Big Take Beak Capitalism: What Chicken Tells Us About Inflation
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Nov 28, 2024 
Glenn Hickman, President of Hickman's Egg Ranch, shares insider knowledge on the chicken industry, shedding light on the avian flu's impact on egg prices and supply chains. The discussion takes an intriguing turn, exploring the wild chicken sandwich wars, which changed consumer tastes and sparked fierce competition. Hickman dives into the inflationary pressures hitting both eggs and wings, highlighting how external factors shape pricing strategies and consumer behavior in today's unpredictable market.
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Chicken Wing Volatility
- Chicken wings are a volatile commodity, primarily a byproduct of breast meat demand.
- Their price can fluctuate drastically depending on market conditions.
Price Over Volume
- Companies used rising input costs as justification for price increases.
- This "price over volume" strategy helped maintain profit margins.
Sticky Prices
- Wingstop maintained higher prices even after chicken wing costs decreased.
- This further expanded their profit margins.