BusinessPostCorner.com
No Result
View All Result
Saturday, July 5, 2025
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources
BusinessPostCorner.com
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources
No Result
View All Result
BusinessPostCorner.com
No Result
View All Result

Chicken wing inflation worries analyst over Wingstop stock

July 29, 2023
in Business
Reading Time: 2 mins read
A A
0
Chicken wing inflation worries analyst over Wingstop stock
ShareShareShareShareShare

The price of the chicken wing is going up, and that may spell trouble for Wingstop Inc., according to analysts at Wedbush as they stepped away from their bullish position on the stock a week out from the fast-casual chain’s second-quarter earnings.

Wingstop has climbed 20% this year, outpacing the 12% advance in the S&P Composite 1500 Restaurants index and chains including McDonald’s Corp., Cheesecake Factory Inc. and Domino’s Pizza Inc. However, wing prices have gradually increased more than 30% in the past month, which may impact Wingstop’s shares, analyst Nick Setyan wrote in a note.

“During periods of wing cost inflation, Wingstop’s share price tends to either stagnate or decline,” he said.

Shares of the company slumped 8% on Friday in their worst drop since May 2022.

The average price target for Wingstop among analysts tracked by Bloomberg is $204. Setyan downgraded the chain to neutral from outperform and reduced his price target to $185 from a shared-Street high of $240. The stock has six buy ratings, 15 holds and two sells, according to data compiled by Bloomberg.

Wing prices continue to be favorable compared with historical levels but are still high enough that they put estimates for second-half and 2024 cost of goods sold at risk, Setyan said, particularly if the strength Wingstop enjoys from the football season through March Madness basketball occurs. 

High wing costs also have a knock-on effect on sales, with Setyan noting that franchisees often lift prices in response, hurting transaction growth in the process. And while Wingstop has upped the mix from boneless chicken wings, and will likely increase it further, Setyan sees bone-in wings continuing to dictate franchisee pricing decisions for the foreseeable future. 

Setyan says he doesn’t see outsized risk to domestic franchised same-store sales growth estimates for the second and third quarters. Wingstop will report second-quarter earnings on Aug. 2.

–With assistance from Katrina Compoli.

Subscribe to Well Adjusted, our newsletter full of simple strategies to work smarter and live better, from the Fortune Well team. Sign up today.

Credit: Source link

ShareTweetSendPinShare
Previous Post

Saudi seeks to woo developing nations for Ukraine peace talks

Next Post

Trucking giant Yellow on brink of bankruptcy after bailout

Next Post
Trucking giant Yellow on brink of bankruptcy after bailout

Trucking giant Yellow on brink of bankruptcy after bailout

Stock market today: S&P 500, Nasdaq eye fresh highs as futures rise

Stock market today: S&P 500, Nasdaq eye fresh highs as futures rise

June 30, 2025
ChatGPT’s 42-Signal DOGE Analysis Flags Key alt=

ChatGPT’s 42-Signal DOGE Analysis Flags Key $0.155 Support Test Amid Musk Drama

July 4, 2025
How safe is the Boeing 787 Dreamliner, really?

How safe is the Boeing 787 Dreamliner, really?

June 29, 2025
Trump announces US-Vietnam trade deal

Trump announces US-Vietnam trade deal

July 2, 2025
Two workers for SEC’s EDGAR system charged with insider trading

Two workers for SEC’s EDGAR system charged with insider trading

June 28, 2025
Chief Justice Roberts warns against elected officials’ heated political words about judges

Chief Justice Roberts warns against elected officials’ heated political words about judges

June 28, 2025
BusinessPostCorner.com

BusinessPostCorner.com is an online news portal that aims to share the latest news about following topics: Accounting, Tax, Business, Finance, Crypto, Management, Human resources and Marketing. Feel free to get in touch with us!

Recent News

Texas flash flood claims at least 27 lives

Texas flash flood claims at least 27 lives

July 5, 2025
OPEC+ to ramp up oil output even higher with eye on market share

OPEC+ to ramp up oil output even higher with eye on market share

July 5, 2025

Our Newsletter!

Loading
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2023 businesspostcorner.com - All Rights Reserved!

No Result
View All Result
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources

© 2023 businesspostcorner.com - All Rights Reserved!