McDonald’s Chicken Sandwich
Source: McDonald’s
McDonald’s wants to win the chicken sandwich wars at lower prices, while Burger King’s Burger King is still figuring out its strategy, according to a report by Credit Suisse.
In August 2019, Burger King’s sister chain Popeyes started the chicken bread wars with the launch of its own version of the menu. Social media users pitched it against Chick-fil-As, and Popeyes’ sandwich quickly became a hit, boosting double-digit sales of the same store and adding about $ 400,000 in annual sales for each location.
“We expect competition to increase in 2021 as brands in different segments increase their offer to take a bite out of the chicken category and improve their competitive position,” Credit Suisse analyst Lauren Silberman wrote in a note on Friday. .
McDonald’s plans to launch its own survey on February 24, and Yum Brands’ KFC launches nationwide by the end of the month. Burger King is still in the testing phase.
McDonald’s new Crispy Chicken Sandwich is under pressure from its main competitors, according to Silberman. The burger chain sandwich is priced in the test markets from $ 3.49 to $ 3.69, compared to Chick-fil-A’s $ 3.75 sandwich or Popeyes’ $ 3.99 version.
McDonald’s may have learned a lesson from its recent decline in chicken sandwiches. His Buttermilk Crispy Chicken sandwich, first launched in 2015, was at a premium.
Silberman estimates that restaurants in McDonald’s test markets sell an average of 125 to 150 Crispy Chicken Sandwiches a day. If restaurants reach the higher end of the range when the item launches nationwide, the sandwich could increase sales from the same store by 4%, according to Silberman.
Burger King, on the other hand, is apparently still working out its pricing strategy. Silberman writes in the comment that one of its test markets prices the new sandwich at $ 5.29, far above its competitors. But two other test markets price the sandwich at a discount ranging from $ 3.49 to $ 3.89. In markets that do not test the new sandwich, the burger chain usually asks more for its current chicken sandwich.
So far, Burger King restaurants sell an average of about 60 to 75 chicken sandwiches a day, according to Credit Suisse. The new sandwich could increase its sales in the same store by as much as 4% if it sells 75 sandwiches per restaurant when it is launched nationwide.