KFC’s new chicken sandwich
Better late than never.
KFC’s and MC Donalds Late entries into the chicken sandwich wars seem to be paying off for the two fast food chains.
Yum Brands Executives told analysts on Wednesday that KFC is selling more than double its new chicken sandwich compared to previous versions. David Gibbs, CEO of Yum, said early signs are showing customers are returning to KFC restaurants more often to buy the sandwich became available nationwide in late February.
“Indeed, how we entered [the second quarter]The demand for the new sandwich was so strong that, coupled with the general tightening of domestic chicken supply, our biggest challenge was to keep up with that demand, “said Gibbs.
Also McDonald’s Crispy Chicken Sandwich, which also came on the market at the end of February, also wins customers. According to Kalinowski Equity Research’s quarterly survey of operators, McDonald’s franchisees sell an average of 262 chicken sandwiches a day. That’s below Popeyes’ estimates Selling 1,000 sandwiches per location daily in the early days of his blockbuster A third of respondents said the McDonald’s sandwich was selling better than expected.
McDonald’s is expected to share more details on the item’s performance when it reports its first quarter earnings before the bell on Thursday.
The versions of KFC and McDonald’s are similar in their ingredients to those of Popeyes and Chick-fil-A. All use a breaded fillet, brioche bun, and pickles. The main difference is the breading and frying method, which affects the texture and taste.
But the success of McDonald’s Crispy Chicken Sandwich could add to the scarce chicken supply Gibbs mentioned. McDonald’s has a 30% market share in the fast food sector and has a proven track record of influencing raw material prices. According to Peter Galbo, an analyst with Bank of America Securities.
Chicken supply is a growing concern for the rest of the industry as more chain restaurants add chicken sandwiches to their menus. Chains tend to use smaller birds that are shorter, although meat producers like this Pilgrim pride invest to meet the new demand. Popeyes that belongs Brands International restaurant, spent several months locking up his chicken supply after his sandwich sold out just weeks after its debut in 2019.
Yum Brands shares rose less than 1% in morning trading after new menu items like KFC’s chicken sandwich fueled sales growth in the first quarterThis helps the company beat Wall Street’s earnings and sales estimates. McDonald’s stocks were down slightly.