Poor Americans Going Gaga For Fatty Junk Food


American junk food giants say business is killing it.

Dr. Pepper Snapple Group (DPS), maker of fine soft drinks, expects a fiscal year EPS of $1.92 to $1.96. Third quarter earnings shot up 42%, with a profit of $151 million, thanks in large part to lower manufacturing costs.

Sara Lee (SLE) earned $230 million during Q3 and lifted its 2010 EPS view to 90 to 96 cents, also due to lower costs.

Wendy’s/Arby’s group (WEN) earned $14.7 million in profit after a previous string of quarterly losses. Perhaps Wendy’s success can be attributed to new bacon-laden offerings, as same-store sales declined by a mere 0.1% while sister fast food chain Arby’s plummeted by 9%.

Finally, speaking of sugar, Kraft Foods (KFT) has obtained the $9 billion in financing it needs make a bid for Cadbury (CBY).

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.