Beware the burrito inflation. Chipotle, The Cheesecake Factory, Dunkin Brands, and Starbucks report their quarterly results this week, and it might not be as tasty as their menu items. At least for consumers anyway.
Recently wholesale prices for ingredients from beef and pork to coffee and cocoa have increased sharply this year resulting in price hikes from our fast-food faves.
Consumer Price Inflation (CPI) for May showed an increase which was double what economists were expecting. Tomorrow the government will release a report on June CPI.
Hershey will report results Thursday. Last week the company said prices were going up 8% because of higher costs for cocoa, dairy, and nuts.
Expected to announce price hikes Thursday. J.M. Smucker sells the Dunkin coffee in stores, they announced 9% price hike already.
Severe drought in Brazil forced the coffee dynamo to announce price hikes last month. Starbucks announces Thursday.
Beef prices are at record highs because of prolonged drought in California, also hurting avocado prices. Ouch - two huge main ingredients in their fare. Last week they announced they're raising menu prices for the first time in three years. They report today.
Sales haven't been as robust, but they haven't seen too much plight because they lock in food prices months in advance for key ingredients.
The correlation between your waistline and your wallet will be exactly inverse: one will get bigger as the other gets smaller. As to which is which, we'll let you do that math.