Bloomberg News

Sanderson Says McDonald’s Wings May ‘Shorten’ Supply (Correct)

August 28, 2013

(Corrects weight conversion in third paragraph of story published Aug. 27.)

McDonald’s Corp. (MCD:US)’s plan to start selling bone-in chicken wings across the U.S. from September through November likely will “shorten up” supply, said Sanderson Farms Inc. (SAFM:US) Chairman and Chief Executive Officer Joe F. Sanderson Jr.

“Anytime anybody features wings and sells wings, it’s going to take some wings off the market,” Sanderson said in a telephone interview today.

Wings in cold storage at the end of July almost doubled to 94.2 million pounds (42.7 million kilograms) from a year ago, according to the U.S. Department of Agriculture. The Georgia Dock price of wings, a benchmark for the commodity, has dropped 29 percent to $1.44 a pound from a January record, according to the USDA.

It’s difficult to determine how McDonald’s entry into the wings market will affect prices because it’s unclear how much inventory the Oak Brook, Illinois-based restaurant chain holds, Sanderson said. Demand typically rises during the U.S. football season that begins in September and peaks around the Super Bowl championship game.

Sanderson is not a supplier of wings to McDonald’s.

To contact the reporter on this story: Shruti Date Singh in Chicago at ssingh28@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net


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Companies Mentioned

  • MCD
    (McDonald's Corp)
    • $94.57 USD
    • 0.46
    • 0.49%
  • SAFM
    (Sanderson Farms Inc)
    • $92.77 USD
    • 2.98
    • 3.21%
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