Chicken Wings Glide into 12th Straight Week of Price Deflation

Originally published by on August 8, 2016 Read the original article.

When Kentucky Fried Chicken was founded in 1930, Colonel Sanders probably never imagined that the wings of the chicken would be as popular as they are today.

Whether you like your wings traditional or boneless, Buffalo Wild Wings has you covered. Plus, the casual dining restaurant and sports bar franchise offers a variety of seasonings and sauces.

And here’s what else chicken-wing consumers are finding: price deflation.

Read this excerpt from an Aug. 8 article:

[A] BMO Capital analyst … reiterated his Outperform rating on shares of Buffalo Wild Wings, Inc. (NASDAQ: BWLD) as wing prices remained deflationary for another week, falling 2% below year-ago levels to $1.46. This marks the twelfth consecutive week of wing price deflation, though the rate of deflation has moderated in each of the past seven weeks.

Despite moderating wing price deflation over the last several weeks, the analyst’s constructive outlook for wing prices remains intact.

Favorable wing price trends continue to unfold for BWLD’s 3Q16 as wing prices are tracking approximately 6-7% below year-ago levels. Specifically, with visibility into more than two months of BWLD’s 3Q wing costs, our regression analysis implies that BWLD’s 3Q COGS are tracking modestly below 29% relative to FactSet consensus of 29.1%.

You can read the entire article by following the link below:

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