Faced with beef costs that are expected to rise 20 percent this year instead of the predicted 10 to 15 percent, Wendy's Arby's Group Inc. said it will raise prices. Along with beef, the company said that it sees overall commodity costs, including beef, bacon, fryer oil, dairy and distribution costs, rising 5 percent to 6 percent, compared with a previous estimate of 2 percent to 3 percent, Reuters reports.

Wendy's/Arby's plans to use selective price increases and the promotion of more profitable items to help offset those higher costs, said Stephen Hare, chief financial officer.

Wendy's Arby's also said that it has made “substantial” progress on the sale of Arby's. CEO Roland Smith said that he is pushing to close a deal as soon as possible.

Source: Reuters