TOP STORIES

 

Red Robin Soars on Takeout Offer -- Market Talk

1122 ET - Red Robin Gourmet Burgers shares jump after activist shareholder Vintage Capital Management offers to buy the struggling restaurant brand for $40 per share. The private-equity firm previously called for an auction after amassing a more than 11% stake in the Colorado-based chain. Red Robin says in a filing it's reviewing the proposal. Vintage says the deal would constitute a merger funded through a mix of debt and equity. Red Robin gains 13% to $34.64, but shares are still off 31% over the past 12 months. (heather.haddon@wsj.com; @heatherhaddon)

 

STORIES OF INTEREST

 

PepsiCo's South Africa Deal Highlights Continent's Consumer Market -- Market Talk

1315 ET - PepsiCo's $1.7B deal to acquire South African company Pioneer Foods highlights how food manufacturers are positioning themselves to grab share in a fast-growing consumer market in countries across the continent. Total consumer spending in Africa is expected to nearly double to $2.5T between 2015 and 2030, with food and beverage spending representing a significant part of those gains, according to a Brookings Institution report from last year. Kellogg has also bolstered African operations in recent years, investing in a cereal plant in Nigeria and striking deals with a distributor that supplies breakfast noodles in both Nigeria and Ghana. (micah.maidenberg@wsj.com)

 

Canned Tuna Seller Bumble Bee Hires Turnaround Adviser

Bumble Bee Foods LLC has hired turnaround firm AlixPartners LLP as the seafood purveyor seeks to recover after pleading guilty to fixing prices on canned tuna, according to people familiar with the matter.

Bumble Bee is in talks with lenders after defaulting on its loan, the people said. The lenders have agreed to a forbearance period as restructuring talks continue.

 

FUTURES MARKETS

 

Livestock Finishes Session Higher -- Market Talk

15:05 ET - Livestock futures finishes the session with gains--particularly hog futures, which finished 1.3% higher at 83.875 cents per pound. According to market participants, pig supply is expected to tighten in the short-term as high-weight hogs have been worked through the supply chain. "Suddenly we've gone from oversupply to undersupply," says Dennis Smith of Archer Financial. "[There's] reduced numbers of light weight hogs." Cattle futures, meanwhile, are up 0.2% to $1.085 per pound. (kirk.maltais@wsj.com; @kirkmaltais)

 

CASH MARKETS

 
Estimated U.S. Pork Packer Margin Index - Jul 19 
 This report reflects U.S. pork packer processing margins. The margin indices 
are calculated using current cash hog or carcass values and wholesale pork 
cutout values and may not reflect actual margins at the plants. These 
estimates reflect the general health of the industry and are not meant to 
be indicative of any particular company or plant. 
Source: USDA, based on Wall Street Journal calculations 
All figures are on a per-head basis. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically - 
                             integrated operations 
 
Jul 19       +$  0.54            +$ 37.32 
Jul 18       -$  2.24            +$ 32.16 
Jul 17       +$  1.89            +$ 31.90 
 
 
* 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  104.4 
      (Percent of Year-Ago)     Select   96.2 
 
USDA Boxed Beef, Pork Reports 

Wholesale choice-grade beef prices Friday rose 8 cents per hundred pounds, to $213.42, according to the USDA. Select-grade prices rose 90 cents per hundred pounds, to $189.51. The total load count was 90. Wholesale pork prices rose $2.40, to $77.76 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

July 19, 2019 17:28 ET (21:28 GMT)

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