Wingstop CEO Michael Skipworth told CNBC’s Jim Kramer on Wednesday that chicken wings have fallen in their prices since their rally last year.
“Other brands have to… consider pricing in order to manage their margins, and Wingstop is in a very different situation where we have seen a meaningful contraction in our business. Wings were priced last year.. at $3.22,” Skipworth said in an interview on Mad. Money: “A pound, and we’re fast forward to today, and it’s $1.63 a pound.”
“We’ve seen this in years before where a lot of companies are jumping into wings [and] lead to increased demand. But as we sit here today, their business wasn’t built to manage this volatility in commodities, so we’ve been able to beat that like we’ve done in the past, and they’ve walked away.”
The skyrocketing prices of ingredients and supplies have put pressure on restaurant operations during the pandemic, forcing many to raise menu prices to offset the higher costs.
Skipworth, who became Wingstop CEO in March, also attributed the high demand for chicken breasts to helping bring down wing costs.
“There is a huge demand for breast meat, and breast meat is where poultry companies make their money, so they are growing as many birds as possible right now, which means there are a lot of wings available there,” she said.
open an account now For the CNBC Investing Club to keep track of Jim Cramer’s every move in the market.
Not giving an opinion
Questions for Kramer?
Call Cramer: 1-800-743-CNBC
Do you want to dive deep into Kramer’s world? Hit him!
Mad Money on Twitter – Jim Kramer Twitter – Facebook – Instagram
Questions, comments and suggestions for “Mad Money”? madcap@cnbc.com