Wing Prices Are Surging, Threatening Wingstop Shares
- Analyst Nick Setyan cuts restaurant to neutral from outperform
- Wing prices have increased more than 30% since late June
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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.