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McDonald’s targets more global chicken market share by 2030
The company said it plans to spend about $8.5 billion to support franchisees on rents and restaurant upgrades as beef costs pressure profits.
McDonald’s plans to increase its share of the global chicken market by 1.5 percentage points by 2030, aiming to grow alongside rising demand for fried chicken as beef prices climb, according to the Guardian Business.
The chain said its current chicken-market share is in the high teens, and that chicken is growing at twice the pace of beef. McDonald’s also said the chicken focus would not come at the expense of its beef business, as it aims to maintain its leadership position in beef.
McDonald’s warned that higher beef costs, along with energy, have been hitting profits for its franchisees. The company is also facing competition from chicken-focused chains such as Popeyes and Wingstop, plus continued expansion from KFC.
As part of the shift, McDonald’s said it would spend about $8.5 billion to help franchisees with rent and improve restaurants. The article also cited Agriculture and Horticulture Development Board figures showing beef prices have risen by more than 20% in the past two years in the US and the UK.