(Updates with closing share price in fourth paragraph.)
Jan. 3 (Bloomberg) -- Denny’s Corp., a family restaurant chain with about 1,600 locations, will raise menu prices this year to help make up for higher commodity costs and maintain profit margin, Chief Executive Officer John Miller said.
Denny’s “will go out early in the year with a modest price increase,” Miller said in a telephone interview today. He declined to specify when the increase will take place or how much it will be.
The Spartanburg, South Carolina-based company expects food costs to rise between 3 percent and 5 percent in 2012, Miller said. Denny’s raised menu prices by about 1 percent in June, when it introduced its Fit Fare healthier entrees, he said.
Denny’s rose 2.1 percent to $3.84 at the close in New York and had gained 5 percent last year.
As other chains, including Starbucks Corp., have announced price increases to counter the rising costs of ingredients, Steak ‘n Shake said today that it won’t raise prices this year.
“During 2012, we have no intention of raising menu prices, especially because we are attempting to insulate our customers from inflation,” Steak ‘n Shake CEO Sardar Biglari said in a statement.
Indianapolis-based Steak ‘n Shake, with 489 locations, is owned by Biglari Holdings Inc., which also owns the Western Sizzlin chain.
--Editors: James Callan, Niamh Ring
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