The Real Reason Behind McDonald's And Burger King's Chicken Nugget War
McDonald's is selling a 50-piece box of chicken for $9.99. Burger King's deal is a 10-piece for $1.49.
There's an important reason the fast food giants are selling chicken for half-price, writes Craig Giammona at Bloomberg Businessweek.
"With wholesale beef prices near a record - up 40% since 2012 - McDonald's and Burger King are hoping cheaper nuggets will help boost sales to price-sensitive diners," he writes.
Droughts have caused a worldwide beef shortage.
Traditional fast food chains have been losing millennial consumers to fast-casual chains like Chipotle and Five Guys.
Because their food isn't seen as high-quality, the fast food companies have to focus on low prices to attract diners.
But with beef prices at near all-time highs, operators can't afford to discount Whoppers or Big Macs.
Burger King isn't stopping at chicken nuggets.
The brand has recently brought back its discontinued Chicken Fries and ham-and-cheese Yumbo.
Burger King's promotional strategy has helped the company boost sales during an industry-wide slump.
To help offset the discounts, Burger King raised the prices of some items.