Earlier today, restaurant chain operator Darden reiterated plans to divest its Red Lobster business.
The seafood chain has been struggling to deliver on earnings.
Among other things, management blamed shrimp inflation, reported Buzzfeed’s Mariah Summers.
Inflation, as measured by the consumer price index, has been extremely low. And food prices, while higher, have generally been pretty modest.
But shrimp prices have just been total chaos.
Morgan Stanley’s John Glass recently published this chart of shrimp prices.
While price growth has been cooling off, they’re still astronomical.
“Shrimp inflation is expected to increase in our third and fourth fiscal quarters, primarily related to production issues in Asia,” said Darden CFO Brad Richmond in December. “We don’t anticipate relief on shrimp until early in fiscal 2015.”
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