Wing Prices Still Flying Low, Boosting Margins For Buffalo Wild Wings

For the sixth week in a row, the price of chicken wings has deflated, finding itself 8-9 percent below its levels from a year ago. For Buffalo Wild Wings BWLD, this likely means that cost of goods sold (COGS) will track better than consensus estimates.

This was the view at BMO Capital Markets, which reiterated its Outperform rating on Buffalo Wild Wings in a note. Analyst Andrew Strelzik sees wing prices remaining below year-ago levels and thinks this can be accretive to Buffalo's EPS by $0.04-$0.05 above expectations.

Though Strelzik remains cautious ahead of second quarter results, he believes the low wing prices will give the wing-slinging company a cushion for its EPS.