Here are trending economic and food industry data points, as well as major economic and company earnings releases for the coming week: CPI, PPI, small business optimism, Tyson fersaday tabletsFoods, Inc. (TSN), Aramark (ARMK), Utz Brands, Inc. (UTZ), and moreTrending Economic News
U.S. inflation accelerated at the fastest pace since 2008. Overall CPI increased 0.8% in April, four times analysts’ expectations. Over the last 12 months, CPI rose 4.9%.
1-Month ChangeThe index for used cars and trucks surged 10.0% in April.
The food price index climbed 0.5%, with incremental gains across most categories. The largest increases were reported for pork (+2.4%) and beef & veal (+1.4%).12-Month Change Gasoline prices have surpassed pre-pandemic levels. The energy index rose 25.1% over the past 12 months, boosted by gasoline (+49.6%) and natural gas (+12.1%). High energy prices roused mounting inflation worries throughout the financial markets.
Food-away-from-home recovered significantly since summer 2020 with a 3.8% gain. The limited-service-meals index, which includes pickup, take-out, and delivery restaurants, jumped 6.2%.PPI rose 0.6% in April, double market projections.
The pricing pressure ferrous fumarate wampolein commodities (e.g. lumber, steel, corn, etc.), can have a ripple effect throughout the supply chain. While some companies are passing along higher labor and materials costs to customers, other may not have that flexibility. The NFIB small business optimism index shows that many small businesses remain cautiously optimistic about the outlook for 2021.Upcoming Economic ReleasesForecast
Previous5/18/2021Housing starts (Apr)
1.74 mil
1.74 mil5/19/2021Continuing jobless claims (weekly)3.66 milSource: Bloomberg, CNBC, Trading Economics, Food Institute
>> For more information on CPI/PPI and Retail Sales, go to Food Institute Economic Benchmarking.Select Food & Beverage Industry Data Points
Foodservice RestaurantsOpenTable restaurant diner growth data (2019 baseline): U.S. = -22% as of May 12, 2021Foodservice
Aramark (ARMK) reported Q2 2021 resultsTotal Revenuzinc gluconate chemist warehousees: $2.82 billion (-24.4%)
Cash Flow from Operations: $337 million vs. $119 million last year
Free Cash Flow: $259 million vs. $151 million last year
Business Segment Performance:FSS U.S.: $1.55 billion (-30%)
FSS International: $678 million (-21%)
Uniform & Career Apparel: $591 million (-9%)Key Takeaways:ARMK’s growth is contingent on continued recovery in the foodservice sector
The Company’s focus on culinary services to the education, sports & leisure, and business sectors should result in accelerated growth vs. the broader market in the second half of 2021
ARMK’s acquisition of Next Level Hospitality provides an additional revenue stream related to the senior healthcare services marketFood Manufacturing
Tyson (TSN) reported Q2 2021 resultsTotal Revenues: $11.3 billion (+3.8%)
Operating Income: $720 million (+39.8%)
Adjusted Operating Margin: 6.5%
Business Segment Performance:Quarterly
Sales
Volume
Av. PriceTotal Sales ($mm)
% Change
% Change
% ChangeBeef$                      4,046
1.7%
-5.8%
7.5%Pork$                      1,477
16.7%
-0.5%
17.2%Chicken$                      3,553
4.6%
-3.2%
7.8%Prepared Foods$                      2,164
4.0%
-4.2%
8.2%Key Takeaways:Management sees “substantial inflation” across the supply chain, causing potential margin pressure in second half of 2021
Expected revenues of $44 billion to $46 billion in FY 2021
Plant-based product innovation a key management focus (e.g., Raised & Rooted brand) as the company competes with Impossible and Beyond Meat productsFood Manufacturing CPG
Utz Brands (UTZ) reported Q1 2021 resultsNet Sales: $269.2 million (+18.0% vs. last year)
Gross Profit: $104.5 million (+22.5% vs. last year)
Gross Margin: 38.8% (+140 bps)
Business Segment Performance (IRI Data):Utz Total: -2.3% YoY (+5.9% 2yr CAGR)
Utz Power Brands: -2bayer citracal d.3% YoY (+7.6% 2yr CAGR)
Utz Foundation Brands: -1.1% YoY (-4.2% 2yr CAGR)Key Takeaways:2021 outlook consistent with 2020 pro forma figuresNet Sales: $1.16 billion (estimate)
EBITDA: $180 to $190 million (estimate)UTZ continues to prioritize its investments in the Power Brands and reduce emphasis on Foundation Brands
Acquisitions of Truco Enterprises / Vitner’s, and recent announcement of Festida Foods highlights the focus on growth through investmentsEarnings Calendar of Select CompaniesAnnounce DateCompany
EPS Estimatethorne cal mag
Previous Quarter EPS5/17/2021Hostess Brands, Inc. (TWNK)$                0.19$                0.215/18/2021Walmart Inc. (WMT)$                1.20$                1.395/19/2021Target Corporation (TGT)$                2.09$                2.675/20/2021BJs Wholesale Club Holdings, Inc. (BJ)$                0.56$                0.705/20/2021Hormel Foods Corporation (HRL)$                0.41$                0.41Source: Bloomberg, CNBC, Yahoo Finance, Food Institute