McDonald's may focus on chicken over beef
McDonald's new CEO, Don Thompson, may be putting the focus on new chicken products, including bone-in chicken wings and cashew teriyaki salads with chicken, to attract customers amid a shaky global economy. One of the company's latest offerings is the Spicy Chicken McBites. Those types of products can be priced lower than other proteins, reports Bloomberg Businessweek.
“Some great examples include our large wrap in Europe and snack items like Chicken McBites,” he said. “Our customers have given us permission to stretch our brand, so we are entering new categories with new products.”
McDonald’s, along with other fast-food operators, is facing government austerity programs in Europe, declining consumer confidence in the U.S. and slowing economic growth in Asia. Sales at McDonald’s stores open at least 13 months rose 3.3 percent worldwide in May, trailing analysts’ estimates for growth of 5.2 percent.
The USDA is reporting that chicken consumption in the U.S. will increase 1.7 percent to 82 pounds a person in 2013, while beef consumption may decline 2.2 percent to 54.5 pounds.
There is no change from McDonald’s strategy -- the company’s so-called Plan to Win, Thompson said.
“A transition in leadership is not a change in strategy at McDonald’s,” Thompson said.
Source: Bloomberg Businessweek