There seems to be a struggle brewing in the fast food greenhouse. McDonald’s (NYSE: MCD), eager to ride the recent popularity of crispy chicken sandwiches, is launching three new products in the category in the near future. The company confirmed to Reuters today that it will launch three variants of its existing chicken sandwich – classic, luxurious and spicy – on February 24.
This new offering consists of a fillet of chicken meat smeared on a potato roll with butter. They will come with crumbled pickles.
The current McDonald’s classic chicken sandwich, which can move down the pick order. Image source: McDonald’s.
The game in the chicken meat was increased in 2019 when the Popeyes chain, owned by McDonald’s competitor Restaurant Brands International (NYSE: QSR), rolled out his first chicken sandwich to great fanfare. Diners picked it up, and it became one of the hot fast food items of that year. The basics of Restaurant Brands International have benefited greatly from its popularity.
The power of the chicken’s fast food menu items has persisted, even with the severe downturn in restaurant visits due to the coronavirus pandemic, not to mention the supply constraints it has brought.
If successful, the three types of sandwich sandwiches could encourage McDonald’s to develop new chicken-based offerings. Last November, Joe Erlinger, president of McDonald’s USA, thought that the sandwich could be the basis for what he calls a “chicken platform”.
“Our competitors who are only for chicken here and abroad have a strong brand equity and credibility,” Reuters then said. “Developing a reputation for big chicken is one of our biggest aspirations.”
Investors may see this move as a case of too little, too late, as it comes more than a year after Popeyes’ flashy debut. McDonald’s shares fell more than 2% following today’s announcement, a stronger drop than the company’s 1.5% S&P 500 index.