McCrispy Strips’ mixed reviews could make or break the Snack Wrap

McDonald's has introduced McCrispy Strips to its American menu, marking the company's first new permanent addition in four years, but the launch has received mixed reactions from customers, as reported by FOX Business. The chicken strips, which became available at all participating restaurants by May 5 after launching in late April, are made with white meat chicken and feature a crispy golden-brown coating with black pepper seasoning.

However, some customers have compared them unfavorably to the chain's previous Chicken Selects and competitors' offerings. Social media users on Reddit have described the strips as tasting like oversized dinosaur nuggets and being too stringy compared to McNuggets. Despite these criticisms, other customers have praised the new menu item, with some calling it their favorite McDonald's product and appreciating the accompanying sauce. FOX Business notes that the mixed reception has raised questions about the strips' potential impact on upcoming menu changes.

Investment firm Loop Capital has expressed concerns about the McCrispy Strips' performance, suggesting the negative feedback by customers could affect McDonald's sales projections, as reported by Seeking Alpha. Analyst Alton Stump noted that while the reduced breading creates better taste for the chicken meat itself, it results in a product that appears less attractive and smaller than previous McDonald's offerings and competitor products.

The firm had initially expected the strips to provide a significant boost to domestic sales but has since revised its outlook based on customer reactions. Seeking Alpha indicates that food industry observers have described the strips as bland, soggy, and overpriced, comparing them to cafeteria-style chicken products. The negative reviews have prompted Loop Capital to downgradeMcDonald's stock from Buy to Hold and reduce its price target from $346 to $315. These concerns extend beyond just the strips themselves, as they will be featured in the returning Snack Wrap scheduled for July 10.

The McCrispy Strips launch comes as McDonald's prepares to reintroduce the popular Snack Wrap after a nine-year absence, with the new version featuring the controversial chicken strips along with lettuce and cheese in a tortilla, Index Box analysis reveals. Despite the initial reception challenges, projections suggest McDonald's could see a 2% increase in comparable sales during the 2nd quarter and 1.2% growth for the full year. Some analysts remain positive about the menu changes, with Morgan Stanley suggesting the strips and returning Snack Wrap could positively impact sales alongside expanded beverage options. Index Box data shows that while Loop Capital has reservations due to negative feedback, other firms maintain more positive outlooks on the menu additions.

The company hopes the Snack Wrap's tortilla will help mask any appearance issues with the strips while capitalizing on customer nostalgia for the discontinued item. McDonald's faces the challenge of meeting earnings expectations while navigating customer acceptance of its first major menu innovation in years, with the success of both products potentially influencing future menu development strategies.

Sources:

https://www.foxbusiness.com/lifestyle/mcdonalds-mccrispy-strips-receive-mixed-reviews-analysts-question-impact-upcoming-snack-wrap

https://seekingalpha.com/news/4456151-mcdonalds-stumbles-out-of-the-gate-with-its-first-permanent-menu-addition-in-four-years

https://www.indexbox.io/blog/mcdonalds-mccrispy-strips-mixed-reactions-and-market-impact/