Rising Meat Prices Threaten Restaurant Chains’ Bottom Lines
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Meat costs are finally going up, and that’s weighing on a dining industry that’s already reeling from rising minimum wages.
McDonald’s Corp. warned investors Tuesday its 2019 commodity costs in the U.S. could rise as much as 3 percent, more than the 1 to 2 percent inflation it had forecast just three months ago. Brewhouse chain BJ’s Restaurants Inc. last week said it’s expecting increases in pork prices, while China’s KFC operator Yum China Holdings Inc. said spiking poultry costs will weigh down margins for the rest of the year.