Sounds like it is a fluctuating price, and may not last all year. If every $1 mil excess cost equates to $.01 hit to EPS (based on your previous post, although it seems to me it should be more based on 61 mil shares outstanding), then that would equate to a $.015 hit to EPS per month, or roughly $.05 per quarter, as long as the price of butter remains elevated.
Is there a commodity market for butter? Is it even possible to hedge against such a price increase?
Maybe they can just start sending unglazed doughnuts to Kroegers. They're apparently not selling anyway. (Come to think of it, maybe they should just send empty boxes and count them as sales... I mean, it's not like their published numbers are meaningful anyway...)
The eps number is after taxes (the butter expense is before taxes), so $0.01 per million on that basis. However, the $18.8 million is systemwide, so the effect on kkd is somewhat less (assuming they pass on butter price increase to franchisees).