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)
Wed, Mar. 25, 7:07 AM
- Food stocks could see a lift today after a high-profile merger between Kraft and Heinz was announced.
- The sector has been identified by analysts as a likely hotbed for consolidation.
- Early premarket gainers include Mondelez International (NASDAQ:MDLZ) +2.1%, General Mills (NYSE:GIS) +1.0%, and Campbell Soup (NYSE:CPB) +0.4%.
- Previously: Kraft, Heinz announce merger
Wed, Mar. 18, 7:29 AM
- General Mills (NYSE:GIS) reports net sales increased 3.0% on a constant currency basis in FQ3.
- U.S. Retail sales grew 1.3% to $2.65B and operating profit +0.8% to $521M.
- International sales down 6.7% to $1.23B and operating profit -1.9% to $108M.
- Convenience Stores and Foodservice sales rose 6.6% to $465M and operating profit +10.6% to $69M.
- Adjusted gross margin rate -78 bps to 33.26%.
- SG&A expense ratio -110 bps to 18.14%.
- FY2015 Guidance: Net sales: to grow at a low single-digit rate Y/Y on constant currency basis; Segment operating profit: to decline at a low single-digit rate Y/Y on constant currency basis; Adjusted EPS: to grow at a low-single-digit rate Y/Y on constant currency basis.
- GIS +1.92% premarket.
Wed, Mar. 18, 6:58 AM
Tue, Mar. 17, 5:30 PM
Thu, Mar. 12, 9:52 AM
Wed, Mar. 11, 9:52 AM| 11 Comments
Tue, Mar. 10, 5:33 PM
Mon, Mar. 9, 7:37 AM
- Wheat prices took a sharp turn lower last week as traders weighed the large amount of global supply versus a tightening of demand in the U.S.
- Prices have recovered a bit today in front of a Department of Agriculture report, but are expected to see more downward pressure.
- The development should bring some relief for food companies as supplying contracts are reworked.
- Related stocks: SJM, FLO, CAG, POST, CPB, GIS, K, PEP, BUD.
- Related ETF: WEAT.
- Wheat daily price wheat chart.
Fri, Mar. 6, 10:46 AM
- Global consumer staples stocks are weaker than market averages as concerns on market pricing and F/X sit in the background.
- The 1.21% gain in the U.S. Dollar Index isn't going unnoticed by traders.
- Notable decliners include General Mills (NYSE:GIS) -1.6%, Colgate-Palmolive (NYSE:CL) -2.0%, Unilever (NYSE:UL) -1.9%, General Mills (GIS) -1.8%, Mondelez International (NASDAQ:MDLZ) -1.9%, Post Holdings (NYSE:POST) -1.8%, Hershey (NYSE:HSY) -1.8%, Coca-Cola (NYSE:KO) -1.2%.
- The Consumer Staples ETF (NYSEARCA:XLP) is down 1.2% versus S&P 500 -0.4%.
- Other staples ETFs: VDC, FXG, RHS, FSTA, PSL, PSCC
Tue, Mar. 3, 10:33 AM
- Target (TGT -1.2%) plans to increase the focus on key grocery categories to bring in younger urban shoppers, reports the WSJ.
- Sources say organic food, craft beer, yogurt, and coffee will all see an increase in prominence.
- The shift could mean less shelf space for well-known brands from packaged food giants such as Kellogg (K -0.7%), Post Holdings (POST -1.7%), Campbell Soup (CPB -0.1%), and General Mills (GIS -0.5%).
Tue, Feb. 17, 2:36 PM
- General Mills (GIS -0.3%) says it will reformulate Yoplait Original yogurt to reduce the sugar content by 30%.
- The average amount of protein will rise 20% to 6 grams a cup.
- The new products should hit stores in March.
- The changes to Yoplait could help the line compete against different Greek yogurt varieties which market themselves as healthier than traditional yogurt.
Tue, Feb. 17, 6:59 AM
- General Mills (NYSE:GIS) reaffirms 2015 guidance in advance of its presentation at the Consumer Analyst Group of New York conference.
- The company sees low-single-digit rate growth in EPS from a FY14 mark of $2.82.
- Revenue is expected to grow at a low single-digit rate before the impact of F/X is factored in.
Thu, Feb. 12, 1:13 PM
- General Mills (GIS -0.7%) plan to launch a gluten-free version of Cheerios cereals.
- The products will be available this summer for 5 Cheerios varieties.
- The initiative to remove gluten from oats in the production process took years to develop, according to the company.
- Earlier today, Kellogg's Q4 report indicated softening demand for cereal in the U.S.
Thu, Feb. 5, 9:08 AM
- Kraft Foods (NASDAQ:KRFT) has found a vibrant channel for its Velveeta brand in dollar stores.
- The company was very close to pulling the plug on the product last year amid soft grocery store sales.
- General Mills (NYSE:GIS) and Campbell Soup (NYSE:CPB) are also exploring selling more brands in dollar stores due to the potential for higher profit margins in certain categories.
- The development could aid the dollar store group (DLTR, DG, FDO) which has lost some quick-stop grocery market share to convenience stores.
Thu, Jan. 29, 11:03 AM
- The powerful rally in the Swiss Franc has given more M&A firepower to multinationals based in the nation, notes Bloomberg.
- The food industry could see one of the first deals if an emboldened Nestle (OTCPK:NSRGY) decides to make a run at General Mills (GIS -1.9%).
- A combination of Nestle and General Mills has been floated around by analysts before due to the powerful synergies that could be struck between the food giants.
GIS vs. ETF Alternatives
General Mills Inc is a manufacturer and marketer of branded consumer foods sold through retail stores. It supplies branded and unbranded food products to the foodservice and commercial baking industries.
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