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Commodity costs affect U.S. restaurant results
August 6, 2008
The Washington Post:Wendy's International Inc.,Jack in the Box Inc.and other U.S. restaurant companies posted mixed financial results on Aug. 5, 2008, as higher costs for everything from wheat to fuel continued to eat away profits.
Higher costs have eroded profits at restaurants for about a year but operators have been reluctant to raise prices to compensate because they fear alienating customers who are already grappling with higher grocery and gasoline bills.
Arby's parent Triarc Cos. Inc., slated to buy Wendy's for about $2 billion in a transaction to close later this year, has managed to push through menu price increases. Despite raising prices to offset higher food costs, the company said higher labor and energy costs hurt margins during its latest quarter.
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Read also Jack in the Box net off 13%, Triarc announces Q2 results, and Wendy's International releases Q2 results.
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