McDonalds – Top Stories of the Day
Judge Orders Information Sharing in Ex-McDonald’s CEO Case — Market Talk
0951 ET – A Delaware Chancery Court judge ordered former McDonald’s CEO Steve Easterbrook to provide information and documents requested by the company in their case seeking to claw back millions of dollars in severance granted to the former executive. Easterbrook’s attorneys have sought to limit the initial discovery of information, saying McDonald’s requests were primarily meant to embarrass the former CEO rather than advance the case. “We can finally move forward with our case against Steve Easterbrook and gather the evidence necessary to hold him accountable,” McDonald’s said in a statement. Easterbrook has argued that the company had information about other inappropriate relationships he had at the company when they dismissed him without cause. ([email protected] Zoom.com; @heatherhaddon)
Dave & Buster’s Projects Higher-Than-Expected 1Q Revenue
Dave & Buster’s Entertainment Inc. expects revenue to pick up in the first quarter, as the company sees Covid-19 cases moderating, resulting in improved results at its stores.
The entertainment and dining venue operator projects first-quarter revenue around $210 million to $220 million, ahead of analysts’ consensus estimates of $159.7 million, per a FactSet poll.
STORIES OF INTEREST
Chewy Can Retain Customers It Gained During Pandemic — Market Talk
1403 ET – Morgan Stanley boosts its price target on Chewy to $83 from $76, saying the online pet-products retailer looks poised to deliver another solid year of top line growth. Morgan Stanley says Chewy’s “share of wallet” continues to grow.” The retailer is attracting consumers earlier in their pets’ lives and experiencing better retention, the analyst note says. Chewy has the greatest opportunity among peers to retain the new buyers it acquired in 2020 given the “habitual, staples-like nature of the business and superior value proposition to brick & mortar shopping,” Morgan Stanley says. The firm says it remains bullish on the pet category and Chewy’s share gains, but is staying equal-weight on valuation. Chewy Tuesday reported 4Q sales of $2.04B and EPS of 5c. Shares up 7% to $86.36. ([email protected] Zoom.com)
Deliveroo’s IPO Has Come at the Wrong Time — Market Talk
1048 GMT – Deliveroo shares have flopped in their stock-market debut as the listing of the UK. food-delivery group comes at exactly the wrong time for shareholders given that rising treasury yields are putting pressure on tech stocks, IG analyst Joshua Mahony says. The company’s valuation is based on a period of massive upheaval for the restaurant business, and while it can increase over time, the expectation that growth stocks are set for a period of poor momentum doesn’t fill investors with confidence, Mahony says. “Deliveroo firmly falls into the pandemic winners category, but at a time when traders are looking for value recovery plays, this doesn’t look like the most attractive proposition,” he says. Shares fall 23%. ([email protected])
Cattle Futures Maintain Upward Momentum — Market Talk
1530 ET – Livestock futures finished mixed — with live cattle futures closing up 0.6% to $1.229 per pound while lean hog futures closed down 0.7% to $1.053 per pound. “Beef prices have surged sharply higher in the last few days as strong retail features have helped clean up the spot market and packers are seeing significantly more interest for beef features/higher consumption into the spring and summer,” said Steiner Consulting. Live cattle futures have now risen for 6 out of the last 7 trading sessions. ([email protected] Zoom.com; @kirkmaltais)
Estimated U.S. Pork Packer Margin Index - Mar 31 All figures are on a per-head basis. Date Standard Margin Estimated margin Operating Index at vertically - integrated operations Mar 31 +$ 14.10 +$ 97.00 Mar 30 +$ 9.63 +$ 92.23 Mar 29 +$ 12.51 +$ 94.83 * 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 98.5 (Percent of Year-Ago) Select 100.0 USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Wednesday rose $2.29 per hundred pounds, to $247.12, according to the USDA. Select-grade prices rose $2.21 per hundred pounds, to $238.13. The total load count was 116. Wholesale pork prices rose $2.22, to $107.52 a hundred pounds, based on Omaha, Neb., price quotes.
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