Category Archive for "Consumer"

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Corn Planting Progress Remains Sluggish

As of Sunday, 6% of the U.S. corn crop had been planted versus a five year average of 14% – a slow start to be sure.  Significant progress was made across more Southern locations (Louisiana was virtually completed, for example)

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Quick Thoughts – Another Challenging Quarter for MCD

We suspect that expectations were modest for MCD’s Q1 results given the weather in the U.S., recent trends ex-weather and the company’s cautious commentary on margins contained in its last sales release.  We believe that the stock’s recent move higher

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Quick Thoughts – CMG Q1 EPS

There is very little not to like in CMG’s earnings release this morning (unless you care about margins or EPS results) – but we recognize that it is a growth stock and that top line growth is pretty much all

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Quick Thoughts – PM Q1 EPS

This morning, PM reported Q1 ’14 EPS of $1.19 per share, besting consensus estimates by $0.03 – we would characterize the quality as somewhat mixed (certainly not as strong as Q4 ‘13), but our view on PM is unchanged given

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Quick Thoughts – Corn, Inflation and the Consumer

According to yesterday’s Crop Progress Report from the U.S. Department of Agriculture, 2% of the nation’s corn crop has been planted thus far, compared to 3% at the same time last year and 6% historically – small numbers, to be

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Quick Thoughts – KO

KO this morning reported Q1 EPS of $0.44 per share, consistent with consensus estimates, a result that we expect will be sufficient to move the shares higher given just how bad we see the sentiment on the name currently. Global

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WMT and Retail

This morning, WMT reported Q4 ’13 results that were in line with expectations that already reflected previously reduced guidance (late January). FY ’14 guidance ($5.10 to $5.45) was disappointing relative to consensus ($5.55 coming into today), including guidance for operating

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Retail Sales and Retail Earnings

In our note last week, we commented on some dynamics that we saw during the holiday season that made us marginally more cautious on the U.S. consumer: Declines in per capita disposable income (Exhibit 1). A lower savings rate that

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CVS to Tobacco – It’s You, Not Me

CVS has announced that it will cease to sell tobacco products in its stores by October 1st, believing that the sale of tobacco products is inconsistent with the company’s role as a healthcare provider. CEO Larry Merlo noted “We’ve come

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SYY – Profitable Sales Growth Remains Elusive

SYY reported Q2 earnings this morning, and the results provide a useful framework to reiterate some of our ongoing concerns that we have highlighted in our prior work. Sales increased 4.1% (consensus contemplated a 5.2% increase, so a revenue miss

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