Home Business Wingstop is seeing 'significant deflation' in hen wings, CEO says

Wingstop is seeing 'significant deflation' in hen wings, CEO says

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Wingstop is seeing 'significant deflation' in hen wings, CEO says

Chicken wings costs have come down in worth since hovering final 12 months, Wingstop chief govt Michael Skipworth informed CNBC’s Jim Cramer on Wednesday.

“Other brands are … going to have to look at pricing in order to manage their margins, and Wingstop is in a very different position in that we’ve seen meaningful deflation in our business. The price of wings last year .. hit $3.22 a pound, and we fast forward to today, and it’s $1.63 a pound,” Skipworth mentioned in an interview on “Mad Money.”

“We’ve seen this in years before where a lot of businesses jump into wings [and] it drives the demand up. But as we sit here today, their businesses weren’t built to manage that volatility in the commodity, and so we’ve been able to weather that like we have in the past, and they’ve moved away,” he added.

Skyrocketing costs of components and provide have put strain on eating places’ operations through the pandemic, forcing many to lift menu costs to offset the upper prices.

Skipworth, who turned CEO of Wingstop in March, additionally credited excessive demand for hen breasts as serving to tamp down wing prices. 

“There’s a lot of demand for breast meat, and breast meat is where these poultry companies make their profit, and so they’re growing as many birds as they can right now, which means a lot of supply for wings out there,” he mentioned.

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