Wingstop slides as chicken prices come home to roost

Wingstop shares dropped sharply after the company posted a mixed earnings report for the final three months of 2024.

Wingstop reported earnings per share of $0.92, compared to the $0.86 analysts polled by FactSet were expecting. But it also reported $161.8 million in sales — up from the $127.1 million it made in the same period in 2023, but lower than the $165 million analysts were expecting. 

The company said results were hurt partly because of higher costs of bone-in chicken wings in the final quarter. The company has exploded in popularity since 2020, in part because it’s been able to keep its prices competitive as the cost of beef outpaces the price of chicken.

Still, Tuesday marks the second earnings report in a row that left investors unimpressed. The company is down more than 5% in the past year, compared with a broader stock market that has risen sharply.