TOP STORIES
Hormel Logs 1Q Profit Fueled by Strong Consumer Sales
Hormel Foods Corp. Thursday logged stronger sales year over year in the latest earnings period as shopping by consumers eating at home outweighed falling demand from restaurants and food-service venues during the Covid-19 pandemic.
The Austin, Minn.-based food producer posted net earnings of 41 cents a share, compared with 45 cents a share in the same three-month period a year earlier. The profit was in line of the expectations of analysts polled by FactSet.
Revenue was $2.46 billion, higher than the $2.38 billion in revenue Hormel posted in last year's first quarter. Analysts had forecast revenue of $2.37 billion.
Hormel Says Grain-Market Rally to Push Up Food Prices -- Market Talk
0732 ET - A monthslong rally in agricultural commodity markets is hitting grocery stores. Hormel Foods says it's proactively raised prices across all of its turkey products to offset sharply higher grain costs, with corn futures recently hitting their highest level in about seven years. Grain typically is the biggest cost in raising poultry and livestock, and CEO Jim Snee says the company should be able to lift prices enough to protect its profit margins, but warns the continued grain market rally "will require additional actions." (jacob.bunge@wsj.com; @jacobbunge)
Cheesecake Factory Up 7% After 4Q Results
The Cheesecake Factory Inc. shares were up 7% to $50.70 in afternoon trading.
The restaurant company after the market close Wednesday reported fourth-quarter total revenue of $554.6 million, down from $694.0 million in the fourth quarter of fiscal 2019 and missing FactSet consensus for $604.6 million.
STORIES OF INTEREST
McDonald's Sets Executive Diversity Targets -- Market Talk
0841 ET - McDonald's says it aims for 35% of its US senior directors and above to come from underrepresented groups by the end of 2025, up from 29% today. It aims for women to occupy 45% of global leadership roles by 2025's end, up from 37% today. The company says it will also add annual diversity targets to its incentive-based compensation metrics for executive vice presidents. "We're serious about holding ourselves and our leaders accountable to these foundational commitments," CEO Chris Kempczinski says in a message to employees Thursday. The company will follow local regulations and employment laws in its targets, he says. (heather.haddon@wsj.com; @heatherhaddon)
Dining Chains Reopening Indoor Service -- Market Talk
0809 ET - Bloomin' Brands says about 99% of its US restaurants are open for indoor dining, up from 85% at the end of December. Cheesecake Factory also noted progress of reopening restaurants in 4Q earnings, with roughly 80% of locations running with limited indoor dining. States are allowing for indoor dining again this year after cracking down on it late last year, prompting sales to plunge. (heather.haddon@wsj.com; @heatherhaddon)
Mondelez Launches Investing Platform to Support ESG Ventures
Mondelez International Inc. said Thursday it launched an impact investing platform called Sustainable Futures to incubate, finance and support self-sustaining ventures that address key challenges in the world, including climate change.
The company said the new platform gives it the opportunity to pursue and nurture innovative projects, together with like-minded investors, that align with its sustainability strategy and help deliver on its commitments.
FUTURES MARKETS
Livestock Futures Stay Lower to End Day -- Market Talk
1453 ET - Livestock futures trading on the CME finished mostly lower -- with live cattle futures dropping 1% to $1.22925 per pound while lean hog futures were virtually unchanged at 84.925 cents per pound. The drop in prices comes even as cold weather continues throughout the US Midwest, where temperatures are below zero degrees Fahrenheit. Boxed beef prices are currently not reflecting much in the way of a pinch in prices for cuts of beef, with these prices generally flat today, according to USDA data. (kirk.maltais@wsj.com; @kirkmaltais)
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - Feb 18
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
Feb 18 +$ 31.80 +$ 57.42
Feb 17 +$ 31.56 +$ 54.58
Feb 16 +$ 33.76 +$ 55.16
* 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.
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 115.9
(Percent of Year-Ago) Select 111.7
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Thursday rose $1.34 per hundred pounds, to $238.85, according to the USDA. Select-grade prices rose $1.83 per hundred pounds, to $227.47. The total load count was 96. Wholesale pork prices rose $1.32, to $89.11 a hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
02-18-21 1745ET
