{"text":[[{"start":7.22,"text":"The world’s largest burger chain is betting on chicken to drag it out of a slump."}],[{"start":11.607,"text":"McDonald’s set out a goal on Wednesday of growing its share of the global fast-food chicken market by 1.5 percentage points by 2030, from the high teens currently. It puts its share of the beef hamburger market at more than 40 per cent."}],[{"start":27.026,"text":"Global chicken demand has outstripped beef in recent years, with the price of ground beef in the US rising by more than half since 2021. Chicken’s versatility and its status as a lean protein have made it the go-to option for many increasingly health-oriented consumers around the world."}],[{"start":44.107,"text":"Jill McDonald, McDonald’s global chief restaurant experience officer, told investors on Wednesday that annual fast-food industry chicken sales were $130bn and growing 5 per cent per year in the 10 largest markets. That compares with $50bn in beef sales, growing at 3 per cent."}],[{"start":61.46,"text":"McDonald’s is focusing on white meat amid a slide in its shares, down almost a fifth this year, driven by sluggish sales growth and declining footfall in the US, its largest market. Like-for-like sales in the US were up 0.8 per cent in the second quarter, compared with rises of at least 1.5 per cent in its international divisions."}],[{"start":82.979,"text":"The company is battling against subdued spending by the low-income consumers it depends on and fierce competition. McDonald’s push into selling more chicken sandwiches and wraps will put it into closer competition with chains such as Chick-fil-A and Raising Cane’s."}],[{"start":100.26,"text":"McDonald’s has rolled out “hand-breaded” chicken across 10,000 stores in Asia and is now testing it in markets including the US and Ireland. Danilo Gargiulo, analyst at Bernstein, cautioned that products breaded inside stores require more labour, specialised equipment and food safety precautions."}],[{"start":115.444,"text":"For poultry products including its Chicken McNuggets, which generate $15bn in annual sales, McDonald’s has begun changes such as optimising cook times, calibrating fryer settings and adjusting oil volumes, McDonald said."}],[{"start":127.68,"text":"Food companies are threatened by the widening use of GLP-1 weight-loss medicines, which diminish appetites. About 84 per cent of US households with a person using the drugs visit McDonald’s, said Skye Anderson, who last month took over as president of McDonald’s USA, replacing Joe Erlinger."}],[{"start":146.398,"text":"Anderson said GLP-1s presented an opportunity for McDonald’s meat and fish menus as users typically seek to eat more protein."}],[{"start":155.3,"text":"At its investor day on Wednesday, McDonald’s also set a goal to increase its share of beverage sales by 1.5 percentage points, pursuing a category that has expanded as consumers seek out refreshers, “dirty sodas” and other colourful drinks that enliven their social media feeds."}],[{"start":172.78,"text":"“The industry growth algorithm is changing,” said Chris Kempczinski, McDonald’s chief executive. “We expect industry traffic growth in our wholly-owned markets will be flat while inflation remains elevated. For McDonald’s to succeed in that environment, growth must come from capturing greater share.”"}],[{"start":191.54,"text":"The targets were announced as McDonald’s hosted shareholders and analysts in Chicago at its first investor day in almost three years. Shares fell 5.3 per cent in midday trading."}],[{"start":201.651,"text":"The investor day presentation adds details to a new strategy presented to franchisees in June to improve menus, revamp stores, integrate marketing with social media creators and improve service at a time when many customers are ordering via digital screens in store."}],[{"start":217.354,"text":"“While there’s so much our customers love, we are falling short when it comes to consistent execution,” Anderson said. “We’re tackling that challenge head on. And that means active conversations with owner-operators, suppliers and employees about what’s working and what’s not.”"}],[{"start":231.06,"text":"Beyond store renovations they fund themselves, franchisees will receive about $8.5bn in support from McDonald’s over the next decade to help implement the strategy. The investments include deploying a generative AI platform that aims to improve efficiency, with technologies such as a voice assistant that takes live orders in English and Spanish in McDonald’s drive-through lanes."}],[{"start":254.903,"text":"The announcement came as franchisees had faced sluggish traffic, rising costs and pressure on restaurant profits, Gargiulo said in a note."}],[{"start":266.42,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1790231284_7447.mp3"}