(Bloomberg) -- Wingstop Inc. shares tumbled after the restaurant chain missed Wall Street's sales and profit expectations, citing persistently high prices for the chicken that accounts for most of its menu items.
Total revenue nudged up 2.8% to $65.8 million, the company said Wednesday in a statement. That fell short of the $74.8 million average of analyst estimates compiled by Bloomberg. Adjusted earnings of 29 cents a share were also below expectations.
The performance underscores the wide-ranging challenges facing the restaurant industry, including rising food costs, worker turnover and restrictions related to Covid-19. As Wingstop Chief Executive Officer Charlie Morrison noted in the statement, “chicken prices remain high due to macro inflationary factors including a labor shortage.”
Wingstop shares plunged as much as 13% in New York trading Wednesday, the most intraday since February. The stock had climbed 27% this year through Tuesday's close.
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