McDonald’s is bringing chicken tenders back to its menu next month in a move that’s rippling through the poultry industry.
The item, called Chicken Selects, will begin appearing at US restaurants for at least a limited time in early March, the Illinois-based company said this week, confirming speculation in the industry.
The product, made with fried strips of tenderloin chicken meat, was last sold in 2013 after more than a decade on the menu.
For the poultry business, the move is easing concerns about an oversupply of chicken in the US. It also underscores how much clout McDonald’s has with suppliers: Though the company is mired in a sales slump and shaking up its leadership, it can still sway the meat industry with a single menu item. The increased demand from McDonald’s should help prop up chicken-breast prices through the summer, said Brett Hundley, an analyst for BB&T Capital Markets.
“It’s a good thing for the chicken industry,” said Hundley, who is based in Richmond, Virginia. “Continuing limited-time offers are definitely a positive for keeping supply and demand aligned.”
The chicken industry is in its third year of strong profits, but import restrictions in China and export woes at West Coast ports have stoked fears of a domestic glut, Hundley said.
Bloomberg News, edited by ESM
