The last major “chicken war” was in August 2019.
Popeyes and Chick-fil-A got into a fight over whose chicken tasted better. Then Wendy’s jumped in, tweeting, “Y’all fighting here about which of these fools has the second best chicken sandwich?”
Chickens were running for their lives there was so much demand.
Unfortunately, there was so much demand, chicken prices exploded, sending stocks like Tyson Foods (TSN) to higher highs. Now, it could happen all over again.
For one, there’s now a chicken sandwich war among McDonald’s, Popeyes, and Wendy’s. KFC can’t even keep up with demand these days, telling some restaurant owners to remove chicken tenders from online menus because of tighter supply.
Two, grilling season is just around the corner, which could increase demand even more. With folks wanting to get outside to enjoy the weather between Memorial Day and Labor Day, chicken demand and prices could soar.
While it could be tough for consumers, chicken companies are raking in cash. Pilgrim’s Pride (PPC) for example just reported a profit of $100 million – a nearly 50% jump year over year. We could see impressive numbers from Tyson Foods and Sanderson Farms when they report quarterly results.
Since the start of the year, chicken breast prices have now more than doubled, according to The Wall Street Journal, as wings prices have hit record highs. In fact, “The overall supply is constrained. That affects every part of the bird,” Wingstop Chief Executive Charlie Morrison said, as quoted by the Journal.
“Buk, buk, ba-gawk.”