LIVESTOCK HIGHLIGHTS: Top Stories of the Day
Wendy's 1Q Profit, Sales Rise
Wendy's Co. said its profit rose for the first quarter, driven
by higher sales at company-operated restaurants, an increase in
franchise-royalty revenue and an increase in advertising funds.
The fast-food chain on Wednesday posted net income of $41.4
million, compared with $14.4 million in the prior year. Earnings
were 18 cents a share, compared with 6 cents a share in the
Restaurants, Retailers Consider Cell-Based Chicken on Menus --
1227 ET - A small number of US restaurant chains and
supermarkets are exploring a new addition to menus and meat cases
-- chicken produced using self-replicating poultry cells, versus
raising, slaughtering and processing birds. Uma Valeti, chief
executive of cell-based meat startup Upside Foods, says his company
is discussing a potential limited launch of its initial chicken
products later this year with interested restaurants and retailers,
where it will carry a premium price to traditional chicken -- but
likely won't be as expensive as high-end varieties, he says.
Upside, formerly Memphis Meats, is also developing beef, pork and
seafood using cell-culture technology. (email@example.com;
STORIES OF INTEREST
Pershing Square Swaps Starbucks for Domino's Pizza -- Market
1107 ET - Pershing Square holds just under 6% stake in Domino's
Pizza and sold off Starbucks, Bill Ackman says at The Wall Street
Journal's Future of Everything Festival. With Starbucks, Ackman
said, it was just a case of the stock recovering too quickly, too
fast, making it difficult to make the kind of "excess returns"
Pershing Square sought. Domino's, which has enjoyed a resurgence
during the pandemic and is trading near record levels, owns its own
delivery system, a competitive advantage that means that it doesn't
have to rely on third parties like Doordash or Uber Eats, Ackman
said. Ackman said his firm started buying at around $330 a share.
Domino's shares are up 2.1% at $431.11. (firstname.lastname@example.org;
Grubhub Falls on Independent Restaurant Investment -- Market
0957 ET - Grubhub says it will equip independent restaurants
with their own online order sites, a service that could reduce
commissions paid to the delivery marketplace. The app has built
native websites and ordering tools for restaurant chains for years,
but says it's now opening up the service for small restaurants.
Grubhub is waving fees until May 2022, whereupon the service will
cost $49 per location per month. Food delivery has become
increasingly competitive and expensive to run, including during the
pandemic. Grubhub shares fall 6.6%. (email@example.com;
Ben & Jerry's Weighs In On Corporate Activism -- Market
15:47 ET - Ben & Jerry's Chief Executive Matthew McCarthy
urges fellow corporate leaders to take a stand on sociopolitical
issues but cautioned: "focus on your walk, not your talk." Speaking
at WSJ's "Future of Everything Festival," McCarthy says hollow
public statements can actually do more harm than good. "In this
world of hyper transparency, what you do is what you are as an
organization," McCarthy says, later adding: "It's OK to fall on
your face. What's not OK is to sit on the sideline and do
nothing--or worse, say something that suggests that you are in the
game but you are not." (firstname.lastname@example.org; @mjarmental)
Hog Futures Finish Higher After WASDE -- Market Talk
1529 ET - Lean hog futures trading on the CME closed up 0.8% to
$1.12025 per pound. Higher prices were supported by the USDA's
latest projections in its WASDE report released this afternoon --
in which the agency forecasts that US pork production is expected
to fall this year due to an expectation of decreased carcass
weights. Livestock demand on the export market is also expected to
grow this year, the USDA says. "Beef, pork, and broiler exports are
raised on recent trade data and expectations of stronger growth to
a number of key markets," the USDA says. Meanwhile, live cattle
futures closed trade down 0.1% to $1.1865 per pound.
Estimated U.S. Pork Packer Margin Index - May 12
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
May 12 -$ 21.67 +$ 99.92
May 11 -$ 28.60 +$ 98.39
May 10 -$ 26.12 +$ 98.16
* 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 67.2
(Percent of Year-Ago) Select 65.6
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Wednesday rose $2.71 per
hundred pounds, to $315.08, according to the USDA. Select-grade
prices rose 82 cents per hundred pounds, to $297.16. The total load
count was 98. Wholesale pork prices rose 71 cents, to $112.21 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
May 12, 2021 17:19 ET (21:19 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.