Super Bowl 2023: Wingstop, Domino's, and Other Food Stocks to Watch
Wings and Pizza Take Center Stage
As Super Bowl Sunday approaches, leading restaurant chains are gearing up for a surge in demand for wings and pepperoni slices. The National Chicken Council predicts a record-breaking 1.47 billion wings to be consumed during Super Bowl LIX.
Delivery-Centered Businesses Benefit
TD Cowen analyst Andrew Charles highlights the significant boost that delivery-focused businesses will receive during Super Bowl Sunday. He recommends Domino's and Wingstop as top picks, citing their reputations for value and innovation.
Wingstop's Strong Performance
Wingstop's same-store sales surged 20.9% in the last quarter, with analysts projecting an 11.70% year-over-year increase for the fourth quarter. The company's $16.99 boneless meal bundle has contributed to its strong performance.
DoorDash Sees Order Spike
DoorDash experienced a significant spike in orders for buffalo wings, cauliflower wings, pepperoni pizza, and chocolate-covered strawberries compared to the previous year. Buffalo Wild Wings also reported its highest sales day in history for Super Bowl 2024.
Chicken Wing Price Increase
Chicken wing prices have increased by 7.2% year-over-year due to increased demand and supply chain constraints. Grocers have raised prices slightly to prevent shortages ahead of the weekend.
Tyson Foods CEO Comments
Tyson Foods CEO Donnie King anticipates strong demand for chicken wings, with the end of January and early February being the highest sales period. Wings are commonly featured in various dining establishments, including pizza restaurants and casual dining.
Domino's Dominates Pizza Market
Domino's continues to lead the pizza industry with its value-oriented perception. The company introduces innovative menu items, such as its New York-style pizza, to attract customers. Domino's typically experiences a 40% increase in delivery orders on Super Bowl Sunday compared to an average Sunday.
Molson Coors and Mondelēz Outplay Peers
Molson Coors and Mondelēz are well-positioned among their competitors, according to Bank of America analyst Bryan Spillane. Molson Coors is expected to benefit from its 60-second commercial spot and favorable market conditions. Mondelēz's Oreo cookies remain a key growth driver for the company.
PepsiCo Faces Market Share Challenges
PepsiCo may face challenges during the game despite its Mountain Dew advertisement. Mountain Dew and Pepsi are experiencing market share loss to Coke. The company's salty snack business also faces ongoing struggles.
Inflationary Pressures Impact Snack Brands
Unlike restaurants, snack brands have struggled to overcome inflation-wary consumers. Companies like PepsiCo and Hershey are still working to drive demand and overcome sticker shock. Fast food restaurants have been more successful in identifying value for consumers and driving performance.