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With plans to offer new Chicken recipes, McDonald’s hopes to see a good success rate that will be beneficial to the company’s shares in the near future.
The shares of American fast food company Mcdonald’s Corp (NYSE: MCD) closed Monday’s trading session with a 2.03% dip after analysts from Citigroup Inc (NYSE: C) revised the fast-food giant’s stock to a neutral rating. According to The Fly, the revision from the Citi analyst, Sergio Matsumoto comes on the backdrop of fears on international recovery from the company’s outlets. Matsumoto however has a price target of $230, a boost from the stock’s current $210 share price.
Fast food restaurant chains remain among the group of companies most impacted by the COVID-19 pandemic as physical in-store patronage was drastically limited in an attempt to slow down the spread of the virus. In an attempt to stay in business, many of these firms have resorted to online booking and enhancement of their delivery channels to continually meet consumer’s demands.
New Recipes as a Booster for McDonald’s Shares
Despite the dip seen at the close of trading yesterday, McDonald’s shares are seeing a slight rebound in the after-hours trading and this is likely fueled by the news that the restaurant chain is planning to launch three new Chicken recipes by February 24. Per a CNBC report, the plans to introduce the new recipes follow the earlier plans by the company to double down on its Chicken offerings as revealed to its investors back in November.
The Chicken offerings including Crispy Chicken Sandwich, Spicy Chicken Sandwich, and the Deluxe Chicken Sandwich per the report will help customers see the premier Fast Food business in a different light. The Crispy Chicken Sandwich features a fried chicken filet served on a buttery potato roll and topped with butter and pickles. The spicy version comes with a spicy pepper sauce, while the deluxe sandwich comes with more toppings: shredded lettuce, Roma tomatoes, and mayo.
The new chicken offerings will also help McDonald’s to take on competitors like Chick-fil-A, and Popeyes, two of the new restaurants that have captured the market with their respective Chicken offerings. The growth of Chick-fil-A through the success of its products has been resounding and has grown to become the third-largest restaurant chain in the United States behind Starbucks Corporation (NASDAQ: SBUX) and McDonald’s.
With plans in place for the rollout of these new Chicken recipes, McDonald’s is hoping to see a good success rate, a position that will be beneficial to the company’s shares in the near future.
McDonald’s to Fight for Improved Growth This Year
For a company that is about seven decades old, the fight for dominance is completely dependent on its ability to introduce new products into the market, just as it is planning with these chicken recipes. For what it’s worth, McDonald’s will strive to do all it can to beat its single-digit growth of 8% recorded in its shares in the past year 2020, even though this ambitious drive looks bleak amid the current global economic uncertainties.