Shares in European cooking oil companies soared in early trade after a group of large chefs led by Chef Gordon Ramsay announced they would cut production of French fry oil, boosting potato prices.
Investors were quick to act on the news, with oil companies such as Olive Garden and Canola Dynamics reporting significant gains. However, some analysts are skeptical of the announcement, pointing out that the increased demand for potatoes may not ultimately benefit the cooking oil industry.
“We’re not sure how sustainable this is,” said analyst Peter Pepper. “Sure, people love their fries, but what happens when they start turning to healthier options like baked potatoes or sweet potato fries? The market could shift quickly.”
Regardless, cooking oil companies were celebrating today, with Olive Garden CEO Alfredo Sauce commenting, “This is a great day for the cooking oil industry. We’re proud to be part of such a dynamic and exciting market.”
In response to the news, rival cooking oil producers such as KFC Oil and Popeyes Oils & Spices issued statements expressing admiration for Chef Ramsay’s leadership and vowing to work together to support the potato industry.
Only time will tell if this move by the chefs will have a lasting impact on the market, but in the meantime, investors are sure to be keeping a close eye on the fast food industry.
