Will McDonald’s ‘Mighty Wings’ Boost Prices?

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Sept. 9 (Bloomberg) -- Bloomberg's Leslie Patton and Alan Bjerga discuss what impact McDonald's "Mighty Wings" will have on chicken prices. Theys speak on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

Lesley helps to cover mcdonald's from chicago.

And we have alan covering agriculture.

Lesley, let's start off with you.

What is mcdonald's putting on the menu, and why?

It is putting chicken wings on the menu.

It started earlier this year in chicago and atlanta.

For while now, americans have been eating more chicken and beef.

It has a healthier halo around it and costs are more manageable.

A healthy halo.

Allen, let's do the whole supply chain here.

What do chickens eat primarily in the united states?

It is pretty much corn with legs in the united states.

Last year during a drought, you had high corn proust -- prices and that pushed chicken prices up and we are seeing that sustained into this year.

It even as corn prices have started to decline.

What is the higher corn prices -- what about the higher chicken prices now that mcdonald's has raised demand?

To keep that in perspective, the u.s. produces about 18 billion weans a billionwings per year -- about 18 billion wings per year.

But they are not a whole story.

250 million out of what could be an 18 billion wing market will affect things, but it is not dominant.

You still have the will consumption issue to begin with, in terms of changing tastes and growing states that levy was talking about.

Mcdonald's will have an impact, but not the full impact.

Is this a symbol -- a signal that mcdonald's has to change their menu in order to meet changing pace, or is it the changing pocketbook?

I think it is definitely both.

Consumers want to see new stuff, exciting stuff.

That is what gets them into the store.

That being said, there are many people in the u.s. who cannot afford more than just the dollar menu.

These are more of a premium priced item.

There are about a dollar each.

They're not on the value side of it.

This is probably a little more about excitement and getting people into the stores.

Is that also about trying to up the sales per square foot?

There are other restaurant chains that seem to have better metrics right now.

Yes, i think it is about that a little bit.

Also, getting into a little bit of a new territory for mcdonald's. this puts them into direct competition with some of the casual dining chains and not just the burger king or wendy's of the world.

Tell us about the corn crop prices right now.

This year, in contrast with last year, we are seeing expectations for the biggest corn crop ever.

Corn prices as a result have

This text has been automatically generated. It may not be 100% accurate.


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