SOURCE: The Bedford Report

The Bedford Report

November 26, 2010 08:46 ET

Price Hikes Appear Imminent for Notable Restaurant Chains

The Bedford Report Provides Analyst Research on McDonald's and Yum!

NEW YORK, NY--(Marketwire - November 26, 2010) - The prices of corn, wheat, coffee and other commodities have surged this year in part due to a decline in US and Russian production prospects. While crop prices had a bit of pull back in early November due to Chinese demand concerns, the cold winter expected from "La Nina" has fuelled speculation that even southern hemisphere crops may struggle, and once again sent prices up. The spike in crop prices has sent costs up for restaurants, and caused many notable companies to raise prices on some of their products. The Bedford Report examines the outlook for companies in the Restaurant industry and provides research reports on McDonald's Corporation (NYSE: MCD) and Yum! Brands, Inc. (NYSE: YUM). Access to the full company reports can be found at:

www.bedfordreport.com/2010-11-MCD

www.bedfordreport.com/2010-11-YUM

According to a recent report from The Wall Street Journal, costs have been driven up by growing demand for meat in China and other emerging markets. That's driven up grain prices, which in turn boost the cost of chicken, steak, bread and pasta. Grain prices also have been hiked due to a drought in Russia, planting problems around the world and speculative trading.

The Bedford Report releases regular market updates on the Restaurant industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us for free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.

Raising prices is a risky maneuver, and a difficult choice for restaurants to make, as this strategy could scare customers from the more expensive products. A recent report from The Wall Street Journal argued that employment concerns could cause many Americans to merely trade down on brands.

Recently McDonald's chief financial officer Pete Bensen told investors he expects costs to rise 2% in the U.S. and 3% in Europe next year. McDonald's has not raised prices in the US since 2009; however, Bensen conceded that the company is likely to raise menu prices sometime next year.

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