Arby's/Wendy's hurting from rising cost of bacon, beef
"Beef and bacon are two commodities that have been troublesome to us in this current environment," Steve Hare, Wendy's/Arby's chief financial officer, said at an investor conference, reports Reuters.
The stumbling economy led to lower prices on many ingredients, allowing foodservice operators to offer significant discounts. Arby’s introduced a value menu to compete with McDonald’s and Burger King. However, rising costs of ingredients, such as wheat, beef, bacon, coffee, milk and cocoa are squeezing profits, and many companies are beginning to raise prices.