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.
Dole’s latest IPO could leave owner sucking lemons 26 Apr 2017 David Murdock wants to take his fruit and veg empire public again four years after a controversial buyout that landed him in court. Even after paying down some debt, Dole may only be worth enough for Murdock barely to break even. That’ll please the investors he stiffed in 2013.
Chipotle partly fulfills Bill Ackman’s order 26 Apr 2017 Recovering sales at the $14 bln burrito chain helped keep the pushy investor's big bet on a roll. A new payments data breach could make investors queasy again, though. Chipotle has a long way to go before it cooks up the kind of return Ackman's Pershing Square typically craves.
Tyson makes shareholders tasty $3.2 bln sandwich 25 Apr 2017 The poultry company is expanding its range of prepared foods by gobbling up AdvancePierre. Cost savings more than cover the 32 pct premium even before any revenue boost. Along with plans to carve off less wholesome morsels, Tyson is giving investors plenty to cluck about.
Whole Foods can make Cerberus complete in grocery 25 Apr 2017 Trump pal Steve Feinberg's private-equity fund pulled a $12 bln float for supermarkets chain Albertsons in 2015. Albertsons could go public, and burnish its shelf space, by reversing into organic grocer Whole Foods. GE’s recent deal with Baker Hughes shows how that might work.
Mondelez is a heavy snack even for 3G and Buffett 24 Apr 2017 The maker of Oreo cookies and Cadbury chocolates has long whet the appetite of Kraft Heinz. Now Mondelez’s hunt for a CEO offers an opening to the firm backed by 3G Capital and Berkshire Hathaway. Yet even the famed cost-cutters could get stuffed by the target’s rich valuation.
Unilever wins battle in shareholder value war 20 Apr 2017 Consensus-beating first quarter results add impetus to the Anglo-Dutch group’s goal of a 20 pct operating margin by 2020. Hitting the target would help justify a share price above the spurned offer from Kraft Heinz. That hinges on it cutting fat rather than bone, though.
Weetabix goes better with U.S. cereal than congee 18 Apr 2017 Bright Food is selling the UK breakfast staple for $1.8 bln. This trailblazing cross-border deal has gone soggy, with EBITDA flat over five years. Grape Nuts maker Post Holdings is a more natural owner than a state enterprise. For once, China's outbound M&A machine is in reverse.
Tesco customer-first strategy will chafe investors 12 Apr 2017 The grocer had its first full year of like-for-like UK sales growth in seven years. Boss Dave Lewis hopes to shield shoppers from rising prices, but not crush suppliers. The risk is that he has to fund that plan with the spoils of Tesco’s $4.6 bln purchase of wholesaler Booker.
Whole Foods cart already loaded with Jana produce 11 Apr 2017 Barry Rosenstein’s activist fund wants the $11 bln grocer to shake up management and the board, boost profit and explore a sale. The upscale grocer has sampled most of these wares as it tries to turn around limp sales. Jana’s push should speed up the checkout process.
Unilever finds clever twist in takeover defence 6 Apr 2017 The Magnum ice cream maker unveiled measures to increase shareholder value, and implicitly prevent a re-run of Kraft Heinz’s hostile approach. It’s mostly obvious stuff. But plans to review Unilever’s dual Anglo-Dutch structure offer a cunning way to build a political shield.
Yum China slowly cooking up value for investors 6 Apr 2017 Separating KFC owner Yum Brands from its Chinese unit has yet to bring super-sized returns for shareholders. At least same-store sales in the People’s Republic are improving, especially at Pizza Hut. Drawing up recipes for corporate value creation is easy. Delivery takes time.
Panera buyout overeggs fast-food feeding frenzy 5 Apr 2017 At $7.5 bln, JAB is paying 41 times earnings for the sandwich maker. That may prevent interlopers from mounting a counteroffer. And the owner of Krispy Kreme and Peet’s Coffee has brand expertise and good management. But such a rich valuation will have few rivals in the M&A oven.
Baked-in premium makes Panera a fattening morsel 3 Apr 2017 The $6.6 bln bakery chain has leavened its growth rate with new mobile ordering and delivery services, which has buyers circling. An 8 pct price jump pushed its valuation to new highs. Buying the company, like eating one of its 720-calorie pecan rolls, could produce indigestion.
Reckitt is smart to go easy on the sauce 3 Apr 2017 The UK consumer-goods group may sell the division that makes French’s mustard for around $3 bln. Cashing out would take the heat out of the company’s debt-financed $17 bln bet on Mead Johnson – even if it seems odd to sell a business that’s growing fast and highly profitable.
Enough with Hong Kong market’s dark alleys 24 Mar 2017 Hong Kong is plagued by puzzling share gyrations. On Friday a $5 bln stock crashed 90 pct in minutes. HKEX boss Charles Li reportedly says his market is no casino, even if a few "gangsters" lurk in dark corners. Such complacency will do nothing to reassure investors.
Unilever’s spreads sale plan contains adequate fat 23 Mar 2017 After Kraft’s aborted bid, the Marmite maker needs a self-help plan. Selling its spreads business would be risky as weak growth prospects may mean a low price. But on modest assumptions a private equity buyer could get a decent return – and kick-start Unilever’s reinvention.