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The charts below illustrate some of the important commodity trends for the restaurant industry.

Notable Trends:

  • Beef costs have been trending down YTD, offering JACK, CMG, WEN, TXHR, and others some reason to be optimistic on COGS over the intermediate-term
  • Dairy costs have been volatile but a favorable comparison in 2H13 could support outlook for CAKE, TXRH, and others with exposure to dairy costs, if prices stay at or near current levels.
  • Corn trending lower is a good sign for the restaurant industry, although protein industry news is less than encouraging.  Cargill closed its Plainview, TX, processing plant this month as consolidation continues in an industry under significant pressure.  The cattle herd in North America is shrinking to its smallest size in 60 years.

COMMODITY CHARTBOOK - commod table1

 

COMMODITY CHARTBOOK - correl

 

COMMODITY CHARTBOOK - crb foodstuffs

 

COMMODITY CHARTBOOK - corn

 

COMMODITY CHARTBOOK - wheat

 

COMMODITY CHARTBOOK - spybeans

 

COMMODITY CHARTBOOK - rough rice

 

COMMODITY CHARTBOOK - chicken whole breast

 

COMMODITY CHARTBOOK - chicken wings

 

COMMODITY CHARTBOOK - coffee

 

COMMODITY CHARTBOOK - cheese block

 

COMMODITY CHARTBOOK - milk

 

COMMODITY CHARTBOOK - gas prices

 

Howard Penney

Managing Director

Rory Green

Senior Analyst