Coronavirus a Hurdle in China's Sprint for Meat, Tyson Says -- Market Talk
17:03 ET - Tyson Foods President Dean Banks tells analysts China's coronavirus outbreak is cutting into what had looked like a flood of meat flowing into the country, where 40% to 50% of the hog herd has been lost due to African swine fever's spread. Tyson's export sales have suffered in recent years due to trade disputes between the US and Mexico and China, but Banks said that Tyson's pork sales to China for the quarter are up sixfold versus the prior-year period, and Chinese clients are buying chicken meat again. "Despite some temporary challenges related to coronavirus, we see this interest enduring," he says. (email@example.com; @jacobbunge
Grocers Wrest Control of Shelf Space From Struggling Food Giants
The biggest U.S. food makers, already dealing with increased competition and shifting consumer tastes, now face an additional threat: supermarkets are taking away prime shelf space.
Grocers are relying on their own proprietary research to decide how and where to shelve certain products, rather than relying on companies that sell well-known brands to tell them what to put on what shelf at what price. The shift is resulting in less space for traditional supermarket staples from companies such as General Mills Inc. and Clorox Co. in favor of niche items and store brands that deliver higher margins and are often in higher demand.
Wingstop Posts Higher 4Q Sales, Beating Expectations
Wingstop Inc. reported higher earnings and revenue in the latest quarter, beating analysts' expectations for revenue.
The restaurant chain said fourth-quarter earnings were $3 million, or 10 cents a share, compared with $2.4 million, or eight cents a share a year earlier.
Adjusted earnings were 14 cents a share. Analysts polled by FactSet were expecting adjusted earnings of 17 cents a share.
Total revenue was $53.2 million, compared with $40.5 million a year earlier.
STORIES OF INTEREST
Tyson Foods Accounting Chief Stephen Gibbs Resigns >TSN
Tyson Foods Inc. on Wednesday said Stephen Gibbs has resigned as senior vice president and chief accounting officer, effective Feb. 21, to accept a position at another company.
Mr. Gibbs has been chief accounting officer of the Springdale, Ark., meat giant since December 2018.
Blue Apron Says Marketing Becoming Bigger Focus -- Market Talk
09:21 ET - Blue Apron thinks the meal-kit sector is still "a new industry," chief executive Linda Kozlowski says during an earnings call with analysts. The company is seeing increasing competition on the marketing front, she says, adding that the biggest challenge for players remains reaching a level of efficiency. Blue Apron is seeing strong results from product initiatives and marketing is becoming a bigger area of focus, she says. Shares of the meal-kit service are sliding 12% in premarket trading after reporting weaker-than expected financial results. (firstname.lastname@example.org; @_jaewonkang)
Potential Buyers Circle Bloomin' Brands' Unit In Brazil -- Market Talk
11:02 ET - Bloomin' Brands has received "significant interest" in its business in Brazil and continues to discuss those assets with potential buyers, CEO David Deno says on an investor call about quarterly results, adding the company is under no obligation to sell. As of the end of November, Bloomin' owned 99 Outback Steakhouse restaurants in the South American country and listed a dozen locations for Abbraccio Cucina Italiana, a brand that it franchises overseas, on the Italian restaurant's website. Bloomin' is under pressure from activist investor Jana Partners, which has a 7.4% stake in the company and intends to nominate at least two people to its board. Bloomin' has also considered selling itself but Deno says nothing compelling has materialized in terms of a sale. Shares rise 4.3%. (email@example.com; @MicahMaidenberg)
Hog Rally Picks Up Speed -- Market Talk
16:08 ET - With hog futures finishing up 3.2% to 67.575 cents per pound Wednesday, the April contract has now rallied 6% in the past four sessions. It's the highest that hogs have traded since the end of January. The contract has room to move another 6-7 cents per pound higher, says Craig VanDyke of Top Third Ag Marketing. Meanwhile, live cattle futures inch up as well, closing up 0.2% at $1.208 per pound. (firstname.lastname@example.org; @kirkmaltais)
Estimated U.S. Pork Packer Margin Index - Feb 19
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
Feb 19 +$ 23.95 +$ 2.57
Feb 18 +$ 23.82 +$ 4.72
Feb 17 +$ 23.50 -$ 0.70
* 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 94.6
(Percent of Year-Ago) Select 94.5
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Wednesday fell 56 cents per hundred pounds, to $205.57, according to the USDA. Select-grade prices fell $1.97 per hundred pounds, to $201.76. The total load count was 181. Wholesale pork prices fell $1.00, to $62.93 a hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
February 19, 2020 18:06 ET (23:06 GMT)
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