Boston, MA 06/19/2014 (wallstreetpr) – Panera Bread Co (NASDAQ:PNRA), a renowned national bakery-café operating across 42 US states, has been in a fix, as prices of proteins are surging; racing ahead with time, Americans tend to adopt such diets that notably mimicked that of the hunter-gatherers of the Paleolithic era.
Protein Prices Rise
In a Bloomberg-review, it was ascertained that the prices of important protein-rich commodities like beans, beef, bacon and such other nine protein sources has obtained a sumptuous jump of 28% over the past 5 years, through May, 2014. The prices have increased almost 5% in 2014, increasing twice the pace of gain in non-protein food prices; beef and pork eventually became more expensive.
Reasons For Hike
Prices for the most common types of available meat have surged emphatically in FY 2014. Pork climbed an surged as nearly 8 million hogs were infected by a virus, thus reducing supplies amidst rampant demands. Similarly, years of drought have shrank a myriad of cattle herds to the smallest ever since 1951, thus resulting in a rise in the price of beef! Prices of dairy products and a variety of eggs have gained momentum over the past year, as substantial export demands are on the rise!
Eventually, increased prices of the raw materials – beef, egg, pork, etc have affected all protein commodity producers like PNRA, resulting in surging prices, adding to people’s agonies. The CCO (Chief Concept Officer) of Panera Bread Co (NASDAQ:PNRA), Scott Davis, who had pioneered in producing of sandwiches made out of protein-rich products like egg or ham, commented that not all prospective buyers intend to pay high prices for their protein-rich Paleo diets!
Power Menu Priced 20 Cents Higher
PNRA rolled out a Power Menu with Mediterranean roasted-Turkey and salads, and steak-and-egg breakfast bowls. Besides, they have started offering curried lentils, black beans made from protein-rich chickpeas. Davis commented that despite surging prices, these bowls have been increased by a mere 20 cents, as a $1 rise would fret consumers!
Though Panera Bread Co (NASDAQ:PNRA) fights price surge of regular proteins, it has been successful in drawing a surge of 0.99% on June 18, symbolizing that higher the prices, better the profits – this intrigues investors!
