TOP NEWS
* McDonald's Corp. is expected to announce job cuts in the U.S. as part of its plans to reorganize regional offices across the nation and shrink the corporate structure, The Wall Street Journal reported, citing a company memo sent to employees. The memo from McDonald's USA President Chris Kempczinski did not reveal the scope of the layoffs. He plans to provide additional details at a June 12 town hall meeting.
* U.K. hotels and restaurants group Whitbread PLC may consider selling its Costa Coffee chain or Premier Inn hotels to another company, and cancel its original plan to demerge the coffee business, according to a new executive pay schedule circulated to shareholders. The company plans to overhaul its executive pay to account for its new objective of separating its two main divisions. The scheme includes a performance share plan that is linked to delivering that goal.
RESTAURANTS
* Oklahoma-based fast-food chain Sonic Corp. released its financial statement for the fiscal third quarter ended May 31 and announced a $500 million share buyback through Aug. 31, 2021. The company expects its same-store sales to remain largely flat. The fast-food chain also reiterated its estimated adjusted earnings per share guidance for fiscal year 2018 of between $1.43 and $1.50.
PACKAGED FOODS
* Mondelez International Inc. said it completed its acquisition of Tate's Bake Shop Inc., a premium cookie and baked goods company. The buyer announced last month that it agreed to pay about $500 million for the target and would operate it as a separate business to maintain its brand authenticity and corporate culture.
* J.M. Smucker Co.'s reported disappointing earnings for the fiscal fourth quarter. CEO Mark Smucker attributed the lower-than-projected earnings to "industry-wide headwinds and certain discrete items." Adjusted diluted EPS rose to $1.93 from $1.80 a year earlier. The S&P Capital IQ consensus estimate was $2.18 in normalized terms.
BEVERAGES
* U.S. coffee giant Starbucks Corp. hiked the price of its regular drip coffee by 10 cents to 20 cents in most U.S. stores, AP News reported. The coffee chain's small brewed coffee now retails at $1.95 to $2.15 in the majority of locations. The price rise marks an average of 1% to 2% hike in the past year, the report said.
* Starbucks signed a new 21-year strategic licensing agreement with Denmark-based Arla Foods, according to a release from the dairy cooperative. Under the agreement, Arla will continue to manufacture, distribute and market Starbucks' ready-to-drink products in Europe, Middle East and Africa. Since signing the agreement in early 2010, Arla's business has grown by an average 40% annually across EMEA region, the company said.
* Japanese brewer Kirin Holdings Co. Ltd. is aiming to hit ¥100 billion in sales of food and beverages that cater to health-conscious customers in the next two decades, Bloomberg reported, citing CEO Yoshinori Isozaki. The company set the goal to counter plummeting sales in its core brewery business where it is struggling. Kirin, which already launched the iMuse product line of snacks and drinks spiked with a lactobacilli, which improves digestion, plans to expand its business to Southeast Asia.
* Italy's Illy Caffè is set to launch hand-pulled cold coffee this summer in Italy, as it braces to face competition from Starbucks Corp., which plans to mark its debut in the country in September 2018 with a store in Milan, Reuters reported. The report added that the coffeemaker will sell a cold brew, a trendy favorite of young consumers, in its own cafes and other food outlets in Italy, the report noted.
AGRICULTURAL PRODUCTS
* Bayer Aktiengesellschaft completed its $62.5 billion acquisition of seed manufacturer Monsanto Co. on June 7 after receiving all necessary approvals from regulators. Shareholders of the U.S. agrochemical giant are being paid $128 per share, and its shares will be delisted from the New York Stock Exchange. J.P. Morgan helped Bayer process the payment of the purchase price for the deal.
INDUSTRY NEWS
* China is set to impose anti-dumping measures on imports of Brazilian chicken meat starting June 9, Reuters reported, citing the country's commerce ministry. The importers will be required to pay deposits ranging from 18.8% to 38.4% of the value of their shipments. This move came after the country's domestic industry took a serious blow from poultry imports from Brazil, which account for more than 50% of China's imports of chicken meat, the report added.
* A group of retail groups and two ATM networks are launching a coalition that they said will combat credit and debit card fraud and also improve secure payments systems that lag those of the rest of the world. The National Retail Federation said in a news release that the coalition, called the Secure Payments Partnership, will focus on incorporating emerging technologies within the payments industry, including mobile payments, facial recognition and fingerprints, as well as IP verification. Other retail groups that make up the coalition include the National Grocers Association, the Food Marketing Institute and the National Association of Convenience Stores.
The day ahead
Early morning futures indicators pointed to a lower opening for the U.S. market.
In Asia, the Hang Seng declined 1.76% to 30,958.21, and the Nikkei 225 decreased 0.56% to 22,694.50.
In Europe, around midday, the FTSE 100 was down 0.66% to 7,653.51, and the Euronext 100 was down 0.40% to 1,053.12.
On the macro front
The wholesale trade report and the Baker-Hughes Rig Count report are due out today.
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