TOP STORIES

 

Tyson Foods to Require Vaccines for All U.S. Workers

Tyson Foods Inc. said it would require Covid-19 vaccinations for its U.S. workforce of about 120,000, aiming for total vaccination of the meat giant's employees by Nov. 1.

The Arkansas-based company's target, which includes both processing plant and corporate office workers, is partly subject to discussions with labor unions that represent around one-third of the company's hourly workers, Tyson officials said.

 

For Fast Food, Supersized Sales Outrun Heavier Costs --Heard on the Street

A key question for the fast-food industry is how well it can handle the prospect of rising costs. So far, investors don't have much reason to feel queasy.

A shortage of workers, coupled with stubbornly high jobless claims, is an important issue facing the U.S. economy as it emerges from the pandemic. It would seem to spell trouble for burger, pizza and chicken chains, which are in an industry characterized by high transaction counts and thin profit margins. Food inflation also is on the rise.

 

Denny's Sales Starting to Surpass Prepandemic Levels -- Market Talk

16:20 ET - Denny's says its same-store sales in June and July were up over the same months in 2019. Sales in stores open 24 hours were up double digits, a level of service the chain has struggled to return to given labor challenges. Sales of $106.2M and earnings adjusted for one-time items of 18 cents a share beat expectations. Shares rise 3% in after-hours trading. (heather.haddon@wsj.com; @heatherhaddon)

 

STORIES OF INTEREST

 

Restaurant Brands Should Catch Peers as Tim Hortons Improves -- Market Talk

11:08 ET - Tim Hortons' recovery will likely close parent Restaurant Brands' discount compared with peers, but the company continues to underperform in some areas, CIBC says. Tim Hortons is expected to recover same-store sales to prepandemic levels by late 2022, according to the Canadian bank, given the work-from-home trends that had weighed on the company, but noting that Restaurant Brands' unit growth and balance sheet remain superior to most peers. "But this is somewhat offset by less exposure to America's robust economy and an underperforming domestic Burger King brand," the Canadian bank adds. CIBC raises its target price to $78 from $77. Shares fall 1% to $66.23. (adriano.marchese@wsj.com)

 

Chipotle Requires Masks for Workers -- Market Talk

1550 ET - Chipotle Mexican Grill says it is now requiring all employees to wear masks in its roughly 2,800 restaurants based on the CDC's evolving guidance on coronavirus-related protections. The chain also recommends customers located in areas of high Covid-19 transmission to wear masks. McDonald's and Starbucks have brought back mandates for at least some of their workers as the Delta variant spreads in the US. (heather.haddon@wsj.com; @heatherhaddon)

 

FUTURES MARKETS

 

Livestock Futures Close Higher as Cutout Prices Jump -- Market Talk

1503 ET - Cutout prices continuing to rise today, according to USDA data--providing support to CME livestock futures. Most-active lean hog futures close trading up 2.1% to 91.375 cents per pound, while live cattle futures finish up 0.7% to $1.2815 per pound. Pork cutouts were higher across the board today--led by loin, up $8.25 per hundredweight, and bellies up $7.80 per cwt. Choice boxed beef cutouts were up $4.06 per cwt this morning, while select cutouts were up $2.63 per cwt. (kirk.maltais@wsj.com; @kirkmaltais)

(END) Dow Jones Newswires

August 03, 2021 17:08 ET (21:08 GMT)

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