LIVESTOCK HIGHLIGHTS: Top Stories of the Day

Date : 10/22/2019 @ 9:21PM
Source : Dow Jones News

LIVESTOCK HIGHLIGHTS: Top Stories of the Day

TOP STORIES

 

McDonald's Sees Higher Beef Prices -- Market Talk

13:00 ET - McDonald's says beef prices swung up during 3Q, contributing to a 2% commodity increase overall. That could be a bigger concern to the burger company than pork costs, which are expected to escalate from the African swine fever that has badly hurt China's supplies. Del Taco Restaurants told investors in 3Q earnings Monday evening it's continuing to monitor the swine flu situation. (heather.haddon@wsj.com; @heatherhaddon)

 

McDonald's Falls Short on Profit

McDonald's Corp. needed promotions and price increases to help boost sales in the third quarter as the world's biggest burger chain by revenue works to lure more customers.

Shares of McDonald's, up 18% in 2019 through Monday's close, slid 4% as third-quarter sales and earnings from the world's biggest burger chain fell short of expectations.

 

STORIES OF INTEREST

 

Chipotle Stock Gains After Chain Beats Earnings Expectations -- Barrons.com

Chipotle Mexican Grill is rising in after-hours trading on Tuesday after the burrito chain reported third-quarter earnings that came in ahead of consensus expectations.

The back story. Chipotle stock (ticker: CMG) is up more than 90% in 2019, easily leaving the rest of the rallying fast-food sector, as well as the broader market, far behind.

 

Pizza Hut Gives Kellogg's 'Incogmeato' a Try -- Market Talk

12:40 ET - Yum Brands' Pizza Hut chain is testing plant-based imitation sausage made by Kellogg's MorningStar Farms division. Kellogg's has seen Beyond Meat and Impossible Foods eat away at its long dominance of the veggie-burger market. Kellogg's new refrigerated "Incogmeato" product is meant to try to compete. Just one Pizza Hut location in Phoenix will test the sausage in specially-made round products, the companies say. (heather.haddon@wsj.com; @heatherhaddon)

 

Del Taco Not Seeing Big Beyond Meat Traffic Boost -- Market Talk

07:47 ET - Del Taco Restaurants says plant-based proteins from Beyond Meat is increasing the amount current customers are spending at the chain, but not necessarily driving new visits. The chain tells investors in 3Q earnings late Monday that they also haven't seen much boost from vegetarians seeking out the meat-free product. "Those vegans as vegetarians are not heavy category users," CEO John Cappasola says. Plant-based meats have caused a buzz in fast-food, but investors are waiting to see if the fad sticks. Del Taco down 11% in pre-market trading after the chain reports profits that missed expectations and cuts guidance. It relied on price increases to drive sales, in part, during 3Q, executives say. (heather.haddon@wsj.com; @heatherhaddon)

 

Tencent Investor Makes $6.3 Billion Bid for U.K. Food-Delivery Company

Europe's newest tech-investment giant made its first big move, launching a GBP4.9 billion ($6.3 billion) offer for Just Eat PLC and raising the pressure on the global food-delivery ambitions of the likes of Amazon.com Inc. and Uber Technologies Inc.

The all-cash offer from Prosus NV, which owns a near third stake in Chinese internet giant Tencent Holdings Ltd. and a host of other tech assets, is the investment firm's first major move since being spun out of South Africa's Naspers Ltd. earlier this year.

 

FUTURES MARKETS

 

Livestock Falls, But Cold Storage Show Declining Supplies -- Market Talk

15:43 ET - Lean hog futures finished trading on the CME on Tuesday down 3.4% to 65.5 cents per pound, down 9.2% in the past week. Doubt among traders about Chinese pork purchasing has weighed down US hog futures, but the USDA's cold storage report issued at 3 p.m. Eastern time may change the tide Wednesday. According to the monthly report, total frozen red meat supplies -- which include beef and pork -- were down 2% from last month and down 4% from this time last year. Beef supplies are leading the charge down, with total beef totaling 464.1 million pounds, down 8% from last year. Live cattle futures fell 0.2% for the day, down to $1.137 per pound. (kirk.maltais@wsj.com; @kirkmaltais)

 

CASH MARKETS

 
Estimated U.S. Pork Packer Margin Index - Oct 22 
 
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 
 
Oct 22       +$ 35.88            +$ 32.42 
Oct 21       +$ 38.92            +$ 37.60 
Oct 18       +$ 39.17            +$ 34.16 
 
* 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  105.6 
      (Percent of Year-Ago)     Select  100.2 
 
USDA Boxed Beef, Pork Reports 

Wholesale choice-grade beef prices Tuesday rose 80 cents per hundred pounds, to $220.93, according to the USDA. Select-grade prices rose $3.64 per hundred pounds, to $198.08. The total load count was 105. Wholesale pork prices fell $2.41, to $75.48 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

October 22, 2019 17:06 ET (21:06 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.


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