As volume of broiler production increases, prices have fallen disproportionately. According to a leading market-research company, breasts have fallen over 60 percent since mid-year with proportional declines for wings. (see prices and inventory levels in the December Broiler Report posted in this edition)
The trend towards lower prices has benefitted QSRs. Wingstop® recorded a 40 percent decline in its major input category purchased during the third quarter of 2022 as compared to 2021. Comments by CEOs of chains have provided consistent messages to investors that lower prices of chicken will be reflected in increased sales and margins compared to 2021.
Given the high price of beef and the rejection of plant-based alternatives by consumers, QSRs have featured a variety of chicken sandwiches. These have met with acceptance by consumers as evidenced by the “chicken sandwich wars” among competing chains.
Notwithstanding promotions for wings and demand for sandwiches the USDA Cold Storage Report for November recorded a 35.6 percent increase in the Breast and Breast Meat category and a 24.1 percent increase in Wings between October 31st 2021 and the corresponding date in 2022.