Blame McDonald's for higher chicken prices
All consumers are paying more because of the fast-food giant's stockpiling in preparation for its Mighty Wings menu item.
While McDonald's (MCD) fans might be celebrating the return of the fast-food giant's Mighty Wings, they should take a moment to consider the consequences on their next supermarket trip.
Chicken's rising cost is largely due to McDonald's stockpiling wings over the past year to bring back the menu item, Wedbush analyst Nick Setyan told Bloomberg Television.
Wing prices surged to $2.04 per pound in February, based on Georgia dock prices, although they've since settled around $1.45 per pound. While that's down from the peak, it's still higher than 2011's prices, when chicken wings could be bought wholesale for as little as 77 cents a pound.
Unfortunately for football fans, the highest prices coincided with the Super Bowl, causing some feathers to be ruffled. The squeeze even allegedly prompted two storage workers to steal $65,000 worth of frozen chicken wings.
McDonald's might have become its own worst enemy in the great chicken-wing roundup, however. Wedbush's Setyan said he doesn't believe the fast-food chain will add Mighty Wings as a permanent menu after witnessing how much its mammoth purchases can move the market.
"They underestimated their own impact on wing costs," he notes.
The restaurant giant declined to comment, according to Bloomberg Businessweek.
Consumers may see continued easing on prices, given that McDonald's is likely done with snapping up chicken wings after building its stockpile earlier this year. But that provides another, somewhat less savory takeaway.
As Setyan noted: It means consumers are "eating 4-month old chicken wings."
Follow Aimee Picchi on Twitter at @aimeepicchi.
Am I the only one that is amazed that they're serving chicken over 2 years old ?!?
besides all the other crap that MickeyD's is comprised of....
BLAME THE WELFARE TRASH WHO GET TO SHOP FOR LOBSTER WHILE I HAVE TO PINCH PENNIES TO BUY MY GROCERIES WITH MONEY THAT I EARN.
The consistent blame on MacDonald's for much that is wrong in this country has grown extremely unprofessional, irresponsible journalism and wrong. Sorry that this journalist doesn't like MacD's but they are to blame for many of our countries woes, nor are they to blame for the Childhood Obesity and Adult Obesity epidemic.
As many journalists attempt to blame this and that on MacDonald's they have proven that not only are they bad journalists but report on personal peeves which most of the time have proven to be UNTRUE.
THIS SAID PROVES MY POINT LOUD AND CLEARLY!
Ammie, you've confirmed what your readers have known all along you are a raging left wing radical nut. Supply and demand are basic principles of a free market economy.
Something is afoul with all this talk about a fowl. But I am with the cows 'eat more chikin" I need more food stamps.....
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