Chicken stocks are clawing higher.
As we noted on May 6, 2021:
“There’s now a chicken sandwich war among McDonald’s, Popeyes, and Wendy’s. KFC can’t even keep up with demand these days, telling some restaurant owners to remove chicken tenders from online menus because of tighter supply. Two, grilling season is just around the corner, which could increase demand even more. With folks wanting to get outside to enjoy the weather between Memorial Day and Labor Day, chicken demand and prices could soar.”
Now Burger king is launching its chicken sandwich on June 3. “Taco Bell, meanwhile, opted to bring back its Naked Chicken Chalupa—the infamous taco with a fried chicken shell—on May 20 in a bid to ‘disrupt the chicken wars,’” says Restaurant Business Online.
Since that note on May 6, stocks like Tyson Foods (TSN) ran from about $72 to $79.50.
Even Sanderson Farms (SAFM), which ran from a 2021 low of $125 to $162.75, is up big.
SAFM reported that, “Net sales for the second quarter of fiscal 2021 were $1,133.9 million compared with $844.7 million for the same period a year ago. For the quarter, the Company reported net income of $96.9 million, or $4.34 per share, compared with net income of $6.1 million, or $0.28 per share, for the second quarter of fiscal 2020.”
With the supply-demand situation getting worse, related stocks could fly higher.
The post This is Why Chicken Stocks Are Likely to Climb Higher appeared first on Morningology.
