Chicken Is On The Menu

The crispy chicken sandwich wars just got reheated. A lil mom & pop shop entered the arena last week and has Chick-Fil-A and Popeye’s doing a double-take. You might’ve heard of 'em… McDonald's. With Mickey D’s entering the game, all eyes have surprisingly shifted to the fast-food world’s suppliers - U.S. poultry producers. Who’s hot: Tyson. Rumored to be McDonald’s main supplier squeeze, a chicken sandwich frenzy is swell news for the integrator. With 20% of their production focusing on small bird processing - the variety used for chicken sandwiches - they are primed to take advantage of chicken sandwich war 2.0. Another winner: Pilgrim’s Pride. Chick-fil-A’s biggest supplier is bound to get a boost too. With ⅓ of their production geared towards small birds and another facility converting to meet more demand, they see dollar signs when #ChickenWars lights up Twitter feeds. The McDonald’s effect: Regardless of supplier relationships, the Golden Arches is notorious for influencing commodity prices with its 30% market share of the fast-food category. Analysts note chicken breast prices jumped 45% from January to February. What's ahead: Between heated fast-food ad campaigns and returning foodservice traffic, expect this battle to benefit the poultry industry for the remainder of 2021.