WhiteWave Foods: Should You Pay 25 Times EBITDA For This High-Growth Flyer Like I Just Did?
James Sands • 25 Comments
James Sands • 25 Comments
WhiteWave Foods: Buy High, Sell Higher?
Can Anything Stop WhiteWave Foods?
Long Term Investor
Long Term Investor
Mon, Jul. 11, 2:12 PM
- A bill requiring food companies to label GMO ingredients was approved by the U.S. Senate by a 63 to 30 vote and now heads to the House of Representatives.
- The negotiated bill requires food companies to label genetically modified food by a phrase, symbol on the package, or a bar code that can be scanned by smartphones.
- The Department of agriculture still has two years to write the precise labeling rules if the House approves the bill.
- The passage of the bill is seen as a positive for the food sector as the alternative of having to adhere to state-by-state rules could create operational chaos for national sellers.
- Food stocks: SENEA, SENEB, THS, OTCPK:NCRA, CPB, MDLZ, GIS, OTCPK:NSRGY, FLO, CAG, DF, SJM,DF, ANFI, JJSF, WWAV, UL, OTCQX:DANOY, OTCPK:PLATF, POST, K, PEP, DMND, PF, HAIN, KO, BETR, KHC, WILC, PPC, PF, LWAY, HRL, TSN, DTEA, SAFM, BRID.
Thu, Jul. 7, 12:45 PM
Thu, Jul. 7, 12:15 PM
Thu, Jul. 7, 9:16 AM
Thu, Jul. 7, 7:55 AM
- Investors have bid up WhiteWave Foods (NYSE:WWAV) to as high as $56.80 in the premarket session on some speculation that a higher offer than Danone's $56.25 could arrive down the road.
- Analysts say that WhiteWave has traded with a takeover premium ever since the company spun off from Dean Foods and see a spillover effect across the sector.
- "It is likely this potential transaction further fuels the acquisition speculation gripping the food stocks, pushing multiples even higher," observes Stifel Nicolaus analysts Christopher Guest.
- Hain Celestial (NASDAQ:HAIN), one of the usual food M&A suspects, is up 4.31% in premarket action.
- Previously: Danone agrees to $12.5B deal for WhiteWave Foods (July 7)
- WWAV +19.02% to $56.45.
Thu, Jul. 7, 2:33 AM
- Danone (OTCQX:DANOY), the world's largest yogurt maker, has agreed to buy U.S. health group WhiteWave Foods (NYSE:WWAV) in what would be the French company's largest acquisition in 10 years.
- The offer equates to $56.25 per share in cash, resulting in an enterprise value of around $12.5B, and will double the size of Danone's U.S. business.
- WWAV +18% premarket.
Wed, Jun. 22, 8:49 AM
- WhiteWave Foods (NYSE:WWAV) aims to generate an extra $3B in sales per year from plant-based food products as the category grows in popularity.
- CEO Gregg Engles characterized the development of the plant-based food business as being in its early stages during his talk this week at a consumer conference. "There is significant runway to increase household penetration and broader usage by converting dairy milk households to plant-based households, targeting additional consumers into the plant-based alternative space," he noted.
- Shares of WWAV are up 21.1% YTD.
Fri, Jun. 17, 3:07 PM
- Susquehanna issued a detailed report on IRI scanner data trends in the food and beverage industry.
- The investment firm noted that soda drink volume fell 2.8% Y/Y for the 12-week period ending on June 5. PepsiCo (NYSE:PEP) volume was down 5%, compared to 1.3% decline for Coca-Cola KO and 1.9% fall-off for Dr. Pepper Snapple (NYSE:DPS).
- K-cup revenue was up 8% for the 12 weeks as J.M. Smucker (NYSE:SJM). Starbucks (NASDAQ:SBUX), and Dunkin' Brands (NASDAQ:DNKN) all showed strong volume amid ongoing pricing pressure. K-cup sales decelerated for Kraft Heinz (NASDAQ:KHC) and could turn negative if pricing pressure sustains.
- In the yogurt category, scanner data over four weeks confirmed that General Mills (NYSE:GIS) is losing market share to Chobani and Danone (OTCQX:DANOY). Susquehanna tips that Chobani may be prepping for a sale.
- General Mills beat out Kellogg (NYSE:K) in the cereal category as its 12-week sales growth of +2.3% easily topped Kellogg's 2.2% decline.
- Pricing with beer is helping to make up for continued volume pressure. Across the sector, pricing was recorded as 2.5% higher for the 12 weeks of data.
- Beer volume: Anheuser-Busch InBev (NYSE:BUD) -1.8%, MillerCoors (OTCPK:SBMRY, TAP) -2.7%, Boston Beer (NYSE:SAM) -2.1%.
- Susquehann'a Pablo Zuniac put together the deep dive into the scanned data.
- Within the F&B sector, he has BUD, THS, WWAV, TAP, and KHC rated at Positive.
Wed, Jun. 15, 10:45 AM
- The cancer agency of the World Health Organization issues a detailed report in which it concludes that drinking coffee doesn't increase the risk of cancer.
- The experts did determine that drinking "very hot" beverages is one probable cause of oesophagus cancer in humans.
- Very hot was defined as 65 degrees Celsius or 149 degrees Fahrenheit. Coffee from some chains is served over that temperature if consumed immediately without any cream added.
- WHO report (.pdf)
- Previously: Coffee to rid itself of 'possible carcinogen' status (June 15)
- Related tickers: SBUX, DNKN, SJM, QSR, MCD, MDLZ, KKD, WWAV, JVA, OTCQB:JAMN, OTCQB:BCCI, FARM, OTCPK:NSRGY.
- ETFs: JO, CAFE.
Wed, Jun. 15, 2:26 AM
- Twenty-five years after classifying coffee as a possible carcinogen leading to bladder cancer, the World Health Organization has reversed course, and is expected to say today that coffee isn't classifiable as a carcinogen.
- WHO is also likely to state coffee has no carcinogenic effects related to other cancers and has even been seen to reduce the risk of liver and uterine cancers.
- Related tickers: SBUX, DNKN, SJM, QSR, MCD, MDLZ, KKD, WWAV, JVA, OTCQB:JAMN, OTCQB:BCCI, FARM, OTCPK:NSRGY
- ETFs: JO, CAFE
Thu, May 19, 10:36 AM
- The SEC formally charged the former chairman of Dean Foods (NYSE:DF) with participating in an insider trading scheme.
- The charging documents stated that Thomas Davis passed on tips to well-known gambler Billy Walters, including advance notice of the WhiteWave Foods (NYSE:WWAV) spinoff.
- The case involves professional golfer Phil Mickelson who allegedly made a profit of $931K from tips received by Walters. 3-time Masters winner Mickelson was not charged, but is listed as a "relief defendant" in the case.
- The allegations against Davis have been reported previously.
Tue, May 10, 9:34 AM
- WhiteWave Foods (WWAV +5%) reports organic sales rose 8% in Q1.
- Net sales growth of 14% was driven by strong organic growth across the Americas and Europe segments, as well as contributions from acquisitions.
- Segment sales: Americas Foods & Beverages: $894.76M (+15%); Europe Foods & Beverages: $144.93M (+11%).
- Adjusted gross margin rate improved 60 bps to 34.4%.
- Adjusted operating margin rate expanded 50 bps to 8.7%.
- Q2 Guidance: Net sales growth: +11.5% to +12.5% (+12% to +13% on a constant currency basis); Adjusted operating income growth: + High teens %; Adjusted diluted EPS: $0.27 to $0.29; Adjusted Diluted EPS Excluding China J.V.: $0.29 to $0.31.
- FY2016 Guidance: Net sales growth: +10.5% to 11.5% (+11% to 12% on a constant currency basis); Adjusted operating income growth: + High teens to twenty %; Tax rate: 33% to 34; Adjusted diluted EPS: $1.32 to $1.35; Adjusted Diluted EPS Excluding China J.V.: $1.38 to $1.41; Capital expenditure: ~$325M to $350M.
Tue, May 10, 8:11 AM
Mon, May 9, 5:30 PM| Mon, May 9, 5:30 PM | 1 Comment
Mon, May 9, 1:59 PM
- Select food stocks are rallying after commentary from Tyson Foods management points to favorable trends in the industry on the demand and cost side.
- Tyson expects "good" cattle supply for this summer and into 2017. The company delivered improved beef and chicken margins in Q1.
- Meat stocks Sanderson Farms (SAFM +2%), Hormel Foods (HRL +3.3%), and Pilgrim's Pride (PPC +4%) are all solidly higher, while on a broader sector view WhiteWave Foods (WWAV +1.8%) and ConAgra Foods (CAG +1.5%) are also rallying.
- Previously: Tyson Foods at all-time high after earnings dazzle (May 9)
- Previously: Tyson Foods to expand presence on Amazon Fresh (May 9)
Thu, Apr. 14, 1:36 PM
- Morgan Stanley identifies 30 stocks for investors to snap up and hold until 2019.
- The investment firm narrowed its list by focusing on strong brands/franchises with distinct competitive advantages, while also scoring strong on pricing power, cost efficiency, and growth.
- The MS list includes Accenture (NYSE:ACN), Alphabet, Amazon.com, Apple, Blackstone Group (NYSE:BX),Comcast (NASDAQ:CMCSA), Constellation Brands (NYSE:STZ), CVS Health (NYSE:CVS), Danaher (NYSE:DHR), Dollar General (NYSE:DG), Estee Lauder (NYSE:EL), Facebook, First Republic Bank (NYSE:FRC), HCA Holdings (NYSE:HCA), International Business Machines (NYSE:IBM), JPMorgan Chase, L Brands (NYSE:LB), Mettler-Toledo (NYSE:MTD), NextEra Energy (NYSE:NEE), Nike (NYSE:NKE), Panera Bread (NASDAQ:PNRA), Philip Morris International (NYSE:PM), Public Storage (NYSE:PSA), Ross Stores (NASDAQ:ROST), SBA Communications(NASDAQ:SBAC), ServiceMaster (NYSE:SERV), T-Mobile (NASDAQ:TMUS), Visa (NYSE:V), WhiteWave Foods (NYSE:WWAV), and Zayo Group Holdings (NYSE:ZAYO).
The WhiteWave Foods Co. is a consumer packaged food and beverage company that manufactures, markets, distributes and sells branded plant-based foods and beverages, coffee creamers and beverages, premium dairy products and organic produce throughout North America and Europe. It operates through... More
Sector: Consumer Goods
Industry: Food - Major Diversified
Country: United States
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