It all started with a chicken giving Peter an expired coupon, which then became an epic feud between Peter and Ernie the Chicken spanning 7 years and 3 episodes. Each time the fight happens randomly, usually when Peter is mid-sentence. Peter always walks away bruised and battered but slips back to what his was doing, while Ernie is on the floor looking defeated but... he opens one eyelid. There was a glimmer of hope when the two tried to settle their differences over dinner, until they couldn't agree who should pay the check.
According to wikipedia, Ernie the Chicken will appear again in the premiere episode of Season 8, "Something, Something Something, Dark Side".

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