TOP STORIES

Steak 'N Shake Avoids Bankruptcy, Then Sues Top Lender Fortress

Steak 'n Shake Inc. sued lender Fortress Investment Group LLC after the burger chain paid off debt coming due to avoid bankruptcy, accusing Fortress of misusing confidential information to mount a takeover bid.

The Indiana-based milkshake-and-burger chain, backed by entrepreneur Sardar Biglari, said that Fortress obtained sensitive information through negotiations for a potential real estate deal with Steak 'n Shake, then used that knowledge to build an $89 million position in the company's loans.

Vegan Restaurant Chain By Chloe Taps Bankruptcy Lenders to Take Control

The owner of vegan restaurant chain By Chloe has named its bankruptcy lenders as the lead bidders to acquire its assets out of chapter 11, with hopes to get the proposed sale approved by next week.

The chain's bankrupt parent BC Hospitality Group Inc., designated a group of investors as the stalking horse bidders, according to records filed Saturday in the U.S. Bankruptcy Court in Wilmington, Del., setting the minimum price for other potential bidders to beat.

STORIES OF INTEREST

McDonald's Stock Could Get Its Mojo Back -- Barrons.com

McDonald's stock performed well through much of the Covid-19 pandemic, but has struggled to make headway in recent months, as some investors worry that, as a pandemic beneficiary, trends are turning against the fast-food giant. However Wells Fargo argues that that mindset obscures the ongoing momentum powering its business.

Analyst Jon Tower reiterated a Overweight rating and $250 price target on McDonald's (ticker: MCD) stock on Monday, noting that while sentiment has clearly turned against the stock -- down more than 1% year to date, compared to a 4% gain in the S&P 500 index -- he thinks that will change quickly in the next few quarters. H expects McDonald's to "return to the momentum seen pre-Covid and continue to fuel the positive feedback loop with a reinvigorated social-media presence, an increasingly digital relationship with customers, new products, and [a] loyalty [program] in the second half of 2021."

Hormel Names Mr. Peanut's New Boss -- Market Talk

11:25 ET - Hormel Foods taps company veteran Jeff Frank to lead the integration of the Planters and Corn Nuts brands, which it is buying from Kraft Heinz in a $3.35B deal announced earlier this month. Frank, who joined Hormel in 1998, takes the newly created post of vice president of grocery products to help Hormel digest the largest acquisition in the Spam and chili maker's history, slated to close by the summer. Frank had been serving as vice president of marketing for Hormel's foodservice business and previously served as president and CEO of its MegaMex joint venture with Herdez del Fuerte. (colin.kellaher@wsj.com)

Country Fresh Wants to Sell Assets Out of Bankruptcy by April -- Market Talk

1455 ET - Country Fresh Holding, a supplier of fresh-cut fruits and vegetables and ready-to-go meals, plans to get approval to sell the bankrupt company's assets out of bankruptcy by the end of next month. The proposed bid deadline for the assets is March 19, with a potential auction scheduled for March 22, followed by a court hearing on March 26 to consider selling all or most of the assets in the US and Canada, court records show. Country Fresh, part of the Fresh Food Group, named private-equity firm Stellex Capital Management LLC as the lead bidder in exchange for $30M in cash and $25M in secured debt. Country Fresh filed for chapter 11 protection last week after facing a cash crunch due to economic pressures largely stemming from the coronavirus pandemic. (aisha.al-muslim@wsj.com; @aishaalmuslim)

FUTURES MARKETS

Cattle Finish Lower After Supply Data -- Market Talk

1534 ET - Live cattle futures on the CME finished lower, with the most-active contract finishing down 0.5% to $1.2305 per pound. The drop in futures comes as Friday's Cattle on Feed report showed results that suggested a larger supply of cattle than anticipated. "The February cattle on feed report contained some unexpected numbers," says Karl Setzer of AgriVisor. "Cattle placements in January were higher than expected at 2.02 million, 103% of the number from a year ago." Cattle futures have recently traveled higher on lower slaughter levels amid bitterly cold temperatures in the Midwest. Lean hog futures, meanwhile, closed trading up 0.7% to 85.125 cents per pound. (kirk.maltais@wsj.com; @kirkmaltais)

CASH MARKETS 


 
Estimated U.S. Pork Packer Margin Index - Feb 22 
 
Source: USDA, based on Wall Street Journal calculations. 
All figures are on a per-head basis. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically - 
                             integrated operations 
 
Feb 22       +$ 34.03            +$ 61.48 
Feb 19       +$ 34.79            +$ 59.63 
Feb 18       +$ 31.80            +$ 57.42 
 
* 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  117.3 
      (Percent of Year-Ago)      Select  114.1 
 
USDA Boxed Beef, Pork Reports

Wholesale choice-grade beef prices Monday rose 75 cents per hundred pounds, to $239.98, according to the USDA. Select-grade prices rose $2.08 per hundred pounds, to $229.98. The total load count was 89. Wholesale pork prices rose 86 cents, to $91.00 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

02-22-21 1742ET