Wingstop CEO Charlie Morrison informed CNBC’s Jim Cramer he’s seeing motivating check in the chicken wing market after tight supply previously this year affected costs.
“Wing prices are coming down. As of today, they’ve already come down almost 40 cents a pound since their peak, and I think that’s a good indicator that the supply of chicken wings is growing,” Morrison stated in an interview on “Mad Money,” including he anticipates it to keep broadening into next year.
“That’s going to start to rebalance things back to the levels that we saw before the pandemic,” he stated. “I think that’s creating optimism not only for us, for our franchisees, that we will weather this temporary storm that we’ve seen, just like we have in years past when we’ve seen just like we have in years past when we’ve seen volatility with this product.”
Morrison’s remarks followed Wingstop earlier Wednesday missed out on Wall Street’s third-quarter profits projections and released weaker-than-expected full-year same-store sales price quotes. Shares of the fast-casual dining establishment chain fell 10% Wednesday, closing at $15148 each.
Wingstop shares have actually drawn back from their all-time high of $18735 in September, however they stay up 14.28% year to date.
In June, Wingstop presented a virtual dining establishment effort called Thighstop that brought crispy chicken thighs to around 1,400 areas throughout the U.S. The launch came as chicken wing costs were increasing in reaction to provide difficulties.
Chicken thighs are still offered for order on Wingstop’s online menu, sinceWednesday Asked by Cramer whether the business prepares to “keep Thighstop” around even as wing costs fall, Morrison reacted “absolutely.”
“It’s a key part of our strategy. We want to make sure that we continue to use more and more parts of the bird. Long term, our supply chain strategy incorporates the use of the full bird. That gives us opportunities to work vertically into the supply chain, own more of the product, and not just be reliant upon the spot market purchases that we’ve had in the past.”
