Sysco Sees Sales Drop in Fourth Quarter, Fiscal Year 2020 as COVID-19 Pandemic Impacts Foodservice

Sysco reported its fourth quarter and fiscal year 2020 financial results on Tuesday.

The company’s U.S. foodservice operations saw a 42.8% decrease in Q4 sales compared to the same period last year, totaling $6.1 billion.

Sysco also noted its gross profit decreased by 45.7% to $1.2 billion, and gross margin decreased 102 basis points to 19.1%, compared to the same period last year.

For its international foodservice business, Sysco noted a 53.4% drop in sales, totaling $1.4 billion for Q4 2020...

NPPC: COVID-19 Impact Demonstrates Need to Enhance Livestock Risk Protection Program

The National Pork Producers Council and 26 state pork associations representing thousands of American hog farmers have asked the USDA’s Federal Crop Insurance Corporation (FCIC) to implement enhancements to the Livestock Risk Protection (LRP) insurance program. These changes would mitigate the impact of unexpected declines in hog values from unanticipated events like the COVID-19 pandemic.

“The COVID-19 crisis in our farm sector has demonstrated the enormous value of an enhanced LRP,” said NPPC President Howard A.V. Roth, a hog farmer from Wauzeka, Wisconsin...

Mr. Wok Foods Recalls Meat and Poultry Products Due to Misbranding and Undeclared Allergens

Mr. Wok Foods, Inc., a Las Vegas, Nev. establishment, is recalling approximately 200,000 pounds of meat and poultry products due to misbranding and undeclared allergens, the U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS) announced today. The products may contain milk, wheat, soy, peanuts, or oysters, which are known allergens. The products may also contain MSG, sesame products, or sulfites, which are not declared on the product labels. 

The frozen meat and poultry items were produced from Aug. 6, 2019 through Aug. 6, 2020. This spreadsheet contains a list of the products subject to recall...

CHART: Industry Expectations for Weekly Cattle Slaughter

Feltman's of Coney Island Debuts At Publix Super Markets Across Southeast U.S.

The original American hot dog, Feltman's of Coney Island (est. 1867), has launched at 1,190 Publix Super Market locations across Florida, Georgia, Alabama, South Carolina, North Carolina, Virginia, and Tennessee.

Retail Imports to See Lowest Annual Total in Four Years

Imports at major U.S. retail container ports during 2020 are expected to see their lowest total in four years as the impact of the coronavirus pandemic on the U.S. economy continues, according to the monthly Global Port Tracker report released today by the National Retail Federation and Hackett Associates.

“The economy is recovering but retailers are being careful not to import more than they can sell,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “Shelves will be stocked, but this is not the year to be left with warehouses full of unsold merchandise. The more Congress does to put spending money in consumers’ pockets and provide businesses with liquidity, the sooner we can get back to normal..."

Uber Sees Doubling in UberEats Operations as Ride Hailing Business Stays Low

On August 6, Uber Technologies Incorporated (San Francisco, CA) announced its quarterly earnings results. The company's UberEats unit remains the bright spot for the company, seeing revenue doubled to $1.2 billion as Americans continue to stay at home despite changes in restaurant operation across various states since April. This is in contrast to the ongoing sharp declines in the company's flagship ride-hailing unit as fewer riders and drivers in the US returned to the platform despite improvements in other countries where coronavirus effects are currently more muted...

Plumrose USA Announces Intention to Build $200M Ready-to-eat Facility

Plumrose USA, a branded packaged meat company and subsidiary of JBS USA, a leading American food company with the second largest pork production footprint in the world, today announced its intention to construct a new, state-of-the-art Italian meats and charcuterie production facility. The estimated $200M greenfield project will be strategically located to efficiently access raw material and leverage synergies with existing corporate assets. The investment is consistent with the company’s long-term strategy to increase its value-added and branded portfolio with innovative, on-trend products...

Public Health Alert Issued for Ready to Eat Sausage Products due to Possible Listeria Contamination

The U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS) is issuing a public health alert because Bluegrass Provisions Co., a Crescent Springs, Ky. establishment, produced sausage products that may be contaminated with Listeria monocytogenes. A recall was not requested because it is believed that all products are no longer in commerce and are past their use or freeze by dates.

The ready-to-eat smoked sausage items were produced on Apr. 22, 2020. The following products subject to the public health alert...

Papa John’s Announces Second Quarter 2020 Results

Papa John’s International, Inc. announced financial results for the three and six months ended June 28, 2020. The company also provided an update on the business impact of the global coronavirus (COVID-19) pandemic.

“Faced with an unprecedented global challenge but guided by our values and purpose, Papa John’s achieved record sales in the second quarter,” said Rob Lynch, President & CEO. “Across the U.S. and those international markets where delivery-based businesses have remained open, we have safely and successfully met...

Pork Exports Trend Lower in June but Remain on Record Pace; Another Tough Month for Beef Exports

June exports of U.S. pork fell below year-ago levels for the first time this year but exports remain on a record pace in 2020, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Beef exports were down sharply from a year ago in June, reflecting a lingering impact of a temporary slowdown in beef production combined with restrictions on foodservice and weakening economies in major import markets. June lamb exports trended higher, posting the second largest totals of 2020.

“We expected that the interruptions in red meat production would continue to weigh on June exports, but anticipated more of a rebound from the low May totals – particularly for...

Cargill Releases Annual Report

Fiscal 2020 was a year like no other. In such a challenging environment, Cargill has anchored to its purpose and values. The company exists to nourish the world in a safe, responsible and sustainable way. Despite challenges facing the food and ag system and disruptions from the COVID-19 pandemic, Cargill’s FY 2020 annual report, Nourishing the World, demonstrates how the team’s resiliency and agility helped to keep supply chains moving to put food on family tables around the globe.

“The last year taught us that we are capable of so much more than we previously thought. We can move faster, with more agility, navigating a crisis while keeping our people’s wellbeing front and center,” said David MacLennan, Cargill’s chairman and CEO. “We are grateful to our employees, customers and...

Domino's Pizza Announces Staff Changes 

Domino's Pizza announced the appointment of Executive Vice President, Supply Chain Services, Stu Levy, as the Company's Chief Financial Officer, succeeding Jeffrey Lawrence, who earlier announced his intention to retire from the Company this year. Levy will report to Domino's Chief Executive Officer Ritch Allison.

At the same time, Domino's announced the promotion of Cindy Headen to Executive Vice President, Supply Chain Services, succeeding Levy. She will join the Company's executive leadership team and will report to CEO Ritch Allison. These changes will be effective August 20, 2020.

"In a relatively short period of time, both Stu and Cindy have made profound positive impacts on our Company," said Allison. "They are strong, capable leaders who are...

Restaurant Brands International Reports Second Quarter 2020 Results

Restaurant Brands International reported financial results for the second quarter ended June 30, 2020.

Jose Cil, Chief Executive Officer of Restaurant Brands International Inc. ("RBI") commented, "The COVID-19 pandemic has introduced a host of unprecedented challenges, but our proactive and coordinated response across the globe has helped drive a significant recovery in performance since March. I am so proud of our restaurant owners, our restaurant team members, and...

ANALYSIS: Stairs Going Up, Elevator Going Down

While 2020’s chicken market has certainly had its fair share of ups and downs recently, it has also brought with it...

KFC Canada Makes Plant-Based Chicken Sandwich a Permanent Menu Item 

KFC Canada announced that Plant-Based KFC sandwiches will be available permanently coast-to-coast beginning August 10. After an incredibly successful pilot with plant-based partner Lightlife in 2019, vegetarians and flexitarians everywhere can now experience KFC.

"When we tested Plant-Based KFC by Lightlife late last year, we sold over a month's worth of sandwiches in six hours," said Samantha Redman, Chief Marketing Officer, KFC Canada. "Seeing the extraordinary demand for Plant-Based KFC, we worked quickly to bring these menu items to our restaurants across Canada."

Developed in response to Canada's evolving tastes and preferences for plant-based proteins, Plant-Based KFC is made in Canada by Lightlife, a leading plant-based protein brand whose portfolio of products are available in...

Initial Unemployment Claims Decrease in the Week Ending August 1 

According to the U.S. Department of Labor, the figure for initial unemployment claims was 1,186,000 for the week ending August 1. This figure represents a decrease of 249,000 from last week's revised level. The previous week's level was revised up slightly from 1,434,000 to 1,435,000. The 4-week moving average was 1,337,750, a decline of 31,000 from the week prior.

For the week ending July 25, the adjusted insured unemployment rate was 11%, a decrease of 0.6 percentage point from the previous week's unrevised rate. The 4-week moving average was...

Merck Animal Health Acquires IdentiGEN 

Merck Animal Health, known as MSD Animal Health outside the United States and Canada, a division of Merck & Co., Inc., Kenilworth, N.J., USA, today announced the completion of its acquisition of IdentiGEN, a leader in DNA-based animal traceability solutions for Livestock and Aquaculture from MML Growth Capital Partners Ireland. Specific terms of the agreement were not disclosed.

IdentiGEN’s technology combines each species’ unique DNA (deoxyribonucleic acid) and data analytics to provide an evidence-based animal traceability solution, called DNA TraceBack, to accurately and precisely trace beef, seafood, pork and poultry that is verifiable from farm-to-table.

Food producers, processors and retailers are looking for accurate and complete animal traceability solutions that provide full accountability, as well as...

Aramark Prepared to Welcome College Students Back to Campuses Across the Country

As many college campuses make arrangements to safely open amid COVID-19, Aramark, a leading food and facilities partner with hundreds of colleges and universities across the U.S., is prepared to meet the safety and hygiene standards required in today’s ever-changing environment. This includes introducing a variety of new programs and service offerings to support a safe, enjoyable campus dining experience.

“As with many other aspects of campus life, dining services will look and feel a little different this Fall,” said Jack Donovan, President of Aramark’s Higher Education business. “Knowing health and safety is imperative for returning students and faculty, as well as...

Wendy's Reports Second Quarter 2020 Results

The Wendy's Company reported unaudited results for the second quarter ended June 28, 2020 and provided an update on the impact of the COVID-19 pandemic on the Company's business.

"I continue to be extremely proud of, and humbled by, the tireless efforts and dedication from our employees, franchisees and supplier partners across the globe as we successfully manage through COVID-19," President and Chief Executive Officer Todd Penegor said. "Our business and restaurant economic model continue to show incredible resilience as we build momentum with U.S. same-restaurant sales accelerating to high-single digit growth in July, driven by...

Beyond Meat Reports Second Quarter 2020 Financial Results

Beyond Meat, Inc. reported financial results for its second quarter ended June 27, 2020.

Beyond Meat President and CEO Ethan Brown commented, "I am proud of our record net revenues and growth during a very challenging period. As the toll of the COVID-19 pandemic took hold across the foodservice industry, we repurposed assets and repacked and rerouted products to meet increased consumer activity in the retail aisles. Throughout the quarter, our brand experienced an enviable combination of consumer trends – increasing household penetration; increasing buying levels per household; and strong repeat purchase rates of nearly...

Weis Markets Reports Second Quarter Results

Weis Markets reported its sales increased 23.7 percent to $1.1 billion during the thirteen-week period ended June 27, 2020, compared to the same period in 2019, while second quarter comparable store sales increased 24.1 percent.

The Company's second quarter net income increased 102.5 percent to $41.5 million compared to $20.5 million in 2019, while earnings per share totaled $1.54 compared to $0.76 per share for the same period in 2019. Ecommerce sales increased 243 percent during the same period.

"The coronavirus pandemic has altered most aspects of daily life in our seven-state market area which was impacted by...

Smashburger Announces Nationwide Launch of Fan-Favorite Colorado Burger

Smashburger is bringing back a fan-favorite menu item, announcing the return of its hometown burger. Launching today, the Colorado Burger is back by popular demand and available at all Smashburger locations nationwide for a limited time. In celebration of Smashburger's 13th anniversary and the restaurant's Colorado roots, Smashburger will host a single day promotion on Thursday, August 6, offering Smash fans who purchase any double or single Colorado Burger a second one for only 13 cents at participating restaurants.

As one of Smashburger's most beloved premium burger offerings, the Colorado Burger is made with Certified Angus Beef, and is topped with...

U.S. Restaurant Chain Customer Transaction Declines Remain Relatively Flat

U.S. major restaurant chain customer transactions were down 11% in the week ending July 26 versus year ago, reports The NPD Group. This is a modest improvement from the 12% decline versus year ago in the prior week, and a continuation of the relatively flat pattern seen over the last several weeks, according to NPD’s CREST Performance Alerts, which provides a rapid weekly view of chain-specific transactions and share trends for 75 quick service, fast casual, midscale, and casual dining chains representing 53% of the commercial restaurant traffic in U.S.

Customer transactions at major quick service restaurant chains were down 11% in the week ending July 26 compared to a year ago and were flat from the prior week, week ending July 19. Full service restaurants improved slightly with customer transactions down...

Jack in the Box Announces Departure of CFO

Jack in the Box announced that Lance Tucker, Executive Vice President and Chief Financial Officer, has provided his intent to resign and will be leaving the company effective within the next six weeks. The company has initiated a search for a new Chief Financial Officer. While the company searches to identify a successor, the senior members of the company’s finance department will assume Tucker’s responsibilities on an interim basis.

Dawn Hooper, the company’s controller, has been appointed to principal financial officer effective on Tucker’s last day. Hooper has been with Jack in the Box Inc. for almost 20 years, with her tenure in leadership positions within finance. She, in conjunction with Sean Bogue, the company’s treasurer, will ensure...

Ruth's Hospitality Group Provides Business Update and Financial Results for Q2 2020

Ruth’s Hospitality Group, Inc. provided a business update on the impact of the COVID-19 pandemic and reported unaudited financial results for its second quarter ended June 28, 2020.

COVID-19 Business Update:

During the second quarter of 2020, the COVID-19 pandemic continued to impact overall sales and traffic. As previously reported, Company-operated Ruth’s Chris dining rooms were closed in all domestic U.S. locations during April, and the Company transitioned its services to take-out and delivery operations in...

Under HEALS Act, Over Half of Restaurants Ineligible for PPP Loans

The National Restaurant Association is looking to change a threshold in the Senate HEALS Act which will currently make 55% of restaurants ineligible for another Paycheck Protection Program (PPP) loan.

Via a letter to Congressional leadership, the Association noted that small businesses with less than 300 employees will need to show 50% in quarterly gross receipts to apply for another round of PPP loans. At that level, over half of restaurants will be ineligible for the loans.

In order to get more restaurants the assistance they need, the Association...

National Retail Federation: Economic Recovery May Not Be a Steady Climb 

According to the National Retail Federation’s Chief Economist Jack Kleinhenz, it is difficult to determine how steady the economic recovery will be following the COVID-19 pandemic.

“Optimism about the economy and retail spending is being tested daily with the spread of the coronavirus,” Kleinhenz said. “Big questions are looming, and we are all grappling to discern what incoming data is telling us about the health of the economy and consumers. Depending on the data selected, the answers are not entirely clear.”

Kleinhenz commented in the NRF’s August edition of its Monthly Economic Review...

Aramark Reports Third Quarter Earnings

Aramark reported third quarter fiscal 2020 results.

“I am encouraged by how well the Company continues to navigate the complexities and challenges of the current environment. Our balance sheet and new business pipeline remain strong, and we have taken strategic actions to fortify Aramark for the future," said John Zillmer, Aramark’s Chief Executive Officer. “I am also proud of how our team members have remained focused on serving our client partners and communities in the face of significant adversity.”

Third Quarter Results

Consolidated Revenue was $2.2 billion in the quarter, down 46.3% year-over-year from the impact of COVID-19 that more than offset modest underlying growth in the overall business. Revenue improved sequentially through each fiscal month with April reflecting...

US Foods Reports Second Quarter Fiscal 2020 Earnings

US Foods Holding Corp. announced results for the second quarter of fiscal 2020. In this press release we refer to certain organic financial results. Organic financial results exclude contributions during the respective period from Smart Stores Holding Corp. (“Smart Foodservice”), which was acquired on April 24, 2020 and the Food Group of Companies (the "Food Group"), which was acquired on Sept. 13, 2019.

Second Quarter Fiscal 2020 Highlights

• Total case volume decreased 28.0%; total organic case volume decreased 40.2%
• Net sales decreased 29.2% to $4.6 billion
• Gross profit decreased 41.2% to $671 million
• Net loss available to common shareholders was...

Beyond Meat Expands Club Store Distribution with BJ's Wholesale and Sam's Club

Beyond Meat is working to increase accessibility to plant-based meat through the development of new sales channels, including club and convenience stores. The company, which offers an 8-pack of its flagship Beyond Burger, first broke into the club channel last year at Costco. This summer, Beyond Meat added partnerships with BJ’s Wholesale and Sam’s Club, unlocking partnerships with three major club stores.

“Having entered all national conventional retailers in the US, we looked for where the white space existed and club stores were the next logical step towards increasing accessibility to plant-based meat among mainstream consumers,” said Chuck Muth, Chief Growth Officer, Beyond Meat. “By offering the Beyond Burger in a larger format, we’re able to provide value to consumers and a more accessible entry point for...

Shake Shack Announces Second Quarter 2020 Financial Results

Shake Shack Inc. reported its financial results for the second quarter ended June 24, 2020, a period that included 13 weeks.

Randy Garutti, Chief Executive Officer of Shake Shack, stated, “Throughout this difficult time, I remain incredibly proud of our team. They've continued to show up, to support each other, our guests, our communities and our suppliers. They’ve had an unwavering commitment to excellence and hospitality in the face of an incredibly challenging operating environment. We owe them a debt of gratitude, and...

7-Eleven Transforms Its U.S. Store Network Through Acquisition of Speedway

7‑Eleven announced it has entered into an agreement to acquire Speedway, a leading convenience store chain, from Marathon Petroleum Corp. As part of the agreement, 7‑Eleven will acquire approximately 3,900 Speedway stores located in 35 states, for $21 billion in cash.

"This acquisition is the largest in our company's history and will allow us to continue to grow and diversify our presence in the U.S., particularly in the Midwest and East Coast," said Joe DePinto, President and Chief Executive Officer of 7‑Eleven. "By adding these quality locations to our portfolio, 7‑Eleven will have the opportunity to bring...

After Steep Declines, U.S. Foodservice Industry Set to Rebound to Pre-Pandemic Levels by 2023

The latest research from Mintel shows that after several years of growth, the foodservice industry is expected to decline by up to 30% from 2019-2020, following nationwide dine-in bans/restrictions, restaurant closures, job losses, and lowered consumer confidence.

Looking ahead though, Mintel predicts total market sales to rebound to pre-pandemic levels by 2023, with limited-service restaurants (LSRs) including fast food and fast casual restaurants, bouncing back more quickly and representing a notably larger share of the market.

While sales declines will be felt across both LSRs and full service restaurants (FSRs), the majority of these declines will be driven by the FSR segment which has been hit the hardest by...