McDonald’s brings back the popular Snack Wrap after a long hiatus

McDonald’s (NYSE:MCD) is introducing Snack Wrap back to its menu on Thursday. The revived Snack Wrap menu item features one of the chain’s new McCrispy Strips, which is a juicy chicken strip made with all white meat, topped with crisp shredded lettuce and shredded cheese, all wrapped in a soft flour tortilla.

Customers can order Snack Wraps in two flavors. The spicy version is described as bold, zesty, and unapologetically fiery. The ranch version is described as smooth, rich, and irresistibly savory. Customers can snag the Snack Wrap à la carte for $2.99 or as a combo meal, which includes two Snack Wraps, medium fries, and a drink of choice.

Snack Wrap was first launched in 2006 and included crispy, grilled or spicy chicken tender, lettuce, zesty pickles, and creamy garlic mayo wrapped in a soft tortilla. Despite initial popularity, the Snack Wrap was discontinued in 2016 due to operational challenges. Franchisees found the preparation process too complex and time-consuming, which slowed down service and conflicted with McDonald’s (NYSE:MCD) commitment to speed and efficiency.

On Wall Street, analysts think the return of McDonald’s (NYSE:MCD) Snack Wrap could be a Q3 traffic driver. The re-introduction is part of McDonald’s (NYSE:MCD) broader strategy to diversify its menu and appeal to health-conscious and younger demographics, especially as rivals like Subway gained traction with customizable, portable offerings.

The Snack Wrap’s affordable price point and nostalgic appeal are expected to draw back cost-conscious and lapsed customers while also helping McDonald’s (MCD) compete more aggressively in the booming chicken segment. Notably, projections on the impact of the return of Snacks Wrap show McDonald’s annual revenue could be lifted by $200 million to $300 million and same-store sales by 1% to 2%.

Some of the chains competing for the same fast-food dollars as McDonald’s (MCD) with its Snack Wraps are Popeyes, KFC (YUM), Wendy’s (WEN), Burger King (QSR), Chick-Fil-A, Sonic, Arby’s, and Subway.