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Wingstop stock soars amid falling chicken wing prices

Yahoo Finance Live anchors discuss Wingstop raising its full-year guidance on the decline in price for wings.

Video Transcript

BRIAN SOZZI: All right, now we're looking at Wingstop. Shares of Wingstop taking flight today after the fast food chain announced prices of bone-in chicken wings are actually decreasing. The falling prices prompted Wingstop to raise its full year guidance. So this is what we've heard from Wingstop in recent quarters-- deflation in chicken wing prices. Really one of the only fast food companies that I can think of actually seeing deflation in parts of the business. Wingstop benefiting from that.

BRAD SMITH: They just got into the chicken sandwich game. Mad leap, that's the analysis.

BRIAN SOZZI: Yes.

JULIE HYMAN: Well, they may be seeing deflation in chicken wings, but they're probably not seeing deflation in labor costs, right? I mean, that's something, I think, that is still-- we're seeing upward pressure on that across the board for anybody within the food business specifically because people still don't want to come back and work in that business.

BRAD SMITH: No, it's true. And at the same time where Wingstop is also still trying to navigate what that direct correlation or that direct touchpoint with the consumer is, while many of those consumers have options on the table to get delivery through some of the other third party sources as well for their chicken wings. However--

[BUZZER]

--falling chicken prices helping them out.