Buffalo Wild Wings Hoping Wing Price Inflation Will Peak In October

Rising Wing Price Inflation

Analyst Ryan Royce noted that wing prices remained inflationary this week, as it rose 14–15 percent year-over-year to $1.83. This marks the seventh straight week of wing price inflation following more than three months of deflation, the analyst added.

Seasonality In Wing Prices

According to the firm, wing prices typically peak around early October and then starts declining through December. However, the firm noted that wing price inflation did not follow seasonality last year and remained flat throughout the year.

Related Link: Football Season Brings Inflation To Wing Prices; BMO Stays Positive On Buffalo Wild Wings

Let Up In Inflation Expected

BMO Capital Markets believes wing price inflation will moderate despite four to six weeks of inflation remaining. Additionally, the firm is of the view that the outlook for wing prices remain favorable.

The firm based its positive view on leading indicators such as egg sets remaining strong and expectations that two additional big bird production facilities coming online over the next few months. The added capacity, according to the firm, will add 3–4 percent of incremental bird capacity. The firm also sees overall protein supply/demand imbalance, as the ongoing competition from alternative proteins is unlikely to abate.

BMO Capital Markets has an Outperform rating and a $190 price target on the shares of the company.

At last check, Buffalo Wild Wings was up 1.34 percent at $137.75.

Full ratings data available on Benzinga Pro.