Chicken wings prices have come down in price since soaring last yr, Wingstop chief executive Michael Skipworth told CNBC’s Jim Cramer on Wednesday.
“Other brands are … going to have to have a look at pricing so as to manage their margins, and Wingstop is in a really different position in that we have seen meaningful deflation in our business. The worth of wings last yr .. 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 have seen this in years before where a number of businesses jump into wings [and] it drives the demand up. But as we sit here today, their businesses weren’t built to administer that volatility within the commodity, and so we have been capable of weather that like now we have up to now, and so they’ve moved away,” he added.
Skyrocketing prices of ingredients and provide have put pressure on restaurants’ operations through the pandemic, forcing many to boost menu prices to offset the upper 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 number of demand for breast meat, and breast meat is where these poultry firms make their profit, and in order that they’re growing as many birds as they’ll immediately, which implies a number of supply for wings on the market,” he said.
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