Chicken Wing Spot Prices Collapse 30% As NFL Protests Take Their Toll

Back in November, shortly after Trump ignited a war with the NFL over player protests of the National Anthem, Papa John's insisted that their sales were getting crushed by a backlash from fans who decided to boycott games (we covered it here: Papa John's Pulls NFL Ads Due To "Negative Consumer Sentiment").  That said, the complaint from Papa John's was seemingly discredited as a convenient excuse for poor earnings the very next day when Pizza Hut said they had seen no impact from the NFL protests.

Of course, with all of the noise of seasonality, weather and random accounting games played by CFO's, it's almost impossible to know if, or by how much, declining NFL viewership actually impacted Papa John's earnings...any conclusions would be ambiguous at best.

That said, what doesn't seem to be all that ambiguous, and probably should lend some credence to the original claims from Papa John's, is the startling collapse in chicken wings prices that coincided perfectly with Trump's first NFL protest tweets back in September.  According to the Bloomberg data below, wing prices started dropping almost immediately after Trump's first tweets and have fallen a staggering 30% since.

Meanwhile, the collapse in wing prices was at least partially blamed for the abysmal earnings posted by one of the largest poultry producers, Sanderson Farms, earlier this this morning.

Asked for their profit outlook for 2018, SAFM management, whose stock tumbled 12% on the day, seemed to be somewhat optimistic aside from crushing traffic declines at wing restaurants which they said are being attributed to the NFL protests.

Analyst: That's helpful. And then when you look at your pricing outlook and your profit per pound outlook for 2018 versus 2017. Any color in terms of pricing and your profit per pound?

 

SAFM Management: Based on what we, the productions, we think is coming in 2018. You never know who's going to be running features on chicken and tenders. But the only thing that is puzzling me right now wings, we this – the wing, we have been talking to our wing customers and they're the ones that are telling us that they're seeing less traffic in their stores and they attribute that to the NFL.

So what say you...just more scapegoating for a bad quarter or is the NFL taking a bite out of the wing market?

Comments

roadhazard Dec 15, 2017 8:37 AM Permalink

And the stands stay packed every week. And Verizon just gave the NFL double digit millions to stream games. The truth is that the NFL will be around long after You and Trump are rotted in the ground. You clowns crack me up.

surf@jm roadhazard Dec 15, 2017 9:45 AM Permalink

It will be around as long as the government funds it.......Your talking a business, that the taxpayers fund the training of its employees.....Public funded colleges provide the free training of the NFL`s employees.......So as long as the government can print money to give free stuff, they have job security.......But, if, like Venezuela, the socialism breaks the bank, then they are out of a job, and out of a free check.........LMAO!......

In reply to by roadhazard

DaiRR Dec 15, 2017 2:11 AM Permalink

LOL, the NFL can go to hell. And I'm partial to a big bag of those frozen Panko Chicken Nuggets by Tyson at Costco, no hormones ever. Tasty when batching it, and I love to whip up a curry dipping sauce. Did I say the NFL can go to hell ?

LithiumWarsWAKEUP Dec 15, 2017 1:39 AM Permalink

WING comes down to about $40 it can run to 46 easy. Stop 39.20...   Arby's bought out BWLD...'Buffalo wild wings'. I'm a big fan of buying the whole dang chicken and just putting the sauce on all of it. Half the price and no NFL to bug me. No NFL NIGGERS,,,to bug me. Now go get me a beer, boy.

Bloodstock Dec 14, 2017 9:58 PM Permalink

Another problem with the NFL is the ridiculously high rate DirecTv charges commercial establishments for the NFL Sunday Ticket!No Fans Left. Short DirecTv stock as there will be less subscribers in 2018.

pparalegal Dec 14, 2017 10:02 PM Permalink

Ghetto dwellers buring their own houses down - again. Replace the NFL with black/ white gladiator and wild animal death matches. Kind of a Running Man updated to 2018. Chicken wing sales will come back.

Peak Finance Dec 14, 2017 8:14 PM Permalink

Dear Small Business Owners:YOU are the victims here again, the real losers once again, fucked no matter what you do.Your "Big day" which most likely is the difference between a red week and a black week, is now ruined forever by the NFL. You are the unintentional casualty, the "collateral damage."There is NO FUCKING WAY any finance guy would have listed this as a risk on your business plan even as little as two years ago, it would have been comical had it been so written.So, remember who your REAL enemies are as you shut down your dream business and lose all of your investment of money, sweat and blood.  God it made me sad just typing this. I need a drink now. 

Manipuflation Peak Finance Dec 14, 2017 9:35 PM Permalink

I heard what you said.  I think Hooters is kind of in a bad way right now.  I like small businesses and especially coin shops.  It's hard to compete sometimes but small business can offer something that mega-corps can't and that is quality and damned good customer service.  If you can do that then I will do business with you even if you have higher prices and likely repeat doing business with you if I am satisfied.  Unfortunately we can't just assume that all small businesses are good because they aren't.What did I just tell you that I don't like as a former customer of BWW?  I won't go back after I was admonished for having three beers with a basket of really hot wings.  I just gave you an obvious clue.        

In reply to by Peak Finance

adr Dec 14, 2017 8:06 PM Permalink

Funny how you can buy a whole chicken and throw away everything but the wings and make money.Wegmans had drumsticks for $.28 per pound in the family pack. Deep fry the drums and call them "mega wings". Charge $5 a pound.The wing phenomenon is as overblown as Bitcoin.GENIUS IDEA, BLOCKCHAIN BUFFALO WINGS!!!!! WINGCOIN TO $1 TRILLION!!!!Blockchain tracking of bird to fryer. Altcoins for the sauces. Thai Chili Coin is an easy ten figure.Yes, this has as much legitimacy as most of the shitcoins.

zpinch Dec 14, 2017 7:07 PM Permalink

meanwhile, a bit further up north Poutine sales have hit an all time low after Q3 after Canada's household debt-to-income ratio hit a record 171.1%sacre bleu! merde! and you will not replace us chants  (in canadian) were reported all over montreal

Dilluminati Dec 14, 2017 7:04 PM Permalink

It is people stopped eating fucking midget fucking chickens!!!!  I went to KFC and bought a bucket of fucking chicken and the pieces were so fucking small it was a joke!   These little pieces were from a poor fucking chicken that should of lived a little fucking longer, ate better, and made a decent meal of itself!!I looked at what I spent and I was still fucking hungey and thought of those asshole commericals on TV and thought this shit didn't happen when they had a real colonel!The cocksuckers!!  I'm not buying no mo fucking chicken.

cbxer55 Shpedly Dec 14, 2017 8:44 PM Permalink

Exactly! And the restaurant I go to for steak, I can get a plate load of chicken nuggets, tenders or strips, that is so frikking huge I can't eat it all at one seating. Have to end up putting it in one of those take-out boxes for later consumption. And the cost is right around $12.00, including salad bar, soup and a loaf of good bread. Throw in a perfect margarita, and I'm sittin at $20.00, not including tip, which I tip em good because they are a great place to eat. 

In reply to by Shpedly

zpinch Dilluminati Dec 14, 2017 7:19 PM Permalink

 1960 American Chicken consumption = 30 Lbs / person / year 2017 American Chicken consumption = 100 Lbs / person / year                                   the end of the cold war literally killed all the chickens; us slaughters about 10 billion chickens annually;                                   global prdxn also boomed around that time nothing consumed or produced at that scale on an annual basis is good ; nothing, not even money, especially not something youre supposed to eat  

In reply to by Dilluminati

east of eden Dec 14, 2017 6:59 PM Permalink

Frankly, never quite understood how the processors could charge a premium price for what used to be 'offal', that was ground up and put into pet food. Poor animals.They are virtually 100% cholesterol, worse if they are deep fried, and almost guaranteed to get you a heart attack, someday.

Shpedly east of eden Dec 14, 2017 9:32 PM Permalink

Only males and scraps go into the dog food. When the chicks are old enough, they go on a conveyor belt to be sexed. The hens continue on and the males are placed on another conveyor belt that leads to a hopper that grinds them hair and all, into mush. That is what goes into dog food. Only hens come to your grocery meat section. Most people have no clue where or how their food comes from.

In reply to by east of eden