NEW YORK (TheStreet) -- Shares of Wingstop (WING) - Get Report are are up 15.23% to $30.32 in late morning trading today as the fast casual restaurant chain's second quarter 2016 earnings showed an increase in same store sales despite the rising cost of commodities.
CEO Charlie Morrison believes the company's small footprint per store and millennial appeal is why it has seen consistent growth despite higher commodity prices.
"The cost of chicken wings is up 8% this quarter as compared to where it was a year ago. But our model is built so we can sustain some of the challenges of higher commodity costs as it relates to chicken wings," Morrison said on CNBC's "Squawk Box."
Wingstop's second quarter 2016 quarterly earnings reported same store sales were up 3.1%. Morrison noted that much of their growth is thanks to opening a record number of 41 new stores in the last quarter.
"There are other restaurants that have bar oriented settings. But Wingstop is truly unique in that 75% of our business is takeout and our core customer is aimed at millennials," Morrison stated.
Millennials make up 49% of Wingstop's customer base, slightly higher than the average for other U.S. fast casual restaurants. Additionally, the minimal 1,700 square feet of each restaurant and a menu which sells mostly wings, sides and fries means the company's store are easy to operate and low cost.
"That makes our labor and execution model very simple and we're able to absorb some of the commodity fluctuation very easily. And still our franchisees which make up 98% of our brand are the ones that are continuing to build restaurants at a higher pace this quarter," Morrison added.