Blue Apron cut suggests investors have discernment 28 Jun 2017 After feasting on Snap's nutrition-free IPO, it's healthy to see potential owners forcing the meal-kit maker's price down a third. Blue Apron's numbers were unappetizing even before Amazon's Whole Foods deal. Palates with a more refined taste for risk may find it digestible.
Head-office heave shows Tesco’s weak hand 28 Jun 2017 The British supermarket is cutting a quarter of staff at its headquarters. This should help with plans to remove 1.5 billion pounds of costs and hit an ambitious 3.5 pct-4 pct margin target. Job losses are an unfortunate symptom of Tesco's limited pricing power.
Nestlé serves up only semi-sweet buyback 27 Jun 2017 Days after being put on the spot by Dan Loeb, the Kit Kat maker said it would repurchase up to $21 bln of shares over three years. It's an incremental step, like a review of the U.S. candy arm. Ignoring bigger issues, however, could allow the activist to marshal more support.
Nestle’s big problem is its crunchy governance 26 Jun 2017 Hedge fund Third Point’s ideas for the Swiss maker of KitKat are sensible but obvious. Nestle is already weighing up asset sales. It has set and missed targets before. Shaking up the company’s slow-moving culture would achieve more – starting with a new chairman.
Nestle gives Dan Loeb an Alpine peak to climb 26 Jun 2017 The pushy billionaire has set his sights on the Swiss Alpo-to-Perrier producer. Consumer groups such as P&G and Pepsi have proven tough activist targets. Loeb clearly likes a challenge, having recently agitated in lethargic Japan. And $263 bln Nestle may be a movable mountain.
Diageo deal has pension chaser for George Clooney 21 Jun 2017 The drinks giant will pay up to $1 bln for a tequila brand founded by the actor and two buddies. Casamigos is a fast-growing firm ripe for international expansion. The worm in the bottle is that Clooney has to promote the tipple until he turns 66 to collect the full check.
Blue Apron’s $3.2 bln debut could be its best dish 19 Jun 2017 The meal-kit service is cooking up an IPO valuation of about three times sales. Despite hot growth, though, losses are rising and rivals, maybe including the Amazon-Whole Foods combo, will make profitable expansion tough. The spicy offering price could be as tasty as it gets.
Food IPO to deliver Rocket Internet relaunch 19 Jun 2017 Germany’s struggling tech investor is on the cusp of its first startup listing. The cash that it will pocket if fast-growing food logistics group Delivery Hero meets its aim of raising $1 billion will come in handy. The morale boost from a successful exit is even more important.
Amazon’s one-click deal keeps Wal-Mart at bay 19 Jun 2017 The $230 bln superstore chain's stock fell 5 pct on news of the e-commerce giant's $14 bln purchase of Whole Foods. The target's shares rose above Amazon's offer, implying another bid might emerge. But a defensive effort from Wal-Mart or a worried rival looks a financial stretch.
Amazon buys its way to the top of the food chain 16 Jun 2017 The e-commerce titan is going whole hog for U.S. groceries with the $13.7 bln acquisition of Whole Foods. Amazon's comfort with low margins and savvy in logistics make it a fearsome rival. The purchase price pales compared to the value the deal just chewed up across the industry.
Kroger woes augur deep discounts at U.S. grocers 15 Jun 2017 The supermarket chain is the latest victim of price-cutting, losing nearly $5 bln in value after shaving earnings guidance. Wal-Mart is stepping up efforts to undercut rivals while German discounters Aldi and Lidl are expanding stateside. Consumer gains mean shareholder pain.
Remy’s new elitism delivers both riches and risk 8 Jun 2017 The cognac maker’s full-year operating profit grew 27 percent as China and the U.S. rebounded. A push for higher-spending customers, including a Beijing boutique, should lift margins. But chasing a luxury image brings the kind of volatility that got Remy into trouble in the past.
Earnings will be late dessert for Delivery Hero 6 Jun 2017 The Berlin-based food delivery startup is prepping a listing valuing it at around 4.5 bln euros. The loss-making group needs to double sales by 2019 to achieve the same valuation as rivals like Just Eat. Its fat war chest should help. But investors are in for a low-profit diet.
Buffalo Wild Wings is recipe for CEO nervousness 5 Jun 2017 Marcato got three nominees elected and forced longtime boss Sally Smith to quit – the activist's original goal. That makes the other directors look oblivious to the omens before Friday's vote. Other leaders of companies under pressure can expect dwindling board loyalty.
Blue Apron offers tasty food, nauseating numbers 2 Jun 2017 The meal-kit delivery firm that's going public serves up delicious meals and sales growth. But look closely at the ingredients. New-customer acquisition costs are surging, they're ordering less and competition is fierce. Like Groupon, the product is fine, the stock best avoided.
Packaged-food firms rush to same M&A recipe 1 Jun 2017 Conagra is interested in buying $8 bln Pinnacle Foods, and both are eyeing Reckitt Benckiser’s North American food unit. Stagnating sales are pushing firms to bulk up in search of greater profits. With everyone looking to buy, selling is likely to generate the tastiest results.
Brazil’s economy teeters at the abattoir gates 23 May 2017 Laws and sausages alike are famously messy to make. That Brazil's President Temer, a master of the dark legislative arts, may lose his job over meatpacker JBS's corruption charges is perhaps fitting. But pension reform still needs forcing through Congress, whoever's in charge.
China’s noodle master has to get nimbler 23 May 2017 A profit rebound at Hong Kong-listed Tingyi is less than meets the eye. Rising ingredient costs are squeezing the firm, which works with Starbucks and Pepsi, and it relies too much on instant noodles and soft drinks. As China’s tastes get healthier, Tingyi needs to adapt faster.
Whole Foods board changes whet activists’ appetite 10 May 2017 The $12 bln organic-food purveyor is replacing more than half of its board, a step to appease Jana Partners. But the fund, with 8 percent of shares, wants a sale, and others are pounding the table. As long as Whole Foods same-store sales keep declining, they’ll stay hungry.
Sainsbury over-seasons a stale retail recipe 3 May 2017 The supermarket’s full year like-for-like sales fell 0.6 percent, despite help from recently acquired Argos. Rival Tesco is diversifying too through its purchase of wholesaler Booker. Greater complexity masks problems caused by a long price war, but doesn’t fix them.