Business

Wingstop is seeing ‘meaningful deflation’ in the wings, CEO says

The price of chicken wings has fallen since skyrocketing last year, Wingstop CEO Michael Skipworth told CNBC’s Jim Cramer on Wednesday.

“Other brands… will have to look at pricing to manage their margins and Wingstop is in a very different position as we’ve seen meaningful deflation in our business.” The price of the wings last year.. reached $3.22 a and we fast forward to today and it’s $1.63 a pound,” Skipworth said in an interview above.Crazy money. “

“We’ve seen this for years before so many businesses jumped in [and] it drives up demand. But as we sit here today, their businesses aren’t built to manage that volatility in commodities, and so we can get through things like we did in the past, and they left,” he added.

Rapidly increasing ingredient prices and supplies have put pressure on restaurant operations during the pandemic, forcing many to raise menu prices to offset higher costs.

Skipworth, who became Wingstop’s CEO in March, also thinks the high demand for chicken breasts helps keep wing costs down.

“There’s a lot of demand for brisket, and brisket is where these poultry companies make their profits, and so they’re growing as much poultry as possible right now, which means a lot of supply.” for wings,” he said.

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