By McDonald’s will start putting tempura chicken patties in its Big Macs as part of a new initiative set to be launched on the 10th of October.
The restaurant’s signature burger usually comes with beef patties, but the replacement with chicken has stirred a lot of excitement among food lovers.
The journey from beef to chicken
When McDonald’s first started, there was no chicken on its menu, much like the Big Mac that traditionally comes with beef patties.
Over time, it started adding chicken burgers to cater to the growing demand for chicken.
Until last year, beef products dominated the company’s sales.
But in an earnings call earlier this year, the CFO Ian Borden announced that the company’s chicken products had finally caught up with beef sales. Borden said:
Our chicken category now represents $25 billion in annual system-wide sales, on par with beef.
The company intends to add chicken wraps and tenders to the menu, as an extension of its McCrispy chicken line.
By 2026, it expects chicken sales to lead beef by a whole percentage point.
Riding the growing trend
If the company’s metrics show chicken as an increasingly popular product, it would launch more chicken products like any good business.
This is what McDonald’s is doing. However, the execution is worth admiring.
By adding chicken to a burger that reflects the identity of the brand, the company is making a bold statement.
It wants customers to feel comfortable with the chicken rather than offering it in a burger people are familiar with.
This statement is important. Every restaurant out there is trying to add items to its menu to lure more and more customers in.
McDonald’s didn’t want to be like every other restaurant, so it achieved the same objective differently.
This isn’t the first time we’ll see chicken added to the Big Mac. It has happened before as well, though very briefly in just one US city: Miami.
In 2022, it was also briefly launched in the UK and Ireland, where it remains the company’s best-ever new launch.
The real reason behind the chicken Big Mac
A growing preference for chicken burgers is one reason for this innovation.
But when one digs deeper, the real reason becomes apparent.
It costs McDonald’s much less to make a chicken patty than it does to make a beef one.
This means that the new Big Mac costs the company less.
If successful, it could help the company squeeze out more profits without raising the price.
This strategy is significant because customers continue to be wary of how much they spend in restaurants.
The $5 meal deal has also been extended till December, showing that customers are still looking for cheaper food options despite the economy seemingly on the improvement path.
McDonald’s stock is up 19% in the last year. It continues its long-term bull trend despite a hiccup in the middle of the year caused by the lack of clarity on the monetary policy front as a result of political uncertainty.
Investors looking to hold the stock long term should be happy with the company’s innovation, even if it only comes through a change of patty in a burger.
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