US food & restaurant industries outlook is stable, but cost pressures are looming

With the exception of the protein processors, whose demand and production cycles have been destabilised by the market impact of animal diseases, the operating performance of the food and restaurant industries was generally stable throughout 2006 says Fitch. Many firms absorbed higher energy and packaging costs, which moderated during the latter half of the year, but still remain relatively high and are expected to stay in that range in the near-term.