McDonald’s to take on KFC and rivals as Gen Z flock to fried chicken

Fast food giant aiming to increase share of global chicken market as rising cost of beef hits profits

McDonald’s is betting on fried chicken as health concerns and the rising price of beef shift dining habits.

The company said that it aimed to take an extra 1.5 percentage point-share of the global chicken market by 2030, with an aim to increase its share of drinks by the same proportion. McDonald’s said the growth in chicken, a lower-priced protein, would not come at the expense of beef burger sales, saying it aimed maintain its “leadership position in beef”.

Chris Kempczinski, McDonald’s chair and chief executive, told investors in May that the chain’s share of the chicken market was in the “high teens”, compared with about 45% in beef, but the chicken market was bigger and growing at twice the pace of its red meat counterpart.

McDonald’s has warned that the rising cost of beef, as well as energy, was hitting profits for its franchisees. The chain also faces heavy competition from the rapid rise of chicken shop chains including Popeyes and Wingstop as well as expansion by the more established player KFC, driven particularly by the popularity of fried chicken among younger Gen Z consumers.