There's a chicken wing clearance sale going on at McDonald's (MCD). This week the chain began promoting its Mighty Wings at a new price of $3 for five wings, or about 60¢ each, compared with the original price of $1 per wing. That's a 40 percent discount. At this price, McDonald's will either break even or take a slight loss on the product, according to Nick Setyan, vice president in charge of equity research at Wedbush Securities.
Mighty Wings will be sold at the discounted price "until supply runs out," spokeswoman Lisa McComb wrote in an email.
"They've paid for those wings. If they don't sell it, they would have to eat the entire loss,"
Disappointing sales left the Golden Arches with roughly 10 million pounds of frozen wings -- about 20 percent of what the chain purchased -- at the end of 2013 after Mighty Wings launched nationally in September.
"The original price point wasn't as competitive as it could have been," according to McComb. Although some consumers found the wings too spicy, the recipe hasn't changed; there's "just more awareness that they have a little kick to them."