LIVESTOCK HIGHLIGHTS: Top Stories of the Day
26 March 2020 - 8:35AM
Dow Jones News
TOP STORIES
McDonald's Evaluating Franchisees' Operations, Considering Rent
Deferral
McDonald's Corp. said it is working with its global franchisees
to evaluate their operations amid the coronavirus pandemic and
explore liquidity measures such as rent deferrals.
The fast-food chain Wednesday also said it is working with
suppliers on contingency planning to ensure supply.
The company said it has closed all restaurants in countries such
as France, Italy, Spain and the U.K. as measures to contain the
pandemic have crippled businesses. It has limited operations, which
include drive-thru, delivery and take-out, in markets such as
Australia, Canada and Germany, the company said.
Investors Start To Game Out Tough 2Q for Restaurant Chains --
Market Talk
1606 ET - How ugly could comparable-sales figures at fast-food
chains get for 2Q as the coronavirus ripples through more
countries? Analysts at Baird say they are currently modeling a 30%
global comp-sales plunge for McDonald's for the period, though the
US performs better under their assumptions (at -25%) than some
international markets. Almost all of the hamburger company's US
stores are currently only offering drive-through options, delivery
or carry out. Operations are crimped in many other markets too.
(micah.maidenberg@wsj.com; @MicahMaidenberg)
Cracker Barrel Nixes Dividends, Draws Remainder of Credit
Facility Amid Covid-19 Crisis
Cracker Barrel Old Country Store Inc. said Wednesday that it
would suspend its dividends and stop share repurchases as the
Covid-19 pandemic hits restaurant dining.
The Lebanon, Tenn.-based restaurant chain said it would defer a
previously announced dividend, scheduled for May 5, until Sept.
2.
STORIES OF INTEREST
Food Manufacturers Raise Factory Pay
Some food manufacturers are raising pay for workers in their
factories, warehouses and delivery fleets that they are counting on
to maintain production at a time of sky-high demand.
Cargill Inc., PepsiCo Inc., Hormel Foods Corp., Kraft Heinz Co.,
Campbell Soup Co. and Danone SA are among companies that have
agreed to higher wages and paid sick leave or child-care stipends
for certain employees, according to the companies.
FUTURES MARKETS
Livestock Futures Finish Lower -- Market Talk
15:15 ET - Livestock futures on the CME have finished the day
lower, but traders expect that demand for meat will remain strong
for the foreseeable futures as coronavirus wreaks havoc on global
health. "I think demand for beef, pork, and poultry will be strong
for the rest of the year," says Craig Turner of Daniels Trading. "I
think the back end of cattle is a good value on the breaks." Live
cattle futures finished the day down 0.7% to 96.325 cents per
pound, while lean hogs futures finished down 1.7% to 71.75 cents
per pound. (kirk.maltais@wsj.com; @kirkmaltais)
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - Mar 25
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
Mar 25 +$ 35.39 +$ 35.96
Mar 24 +$ 40.55 +$ 41.59
Mar 23 +$ 47.58 +$ 45.03
* 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 111.2
(Percent of Year-Ago) Select 111.0
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Thursday fell $1.01 per
hundred pounds, to $255.30, according to the USDA. Select-grade
prices fell $2.39 per hundred pounds, to $243.09. The total load
count was 149. Wholesale pork prices fell $2.62, to $78.46 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
March 25, 2020 17:20 ET (21:20 GMT)
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