Chiptole Mexican Grill (CMG) has gained nearly 41% this year, double the S&P 500′s 20.5% return. It trades at 32 times forward earnings, again, more than twice the S&P 500′s 15. And Morgan Stanley says now is time to start feeling optimistic about the Mexican food purveyor.
REUTERSMorgan Stanley’s John Glass and Jack Bartlett explain why:
Most recently, our AlphaWise consumer survey shows CMG has best in class value scores, a strong indicator of future traffic gains. This also provides headroom for pricing, which we still believe is 5% lower than peers on core items. Pricing will likely be increased early in ��4. Finally, we see the debate shifting on CMG as it increasingly articulates its vision of developing additional concepts (ShopHouse may just be the beginning), significantly expanding the total addressable market and supporting the multiple…While valuation is not the most compelling selling point now, historically owning best-in-class growth has rewarded LT shareholders.
5 Best Asian Stocks To Watch Right Now: Pilgrim's Pride Corporation(PPC)
Pilgrim's Corp. produces, processes, markets, and distributes fresh and frozen chicken products to retailers, distributors, and foodservice operators primarily in the United States. Its fresh chicken products consist of refrigerated (non-frozen) whole or cut-up chicken; and pre-marinated or non-marinated, as well as prepackaged case-ready chicken, which includes various combinations of freshly refrigerated, whole chickens, and chicken parts. The company also offers a range of prepared chicken products, including portion-controlled breast fillets, tenderloins and strips, delicatessen products, salads, formed nuggets and patties, and bone-in chicken parts. In addition, it exports whole chickens and chicken parts to approximately 95 countries, including Mexico, Russia, Puerto Rico, and China. The company was formerly known as Pilgrim's Pride Corporation. Pilgrim's Corp. was founded in 1945 and is headquartered in Greeley, Colorado. Pilgrim's Corp. operates as a subsidiary of JBS USA Holdings, Inc.
Advisors' Opinion:- [By Ben Levisohn]
Tyson Foods climbed 4.6% to $41.54 after Pilgrim’s Pride (PPC) made a $45 a share bid for Hillshire Brands, giving food stocks a boost. (My colleague Vito Racanelli also had a bullish take on Tyson Foods in this weekend’s Barron’s.)� Hillshire Brands surged 22% to $45.19. Hillshire said it would “thoroughly review” the proposal.
- [By Arturo Cuevas]
It looks like you and I will be eating more chicken this 2014. Retail beef prices remain at record highs, and we consumers will likely be driven more toward comparatively cheaper chicken meat in 2014. Given this trend, loading up on shares of Sanderson Farms (NASDAQ: SAFM ) , Pilgrim's Pride (NASDAQ: PPC ) , and�Tyson Foods (NYSE: TSN ) �should be worth considering.
Top 10 Food Companies To Invest In 2014: Amira Nature Foods Ltd (ANFI)
Amira Nature Foods Ltd., incorporated on February 20, 2012, is a provider of packaged Indian specialty rice, with sales in over 40 countries. It generates the majority of its revenue through the sale of Basmati rice, a long-grain rice grown only in certain regions of the Indian sub-continent. The Company sells its products, primarily in emerging markets, through a distribution network. It sells its Amira brand in more than 25 countries. The Company sells its Amira branded products to Indian retailers such as Bharti Wal-Mart, Big Bazaar, Metro Cash & Carry, Spar, Spencer's Retail, Star Bazaar (Tesco in India) and Total and retailers, such as Carrefour, Costco, Jetro Restaurant Depot, Lulu's and Smart & Final, and through the foodservice channel. It participates across the entire rice supply chain from the procurement of paddy to its storage, aging, processing into rice, packaging, distribution and marketing. In June 2013, the Company announced that it has launched Amira branded products in the United Kingdom. In January 2014, Amira Nature Foods Ltd acquired Basmati Rice GmbH.
The Company operates an automated and integrated processing and milling facility that is located in the vicinity of the key Basmati rice paddy producing regions of northern India. The facility spans a covered area of 310,221 square feet, with a processing capacity of 24 metric tons of paddy per hour. During the year ended March 31, 2012, 34% of its revenue was derived from sales in India, and 50.3% was derived from sales in the Europe, Middle East and Africa region, or EMEA, 14.3% was derived from sales in the Asia Pacific region, and 1.4% was derived from sales in North America.
Advisors' Opinion:- [By Jeremy Bowman]
What: Shares of Amira Nature Foods (NYSE: ANFI ) were looking rotten today, falling as much as 12% after reporting earnings this morning.
Top 10 Food Companies To Invest In 2014: Rallye SA (RAL)
Rallye SA is a France-based holding company organized around two sectors of activity: large scale distribution to the food stores and supermarkets and distribution of sports items. The Company is present in France, Latin America, Poland, and Asia through its interests in brands, such as Geant, Monoprix, Leader Price, and United Grocers Cash & Carry, among others. It also has its interst in the Groupe Go Sport. Rallye SA is notably present in France, the United States, Luxembourg, Poland and Colombia, among others. The Company operates through its subsidiaries and affliated companies, such as Cobivia SAS, L��abitation Moderne de Boulogne, Magasins Jean SAS, Matignon Sablons SAS, MFD SA, Parande SAS, Casino Guichaqrd Perrachon DA, Groupe Go Sport, Sivigral SCI and French Develompent Venture SA. Advisors' Opinion:- [By Holly LaFon]
A risk involved with the company is that its Republic Bank & Trust business derives 78% of its net income from TRS, which offers bank products that help get customers who electronically file their tax returns their payments. RB&T is only of the few financial institutions in the U.S. that provide the service. Under the program, the taxpayer may receive a Refund Anticipation Loan (RAL), which has been questioned by various governmental and consumer groups. In May 2011, RB&T received an order to cease and desist which could result in an order by the FDIC to terminate its RAL program. It has a hearing on Feb. 12, 2012 in Kentucky regarding the matter.
Top 10 Food Companies To Invest In 2014: Post Holdings Inc (POST)
Post Holdings, Inc., incorporated on September 22, 2011, is a holding company. The Company is a manufacturer, marketer and distributor of branded ready-to-eat cereals in the United States and Canada. The Company�� portfolio of brands includes Honey Bunches of Oats, Pebbles, Great Grains, Grape-Nuts, Shredded Wheat, Raisin Bran, Golden Crisp, Alpha-Bits and Honeycomb. It markets and sells ready-to-eat cereal products in three different categories: sweetened, balanced and unsweetened. Its sweetened products include Pebbles, Honeycomb, Golden Crisp, Alpha-Bits and Waffle Crisp. Its balanced products include Honey Bunches of Oats, Post Selects, Great Grains and Shreddies. The Company�� unsweetened products include Post Shredded Wheat, Post Raisin Bran and Grape-Nuts. Effective January 1, 2014, the Company announced it has completed the acquisition of private label pasta manufacturer Dakota Growers Pasta Company, Inc. Effective January 2, 2014, Post Holdings Inc acquired Agricore United Holdings Inc from Viterra Inc, a unit of Glencore Xstrata PLC, and the transaction also included Dakota Growers Pasta Company, Inc. Effective January 1, 2014, Post Holdings Inc acquired Dymatize Enterprises LLC, a Farmers Branch-based manufacturer and wholesaler of nutrition supplement. Effective January 1, 2014, it acquired Dymatize Enterprises LLC and Golden Boy Foods Ltd.
Honey Bunches of Oats is in the ready-to-eat cereal market. The Company�� Pebbles brands include Cocoa and Fruity Pebbles. The products are manufactured through a flexible production platform consisting of four owned primary facilities and sold through a variety of channels, such as grocery stores, mass merchandisers, club stores, and drug stores.
Advisors' Opinion:- [By Will Ashworth]
No? That’s OK — very few have. It doesn’t exist. At least not in a real investment account. It’s a figment of my imagination created after reading about Bill Stiritz, the current CEO of Post Holdings (POST) and former CEO of Ralston Purina.
- [By Suravi Thacker]
Even peers such as Post Holdings (POST) were also facing similar problems of lower cereal sales. Post Holdings too reported its first quarter results recently which failed to meet analysts��expectations. Although its revenue grew 77% to $438 million over last year, the increase was mainly because of a host of acquisitions made by the company. In fact, revenue from Post Foods, which includes cereal business under the name of Post brand, fell 2.4% to $239.5 million.
- [By Shamus Funk]
Following the same line of logic, don't be surprised if Post (NYSE: POST ) Grape-Nuts soon carry the GMO-free label. They are currently marketing Vintage Grape-Nuts which do not contain the likely GMO-laden isolated soy protein that is found in their current formulation of the cereal. Presumably with a little consumer demand, the transition back to the original recipe would be easy and enable the GMO-free label.
Top 10 Food Companies To Invest In 2014: Sprouts Farmers Market Inc (SFM)
Sprouts Farmers Market, Inc. (Sprouts), incorporated on January 27, 2011, is a specialty retailer of natural and organic food focusing on health and wellness. The Company offers fresh produce, bulk foods, vitamins and supplements, grocery, meat and seafood, bakery, dairy, frozen foods, body care and natural household items. The Company�� product offerings focus on fresh, natural and organic foods. Natural foods can be defined as foods that are minimally processed and are free of synthetic preservatives, artificial sweeteners, colors, flavors and other additives, growth hormones, antibiotics, hydrogenated oils, stabilizers and emulsifiers. The Company categorize the over 7,000 range of products, it sells as perishable and non-perishable. Perishable product categories include produce, meat, seafood, deli and bakery. Non-perishable product categories include grocery, vitamins and supplements, bulk items, dairy and dairy alternatives, frozen foods, beer and wine, and natural health and body care.
The cornerstones of the Company�� business are fresh, natural and organic products. As of July 19, 2013, the Company opened 87 new stores while rebranding 43 Henry�� and 39 Sunflower stores to the Sprouts banner. The Company�� stores include Produce, Bulk Items, Vitamins and Supplements, Grocery, Meat, Seafood, Deli, Bakery, Dairy and Dairy Alternatives, Frozen Foods, Beer and Wine and Natural Health and Body Care.The Company offer its customers a farmers market open-feel environment consisting of an abundant and affordable offering of fresh fruits, vegetables and herbs, focused on appearance, flavor and value. The Company�� stores include a crafted selection of more than 450 ranges of scoopable nuts, fruits, trail mixes, grains, beans, cereals, coffee, tea, spices, candy and snacks featured in the center of the store. The Company�� stores feature more than 4,200 vitamins, supplements, natural remedies, functional food, lifestyle support, and herbal supplements. This department includes ! an extensive private label offering.
The Company�� grocery offering focuses on healthy options. The Company carries approximately 4,200 natural and organic products in its grocery aisles, including meal components, natural sodas and other beverages, snacks and bars, baking goods, baby, pet and household items such as detergent and paper towels, and earth-friendly mercantile items. The Company�� Olde Tyme Butcher Shops combine sourcing through its trusted supplier network, product variety and old-fashioned customer service. The Company offers a range of seafood favorites delivered up to six days a week. The Conpany feature a range of fresh deli specialties, including sliced deli meat, salads, dips, entrees, side dishes, fresh made to order sandwiches at value prices and an abundant selection of over 200 varieties of cheeses from around the world.
The Company��bakery offering includes artisan bread alongside a wide assortment of sandwich breads, rolls, tortillas, pitas, muffins, cookies and pies as well as sugar free, gluten free and low carbohydrate products. The Company�� dairy department features a selection of organic, natural and regionally sourced milk, yogurt (including Greek, Australian, organic, and soy-based), butter and eggs, as well as a full selection of vegan and vegetarian alternative dairy products. The Company�� freezer cases feature traditional and ethnic natural and organic entrees and side dishes, along with frozen vegetables, desserts and specialty items, such as gluten-free breads and non-dairy ice creams. The Company offers approximately 2,400 natural, cruelty-free health and beauty products, old-fashioned remedies and modern body care innovations, including facial care products and make up, skin, hair, dental, baby care and grooming products.
Advisors' Opinion:- [By Maureen Farrell]
Two other consumer companies have been among the hottest IPOs of 2013. Shares of sandwich shop Potbelly (PBPB) and organic food retailer Sprouts Farmers Market (SFM) more than doubled on their first day of trading.
- [By John Udovich]
Large cap natural and organic foods supermarket giant Whole Foods Market, Inc (NASDAQ: WFM), otherwise known as ��hole Wallet��r ��hole Paycheck,��is not the only player in the natural or organics supermarket space for consumers and investors alike as mid cap Sprouts Farmers Market Inc (NASDAQ: SFM) and small caps Fairway Group Holdings Corp (NASDAQ: FWM) and Natural Grocers by Vitamin Cottage Inc (NYSE: NGVC) are also players in the space. It should be mentioned that Whole Foods Market is down 15.7% since the start of the year and has a downward trending technical chart, but�shares are�still up 13% over the past year, up 426.3% over the past five years and up 3,108.6% since January 1992.
- [By David Zeiler]
Sprouts Farmers Market Inc. (Nasdaq: SFM), which went public Aug. 1, popped 122.8%.
Fast-casual sandwich chain Potbelly Corp. (Nasdaq: PBPB), which had its IPO Oct. 4, shot up 119%. And Noodles & Co. (Nasdaq: NDLS) soared 102% on its first day of trading June 28.
Top 10 Food Companies To Invest In 2014: Canada Bread Company Ltd (CBY)
Canada Bread Company, Limited is a manufacturer and marketer of flour-based products in its various markets, including fresh bread in Canada, frozen partially baked bread in the United States and Canada, specialty bakery products, including fresh pasta and sauces, sweet goods and snack cakes in Canada, and bagels, croissants and other specialty baked goods in the United Kingdom. It operates in two segments: Fresh Bakery business includes pantry breads, rolls, flatbreads, artisan breads, sweet goods and snack cakes sold under a number of brands, including Dempster��, Villaggio, POM, Bon Matin and Ben��, and Frozen Bakery segment consists of frozen par-baked bakery products sold in North America and the United Kingdom bakery business, which specializes in bagels, croissants, and specialty breads. In November 2013, the Company clearanced and closed the sale of Olivieri Foods, to Ebro Foods SA. Advisors' Opinion:- [By Gerrit De Vynck]
The Toronto-based food producer, which owns 90 percent of Canada Bread Co. (CBY), said in October it would explore options for the stake, including a possible sale as it divests assets to focus on its meat business. With several suitors evaluating the company, a sale is looking more likely, said one of the people, who asked not to be named because the talks are private. Maple Leaf hired Centerview Partners LLC and Royal Bank of Canada to look for buyers, the people said.
Top 10 Food Companies To Invest In 2014: H.J. Heinz Company (HNZ)
H. J. Heinz Company manufactures and markets food products for consumers, and foodservice and institutional customers in North America, Europe, the Asia Pacific, and internationally. The company primarily offers ketchup, condiments and sauces, frozen food, soups, beans and pasta meals, infant nutrition, and other food products. It sells its products through its sales organizations, independent brokers, agents, and distributors to chain, wholesale, cooperative, and independent grocery accounts; convenience stores; bakeries; pharmacies; mass merchants; club stores; foodservice distributors; and institutions, including hotels, restaurants, hospitals, health-care facilities, and government agencies. The company was founded in 1869 and is based in Pittsburgh, Pennsylvania.
Advisors' Opinion:- [By Ploutos]
U.S. Stocks
The S&P 500 (SPY) makes a new all-time high, but closes beneath that plateau for the year. The S&P 500 eclipsed its former all-time high close of 1565 on March 28th, faster than I anticipated. With the index now ending the week above 1700 for the first time, closing below 1565 for the year seems a distant memory. Not everyone was calling for a new all-time high to be reached in 2013, and investment bank equity analysts were targeting on average high single digit annual gains at the beginning of the year. I did not expect a 19.9% return through the beginning of August, but I will take it. Grade: BThe equal-weighted S&P 500 (RSP) outperforms its capitalization-weighted alternative. The equal weighted index has produced a total return of 23.34%, besting the market capitalization-weighted S&P 500. Long-time readers know that I have long extolled the virtues of equal weighting. The lagging performance of former top holding Apple (AAPL), which has 1/14th of the weight in the equal weighted index has contributed to the outperformance of the equal weighted strategy. Grade: AThe Russell 2000 (IWM) outperforms the S&P 500 as small caps outpace large caps. The Russell 2000 has bested the S&P 500 by nearly five percent with the small cap index producing an impressive 24.8% return year-to-date. Grade: AThe shares of Bank of America (BAC) outperform J.P. Morgan (JPM) and Wells Fargo (WFC) on both an absolute and risk-adjusted basis. Bank of America has outperformed the broader market, producing a 28% total return year-to-date, but it has lagged Wells Fargo (32.1%) and J.P. Morgan (31.1%) while exhibiting higher volatility. Grade: C-The banking sector (XLF) outperforms the S&P 500. The Financial Selector Sector SPDR has produced a 27.9% year-to-date, besting the S&P 500 by roughly 8%. Grade: AHomebuilders (XHB) outperform the S&P 500, but not when adjusting for their variability of returns, which is over twice that of the broad - [By Rich Duprey]
Ketchup maker H.J. Heinz (NYSE: HNZ ) has received all regulatory approvals necessary for the $28 billion acquisition by Berkshire Hathaway (NYSE: BRK-B ) and an investment fund affiliated with 3G Capital, and plans for the deal to close on or about June 7, the company announced today.
- [By Steve Symington]
That's too bad, considering that DaVita was the first company I singled out in February as a potential acquisition candidate for Berkshire after it announced a joint arrangement with 3G Capital to acquire H.J. Heinz (NYSE: HNZ ) .
- [By CRWE]
H.J. Heinz Company (NYSE:HNZ) reported a conference call and Webcast for Securities Analysts and Media (listen only) to discuss the Company�� first-quarter Fiscal 2013 results and its Fiscal 2013 outlook at 8:30 a.m. Eastern time on Wednesday, August 29, 2012.
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