Pilgrim's Pride profit drops 38% in Q2
The company did report that it had recovered much of the business lost during its reorganization and recovery from bankruptcy and will reopen three plants within the next two years, which will increase production by 10 percent, Reuters reports.
"We are seeing improved demand across all of our segments," Chief Executive Don Jackson told analysts on a conference call. "Retail demand remains solid, volume was up 2.7 percent in the quarter and food service increased 3.1 percent in the quarter versus Q1."
The recently lifted Russian poultry ban and Chinese tariffs on U.S. chicken hurt export sales. However, the company is now packaging chicken for Russia, and the August production for that country is sold out.
Restaurant Performance Index drops for third straight monthAs a result of a dampened outlook among restaurant operators, the National Restaurant Association's Restaurant Performance Index (RPI) declined for the third consecutive month in June. The RPI- a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry - stood at 99.5 in June, down 0.3 percent from May and the lowest index level since February. In addition, the RPI stood below 100 for the second consecutive month, which signifies contraction in the index of key industry indicators.
"Although the current situation indicators registered a modest improvement in June, each of the four expectations indicators dipped for the second consecutive month," said Hudson Riehle, senior vice president of the Research and Knowledge Group for the Association. "Restaurant operators are generally optimistic that sales and business conditions will improve in the next six months, but the strength of their optimism fell to a five-month low."
The Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capital expenditures), stood at 98.8 in June - up 0.1 percent from its May level. However, the Current Situation Index remained below 100 for the 34th consecutive month, which signifies contraction in the current situation indicators.
Restaurant operators reported a net decline in same-store sales for the third consecutive month in June, though the results were a modest improvement from the May performance. Thirty-nine percent of restaurant operators reported a same-store sales gain between June 2009 and June 2010, up from 35 percent of operators who reported higher sales in May. Meanwhile, 43 percent of operators reported a same-store sales decline in June, down from 46 percent of operators who reported negative sales in May.
Restaurant operators also reported a net decline in customer traffic levels in June. Thirty-three percent of restaurant operators reported an increase in customer traffic between June 2009 and June 2010, matching the proportion who reported higher customer traffic in May. Similarly, 43 percent of operators reported a traffic decline in June, unchanged from the proportion who reported lower traffic in May.
Along with soft sales and traffic results, restaurant operators reported a dip in capital spending activity. Forty-three percent of operators said they made a capital expenditure for equipment, expansion or remodeling during the last three months, down slightly from 45 percent who reported similarly last month.
The Expectations Index, which measures restaurant operators' six-month outlook for four industry indicators (same-store sales, employees, capital expenditures and business conditions), stood at 100.2 in June - down 0.6 percent from May and its lowest level in five months. Despite the recent declines, the Expectations Index remained above 100 for the sixth consecutive month, which represents expansion in the forward-looking indicators.
Although restaurant operators are generally optimistic about an improving business environment, their outlook for sales growth dipped in recent months. Forty-two percent of restaurant operators expect to have higher sales in six months (compared with the same period in the previous year), down slightly from 43 percent last month and the lowest level in five months. In comparison, 21 percent of restaurant operators expect their sales volume in six months to be lower than it was during the same period in the previous year, up from 18 percent who reported similarly last month.
Restaurant operators are also not as optimistic about the direction of the overall economy. Twenty-eight percent of restaurant operators said they expect economic conditions to improve in six months, down from 33 percent who reported similarly last month and the lowest level in seven months. In comparison, 21 percent of operators said they expect economic conditions to worsen in the next six months, up from just 10 percent two months ago.
Restaurant operators' plans for capital expenditures fell to a six-month low this month. Forty-one percent of restaurant operators plan to make a capital expenditure for equipment, expansion or remodeling in the next six months, down from 46 percent who reported similarly last month.
The full report is available online at www.restaurant.org/pdfs/research/index/201006.pdf.
Source: National Restaurant Association
ConAgra moves snacks headquarters to Naperville, Ill.ConAgra Foods Inc. has moved the headquarters of its snacks business, including its Slim Jim meat sticks, from Edina, Minn. to Naperville, Ill., cutting 120 jobs in Minnesota. The closure of the Edina snacks office was prompted by consolidation of the company's corporate offices, said Dave Jackson, a ConAgra spokesman.
Sixty-five Edina employees were given offers to move primarily to Naperville, Ill.; 30 accepted, reports the Minneapolis Star-Tribune.
Source: Minneapolis Star-Tribune
Ontario plant closed after third recallA recall of about 120 ready-to-eat cooked meat products from Brandt Meat Packers Ltd. of Brampton, Ontario, has prompted the shutdown of the company’s plant for “a thorough and intensive sanitation,” reports the (Ottowa) National Post. The company hopes to have its plant in Mississauga plant reopened in a couple of weeks.
“It’s a recall that’s pretty extensive, because consumer health and safety is the No. 1 concern,” said spokeswoman Caroline Spivak, who characterized the recall as a precautionary measure.
An inspector for the Canadian Food Inspection Agency notified Brandt on Friday night about a concern. Brandt didn’t offer any specific information about that concern, but the fear is that some of the food may be contaminated with pathogens.
Among the products recalled are bologna, meat loaf, wieners, salami, turkey breast, roast beef, ham and various sausages.
Source: The National Post
Tyson Foods launches Wright bacon grilling tourThe six-stop Wright Brand Bacon Backyard Corn Grilling Tour kicked off on Saturday, July 31, 2010, with an event at Bass Pro Shops Outdoor World in Grapevine, Texas. The various efforts include supporting Wright Brand Bacon through national radio spots, in-store messaging, and promotions with the Southern League of Professional Baseball Clubs, a Class Double A Minor League. A new Wright Brand Bacon website is also set to launch on Saturday to coincide with the grill tour debut.
Each grill tour event will feature free samples of an innovative Wright Brand Bacon Backyard Corn Recipe served from the Ultimate Smoker & Grill, a 75-foot 18-wheeler that will be stationed in the Bass Pro parking lots. Other stops will be in Memphis, Tenn. (Aug. 7); Sevierville (Knoxville), Tenn. (Aug. 14); Charlotte, N.C. (Aug. 15); Atlanta, Ga. (Aug. 21); and Leeds (Birmingham), Ala. (Aug. 22).
During the tour, Facebook users who become fans of Wright Brand Bacon will have the opportunity to enter a contest to win a new grill valued at $850. In addition, the first 400 people who enlist three or more friends as fans, who then enter the contest, will win free Wright Brand Bacon.
Source: Warren Douglas Creative Brand Marketing