Category Archive for "Consumer"

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MCD – The Journey of 1,000 Miles Begins with a Single Step

McDonald’s (MCD) has had a difficult two (plus) year period, and the CEO during that period (Don Thompson) will not be part of any potential recovery as he was replaced last night by the company’s Chief Brand Officer, Steve Easterbrook. 

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Worst Kept Secret on Wall Street – RAI Buys LO

In a deal that is likely not a surprise to anyone, Reynolds American (RAI) this morning announced that it would be acquiring Lorillard (LO) for ~$69 per share in cash and RAI stock; The complexity of the deal shows us

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Maybe It Wasn’t Just the Weather?

Earlier in the week, Wal-Mart US President and CEO, Bill Simon, suggested that the U.S. economy had “reached a point where it’s not getting any better but it’s not getting any worse – at least for the middle (class) and

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ADM and the M&A Carousel

This morning, ADM hopped on the M&A carousel and announced that it was acquiring WILD Flavors GmbH for approximately $3.0 billion.  WILD is a peer to companies such as International Flavors and Fragrances (IFF) and Givaudan, producing flavors and taste

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Quick Thoughts – Employment Trends

We don’t like reporting the news, but will happily follow on with a perspective that we think may be getting lost or ignored – in this case, the non-farm payroll numbers released this morning The headline number was unquestionably positive,

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Quick Thoughts – STZ Q1 Earnings

With the stock up solidly this morning we suspect that there won’t be any shortage of cheerleaders offering commentary on the company’s earnings release – the company reported Q1 EPS of $1.07 versus consensus of $0.93. We believe that certain

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Quick Thoughts – Construction Spending

Some interesting data on construction spending emerged from this morning’s release from the Census Bureau; We focus on private construction spending, rather than total (obviously, total less public = private) as private tends to be more volatile and more revealing

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Quick Thoughts – PM Investor Day, Revised Guidance

In conjunction with the company’s investor day, PM offered revised 2014 EPS guidance: EPS in the range of $4.87 to $4.97 versus a prior estimate of $5.09 to $5.19; The lowered guidance ($0.22 per share at both the high and

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Quick Thoughts – KO, Rumor, Trees and the Forest

The push back that we received when we included KO in our list of consumer staples M&A candidates was fairly intense – but not unexpectedly so – KO isn’t a controversial stock at this point, but rather one that investors

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And the Winner is…TSN’s Bankers?

In news that appears to put an end to the saga of Hillshire Farms (HSH), TSN has emerged as the “winning” bidder with a $63 per share offer. o   This implies a 15.7x multiple of EV to TTM EBITDA, rarefied

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