Just eight days after McDonald’s kicked off its collaboration with rapper Travis Scott, the fast-food giant is reporting some ingredient shortages tied to the promotion.
The meal comes with a Quarter Pounder burger with cheese, bacon and shredded lettuce, Sprite soda and fries dipped in BBQ sauce, for just $6. Travis Scott, who uses the nickname “Cactus Jack,” is also selling McDonald’s themed items, such as a pillow shaped like a McNugget, on his website, and many of these items are selling quickly.
McDonald’s said that some of its restaurants have temporarily sold out of some of the ingredients in the meal. As a result, it’s temporarily controlling the supply of its Quarter Pounder beef, bacon, slivered onions and shredded lettuce to make sure restaurants nationwide can still serve the meal. Rather than locations placing orders with the supply chain based on demand, McDonald’s is sending those ingredients to restaurants based on internal calculations.
“We’re working closely with our suppliers, distributors and franchisees to resupply impacted restaurants as quickly as possible,” McDonald’s USA said in a statement to CNBC. “Stay tuned and don’t worry, we’ve got more surprises from Cactus Jack coming soon.”
Supply issues for McDonald’s are rare. Throughout the coronavirus pandemic, the company has said that it has not experienced a supply chain break in any of its markets. Wendy’s, on the other hand, briefly experienced shortages of its signature fresh beef this spring as national production of the meat fell due to closed meat processing plants. Since 2018, McDonald’s Quarter Pounders have also been made with fresh beef, a change that required it to overhaul its supply chain.
Scott has a huge following, and McDonald’s isn’t the first brand to tap its potential. In the last year, Scott has worked with Epic Games’ Fortnite, General Mills and Nike.
Shares of McDonald’s hit a 52-week high of $226.72 in trading Wednesday, and ended the day up 1.1% at $224.81. The stock, which has a market value of $173.3 billion, is up nearly 14% so far this year.
Source: Business - cnbc.com
