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).