Welcome!

News Feed Item

The Zacks Analyst Blog Highlights: Tyson Foods, Pilgrim's Pride, Sanderson Farms, Omega Protein Foods and Wendy's

CHICAGO, Dec. 31, 2013 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Tyson Foods Inc. (NYSE:TSN-Free Report), Pilgrim's Pride Corp. (Nasdaq:PPC-Free Report), Sanderson Farms Inc. (Nasdaq:SAFM-Free Report), Omega Protein Foods (NYSE:OME-Free Report) and Wendy's Co. (Nasdaq:WEN-Free Report).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Monday's Analyst Blog:

China Accepts WTO Ruling

China is geared to re-examine anti-dumping duties on chicken imported from the U.S. The Chinese government reached this decision after the World Trade Organization's (WTO) unfavorable ruling against the country anti-dumping duties.

China's Ministry of Commerce initiated anti-dumping and countervailing investigations of imports of "broiler products" from the U.S. on Sep 27, 2009.  Broiler products include most chicken products, with the exception of live chickens and chicken products such as cooked and canned chicken.

Although the U.S. offered to settle the disputes through consultations, the parties failed to reach a satisfactory conclusion. The U.S. appealed to the WTO for redressing China's violation of numerous procedural and substantive obligations under the WTO's Anti-Dumping Agreement and Agreement on Subsidies and Countervailing Measures.

In Oct 2013, the WTO concluded that China had unfairly imposed tariffs on chicken imported from the U.S. Disputes between China and the U.S. over trade and the U.S. decision to levy tariffs on several Chinese products impelled China to turn against U.S. imports.

The decision has raised the hopes of U.S. meat processors like Tyson Foods Inc. (NYSE:TSN-Free Report), Pilgrim's Pride Corp. (Nasdaq:PPC-Free Report), Sanderson Farms Inc. (Nasdaq:SAFM-Free Report), Omega Protein Foods (NYSE:OME-Free Report) and Cargill Inc. regarding increasing exports of meat products to China. According to the Wall Street Journal, Tyson has recently invested heavily to build its own farms in China. The farms, scheduled to become operational in 2014, will strengthen the company's position in the booming meat processing market.

Moreover, the outbreak of avian influenza (bird flu) in the country has prompted people to refrain from buying local chicken products. This has opened up new opportunities for Tyson to increase export to China.

In Sep 2013, Cargill Inc. built a world-class integrated poultry operation in Lai'an Anhui, China. The project is part of the company's continuous efforts to bolster its presence in China's growing market and support the modernization of agriculture and food safety in China.

The Chinese Ministry of Commerce has decided to look into the evidence and information obtained in the original anti-dumping and countervailing investigations. Further, it will carry out reinvestigations through questionnaires, hearings and other measures.

U.S. chicken exports to China have plunged 80% after China imposed high anti-dumping duties.

Wendy's Divests More Units

The Wendy's Co. (Nasdaq:WEN-Free Report) recently completed the divestiture of 30 units in Austin, Texas to HAZA Foods, LLC. The company shares a longstanding relationship with HAZA Foods, which currently franchises 34 Wendy's outlets in the Texas market of which 31 are located in the greater Houston area.

In another agreement, the company completed the sale of its 19 restaurants in Sacramento, Calif. to Desmond Foods, L.P. The company's association with Desmond Foods dates back to more than two decades. The franchisee currently manages 24 Wendy's units in the state of California with 17 units located in Fresno.

The terms of neither of the deals were disclosed. HAZA Foods and Desmond Foods' adequate local market knowledge and strong financial position make them a perfect fit for franchising in Austin and Sacramento, respectively.

These divestments were in line with Wendy's' System Optimization Initiative started in July to modify its restaurant portfolio. As part of its brand revitalization initiative, the company seeks to franchise about 425 company-operated restaurants in 13 U.S. markets, of which 282 units have already been divested. The company is mainly concentrating on divesting its units located in the West. This entire process is expected to complete by the end of second-quarter 2014.

Apart from divesting restaurants, the company also plans to renovate some of its existing units based on the Image Activation format. Operators with a proven track record and conforming to the company's reimaging program are being chosen for this transition.

The company has also been closing its underperforming restaurants to gain operational efficiency. These moves will help the company to streamline its operations while boosting its operating margin and generate more free cash flow. Moreover, this will help the company to grow through franchising, thus driving earnings and top-line expansion in the form of royalty and rental income.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on TSN - FREE

Get the full Report on PPC - FREE

Get the full Report on SAFM - FREE

Get the full Report on OME - FREE

Get the full Report on WEN - FREE

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Digitization is driving a fundamental change in society that is transforming the way businesses work with their customers, their supply chains and their people. Digital transformation leverages DevOps best practices, such as Agile Parallel Development, Continuous Delivery and Agile Operations to capitalize on opportunities and create competitive differentiation in the application economy. However, information security has been notably absent from the DevOps movement. Speed doesn’t have to negat...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
Your business relies on your applications and your employees to stay in business. Whether you develop apps or manage business critical apps that help fuel your business, what happens when users experience sluggish performance? You and all technical teams across the organization – application, network, operations, among others, as well as, those outside the organization, like ISPs and third-party providers – are called in to solve the problem.
Digital transformation is too big and important for our future success to not understand the rules that apply to it. The first three rules for winning in this age of hyper-digital transformation are: Advantages in speed, analytics and operational tempos must be captured by implementing an optimized information logistics system (OILS) Real-time operational tempos (IT, people and business processes) must be achieved Businesses that can "analyze data and act and with speed" will dominate those t...
If you had a chance to enter on the ground level of the largest e-commerce market in the world – would you? China is the world’s most populated country with the second largest economy and the world’s fastest growing market. It is estimated that by 2018 the Chinese market will be reaching over $30 billion in gaming revenue alone. Admittedly for a foreign company, doing business in China can be challenging. Often changing laws, administrative regulations and the often inscrutable Chinese Interne...
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of companies worldwide-from publishers and broadcasters, to enterprises, marketing agencies and household-name brands. Building on its established design leadership, Adobe enables customers not o...
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...