TOP STORIES

Kroger Says 1Q Sales Will Be Higher Than Expected

The Kroger Co. said Wednesday that it expects first-quarter sales to be higher than previous guidance after consumers stocked up to prepare for the coronavirus pandemic.

The Cincinnati-based supermarket company, which controls chains including Ralphs, Dillons and Harris Teeter, said that comparable sales peaked about 30% above trend in March, with consumer stockpiling activity abating toward the end of the month. Sales remained higher than normal throughout the month, Kroger said.

The company backed its previous earnings guidance for 2020, which forecasts adjusted earnings of between $2.30 a share to $2.40 a share.

Restaurant Price Targets Cut At SunTrust On Pandemic -- Market Talk

1449 ET - SunTrust cuts price targets for several restaurants due to severe coronavirus impact. The investment bank says its base case is that casual dining same-store sales will be down about 80% through May, with declines around 40%-60% in fast casual and 20%-40% in fast food. However, the firm sees limited liquidity risk overall. McDonald's, Chipotle and Dine Brands Global are among those that have lowered price targets alongside a reiterated buy rating. Factors in the firm's analysis include geographic presence, which is unfavorable for Shake Shack, and level of off-premise sales, a plus for El Pollo Loco Holdings and Denny's, which are upgraded to buy from hold. (josh.beckerman@wsj.com)

STORIES OF INTEREST

General Mills Introduces Worker Bonuses During Pandemic

General Mills said Wednesday that it will pay daily bonuses to plant employees during the Covid-19 pandemic and will allow some office workers to shift to manufacturing roles.

The daily bonus will be in place for at least four weeks, the Minneapolis-based food company said. Employees affected by quarantines will receive two weeks of paid leave. Workers with children affected by school closures will also be eligible.

Deere Closes Dubuque, Iowa, Plant After Worker Tests Positive for Coronavirus

Deere & Co. idled production at its Dubuque, Iowa, plant after a worker there tested positive for the new coronavirus.

The plant, which makes construction equipment for Deere, is being disinfected during the outage.

CraftWorks Gets Approval to Tap New Bankruptcy Financing -- Market Talk

1413 ET - CraftWorks Holdings will have access to new funds to cover its critical business expenses and chapter 11 bankruptcy costs through mid-May as the casual-dining company hopes to emerge with about 125 locations once the coronavirus pandemic is over. US Bankruptcy Court in Wilmington, Del. approves CraftWorks' request to use its lenders' cash and get up to $4M additional bankruptcy financing. The operator behind the Logan's Roadhouse and Gordon Biersch restaurant chains recently fired most of its 18,000 employees. The financing budget includes compensation for terminated employees, but does not provide paying rent to landlords, a company lawyer said during a telephonic court hearing. (aisha.al-muslim@wsj.com; @aishaalmuslim)

FUTURES MARKETS

Both Hogs and Cattle Finish Limit Down -- Market Talk

15:10 ET - Livestock futures on the CME have finished trading limit lower, with cattle futures down at their extended limit of 4.5 cents a pound, or 4.9%, to 87.575c, while hogs finish 3 cents lower, or 5%, at 57.325c. For both meats, the issue is the high availability of supplies, combined with receding demand from US consumers after a big rush of consumer demand due to coronavirus worries. Both cattle and hogs will trade at extended lower limits tomorrow. (kirk.maltais@wsj.com; @kirkmaltais)

CASH MARKETS

 
Estimated U.S. Pork Packer Margin Index - Apr 1 
 
All figures are on a per-head basis. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically - 
                             integrated operations 
 
Apr  1       +$ 16.96            -$  1.20 
Mar 31       +$ 13.95            +$  5.55 
Mar 30       +$ 23.07            +$ 17.77 
 
* 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  104.2 
      (Percent of Year-Ago)     Select  103.0 
 
USDA Boxed Beef, Pork Reports

Wholesale choice-grade beef prices Wednesday fell $7.98 per hundred pounds, to $235.17, according to the USDA. Select-grade prices fell $3.83 per hundred pounds, to $225.13. The total load count was 135. Wholesale pork prices fell $3.14, to $61.18 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

April 01, 2020 17:25 ET (21:25 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.