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Coffee prices are down almost 20% from the early May peak. Despite a recent bounce in prices, the overall decline has investors wondering if coffee retailers might cut prices. Only yesterday it emerged that J.M. Smucker will be cutting prices for majority of coffee products sold in U.S. by average of 6%, citing declines in green coffee futures market.
Full service restaurants underperformed its peer subsectors in the food, beverage, and restaurant categories.
- SBUX CEO says that the company is looking at ways to lower coffee prices as J.M. Smucker cuts prices.
- MCD has named Doug Goare as President of the Europe Unit. Steve Easterbrook resigns effective September 30 to join Gondola Group, becoming CEO of PizzaExpress.
- BOBE reported earnings for the first quarter of FY12 last night, EPS came in at $0.59 versus $0.51. Comparable sales were disappointing; Bob Evans restaurants’ comparable sales declined -1.8% versus consensus +1.2%. The company increased its dividend to 25c from 20c.
- TXRH will have accelerating revenue growth in 2012, according to Morgan Stanley.