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.
Howard Penney
Managing Director
Rory Green
Senior Analyst
