Rising Chicken Wing Prices Could Hurt Buffalo Wild Wings
Hedgeye's head restaurant analyst Howard Penny notes the significant price increase on chicken wings over the past 4 years. “In 2012, during the first 24 days of the year, chicken wing prices gained 14%. For much of the remainder of last year, prices stayed within a range of roughly 180-190 cents per pound. Year-to-date in 2013, wing prices are again moving higher: +7.2% YTD. During the 3Q earnings call, management warned that the price of wings was trending to $2.07 for the first two months of the fourth quarter and stated that they expected it to exceed that level heading into the super bowl.” See the article HERE.
Weekly chart tells the story here. 2012 prices made two lower highs signaling momentum might be falling off in shares of (NASDAQ: BWLD). Significant support at $70.
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