Restaurant Earnings Point To Severity Of Supply Shortage

McDonald’s ($MCD@US), Starbucks ($SBUX@US), and Yum Brands ($YUM@US) are all due to report their quarterly earnings in the next few days, helping investors judge the impact of supply chain shortages on expansion within the restaurant industry. Prices of kitchen equipment, labor, food and other goods are rising, causing chains to pass higher prices on to customers. Even so, these firms are showing strong growth. The downside is that franchisees may hold off on reimaging, upgrades and more. As restaurant chains pay around 10% more for equipment and wait longer to take delivery, McDonald’s stock fell nearly half a percent in early trading and Yum stock fell a half percent while Starbucks shares rose 0.14%.