Executive Summary: Wingstop’s 2Q22 comps declined -3.3% (after +4.5% in pricing). Corporate reported that while the lower-income demo pulled back on overall QSR frequency, Wingstop’s frequency (3x/quarter) was sustained by: customers treating the brand as an indulgent occasion; and the offer of more value options including its $15.99 Boneless Meal Deal (7% mix) with 20 boneless wings, 4 flavors, 2 dips & large fries.
Notably, the previous pricing taken to offset record 2021 wing inflation provides operators with the ability to lower prices if required by their customers as these costs start to deflate by -19% so far in 2022. The industry’s frozen wing inventory levels are the highest in 5 years. Record breast meat prices are motivating suppliers to substantially increase their production levels, providing the basis for a favorable cost outlook for 2H22 & 2023.