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As Wheat Prices Soar, Domino's Pushes Chicken

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What do you do when the price of your main ingredient goes parabolic?

Call marketing.

Back in August, when wheat futures were trading above $7.25 a bushel -- their highest since September, 2008 -- Domino's Pizza CEO J. Patrick Doyle told the Wall Street Journal that the company had locked in its wheat purchases through the first quarter of 2011.

"There'll be another harvest between now and when we need to go back out and buy wheat again," he said. "We're effectively insulated there."

But, as the Journal pointed out, "companies will eventually have to renew their hedges, and if wheat prices continue their march upward, food producers could be forced to lock in prices at a higher level."

Well, that "eventually" is now, and wheat's at $8.33/bushel for March delivery. The latest news from Domino's?

"We want to continue innovating, and reinventing our menu and brand – and our new chicken is the next chapter of our story," says Doyle, according to


POSITION:  No positions in stocks mentioned.