LIVESTOCK HIGHLIGHTS: Top Stories of the Day
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. (firstname.lastname@example.org; @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 --
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.
Del Taco Not Seeing Big Beyond Meat Traffic Boost -- Market
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.
Tencent Investor Makes $6.3 Billion Bid for U.K. Food-Delivery
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.
Livestock Falls, But Cold Storage Show Declining Supplies --
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 $1.137 per
pound. (email@example.com; @kirkmaltais)
Estimated U.S. Pork Packer Margin Index - Oct 22
Source: USDA, based on Wall Street Journal calculations
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
Oct 22 +$ 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.
This report compares the USDA's latest beef carcass composite
values as a percentage of their respective year-ago prices.
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.