That is certainly the business end of it, and you are correct in that assumption.
However, I tend to agree more with
@DisneyFreak , in that focusing on a specific (established) type of popular menu (such as 24-hour breakfast) is what brings back satisfied, repeat customers. Although I understand creating a larger menu is trying to appeal to all kinds of customers, maintaining the level of quality with many new meal options can also be a challenge to the kitchen staff. And if your customer base orders the traditional items (that they've come to enjoy for years), but notice their meals aren't quite as good as before (or think the chefs are overwhelmed and rushing with the larger menu)--well that certainly can affect the bottom line too, if they don't return.
IMO, I think a rehaul of a menu to highlight ALL meals of the day, can be a bit of a gamble. The restaurant business is tough enough to begin with (more establishments fold, than stay open).