Chicken prices have almost doubled in the last two years, leading higher costs for restaurants and chicken lovers alike, and prices don’t seem to be dropping any time soon.
When drought conditions pushed grain prices higher in 2010, poultry producers also increased prices to offset those higher costs.
Generally, restaurants in the United States try to avoid passing on higher costs to consumers, instead promoting lower-cost non-chicken menu items, according to Sri Raman, senior research analyst at Thomson Reuters.
But earlier this year, chicken wing prices hit profit margins at Buffalo Wild Wings (BWLD), for instance. The company paid about $2.10 per pound in the first quarter of this year compared with $1.92 in the year-ago period as the overall cost to sell those wings rose, according to a company report.
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