Additionally, Culver's intent was to say that the current high rate of coffee prices is not sustainable over the long term, and that prices will come down over time, though not likely in the near future.
Starbucks offered weaker-than-expected 2011 profit guidance
as the cost of sales in its recent quarter jumped 10.9% year-over-year to a 51.5% share of total revenue, compared with a 49.8% share of total revenue, in the year-earlier period.
Rising costs for many commodities have been hitting food, beverage and consumer product makers increasingly for months -- and coffee companies have certainly not been immune.
Green Mountain Coffee Roasters
said recently that its margins have been growing despite soaring coffee bean costs.
Peet's Coffee & Tea
lowered its profit guidance by 10 cents per share as coffee prices skyrocketed.
(SJM - Get Report)
said that green coffee costs were "significantly higher in the second quarter of 2011," leading it to raise prices earlier in the year. Smucker raised prices of its Folgers and other well-known brands by around 9%, its largest price hike in years.
Canada-based coffee shop chain
did not specifically mention how
rising coffee and commodity costs
affected its results last quarter, but reported that its cost of sales jumped 15.9% last quarter to a 62.5% share of total revenue, up from 59.6% share in the year-earlier period.
In line with a general
market selloff Friday
, Starbucks shares fell 0.8% to close at $36.15 on Friday. Green Mountain lost 1.2% to $75.56, Peet's was lower by 1.6% at $48.02 and Smucker shed 0.6% to $75.44. Tim Hortons bucked the trend, gaining 0.6% to close at $47.85.
-- Written by Miriam Marcus Reimer in New York.
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