Analyst predicts chicken market to surpass beef

  • Chicken is becoming more popular than beef at McDonald’s
  • McDonald’s plans to add 10,000 stores in the next four years
  • Chicken accounts for $25 billion in systemwide sales, equal to beef
  • Chicken McNuggets’ annual sales are $10 billion and growing by 10% a year
  • The global chicken market is estimated to be twice the size of the beef market
  • McDonald’s will increase capital spending to $3 billion in fiscal 2025
  • McDonald’s stock rose by 0.1% in premarket trading
  • Shake Shack received an upgrade to strong buy from Raymond James
  • Shake Shack’s stock has risen by 51% in 2023

McDonald’s is seeing a shift in popularity from beef to chicken, with chicken becoming a rising star on the company’s menu. Chicken accounts for $25 billion in systemwide sales, equal to beef, and Chicken McNuggets’ annual sales are now at $10 billion and growing by 10% a year. The global chicken market is estimated to be twice the size of the beef market. In addition, McDonald’s plans to add 10,000 stores in the next four years, showing its commitment to growth. The company also confirmed plans to increase capital spending to $3 billion in fiscal 2025. Meanwhile, Shake Shack received an upgrade to strong buy from Raymond James, and its stock has risen by 51% in 2023.

Public Companies: McDonald’s Corp. (MCD), Shake Shack Inc. (SHAK)
Private Companies:
Key People: John Ivankoe (J.P. Morgan analyst), Brian Vaccaro (Raymond James analyst)

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Factuality Level: 4
Justification: The article provides information about McDonald’s and Shake Shack, including their plans for expansion and analyst opinions. However, it lacks in-depth analysis and relies heavily on quotes from analysts without providing much context or evidence to support their claims. The article also includes unrelated information about a McDonald’s spinoff and free cookies at Subway, which is tangential to the main topic. Overall, the article is somewhat informative but lacks depth and could benefit from more balanced reporting.

Noise Level: 3
Justification: The article is primarily focused on stock analysis and upgrades/downgrades of McDonald’s and Shake Shack. It provides some information on McDonald’s plans to add stores and improve its menu, but overall, it lacks depth and analysis on broader trends or consequences of these developments. The article also includes unrelated information about Subway giving out free cookies, which is not relevant to the main topic.

Financial Relevance: Yes
Financial Markets Impacted: McDonald’s Corp., Shake Shack Inc.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the financial performance and plans of McDonald’s Corp. and Shake Shack Inc., indicating their relevance to financial markets. There is no mention of any extreme events.

Reported publicly: www.marketwatch.com