SOURCE: StockCall

StockCall

January 28, 2011 08:40 ET

Research on Yum! Brands Inc. and Chipotle Mexican Grill Inc. - Restaurant Chains Face Rising Food Costs and Lawsuits

JOHANNESBURG, SOUTH AFRICA--(Marketwire - January 28, 2011) -  www.stockcall.com/ offers investors comprehensive research on the restaurants industry and has completed analytical research on Yum! Brands Inc. (NYSE: YUM) and Chipotle Mexican Grill Inc. (NYSE: CMG). Register with us today at www.stockcall.com/ to have free access to these researches. 

Quick service restaurants performed well in 2010 as consumers increased their frequency of dining out and demonstrated a preference for low priced food. Despite the fact that dining out data is still strong at the beginning of the year, some restaurant chains face obstacles that could impede growth. Specifically, rising food costs and litigation could pose problems for some companies. Visit www.stockcall.com/ to see how companies in this industry have grown over the past years and how they are expected to perform in the future.

www.stockcall.com/ is an online platform where investors doing their due-diligence on the restaurants industry can have easy and free access to our analyst research and opinions on Yum! Brands Inc. and Chipotle Mexican Grill Inc.; investors and shareholders of these companies can simply register for a complimentary membership at https://stockcall.com/development/stockcall/page.php?name=register.html

Rising food costs may hurt restaurant chains that benefitted from low priced food. Chains like Chipotle Mexican Grill Inc. that have found a niche by offering high quality ingredients and organic food when possible may be more vulnerable to rising food costs. The cost of food, especially organic and non-mass produced meat and vegetables, is rising and may hurt revenues for the company if menu prices remain constant. Investors can register for free to access the research report on Chipotle Mexican Grill Inc. at www.stockcall.com/CMG280111.pdf.

Lawsuits are also a problem for some restaurant chains. Yum! Brands Inc. Taco Bell brand has come under fire recently in the form of a class action suit. The plaintiffs in the case claim that Taco Bell falsely advertises its beef products which contain a surprisingly low amount of actual beef. Yum! Brands remains confident in their ability to have the case dismissed and has already planned to take legal action. Regardless of the outcome, the highly publicized nature of the lawsuit may dissuade customers and dent revenues in the near-term. Investors can register for free to access the research report on Yum! Brands Inc. at www.stockcall.com/YUM280111.pdf.

Overall, dining out figures are still in favor of restaurants but obstacles like food prices and lawsuits may dent revenues and narrow profit margins. Register now at https://stockcall.com/development/stockcall/page.php?name=register.html to have free access to our reports on the restaurants industry.

On the earnings timetable for the coming weeks for the industry, Yum! Brands Inc. and Chipotle Mexican Grill Inc. will be posting their results on February 2nd and February 10th respectively.

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