TOP STORIES 
 

Growth Plans, Franchisees Will Be in Focus When McDonald's Reports -- Earnings Preview

McDonald's Corp. is scheduled to announce its second-quarter earnings before the market opens on Tuesday. Here's what you need to know:

EARNINGS FORECAST: Net income of $1.62 per share is expected, compared with $1.25 a share a year earlier, according to FactSet.

SAME-STORE SALES AND REVENUE FORECAST: McDonald's is expected to post a 3.7% increase in global same-store sales for the quarter, with a 2.9% increase in the U.S., according to FactSet. The company is expected to report revenue of $5.96 billion, compared with $6.26 billion a year earlier.

 

Chicken-Hatching Conundrum Could Help Cal-Maine -- Market Talk

1012 ET - US egg giant Cal-Maine (CALM) says low egg prices aren't likely to improve anytime soon, but executives say one factor could work in its favor: Fewer eggs are successfully hatching in industrial chicken hatcheries, reducing the number of chickens raised for meat and to lay eggs. Cal-Maine cites USDA data showing the percentage of such chicks successfully hatched has declined for 10 of the last 11 months, "suggesting there may be moderation in the size of the laying hen flock as we move forward." Poultry execs attribute the hatching decline to new breeds and genetic selection, emphasizing productivity. (jacob.bunge@wsj.com; @jacobbunge)

 
   STORIES OF INTEREST 
 

Virginia Officials Confirm Norovirus in Chipotle -- Market Talk

15:56 ET - The cause of the illness that sickened Chipotle (CMG) customers in Sterling, Va., was determined to be norovirus after a second patron tested positive for it, the Loudoun County Health Department says. Chipotle and local health officials had been saying they suspected norovirus, a highly contagious virus that could have been spread by an employee or a customer. The health department said the source of the norovirus has not yet been identified. The latest official illness count now tops 135, the county said. Health officials said they are not aware of any customers becoming ill since the Chipotle restaurant reopened last Wednesday, after having been closed for sanitation. (julie.jargon@wsj.com)

 

Egg Glut Spoils Cal-Maine's 2017 -- Market Talk

10:09 ET - Shares of Cal-Maine (CALM), the top US egg supplier, slump after the Mississippi company reports its first annual loss in more than a decade, due to what the company calls an egg glut. Prices for egg giants like CALM soared in 2015 as avian flu decimated egg-laying chicken flocks in the Upper Midwest, but since then the company says flocks have been rebuilt with younger, more-productive hens, boosting egg supplies. Meanwhile, some buyers moved to egg alternatives in 2015 and haven't come back. CALM reported a $74.3M loss for fiscal 2017 as its 4Q loss widened from the year-ago period, sending shares 8% lower in early trading to $34.08. (jacob.bunge@wsj.com; @jacobbunge)

 
   FUTURES MARKETS 
 

Pork Belly Stocks Flopped in June

Frozen pork-belly stocks in June were the lowest on record, as sizzling demand for bacon kept reserves tight and prices high.

The U.S. Department of Agriculture said Monday that stocks of pork bellies in commercial freezers fell to 22.29 million pounds as of June 30, down almost 30% from a month earlier and 65% from the same time last year. That was the lowest for June since the USDA began keeping records in the 1950s.

 
   CASH MARKETS 
 
Zumbrota, Minn Hog $2.00 Lower At $54.00 - Jul 24 
 
  Barrow and gilt prices at the Zumbrota, Minn., livestock market today 
are $2.00 lower at $54.00 per hundredweight. 
 
Sow prices are $1.00-$3.00 higher. Sows weighing under 450 pounds are 
$60.00-$62.00, 400-450 pounds are at $60.000-$62.00, 450-500 pounds 
are $60.00-$62.00 and those over 500 pounds are $64.00-$66.00. 
 
The day's total run is estimated at 100 head. 
 
Prices are provided by the Central Livestock Association. 
 
Estimated U.S. Pork Packer Margin Index - Jul 24 
 
All figures are on a per-head basis. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically - 
                             integrated operations 
                                      * 
Jul 24       +$34.16             +$ 87.86 
Jul 21       +$35.13             +$ 90.29 
Jul 20       +$34.42             +$ 92.34 
Jul 19       +$34.42             +$ 93.13 
 
* 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  103.4 
      (Percent of Year-Ago)     Select  104.3 
 
USDA Boxed Beef, Pork Reports 

Wholesale choice-grade beef prices Monday rose 55 cents per hundred pounds, to $207.46, according to the USDA. Select-grade prices rose $3.09 per hundred pounds, to $197.89. The total load count was 99. Wholesale pork prices fell $1.13, to $101.27 a hundred pounds, based on Omaha, Neb., price quotes.

 

(END) Dow Jones Newswires

July 24, 2017 17:34 ET (21:34 GMT)

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