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. (firstname.lastname@example.org; @_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. (email@example.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.
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 $1.04575 per pound. For cattle futures, today's decline makes it 7.5% that the most-active contract has shed in the past two weeks. Tomorrow's cold storage report from the USDA may provide a spark for livestock futures. (firstname.lastname@example.org; @kirkmaltais)
Estimated U.S. Pork Packer Margin Index - Oct 21
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
Oct 21 +$ 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.
This report compares the USDA's latest beef carcass composite
values as a percentage of their respective year-ago prices.
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