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Travis Scott Broke McDonald's Supply Chain

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Travis Scott Broke McDonald's Supply Chain

Rapper Travis Scott's collaboration with McDonald's Corp (NYSE: MCD) is resulting in meat shortages because of the popularity of the new "Travis Scott Meal," a Quarter Pounder burger, fries, Sprite and a side package of BBQ sauce.

The stock hit an all-time high above $226 per share on Wednesday afternoon.

What Happened: Scott's relationship with McDonald's marks the fast-food chain's first collaboration with a celebrity since Michael Jordan in the early 1990s. On Wednesday, the company confirmed the success of the partnership is resulting in some locations completely selling out of the burger.

Multiple apparel and unique merchandising as part of the Scott promotion have also sold out.

McDonald's told CNBC it's "working closely" with suppliers, distributors, and franchisees to "resupply impacted restaurants." The statement also teased it has "more surprises" from Scott coming soon.

Why It's Important: McDonald's navigated throughout the COVID-19 pandemic without experiencing supply chain issues. But the scope and reach of Scott's popularity prompted the chain to take temporary emergency measures.

McDonald's typically waits for individual stores to place orders for products based on demand, according to CNBC. But now McDonald's will be sending out ingredients to restaurants based on its own internal calculations.

McDonald's will transition its Scott meal to become a digital-only offer as of early October.

Related Links:

McDonald's Debuts Spicy Chicken McNuggets With Hilarious 'Spicesurance' Fine Print

Restaurant Roundup: Domino's Launches First New Pizza In Years, McDonald's And Papa John's Double Down On Chicken Trend

 

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