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. 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.
Oct. 9, 2014, 10:58 AM
- Consumer staples stocks continue to persevere amid a broad market decline.
- The Consumer Staples Select ETF (NYSEARCA:XLP) is +1.9% over the last 5 days vs. the -1.3% showing of the S&P 500 ETF.
- Today, PepsiCo (PEP +1.5%) is doing some of the heavy lifting following its Q3 earnings report - while a number of meat stocks are also contributing including Pilgrim's Pride (PPC +1.3%), ConAgra Foods (CAG +1.8%), Hormel (HRL +0.7%), Seneca Foods Corp. (SENEA +0.7%), Diamond Foods (DMND +1.1%), Tyson Foods (TSN), and Sanderson Farms (SAFM +0.7%) .
May. 27, 2014, 10:11 AM
- Shares of Tyson Foods (TSN +3.5%), Hormel (HRL +2.6%), and Sanderson Farms (SAFM +2.5%) all trade higher after the merger profile of the sector gets a lift from Pilgrim Pride's aggressive pursuit of Hillshire Brands.
- Though food industry analysts see long-term potential for the sector through consolidation, they warn the merger premium is getting played out.
May. 21, 2014, 7:55 AM
- Hormel (HRL) drove sales higher in FQ2 off of price increases as total volume ended up down 1% from last year.
- The integration of Skippy peanut butter helped to boost results in the U.S. and globally.
- Segment sales growth: Grocery Products -0.4% to $392M; Refrigerated Foods +9.9% to $1.11B; Jennie-O Turkey Store -1.1% to $380M; Specialty Foods -11.6% to $217M; International & Other +22.7% to $143M.
- The company's gross margin rate improved 50 bps to 16.9%.
- HRL -1.4% premarket
Nov. 26, 2013, 10:43 AM| 1 Comment
Aug. 5, 2013, 2:22 PM
- Shares of Tyson Foods (TSN +4.3%) are higher after the company surprised analysts with a brisk quarter led by steady demand for chicken, pork, and beef products. The trend of restaurants and consumers moving toward a higher mix of lower-margin chicken products seems to have abated, which is also welcome relief for Tyson.
- Peers are out-performing market averages for the days on the good sector news. SFD +0.1%, HRL +0.2%, PPC +0.4%.
Jul. 29, 2013, 2:38 PM| Comment!
Jun. 18, 2013, 8:19 AMHormel (HRL) lowers estimates for profitability this year, dropping its EPS outlook to $1.88-$1.96 from prior guidance of $1.93-$2.03. The company cites higher input costs and poor pork sales for the shortfall. HRL -9% premarket, working off much of the gains picked up from enthusiasm in the sector after Smithfields Foods was bought out. | 2 Comments
Jun. 17, 2013, 8:49 AMSmithfield Foods (SFD) moves up 1.4% premarket after Starboard Value pitches that a piecemeal sale of the company might make sense. The sum-of-the-parts chatter could also provide another lift for the packaged meats sector as a whole. On watch: Tyson Foods (TSN), Seaboard Corporation (SEB), Hillshire Brands (HSH), and Hormel Foods (HRL). | Comment!
May. 6, 2013, 10:14 AMWhere's the beef? Shares of Tyson Foods (TSN -5.3%) stumble and take a few peers down with it after the company misses profit estimates. Consumers opted for lower-margin chicken products in Q1 and there's some concern the trend will continue as beef prices hit a consumer breaking point. Sector watch: Hormel (HRL) -1.6%, Smithfield Foods (SFD) -1.2%, Hillshire Brands (HSH) -0.9%. | Comment!
Aug. 10, 2012, 3:52 PMAfter corn prices spiked to new highs following today's USDA report, prices ended lower as cuts to demand estimates helped offset the expected declines in corn yields. "The USDA is behind the market and [traders] expect another reduction in yield," a pro says. Food shares are mixed: ADM -2%, HRL +0.1%, HSH -1.8%, TSN +1.3%, MON -2.1%, POT +0.8%, CF -2.1%, AGU -0.1%. | Comment!
Jul. 9, 2012, 3:24 PMAn outbreak of a bird flu in Mexico appears to be worse than expected with over 2.5M chickens now affected and another 1M birds already destroyed. Though the effect on U.S. companies (if any) is still getting debated, shares of chicken sellers are trading lower with a downgrade on sector names from BMO Capital Markets also affecting sentiment. Decliners: SFD -4.5%, HRL -1.8%, TSN -2.5%, PPC -8.3%, SAFM -2.2%. | 4 Comments
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