In recent months, quick service restaurants and casual dining chains have been been complaining that deflation in the grocery aisles has kept customers from dining out. In theory, this should be good for grocers: fewer people eating out should mean more people eating in, on food they purchased from their local supermarket. And yet, shares of Kroger, Supervalu and Sprouts Farmers are trading at or near their 52-week lows thanks to the very thing that's been plaguing the restaurant sector: the falling price of beef, pork and other food commodities.
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