LIVESTOCK HIGHLIGHTS: Top Stories of the Day
October 21 2020 - 6:13PM
Dow Jones News
TOP STORIES
Chipotle Books Record Sales From Online Orders
Chipotle Mexican Grill Inc. reported its largest-ever quarterly
sales as online orders helped the chain recover from a loss of
restaurant traffic during the coronavirus pandemic. Chipotle has
benefited from a surge in to-go sales during the pandemic as
consumers look for convenient food. The Newport Beach, Calif.-based
burrito chain said Wednesday that same-store sales grew 8.3% in its
third quarter over last year, exceeding the 7.3% increase analysts
expected. Digital transactions, which tripled, accounted for nearly
half the company's revenue. Still, costs including restructuring
and legal expenses weighed on profits. Chipotle's earnings, on net
income of $80 million, were $2.82 a share, down from $3.47 during
last year's period.
Albertsons: Shopping Won't Go Back to Normal for Year or More -- Market Talk
13:39 ET - It will take at least another year or more until the
shopping atmosphere returns to pre-Covid ways, Vivek Sankaran, CEO
of Albertsons, says at a virtual event hosted by the National
Retail Federation. Consumers want to come in and finish their trips
and remain cautious about safety, he says, adding they continue to
cook more at home and try different product categories such as
baking. (jaewon.kang@wsj.com; @_jaewonkang)
STORIES OF INTEREST
Bond Sale Curbs Risks for Dave & Buster's -- Market Talk
1000 ET - Dave & Buster's prices $550M of senior notes due
in 2025, with plans to repay a term loan and pay down its revolving
credit line. The move serves to calm concerns about the
entertainment chain's cash profile at least until 2022 or so,
Raymond James analysts write, estimating the company has nearly two
years of liquidity. That improves the company's position as it
continues to muddle through the Covid-19 pandemic, which has
restricted D&B's operations in major markets like New York and
California. Raymond James upgrades the stock to strong buy from
outperform, raising its price target by $5 to $25. Shares rise 0.6%
to $18.88. (matt.grossman@wsj.com; @mattgrossman)
Pandemic-Era Shoppers Splurge on Vitamins, Boosting Nestle; Sales -- Update
Nestle SA said the pandemic has increased consumers' health
consciousness, boosting its small but fast-growing health-sciences
unit and contributing to better-than-expected overall sales at the
world's largest packaged-food maker. The owner of Nescafe coffee,
DiGiorno frozen pizza and Purina pet food has previously benefited
from a pandemic-era shift by consumers to comfort food --
particularly big, trusted brands -- as they stocked up and stayed
home during lockdowns. Net sales fell 9.4%, to 61.91 billion Swiss
francs, equivalent to $68.24 billion, dragged down by currency
changes and divestitures. CEO Mark Schneider has sold a string of
assets, including Nestle's skin-health arm and U.S. ice-cream
business, as he pivots toward categories he sees as higher
growth.
FUTURES MARKETS
Livestock Futures Close Lower -- Market Talk
15:39 ET - Livestock futures trading on the CME closed lower
Wednesday, with lean hogs turning down after starting higher today
-- finishing off 0.1% at 69.2 cents per pound. Meanwhile, live
cattle futures closed trading Wednesday down 0.8% at $1.04575 per
pound. For cattle futures, today's decline makes it 7.5% that the
most-active contract has shed in the past two weeks. Tomorrow's
cold storage report from the USDA may provide a spark for livestock
futures. (kirk.maltais@wsj.com; @kirkmaltais)
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - Oct 21
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
Oct 21 +$ 62.57 +$ 81.96
Oct 20 +$ 61.58 +$ 79.72
Oct 19 +$ 66.11 +$ 81.29
* 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 94.4
(Percent of Year-Ago) Select 96.4
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Wednesday fell $2.13 per
hundred pounds, to $208.47, according to the USDA. Select-grade
prices fell 76 cents per hundred pounds, to $190.91. The total load
count was 207. Wholesale pork prices rose $1.04, to $97.19 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
October 21, 2020 17:58 ET (21:58 GMT)
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