The Wingstop stock plummeted after the restaurant chain failed Wall Street's sales and earnings targets, citing persistently high pricing for chicken, which makes up the majority of its menu items.
The company stated in a statement on Wednesday that total revenue increased by 2.8% to $65.8 million. A major Newswire generated an average of analyst predictions of $74.8 million, which fell short. Earnings adjusted to 29 cents per share were also below estimates.
The performance highlights the restaurant industry's many issues, including increased food costs, employee turnover, and restrictions connected to Covid-19. "Chicken costs remain high due to macro inflationary factors like a labor shortage," Wingstop Chief Executive Officer Charlie Morrison said in a statement.
The Wingstop stock was down 9.7% as of 8:10 a.m. in New York, ahead of regular trade. Through Tuesday's close, the stock had risen 27% this year.