McDonald's Sales Surpass Pre-Pandemic Levels -- 2nd Update
McDonald's Corp. said its sales are surpassing pre-pandemic levels across the world as more of its dining rooms reopen and U.S. customers try new chicken offerings.
The burger giant reported sales of $5.9 billion for its quarter ending in June, up 57% from a year earlier when it was hit by Covid-19-related lockdowns. Analysts expected sales of $5.6 billion.
Global same-store sales in the second-quarter were 7% higher than in the same period of 2019, with the U.S. business leading the growth, McDonald's said Wednesday.
Costs Grow at Wingstop -- Market Talk
0840 ET - Wingstop says its food costs rose in its 2Q ending in June. Food, beverage and packaging costs were 44% of company-owned store sales, up from 33% during the previous year's period. The chain expects food costs to remain at 44% of sales this year. Chicken remains the big culprit, with bone-in wing prices up 65% from the same time last year. Shares fall 5.8% in pre-market trading. (email@example.com; @heatherhaddon)
Tyson Blames Labor for Cattle Ranchers' Price Woes -- Market Talk
1147 ET - It's a big day for the US meatpacking industry in Washington, as the Senate Judiciary Committee and the House Agriculture Committee both hold hearings examining the US beef sector, following cattle ranchers' complaints that the dominance of four major processing companies has driven down cattle prices. Tyson, the second-biggest US beef processor, pins the current divide between wholesale beef and cattle prices on worker shortages. Shane Miller, Tyson's head of fresh meats, says in prepared testimony for the Senate committee that labor shortfalls in meat plants constrain cattle processing, leaving the industry unable to efficiently slaughter cattle and pushing down prices, though there are signs that situation is improving and cattle prices are moving higher, he says. (firstname.lastname@example.org; @jacobbunge)
STORIES OF INTEREST
Bunge 2Q Results Top Analysts Forecasts
Bunge Ltd. Wednesday posted better-than-expected sales and earnings figures in the latest quarter.
The St. Louis-based agricultural company logged net income per share of $2.37 in the second quarter, a decline from $3.47 in the year-ago quarter. Net income was $362 million, down from $516 million a year earlier.
The company's adjusted net income was $2.61 a share. Analysts surveyed by FactSet were forecasting an adjusted profit of $1.62 a share.
Packaged Food Observers See Positive Outlook for Mondelez -- Market Talk
1150 ET - Food industry analysts are upbeat on Mondelez after the company reported increases in profit and revenue for the latest quarter, and raised its outlook for revenue growth in the full fiscal year. North American sales, which make up less than one-third of Mondelez's revenue, slowed slightly compared to a year ago when consumers rushed to fill their pantries during the onset of Covid-19, though other packaged food companies have reported steeper declines. The snack giant says it is benefiting both from consumers who still are eating more at home than prior to the pandemic, as well as an uptick in impulse-buys and on-the-go consumption. "We expect strong global biscuit and chocolate momentum to continue," said Piper Sandler's Michael Lavery. (email@example.com)
Waitr Continues Expansion in Agreement With KFC Franchisee -- Market Talk
1419 ET - In its future, Waitr Holdings expects a corporate rebranding and new verticals outside food, but for now it continues to add restaurants to its platform. It says Waitr and its Bite Squad unit will deliver from over 140 locations of KFC franchisee KBP Foods. Waitr has launched in more than 70 new cities in 2021. Since June, when it announced the corporate rebranding effort, the company added Long John's Silver and Boston Market to its platform. One of Waitr's more notable announcements was in March, when it said it would work with Flow Payments on a platform for cannabis sales and delivery. (firstname.lastname@example.org)
Lean Hogs Extend Losses Amid Fears of Waning Demand -- Market Talk
1513 ET - Lean hog futures for October delivery slide for the second consecutive day, by 3.2%, to close at 89.525 cents a pound as markets struggle to find a bottom amid fears of insufficient demand. The front-month contracts, which reached a record high of $1.20 a pound in June, is now at a level not seen since March, but still up 27% so far this year. There are hopes that China could increase imports as weather conditions have reportedly hurt local supply. Meanwhile, live cattle contracts, also for October, gain 0.1% to $1.28525 a pound and closed at the highest level since March 2019. (email@example.com; @ptrevisani)
(END) Dow Jones Newswires