Anything and everything can be bought or sold on the stock market, with few exceptions. For instance, Dave & Busters, the restaurant/bar/arcade, publicly trades under the $PLAY symbol. If you’re fan of cannabis, there are a handful of stocks you can buy that invest in the “green” space. If there’s even a product or business sector, chances are there’s a stock for it.
With this in mind, it’s no surprise that livestock, chickens, and other animals are bought and sold just like stocks. These creatures are traded on a commodities market that run separately from the New York Stock Exchange and the Nasdaq, yet valued through the same balance of supply and demand.
Recently, the price of chickens sharply increased after demand greatly outweighed supply. In just one month, the cost of a single bird went from $114.36 to $123.95, or an 8.39% increase. This is pretty sizable in the farm animal business, as costs usually increased or decreased by less than 1% over the last five years. While owners of fowl could make a pretty penny from their animals, consumers and businesses might be in for a world of hurt.
That’s all well and good, but what does this mean for chicken wings?
If the cost of a chicken goes up, then the cost of chicken wings goes up, too. According to analysts at BMO Capital Markets and The Street, chicken wings are 11% more expensive this week, compared to previous price trends. This would force your local wing spot to pay more per wing and either pass the cost on to the customer or take in less money.
How are chicken wing stocks reacting?
Like publicly traded chicken commodities, chicken wing stocks are thing. Buffalo Wild Wings, for instance, trades under $BWLD, and they’re just one of many companies paying significantly more for chicken wings. Though their stock is up 6% in the last three months due to demand and popularity of the chain, shares of $BWLD have rapidly shifted in price in the same timeframe.
To get a feel for which stocks are feeling the sting of expensive wings, The Street put together this quick and helpful video about the current state of the wing market. These companies are all in for a world of hurt if chickens keep getting expensive, and investors could soon cry foul if they don’t react accordingly.
Should you invest in chicken wing stocks?
Demand in chicken wings is usually high at the beginning of the year, as major events like the Super Bowl and March Madness see sports fans ordering chicken in mass quantities. This demand usually tapers off after the first few months and chicken prices go back down. Yet right now, the opposite is happening, due to continued demand and other undetermined factors.
If you feel that the price of chicken wings will go back down and these stocks will once again benefit from decreased costs, be sure to do your research before you invest. If you think investing in chickens or chicken wings is downright silly, you probably want to look elsewhere.