I think $5.00...the water, soap, labor, overhead of the building, machinery....The basic wash at the time cost like 8 or 9 dollars...not much profit per car. But, adding the wax that was applied in the car wash, not a hand wax, armour all, wheel cleaner, all of which did not increase labor, added, what? 2 dollars a pop for each extra? They charged a buck or two for 2 or 3 squirts of some car freshener, which they had by the gallon.
McDonalds, same thing. They don't make anything off the .99 cent double crapburger, but that not all most people get, or what other people in their party will get.