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. 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.
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%).
Mon, Mar. 2, 7:54 AM
- RBC Capital Markets thinks Mondelez International (NASDAQ:MDLZ), Kellogg (NYSE:K), or Kraft Foods (NASDAQ:KRFT) would make a logical acquisition for Berkshire Hathaway after reading Warren Buffett's annual shareholder letter.
- Buffett was very active in the food sector previously as a backer of 3G in the acquisitions of Heinz and in the Tim Hortons-Burger King combination.
- Previously: Buffett, Munger talk succession and more in annual letters (Feb. 28 2015)
- Previously: Buffett talks to CNBC after annual letter
Fri, Feb. 20, 1:36 PM
Thu, Feb. 12, 9:21 AM
- Kellogg (NYSE:K) is getting punished in early trading for missing Q4 earnings estimates and setting 2015 guidance below expectations.
- Weakness in Q4 was led by the U.S. Morning Foods segment (Special K, Raisin Bran, Rice Krispies, Apple Jacks, Froot Loops) which posted a 7.7% decline in comparable sales.
- The long-term sales target from the company might be of the most concern to investors.
- Kellogg is now calling for revenue growth of 1% to 3% vs. a prior target of 3% to 4%.
- Operating profit is still expected to grow at a mid-single-digit rate over the long-term.
- K -5.16% premarket to $62.88.
Thu, Feb. 12, 8:39 AM
Wed, Feb. 11, 5:30 PM
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Wed, Jan. 21, 1:00 PM
- Dish Networks (DISH -0.2%) won a significant court battle in L.A. against Fox Broadcasting over the company's Dish Anywhere app.
- The ruling from a federal judge applied some of the principles from the Supreme Court's look at the Aereo case.
- The opinion from the court indicated that watching content on mobile devices and tablets through Dish Anywhere doesn't qualify as a breach of copyright law.
- The use of Dish's PrimeTime Anytime and AutoHop features were also deemed as fair use.
- Many programmers seemed to have anticipated the legal decision and already negotiated with Dish to disable ad-skipping for a period of time after a show airs.
- The ruling is sure to have been noticed on Madison Avenue where the largest (and smarter?) ad spenders continue to increase digital spending over broadcast/cable TV buys.
- Big advertisers: MCD, PG, BUD, WMT, TGT, K, GIS, TM, GM.
- Programmers: CBS, TWX, FOXA, SNI, AMCX, VIA , VIAB, DISCA.
Mon, Jan. 12, 10:45 AM
- Citigroup downgrades a number of food stocks on its view higher consumer spending in the sector may already by priced into share prices.
- Exposure to global markets also poses a risk due to currency swings and uneven demand, say analysts.
- The investment firm takes the rating on ConAgra (CAG -1%), Mondelez International (MDLZ -0.8%), and Kellogg (K -0.9%) to Neutral from Buy.
- McCormick & Company (MKC -0.8%), Kraft Foods Group (KRFT), and Campbell Soup (CPB) are all moved to Sell from Neutral.
Mon, Jan. 12, 3:23 AM
- After private equity firm Abraaj pulled its offer for Bisco Misr on Dec. 31, the bidding period for the Egyptian biscuitmaker ended Sunday with Kellogg (NYSE:K) as the only suitor.
- The bidding war between the two drove up the offer price by over 20%.
- As of yesterday, shareholders controlling 86% of the company have agreed to sell their shares to Kellogg for a total of $125M.
Dec. 31, 2014, 2:59 AM
- The UAE's Abraaj Investment Management is pulling out of a bidding war with Kellogg (NYSE:K) for the Egypt's Bisco Misr.
- Abraaj did not give a reason for its withdrawal from the bidding process, but said the orderly and transparent process had underlined growing investor interest in Egypt.
- Kellogg was the last to place a bid for the snack maker, offering 89.86 EGP per share - for a total purchase price of $144M.
Dec. 28, 2014, 11:01 AM
- Egypt's financial regulator has extended the bidding period for Bisco Misr until Jan. 11, intensifying a $144M takeover battle between Kellogg (NYSE:K) and the UAE's Abraaj Investment Management.
- Kellogg raised its bid for the Egyptian snack maker on Wednesday to 89.86 EGP per share following an earlier offer of 88.09 from Abraaj.
- The battle has so far driven up the bid price by more than a fifth from Abraaj's opening gambit of 73.91 EGP/share.
Dec. 18, 2014, 4:35 AM| Comment!
Dec. 17, 2014, 9:29 AM
- General Mills (NYSE:GIS) reported cereal demand fell off once again in FQ2.
- The decline is in spite of efforts to introduce more on-trend brands (protein, gluten-free, low-calorie).
- The company offset the cereal slump to a degree with gains in yogurt.
- Yogurt sales grew in both the U.S. Retail and Convenience Store channels.
- The shift by consumers from cereal to yogurt has also negatively impacted Kellogg (NYSE:K) and Post Holdings (NYSE:POST) - while benefiting Danone (OTCQX:DANOY) and Mueller-PepsiCo (NYSE:PEP).
- Previously: General Mills earnings, highlights
Dec. 12, 2014, 10:47 AM
- Kellogg (K -1.4%) says it's making an evaluation to see if it's operating the right number of ready-to-eat cereal manufacturing plants in the U.S.
- A report from the Bakery, Confectionary, Tobacco, and Grain Millers Association made the claim earlier this week that Kellogg planned to close some U.S. facilities.
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