The early bird may get the worm, but the CFO who talks about how bird flu is impacting their company? They get this article.
Egg prices have hit a record high, as farmers slaughter millions of chickens per month to contain the ongoing avian flu outbreak. The average price of a dozen eggs climbed to $4.95 in January, according to the latest monthly consumer price index, marking the highest spike in egg prices since the bird flu outbreak of 2015.
Expect headwinds to continue: Last weekend, the Department of Agriculture said, it “accidentally fired ‘several’ agency employees” working to mitigate the bird flu outbreak, NBC News reported. (We’ve all been there...)
That accidental purge was the result of the Trump administration’s ongoing downsizing efforts within the federal government, led by tech billionaire Elon Musk and the Department of Government Efficiency, which NBC News noted “is heavily staffed by people who have no experience in government.”
It shows. In any case, CFOs might have to keep talking about egg prices for a bit if recent earnings calls are any indication.
Over at Good Times Restaurants, a Colorado-based chain specializing in burgers and frozen custard, the company’s SVP of finance and accounting, Keri August, noted in an earnings call that “extreme price increases in the cost of eggs,” which the chain uses in breakfast entrees, is impacting the company’s commodities forecasting ability.
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“Macroeconomic and political forces cloud visibility into the magnitude and direction of commodities further into the future,” she said.
It was a similar story at Denny’s, whose CFO, Robert Verostek, noted that the company’s projected commodity inflation of between 2% and 4% “does not contemplate any outside impacts related to tariffs and while concerns about eggs in the avian flu are valid, we are working closely with our suppliers to ensure minimal disruptions.”
But it’s not all egg price talk. Others contextualized the broader supply chain context, like ReposiTrak, a compliance management company focused on food traceability.
When asked if the company, which helps grocers with stock-related challenges, could help food retailers manage egg shortages, CEO Randy Fields said there was “likely nothing” the company could do, “because that’s being driven by a phenomenon over which people have little, if any, control.”
“The bird flu problem—it’s been here now for years. And it’s ubiquitous. It’s almost everywhere,” he continued. “People end up running around chickens in hazmat suits and washing their vehicles with disinfectant to try and prevent the disease. It’s a very, very difficult problem, not easily solved. And in truth, there’s not much we can do about it.”