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.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- An Ambani disruption in OTT: At just ₹1 per day, you can now enjoy ad-free content on JioCinema
- Vegetable prices to remain high until June due to above-normal temperature
- RBI action on Kotak Mahindra Bank may restrain credit growth, profitability: S&P
- 'Vote and have free butter dosa': Bengaluru eateries do their bit to increase voter turnout
- Reliance gets thumbs-up from S&P, Fitch as strong earnings keep leverage in check
- Realme C65 5G with 5,000mAh battery, 120Hz display launched starting at ₹10,499
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market