Thu, Mar. 26, 12:37 PM
- Deutsche Bank thinks 3G Capital will be back in the food sector for a major acquisition faster than some other investment firms anticipate.
- 3G put itself in a stronger position to make a major purchase by not adding debt in the Kraft deal.
- Analyst Eric Katzman sees some food names trading with a premium as the 3G shadow hangs over the sector, while others have downside risk with M&A speculation not making as much sense.
- Premium on: ConAgra (NYSE:CAG), General Mills (NYSE:GIS), Mondelez International (NASDAQ:MDLZ), Pinnacle Foods (NYSE:PF), PepsiCo (NYSE:PEP).
- Premium off: Campbell Soup (NYSE:CPB), Hershey (NYSE:HSY), Hormel (NYSE:HRL), Kellogg (NYSE:K), J.M. Smucker (NYSE:SJM).
- Previously: Investors snapping up food stocks (Mar. 25 2015)
- Previously: Beer fallout from Kraft buyout (Mar. 25 2015)
- Previously: Kraft-Heinz merger has a few ETFs on the move (Mar. 25 2015)
Mon, Mar. 23, 5:40 PM
Mon, Mar. 16, 4:20 AM
- Looking to contain a virulent strain of avian flu, U.S. authorities are weighing tougher restrictions in Arkansas in a bid to minimize international trade disruptions and contain the virus in the heart of America's poultry region.
- The H5N2 flu discovered last week is the state's first case of a strain that causes massive internal hemorrhaging in poultry, can kill nearly every bird in an infected flock within 48 hours, and is prone to mutate.
- Previously: Avian bird flu in U.S. seen impacting chicken prices (Mar. 15 2015)
- Related tickers: TSN, SFM, BRFS, PPC, HRL, OTCQX:JBSAY, BWLD, PLKI
Sun, Mar. 15, 9:03 PM
- Confirmation by the USDA of the H5N2 avian flu in a backyard chicken flock in Kansas is seen by industry insiders as a potential tipping point in prompting expanded export restrictions.
- The H5N2 strain was detected in commercial flocks in Missouri and Arkansas last week
- Reports of the avian flu have filtered up and down the major U.S. migratory bird route (Montana to Texas) - including detection of the H5N2 strain in commercial flocks in Missouri and Arkansas.
- Though major chicken producers have reported their flocks are unaffected by the H5N2 flu, the cut in exports could pressure domestic prices with supply higher.
- The developments in the chicken market could impact wholesale costs for Buffalo Wild Wings (NASDAQ:BWLD) and Popeye's Louisiana Kitchen (NASDAQ:PLKI).
- USDA statement on the avian influenza outbreak (.pdf)
- On watch: Tyson Foods (NYSE:TSN), Sanderson Farms (NASDAQ:SFM), Pilgrim's Pride (NASDAQ:PPC), Hormel Foods (NYSE:HRL), JBS (OTCQX:JBSAY).
Wed, Mar. 11, 11:40 AM
- An unconfirmed case of avian bird flu in Arkansas is creating some anxiety in the poultry industry.
- USDA testing is underway on the case.
- Poultry exports to certain nations could be limited if the development worsens.
- The chicken sector has also been hit recently with concerns on the use of certain antibiotics.
- Decliners: Tyson Foods (TSN -5%), Hormel Foods (HRL -1%), Sanderson Farms (SAFM -5.4%), JBS (OTCQX:JBSAY -1.8%), BRF (BRFS -1.7%), and Pilgrim's Pride (PPC -7.2%)
- Previously: Chicken stocks hit by antibiotic concerns
Wed, Mar. 11, 10:00 AM
- Chicken stocks trade weaker on concerns the push to remove certain antibiotics from hatcheries could raise costs or that inaction could crimp demand.
- The issue has been teed up nationally after McDonald's made a strong statement last week with its new sourcing policy.
- Decliners: Tyson Foods (NYSE:TSN) -4.7%, Sanderson Farms (NASDAQ:SAFM) -4.1%, BRF (NYSE:BRFS) -2.4%, Hormel Foods (NYSE:HRL) -0.6%, Pilgrim's Pride (NASDAQ:PPC) -6.6%.
- Previously: McDonald's unveils menu sourcing initiatives (Mar. 04 2015)
Wed, Mar. 4, 10:11 AM
- McDonald's (MCD -0.5%) will stop buying chickens raised with human antibiotics in a gradual process, according to a report from Reuters.
- An announcement by the company is expected later today.
- The development could be a "tipping point" in the poultry industry, notes industry insider Jonathan Kaplan.
- Shares of chicken-focused Pilgrim's Pride (PPC -1.5%) are lower - while Tyson Foods (TSN -1%), Sanderson Farms (SAFM -0.6%), and Hormel (HRL -0.6%) could all be impacted by a heightened focus on the use of antibiotics with livestock.
- Buffalo Wild Wings (BWLD -1.7%) is also on watch as a company that buys a fair amount of chicken from suppliers.
Thu, Feb. 19, 8:52 AM
- Hormel Foods (NYSE:HRL) reports volume rose 3% in FQ1.
- Revenue by segment: Grocery Products: $409.75M (+2%); Refrigerated Foods: $1.14B (+1.4%); Jennie-O Turkey Store: $440.02M (+10.2%); Specialty Foods: $263.27M (+34.3%); International & Other: $137.81M (+17.4%).
- Gross profit rate improved 78 bps to 18.56%.
- Adjusted segment operating profit rate rose 113 bps to 12.05%.
- The company expects FY2015 adjusted EPS to be in the range of $2.50 to $ 2.60.
- HRL +0.93% premarket.
Thu, Feb. 19, 6:33 AM
Wed, Feb. 18, 5:30 PM| Wed, Feb. 18, 5:30 PM | 7 Comments
Thu, Feb. 12, 4:47 PM
- Hormel Foods (NYSE:HRL) is in late-stage talks to acquire Applegate Farms, a producer of organic hot dogs, bacon and sausages, Reuters reports.
- A deal reportedly could be announced as early as next week and value the privately-held company at $600M-$1B.
- A sale would be the latest of several high-profile deals in the food sector, including Hershey's purchase of Krave, Post's purchase of Michael Foods, and Tyson's $8.6 takeover of Hillshire.
Fri, Feb. 6, 11:42 AM
- Closely held organic and natural meat producer Applegate Farms has hired Goldman Sachs to assist with a sale, and could fetch something in the area of $500M, reports the WSJ.
- Protein's the thing, and a sale of Applegate would add to last year's Tyson Foods (NYSE:TSN) $7.7B purchase of Hillshire Brands, Post Holdings' (NYSE:POST) acquisition of Michael Foods, and Hormel's (NYSE:HRL) buy of CytoSport Holdings.
- The Journal reports several industry players have expressed interest, but doesn't necessarily name the above companies.
Wed, Jan. 21, 12:14 PM
Nov. 25, 2014, 9:35 AM
- Hormel Foods (HRL) reports solid revenue and operating profit gains for its Refrigerated Foods and Jennie-O Turkey Store segments in FQ4 which helped to offset a slip in Grocery Products.
- Record high meat raw material costs took a toll on the grocery business for Hormel.
- Guidance: Hormel expects sales growth of over 5% and earnings growth to exceed 10% for FY15. The company sees FY15 EPS of $2.45-$2.55 vs. $2.58 consensus.
Nov. 25, 2014, 9:09 AM
Nov. 25, 2014, 6:33 AM
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