- Truist Securities analyst Jake Bartlett said the core building block of restaurant commodity costs, grain prices, are expected to decline.
- Declining feed costs are encouraging, but rebuilding the herd takes time, added the analyst.
- Chicken prices are expected to be down sharply in 2023, but to increase in 2024 as trade down from beef boosts demand.
- Despite the recent news on avian flu outbreaks, the analyst expects egg prices to be down sharply in 2023 and 2024.
- Industry expert Datum FS’ David Maloni expects commodity deflation in ’23 for all key commodities, aside from beef.
- For Texas Roadhouse Inc (NASDAQ:TXRH) (Buy rated, $110 Price Target), the analyst cites slower-than-expected economic recovery post-COVID, low off-premise sales, and operating cost inflation as possible risks.
- The analyst said consumer demand in Shake Shack Inc‘s (NYSE:SHAK) (Buy rated, $67 Price Target) urban markets may never fully recover due to work from home, urban flight and depressed tourism.
- New store volumes and margins may disappoint as SHAK fills existing markets and enters smaller ones.
- Chipotle Mexican Grill Inc (NYSE:CMG) (Buy rated, $1,800 Price Target) may face heat from increased competition, operating inflation and reputational risk.
- Darden Restaurants Inc (NYSE:DRI) (Buy rated, $163 Price Target) could face issues like operating inflation, return of COVID outbreak, and macroeconomic headwinds.
Twitter Responds to Elon Musk’s Countersuit: Tesla CEO’s Claims A ‘Story That Is Implausible’
The mudslinging seems to go on endlessly in the Twitter, Inc. (NYSE: TWTR)-Elon Musk saga. The latest episode has seen the social media platform filing a 127-page response to the Tesla, Inc.
