Not Just Relying on the 'Broke Market'! McDonald's Bets Big on Chicken to Target Health-Conscious Consumers

The world's largest fast-food chain, McDonald's, is making a major bet on chicken to expand its customer base and recover from an operational downturn. At a recent shareholder meeting, executives announced a new goal: to increase its global market share in the fast-food chicken segment by 1.5 percentage points by 2030 (current share estimated between 15% and 19%). In contrast, McDonald's already holds over 40% market share in the beef burger market.

This strategic shift is driven by rising global demand for chicken, which has outpaced beef in recent years. Since 2021, ground beef prices in the U.S. have surged by more than half. Chicken’s versatility in cooking methods and its reputation as a high-quality white meat protein make it a top choice among health-conscious consumers.

On October 20, 2024, Republican presidential candidate Donald Trump fried fries at a McDonald’s outlet. (AP)

Jill McDonald, McDonald’s Global Chief Restaurant Experience Officer, stated that in the top ten global markets, annual fast-food chicken sales reach $130 billion (approximately NT$4.12 trillion), growing at 5% annually. In comparison, beef sales total $50 billion (approximately NT$1.58 trillion) with only a 3% annual growth rate.

Sales growth has slowed in McDonald’s largest market, the U.S., where foot traffic is declining. The company’s stock dropped nearly 20% in 2026. In Q2, same-store sales in the U.S. grew just 0.8%, far below the international division’s minimum 1.5% increase. To revive sales, McDonald’s is aggressively shifting toward white meat offerings to fill the gap left by its traditionally low-income customer base and to counter intense competition. As the fast-food giant prepares to launch more chicken burgers and wraps, competition in the U.S. market will intensify, especially against established chicken-focused chains like Chick-fil-A and Raising Cane’s.

McDonald’s has already introduced hand-breaded chicken items in about 10,000 stores across Asia and plans to test them in markets like the U.S. and Ireland. However, Bernstein analyst Danilo Gargiulo warns that in-store hand-breading requires additional labor, specialized equipment, and stricter food safety protocols—potential cost burdens.

In February 2018, McDonald’s UK launched a revamped Happy Meal, and menus worldwide will be updated to meet higher health standards.

Executives also revealed improvements for poultry products like the McChicken and Chicken McNuggets, which generate $15 billion in annual sales. These include optimizing cooking times, calibrating fryer settings, and adjusting oil levels.

Additionally, amid the growing popularity of GLP-1 weight-loss drugs (commonly known as “skinny shots”), which suppress appetite and pose a threat to food companies, new U.S. President Skye Anderson noted that around 84% of American households using these drugs still visit McDonald’s. She believes GLP-1 users represent an opportunity for McDonald’s meat and fish menu, as they continue seeking high-protein foods.

Generative AI Voice Drive-Thru

Beyond chicken, McDonald’s aims to boost beverage market share by 1.5 percentage points, targeting carbonated and colorful social media-friendly specialty drinks. CEO Chris Kempczinski stated that the industry’s growth logic is changing; amid persistent high inflation, McDonald’s must grow by capturing larger market share to succeed.

McDonald’s partnership with Coca-Cola has lasted over 70 years. (AP)

The new strategy includes massive support for franchisees. Over the next decade, McDonald’s will provide approximately $8.5 billion (about NT$269.7 billion) in financial assistance to help franchisees upgrade their stores, in addition to their own investments.

These initiatives include deploying generative AI platforms to improve operational efficiency, such as installing real-time voice-order assistants in drive-thru lanes capable of handling English and Spanish. President Anderson admitted that while many customers love McDonald’s, the company has long struggled with execution. They are now proactively engaging franchisees, suppliers, and employees to address operational issues.