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

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


Chicken wings prices have come down in price since soaring last year, Wingstop chief executive Michael Skipworth told 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 said 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 prices of ingredients and supply have put pressure on restaurants’ operations during the pandemic, forcing many to raise menu prices to offset the higher costs.

Skipworth, who became CEO of Wingstop in March, also credited high demand for chicken breasts as helping tamp down wing costs. 

“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 said.

Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.

Disclaimer

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer’s world? Hit him up!
Mad Money TwitterJim Cramer Twitter – Facebook – Instagram

Questions, comments, suggestions for the “Mad Money” website? [email protected]





Source

What wealthy parents need to know about giving real estate to their kids
Business

What wealthy parents need to know about giving real estate to their kids

A local house with a porch in Edgartown on Martha’s Vineyard, Massachusetts, USA. Wolfgang Kaehler | Lightrocket | Getty Images A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox. The great wealth […]

Read More
The summer box office sizzled, but brace for a cooldown until November
Business

The summer box office sizzled, but brace for a cooldown until November

Movie stills from Disney’s “Lilo & Stitch” and “Fantastic Four” and Warner Bros. Discovery’s “Superman.” Courtesy: Disney | 20th Century Studios | Marvel Studios | Warner Bros. Discovery Superheroes, dinosaurs and a genetically altered alien dog helped propel the summer box office haul above 2024 levels, but that momentum is about to stall. Heading into […]

Read More
John Deere faces a crossroads amid decreasing demand, increasing investments
Business

John Deere faces a crossroads amid decreasing demand, increasing investments

Attendees view a John Deere 7R 270 row crop tractor at the Deere & Co. booth during the World Ag Expo at the International Agri-Center in Tulare, California on February 11, 2025. Patrick T. Fallon | AFP | Getty Images John Deere is facing a crossroads as the company continues to see weaker demand in […]

Read More