Commodities: Big smiles at Domino's, little grins at Papa John's

Stock SectorJune 11, 20186min7
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At the closing bell last Friday, the leadership behind two pizza stocks that have had very different stories this year were both likely going out for a celebratory drink. Domino’s racked up a substantial increase in value last week, while Papa John’s finally scored a bump in value after days of losses.

In the meantime, prices for pizza commodities prices ran the gamut last week.

Cheese
The USDA reports that cheese commodities prices for barrels closed at $1.5650, compared to the previous week’s close of $1.52, while 40-pound blocks closed at $1.6350, Friday, compared to the previous week’s close of $1.5975. The weekly average for barrels was $1.5225 and blocks, $1.5965.

Milk into cheese production remains available nationwide, though Midwestern cheese producers suggest spot milk offers — although still discounted — have begun to taper, according to the dairy association. Cheese production in the Midwest and West is steady, but both regions tell the association a possible slowdown to avoid overproduction when demand in those regions also ebbs. 

The USDA said that while reported Mexican tariff news is circulating in the industry nationally, Midwestern contacts tell the organization that those effects may not be felt until later this year. 

Wheat
Compared to last week, cash bids for wheat were mixed, from 4 cents lower to 1 cent higher. Kansas City U.S. No. 1 Hard Red Winter, ordinary protein rail bid was 1 cent higher, from $6.49 1/2-$6.64 1/2 per bushel. Kansas City U.S. No. 2 Soft Red winter rail bid was not quoted.  

St. Louis truck U.S. No. 2 Soft Red Winter terminal bid was steady to 4 cents lower, from $5.32-$5.43 per bushel. Minneapolis and Duluth U.S. No. 1 Dark Northern Spring, 14.0 to 14.5 percent protein rail, was 4 1/2 cents lower to 1/2 cent higher, at $7.37 1/2 per bushel. Portland U.S. Soft White wheat rail was 10 cents higher from $5.90-$6.05 per bushel.

Vehicle fuel


Natural gas
Natural gas spot price movement varied for the seven days ending on June 6. The Henry Hub spot price rose from $2.83 per million British thermal units (MMBtu) last Wednesday to $2.85/MMBtu over that period.

At the New York Mercantile Exchange (Nymex), the July 2018 contract price rose 1 cent, from $2.885/MMBtu last Wednesday to $2.896/MMBtu June 6. Net injections to working gas totaled 92 billion cubic feet (Bcf) on June 1. Working natural gas stocks are 1,817 Bcf, which is 31 percent lower than the year-ago level and 22 percent lower than the five-year (2013-17) average for the same period.

The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by $0.23, averaging $8.83/MMBtu for the seven days ending June 6. The spot prices of natural gasoline, propane, butane, and isobutane fell by 4, 3, 1 and 12 percent, respectively. The spot price of ethane rose by 8 percent.

According to Baker Hughes, for the seven days ending Tuesday, May 29, the natural gas rig count decreased by one to 197. The number of oil-directed rigs rose by two to 861. The total rig count increased by on and now stands at 1060.

Pizza company stocks
The story last week was all about Domino’s and Papa John’s. Domino’s — which has risen in value nearly 50 percent since the new year — closed up $17.44 to end Friday at $270.04. Papa John’s also closed up, though nowhere near as substantially, to end the week 74 cents higher in value at $52. 

The other brands monitored here had a win and a loss for the week’s trading, fluctuating modestly as both typically do. Pizza Hut parent, Yum Brands, closed up $1.27 to end the week at $83.18 Friday, while Papa Murphy’s closed at $5.51, off 3 cents from the previous week’s close. 

Photo:: iStock

Award-winning veteran print and broadcast journalist, Shelly Whitehead, has spent most of the last 30 years reporting for TV and newspapers, including the former Kentucky and Cincinnati Post and a number of network news affiliates nationally. She brings her cumulative experience as a multimedia storyteller and video producer to the web-based pages of Pizzamarketplace.com and QSRweb.com after a lifelong “love affair” with reporting the stories behind the businesses that make our world go ‘round. Ms. Whitehead is driven to find and share news of the many professional passions people take to work with them every day in the pizza and quick-service restaurant industry. She is particularly interested in the growing role of sustainable agriculture and nutrition in food service worldwide and is always ready to move on great story ideas and news tips.

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