Global Supply Chain Logjams, Costs in Focus as Restaurant Chains Report Earnings

Global Supply Chain Logjams, Costs in Focus as Restaurant Chains Report Earnings
A Starbucks logo hangs outside of the Starbucks store in the Brooklyn borough of New York on May 29, 2018. Lucas Jackson/Reuters
Reuters
Updated:

NEW YORK—Investors hope to gauge the impact of the global supply-chain logjam on restaurant expansion plans when McDonald’s Corp., Starbucks Corp., and Yum Brands Inc. report capital expenditures in their earnings this week.

Skyrocketing prices for kitchen equipment—as well as for labor, food, and other goods—are prompting some U.S. restaurant chains to curtail opening plans despite consistently strong revenue growth. Some chains and their franchisees may put off remodeling or adding drive-thrus in the face of rising costs, restaurant consultant Aaron Allen told Reuters.