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Starbucks shares down after weak FY'20 outlook; Couche-Tard posts Q1'20 EPS beat

TOP NEWS

* Starbucks Corp.'s shares dipped nearly 4% to $93.03 on Sept. 4 after it said it now expects fiscal 2020 EPS to be below its ongoing growth model of at least 10%, compared with the 16% year-over-year growth it is expecting for the current fiscal year. CFO Pat Grismer said the tax benefits that the company realized in fiscal 2019 will slow earnings growth in 2020, along with about $2 billion in share repurchases that it elected to execute a year in advance.

* Canadian convenience store operator Alimentation Couche-Tard Inc. saw fiscal first-quarter 2020 adjusted diluted net EPS rise 11.5% to 97 U.S. cents from 87 cents a year ago. The figure beat the S&P Global Market Intelligence consensus estimate for normalized EPS of 95 cents. Adjusted net earnings attributable to shareholders came in at $548 million, up 11.8% year over year from $490 million.

FOOD RETAIL & DISTRIBUTION

* French food retailer Carrefour SA said it is launching two Supeco stores, offering bakery and more fresh products, in northern France in September, Reuters reported.

* GrabFood, the food delivery unit of ride-hailing company GrabTaxi Holdings Pte Ltd., is set to boost recruitment and strengthen its research and development facility in Indonesia, the Nikkei Asian Review reported.

* Raising prices to offset the impact of the latest round of tariffs on Chinese imports will be the "last resort" for Walmart Inc., Chief Merchandising Officer and Executive Vice President Steve Bratspies said at the Barclays 2019 Global Consumer Staples Conference.

* Amazon.com Inc. said it expanded its AmazonFresh grocery delivery service to Indianapolis. Amazon Prime members can now access free one- to two-hour delivery for a monthly fee of $14.99 on top of their Prime membership fee.

* Target Corp. sent a memo to its suppliers, asking them to bear the costs of the Trump administration's latest tariffs on China-made consumer goods instead of passing price increases to customers, The Wall Street Journal reported, citing a memo signed by Mark Tritton, the big-box retailer's chief merchandising officer. "Given the scope of our business and breadth of our assortment, including owned and national brands, we've needed to take a number of steps to manage our business accordingly and keep prices low for guests," a Target spokesperson reportedly said.

* Vesa Equity Investment SARL, owned by Daniel Křetínský and Patrik Tkáč, took a 4.63% stake in Casino Guichard-Perrachon SA. Křetínský and Tkáč also hold 17.52% of Metro AG with an option to increase it to 29.9% or up to 32.71%. Casino CEO Jean-Charles Naouri said he will propose that the retail group appoint a representative of Vesa Equity Investment to its board at the next general meeting.

BEVERAGES

* Italian spirits-maker Davide Campari-Milano SpA signed an agreement to acquire liquor company Rhumantilles SAS for an enterprise value of €60 million. Rhumantilles owns 96.5% of The Bellonnie Bourdillon et Successeurs Co. Inc., which owns French rum brands Trois Rivières and La Mauny.

* Belgian brewer Anheuser-Busch InBev SA's Harbin Beer brand has launched its first non-alcoholic beer in China.

* A federal judge from the Western District of Wisconsin issued a preliminary injunction against Anheuser-Busch InBev SA unit Anheuser-Busch that prohibits the company from using "no corn syrup" labels on its Bud Light Beer packaging, Molson Coors Brewing Co. said in a release. In March, Molson Coors Brewing Co.-owned MillerCoors filed a lawsuit against Anheuser-Busch over an allegedly misleading advertising campaign.

TOBACCO & SMOKING PRODUCTS

* British American Tobacco PLC is set to roll out two new tobacco heating products under its glo brand in Japan, beginning October.

PACKAGED FOODS

* Conagra Brands Inc. said it plans to build a 40,000-square-foot center for food design in Chicago as a research and development hub for its snacks business. The site, next to the packaged foods producer's existing headquarters, will employ 50 people and is set to open in the first quarter of 2020.

* Kellogg Co. said its Morningstar Farms LC unit will roll out a new plant-based product range, dubbed Incogmeato, which offers ready-to-cook plant-based burger patties and fully prepared plant-based chicken tenders and nuggets. The food range will be available in grocery stores and foodservice sites starting early 2020.

* New Zealand dairy group Fonterra Co-operative Group Ltd. scrapped bonuses based on sales and short-term incentives for the year and will not increase the pay of some employees, Reuters reported, citing an email sent by CEO Miles Hurrell to the staff. A Fonterra spokesperson reportedly said about 7,000 employees would be affected.

* Tyson Foods Inc. slowed its chicken processing after the company recalled millions of pounds of poultry in 2019 over fears they contained extraneous materials like rubber and metal, Reuters reported, citing CEO Noel White. The executive reportedly said it wanted to ensure the company implemented "corrective measures" at its chicken processing facilities. Tyson on Sept. 3 trimmed its full-year 2019 EPS outlook, and White reportedly said half of the cut was related to the company's poultry business.

RESTAURANTS

* Moody's Investors Service upgraded Yum! Brands Inc. ratings, citing the U.S. fast-food giant's "clearly articulated" financial policy, its scale, brand diversity and franchised based business model. The rating agency raised the company's corporate family rating to Ba2 from Ba3, its probability of default rating to Ba2-PD from Ba3-PD and its senior unsecured ratings to B1 from B2.

The day ahead

Early morning futures indicators pointed to a higher opening for the U.S. market.

In Asia, the Hang Seng fell 0.03% to 26,515.53, and the Nikkei 225 rose 2.12% to 21,085.94.

In Europe, around midday, the FTSE 100 dropped 0.65% to 7,263.46, and the Euronext 100 was up 0.67% to 1,080.80.

On the macro front

The motor vehicle sales report, ADP employment report, jobless claims report, the productivity and costs report, PMI services index, factory orders report, ISM non-manufacturing index, EIA petroleum status report, Fed balance sheet, and the money supply report are due out today.

Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.

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