Beef prices could pressure restaurant margins

|By:, SA News Editor

Beef prices keep moving higher as a drought in Texas diminishes what's already a tight supply of cattle in the U.S.

Though beef demand in the U.S. is peaking with the summer grilling season starting, the impact on margins for sellers from higher wholesale prices could be felt later this year when consumers push back against absorbing the extra costs.

What to watch: Chipotle (CMG) passed on its menu price increases to consumers with relative ease, but other chains (MCD, BKW, WEN, TXRH, BLMN, RUTH) are expected to feel pressure on their bottom lines from higher beef prices.