THE HEDGEYE BREAKFAST MONITOR
Corn, wheat and beef all came down meaningfully over the last week as the dollar strengthened.
SBUX: Despite coffee prices coming down, Starbucks is raising prices in several major markets, according to Reuters. Prices were raised yesterday on some drinks in major markets like Southern California, Chicago, Washington, Oregon, and Hawaii.
SBUX: Starbucks restaurants in New York have, in many cases, closed restrooms in their stores because, as the New York Post puts it, “Starbucks cannot be the public bathroom in the city anymore”.
SBUX: Starbucks, speaking at the Morgan Stanley Global Consumer & Retail Conference, said that one-third of coffee prices for 2013 have been locked at lower levels than where 2012 was locked.
WEN: Wendy’s announced that David Karam, President of North America, will be leaving the company, effective as of the end of 2011. The company will not replace the President of North America position, as CEO Emil Brolick will assume direct management responsibility for leading the business.
BOBE: Bob Evans reported 2Q EPS of $0.47 versus consensus $0.53. Bob Evans comps were -1.5% versus consensus -1.3% with pricing at +2.0%. Mimi’s Café comps came in at -4.8% versus consensus at -1.1% with pricing at +4.2%. Higher sow costs impacted the company’s margins.