Why McDonald’s Plans to Play Chicken

by InvestorPlace Staff | July 2, 2012 4:50 pm

McDonald's MCD[1]McDonald’s (NYSE:MCD[2]) first got a new head honcho and now may be serving up a dramatic shift in its menu[3] — more chicken, less beef.

Sure, we knew that Don Thompson, the new CEO of McDonald’s now that Jim Skinner has stepped down[4], was an innovator — he introduced McCafe specialty coffees and smoothies to America and Canada, led remodeling efforts, added double-lane drive-throughs and extended hours for the world’s largest restaurant chain.

But this? This is like soda-maker Coca-Cola (NYSE:KO[5]) suddenly deciding it should focus more on Sprite than the cola it’s known for — a move that breeds a little head-scratching.

So, why the change? Here are a few of the reasons:

The strategy will manifest itself in many new forms. Bone-in chicken wings and cashew teriyaki salads with chicken are expected, while Spicy Chicken McBites have already debuted.

– Alyssa Oursler, InvestorPlace Editorial Assistant

  1. [Image]: http://investorplace.com/wp-content/uploads/2011/06/McDonalds_golden_arches_630_flickr.jpg
  2. MCD: http://studio-5.financialcontent.com/investplace/quote?Symbol=MCD
  3. dramatic shift in its menu: http://www.bloomberg.com/news/2012-07-02/mcdonald-s-new-ceo-focuses-on-chicken-amid-shaky-economy.html
  4. now that Jim Skinner has stepped down: http://investorplace.com/2012/03/mcdonalds-mcd-ceo-jim-skinner-succession/2/
  5. KO: http://studio-5.financialcontent.com/investplace/quote?Symbol=KO
  6. overall trend of meat consumption: http://www.usda.gov/oce/commodity/wasde/latest.pdf

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