Prices for chicken wings have fallen in price after rising last year, Wingstop CEO Michael Skipworth told Jim Kramer on CNBC on Wednesday.
“Another brand … will have to look at prices to manage its margin, and Wingstop is in a completely different position because we’ve seen significant deflation in our business. The cost of the wings last year … reached $ 3.22 a year. , and we’re moving to today, and it’s $ 1.63 a pound, ”Skipworth said in an interview with Mad Money.
“We’ve seen this many years before when many businesses were rushing into the wings [and] it increases demand. But if we sit here today, their business was not built in order to manage this volatility of the commodity, and so we were able to withstand it, as in the past, and they left, ”he added.
Rising prices for ingredients and offerings have put pressure on restaurant operations during the pandemic, forcing many to raise menu prices to offset high costs.
Skipworth, who became CEO of Wingstop in March, also believes that high demand for chicken breasts is helping to reduce the cost of wings.
“There is a great demand for breast meat, and it is the breast that is the place where these poultry companies make a profit, so they raise as many birds as they can now, which means a great supply for the wings,” he said.
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