OAK BROOK, Ill., March 3 (UPI) -- Cold sales of hot wings has led McDonald's to dramatically slash prices on what the company had hoped would be a premium item.
The sales of Mighty Wings were so bad that McDonald's was stuck with around 10 million pounds of frozen wings at the end of 2013 after the product rolled out nationally in September.
In an effort to get rid of excess supply, the chain is sending the price of the wings crashing back to Earth and will begin selling packs of five for $3. The wings originally were sold in packs of three for $3.69, five for $5.59 and 10 for $9.69.
“Mighty Wings are proving once again that we can’t sell premium items in large numbers because we still have the Dollar Menu,” a franchisee told the Wall Street Journal in an anonymous survey.
The wings will be sold at the discounted price “until supply runs out,” spokeswoman Lisa McComb told Bloomberg Business Week in an e-mail. “The original price point wasn’t as competitive as it could have been.”
According to Nick Setyan, vice president in charge of equity research at Wedbush Securities, the best the chain can hope for is to break even.
“They’ve paid for those wings. If they don’t sell it, they would have to eat the entire loss,” Setyan said. “It’s really the only sensible option at this point.”
[Bloomberg Business Week]
[Wall Street Journal]