Here are trending economic and food industry data points, as well as major economic and company earnings releases for the coming week: American Families Plan, restaurant reservations, McDonald’s (MCD), Archers-Daniel-Midland Company (ADM), Kraft Heinz Company (KHC) and more
Trending Economic News
President Biden unveiled the $1.8 trillion American Families Plan. The proposal combines $1 trillion in spending with $800 billion in tax cuts and credits for middle- and lower-income families. Biden proposed paying for the plan by reversing the 2017 tax cuts for the top 1% and raising capital gains tax for income greater than $1mil. Here’s what is in the American Families Plan:
Childcare:
- Having low- and middle-income families pay <= 7% of their income on childcare (<age 5)
- Increasing childcare workforce wages to $15/hour
College tuition:
- $109 billion plan to make two-year community colleges free
- Increasing maximum Pell Grant award by approximately $1,400
Paid family and medical leave:
- Up to 12 weeks of guaranteed paid parental, family, and personal illness/safe leave
- Workers would receive up to $4,000 a month through the national leave program. The program will cost ~$225 billion over 10 years.
Universal preschool:
- Investing $200 billion in preschools through a national partnership with each state
Teachers and educators:
- $2.8 billion for yearlong paid teacher residency programs, $900 million for special education teacher development, and $400 million for teacher preparation programs at historically Black colleges, tribal colleges, and other minority-focused institutions
- $1.6 billion to help current teachers earn specialty credentials, such as special ed and bilingual ed. An additional $2 billion for educator leadership programs, like mentorships for new teachers and teachers of color
Nutrition assistance for children:
- $25 billion to make the summer Pandemic-EBT permanent for 29 million children receiving free meals
- Expanding the program to include an additional 9.3 million kids
Upcoming Economic Release
Forecast | Previous | |||
5/3/2021 | Markit manufacturing PMI (Apr) | 60.6 | 59.1 | |
5/5/2021 | ADP employment report (Apr) | 750K | 517K | |
5/5/2021 | Markit services PMI (Apr) | 63.1 | 60.4 | |
5/6/2021 | Continuing jobless claims (weekly) | 3.66 mil | ||
5/6/2021 | Productivity (Q1) | -2.1% | -4.2% |
Source: Bloomberg, CNBC, Trading Economics, Food Institute
>> For more information on CPI/PPI and Retail Sales, go to Food Institute Economic Benchmarking.
Select Food & Beverage Industry Data Points
Restaurant Industry
OpenTable restaurant diner growth data (2019 baseline): U.S. = -21.84% as of Apr 28, 2021
McDonald’s (MCD) reported Q1 2021 results
- Consolidated Revenues: $5.1 billion (+9% vs. last year)
- Global Comparable Sales: +7.5%
- Business Segment Performance (Comp Sales):
- U.S.: +13.6%
- International: +0.6%
- Dev. Licensed Markets & Corp: +6.4%
- Operating Income: $2.28 billion (+35% vs. last year)
- Net Income: $1.5 billion (+39% vs. last year)
Key Takeaways:
- Q1 2021 revenues surpassed Q1 2019 levels (i.e., pre-pandemic)
- Guest counts remained negative for all segments, but average check size grew
- Marketing efforts continue to be a primary strategy for growth, with the introduction of the BTS Meal on April 19, following on the heels of the Travis Scott Meal and J Balvin Meal
Agriculture Food Processing Industry
Archers-Daniel-Midland Company (ADM) reported Q1 2021 results
- Total Revenues: $18.9 billion (+26% vs. last year)
- Operating Income: $1.1 billion (+84% vs. last year)
- Business Segment Performance:
- Ag Services and Oilseeds: $777 million (+84%)
- Carbohydrate Solutions: $259 million (+281%)
- Nutrition: $154 million (+8%)
- Other: $9 million (-18%)
Key Takeaways:
- Strong demand geographically and domestically as countries recover from the COVID-19 pandemic
- Key areas of growth trends highlighted:
- Higher corn, soybean, and wheat exports (i.e., tight supply / demand) and economies recover signaling higher profits
- Global foodservice recovery
- Plant-based protein expected to rise +12% this year
- Health & nutrition continue to be a major focus area for the company
- Transition from non-renewable to renewable sources of biofuel
CPG Industry
Kraft Heinz Company (KHC) reported Q1 2021 results
- Net Sales: $6.4 billion (+3.9% vs. last year)
- Operating Income: $1.1 billion (+41.3% vs. last year)
- Geographic Segment Performance:
- United States: $4.6 billion (+2.5%)
- International: $1.4 billion (+7.2%)
- Canada: $392 million (+8.8%)
Key Takeaways:
- KHC continues to rationalize its product portfolio to focus on customer needs vs. product categories
- Planters divestiture is part of the portfolio reorganization
- Management is prioritizing 4 higher growth segments (targeting health and wellness, convenience, and taste enhancements):
- Taste Elevation
- Easy Meals Made Better
- Real Food Snacking
- Fast Fresh Meals
Earnings Calendar of Select Companies
Announce Date | Company | EPS Estimate | Previous Quarter EPS | |
5/3/2021 | MercadoLibre, Inc. (MELI) | $ 0.04 | $ (1.02) | |
5/4/2021 | Bunge Limited (BG) | $ 1.54 | $ 3.05 | |
5/4/2021 | Sysco Corporation (SYY) | $ 0.20 | $ 0.17 | |
5/4/2021 | Lancaster Colony Corporation (LANC) | $ 1.24 | $ 1.62 | |
5/4/2021 | Darling Ingredients Inc. (DAR) | $ 0.62 | $ 0.45 | |
5/4/2021 | Ingredion Incorporated (INGR) | $ 1.62 | $ 1.75 | |
5/5/2021 | Monster Beverage Corporation (MNST) | $ 0.61 | $ 0.62 | |
5/5/2021 | Performance Food Group Company (PFGC) | $ 0.28 | $ 0.13 | |
5/6/2021 | Beyond Meat, Inc. (BYND) | $ (0.19) | $ (0.34) | |
5/6/2021 | Kellogg Company (K) | $ 0.96 | $ 0.86 | |
5/6/2021 | Sprouts Farmers Market, Inc. (SFM) | $ 0.60 | $ 0.59 | |
5/6/2021 | Post Holdings, Inc. (POST) | $ 0.55 | $ 0.72 | |
5/6/2021 | Shake Shack Inc. (SHAK) | $ (0.08) | $ (0.03) | |
5/6/2021 | Papa John’s International, Inc. (PZZA) | $ 0.55 | $ 0.28 | |
5/7/2021 | DraftKings Inc. (DKNG) | $ (0.41) | $ (0.68) |
Source: Bloomberg, CNBC, Yahoo Finance, Food Institute