Does anyone eat hamburgers any more?
Seriously. Between the rise of the Impossible Burger, the BeyondMeat (BYND) Burger, and a host of new chicken sandwiches from Popeyes (PLKI), Wendy’s (WEN) and more, has America lost its taste for the classic hamburger?
Trying to keep pace with an evolving fast-food market, McDonald’s is hedging their bets on the chicken sandwich craze, a move analysts like Dennis Geiger think should help the fast-food giant see a massive surge in sales:
“While checks vary, our sense is the chicken sandwich is driving a low-single-digit comp contribution, at least meeting, if not exceeding, expectations. We anticipate an outsized marketing push over the coming weeks. We believe the new sandwich further elevates brand-quality perceptions, putting McDonald’s in the premium chicken sandwich game, with more chicken platform innovation coming.”
Currently, franchisees are citing strong drive-through and delivery business, we well as the new chicken sandwich for the company’s strong quarter. And analysts continue to believe McDonald’s is headed for growth in the long term thanks to its investments in marketing, digital, drive-through, menu improvements and other areas of the business.
McDonald’s was upgraded to buy from hold at Deutsche Bank, after the positive news of a strong first quarter.