McDonald's CEO says no share loss to Starbucks

When asked if STARBUCKS (SBUX.NQ) which recently revamped its morning menu with healthier choices, has taken a bite out of McDonald's dominant share of the breakfast business, Skinner said: "No, I don't think so in terms of market share."

Starbucks last year rolled out a variety of healthy new breakfast items such as oatmeal and removed offensive-smelling ingredients from its hot breakfast sandwiches, rather than cutting them from the menu as was originally planned.

"They've been all over on this idea of breakfast. First they were in, then they were out," Skinner said at a luncheon at Northwestern University's Kellogg School of Management.

"It's probably a good idea for them to get back into breakfast," he said. "I wish them well, but not too well."

Starbucks, which built its business selling $3 and $4 espresso drinks, has been discounting since its U.S. business began softening in late 2007. Early next month it will begin selling lower-priced breakfast pairings such as a tall latte with oatmeal or reduced-fat cinnamon swirl coffee cake for $3.95.

Starbucks executives said in September that hot oatmeal is the coffee chain's single most popular food item and its most successful food product launch.

(Reporting by Ben Klayman, writing by Lisa Baertlein; Editing by Bernard Orr)