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Even before a widespread drought hit the U.S. this summer, the nation's cattle herd was...

Even before a widespread drought hit the U.S. this summer, the nation's cattle herd was shrinking to low levels and pushing prices up. Now prices look set for another run higher as Tyson (TSN) warns on periods of imbalance of fed cattle supply in 2013. While sellers such as SFD, HRL, SAFM, and PPC may get away with passing on higher prices to consumers, will restaurants chains such as McDonald's (MCD), Wendy's (WEN), and Chipotle (CMG) have to absorb the higher input costs?
Comments (3)
  • Richard Adams
    , contributor
    Comments (171) | Send Message
     
    As for McDonald's, there's no room to raise prices as long as there
    are discounted options also available on the menu.

     

    Speaking as a more-than-frequent McDonald's customer, as long as I can build a meal for $3.00 or $4.00 there's no way I'm paying $6.00 or $7.00 (or $8?). The McDouble is an excellent sandwich and the McChicken is a nice change of pace. I don't think I've had a Big Mac yet this year and I know I haven't had a QPC - but on many occasions I've eaten two McDoubles.

     

    Again, as a customer, I'll show up in many McDonald's restaurant's customer counts but not at the bottom of the P&L.
    6 Aug 2012, 10:25 AM Reply Like
  • dkatzz
    , contributor
    Comments (2) | Send Message
     
    retired
    7 Aug 2012, 12:44 PM Reply Like
  • dkatzz
    , contributor
    Comments (2) | Send Message
     
    retired- actve investor
    7 Aug 2012, 12:44 PM Reply Like
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