CMG Chipotle Mexican Grill Inc

TOP STORIES

Tyson Invests $850M in Chicken Rendering -- Market Talk

10:25 ET - As meat giant Tyson Foods ramps up poultry production to supply more chicken strips, breasts and wings, it's also looking for homes for the feet, necks and giblets that don't have as many fans among U.S. consumers. Tyson announces an $850M deal for American Proteins, a Georgia rendering company with plants across the chicken belt in the U.S. southeast and midwest. The acquisition will let Tyson turn more chicken byproducts into feed for pets and fish farms, markets that have taken on greater importance for U.S. chicken companies after China--a big market for chicken feet and other products--largely closed to U.S. poultry imports after bird flu outbreaks in 2015. Tyson estimates about $550M in annual sales for American Proteins. (jacob.bunge@wsj.com; @jacobbunge)

Chipotle To Host Special Mid-quarter Call on June 27 -- MarketWatch

Chipotle Mexican Grill Inc. (CMG) said Tuesday it will host a special mid-quarter investor call on June 25 at 4:15 pm ET. The purpose of the call is to discuss the company's strategy under its new chief executive, Brian Niccol. Chipotle said during its earnings announcement (http://www.marketwatch.com/story/it-wasnt-the-queso-chipotles-new-ceo-and-price-hikes-drive-earnings-beat-2018-04-26) that it would host an additional call to elaborate on growth plans. Chipotle shares are up 47.1% for 2018 so far while the S&P 500 index is up 2.1% for the period.

STORIES OF INTEREST

Algae Blooms on the Rise in America's Lakes -- Market Talk

00:01 ET - Toxic algae blooms in U.S. lakes represent a "growing epidemic," according to a new report by the Environmental Working Group. The NGO says the thick carpets of a pea soup-like substance caused by farm fertilizers and industrial sources that can foul drinking water are getting worse. There were 3 blooms in 2010 versus 169 in 40 states last year. EWG links the surge to more-intensive crop and livestock production. It argues that eligibility for federal farm subsidies should be tied to compliance with sustainable farm practices like planting grass buffers between farm fields and streams and more carefully targeting fertilizer applications to curb runoff. (jesse.newman@wsj.com; @jessenewman13)

Kroger's CEO Pay Falls on Performance Stumbles -- Market Talk

09:51 ET - Kroger CEO Rodney McMullen's total compensation fell 13% last fiscal year as the U.S.'s largest grocer fell down on its performance-based bonus goals. Kroger hit less than 4% of its performance targets, the lowest percentage in at least a decade. The targets include sales growth, net operating profit gains, online shopping expansion and internal goals surrounding the company's "customer-first strategy." The bonuses last year "did not meet many of our business plan objectives," the company writes in a filing. McMullen earned $11.5M in FY17, down from $13.2M in 2016. (heather.haddon@wsj.com; @heatherhaddon)

Restaurants a Weak Spot in April Retail Sales -- Market Talk

08:38 ET - Most categories contributed to the 0.3% gain for U.S. retail and food-service sales in April, based on today's report from the Commerce Department. Grocery-store sales rose 0.5% on the month, non-store retailers saw a 0.6% gain and clothing stores were up 1.4% from March. But among the weak spots was the food services and drinking places segment. Sales at bars and restaurants fell 0.3% in April from the prior month, the largest drop in more than a year. Of course, that came after a healthy 1.2% gain in March. But restaurant sales rose 3.8% in April from a year earlier, lagging behind the 4.7% annual gain for sales across all categories. (ben.leubsdorf@wsj.com; @BenLeubsdorf)

FUTURES MARKETS

Cattle Futures Fall to 18-Month Low

Cattle futures tumbled to the lowest point in a year and a half as traders bet supplies would weigh down prices this summer.

Beef prices often get a boost in springtime as demand for cuts to grill outside picks up, which helps lift the broader cattle market. But traders this week bet that rally was coming to an end, while supplies of fattened cattle ready to go to slaughterhouses would rise in the weeks and months to come.

Prices for cattle started the week sharply lower, falling to the bottom end of their daily trading range on Monday, before extending those losses on Tuesday. Contracts for June delivery fell 1.6% to $1.02975 a pound at the Chicago Mercantile Exchange. That was the lowest close since November 2016.

Hog futures followed the cattle market lower. June-dated contracts fell 1.9% to 74.725 cents a pound.

CASH MARKETS

 
Zumbrota, Minn Hog Steady At $38.00 - May 15 
 

Barrow and gilt prices at the Zumbrota, Minn., livestock market are steady at $38.00 per hundredweight.

Sow prices are $2.00 lower. Sows weighing 400-450 pounds are at $31.00-$33.00, 450-500 pounds are $31.00-$33.00 and those over 500 pounds are $35.00-$37.00.

The day's total run is estimated at 100 head.

Prices are provided by the Central Livestock Association.

 
Estimated U.S. Pork Packer Margin Index - May 15 
 
All figures are on a per-head basis. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically - 
                             integrated operations 
                                      * 
May 15       +$13.22              +$27.90 
May 14       +$15.29              +$26.72 
May 11       +$15.91              +$25.90 
 
* Based on Iowa State University's latest estimated cost of production. 
A positive number indicates a processing margin above the cost of production of the animals. 
 
Beef-O-Meter 
This report compares the USDA's latest beef carcass composite 
values as a percentage of their respective year-ago prices. 
 
                                 Beef 
          For Today             Choice   92.7 
      (Percent of Year-Ago)     Select   93.4 
 
USDA Boxed Beef, Pork Reports 
 

Wholesale choice-grade beef prices Tuesday fell 48 cents per hundred pounds to $231.64, according to the USDA. Select-grade prices rose 39 cents per hundred pounds to $209.51. The total load count was 145. Wholesale pork prices rose 55 cents to $73.38 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

May 15, 2018 17:35 ET (21:35 GMT)

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