Article

Commodities: Domino's, Papa Murphy's win big

It was a storybook ending last week on the stock market for Domino's and Papa Murphy's.

April 30, 2018 by S.A. Whitehead — Food Editor, Net World Media Group

Aside from those dastardly, ever-escalating vehicle fuel prices, the birds are chirping and all is well in pizza-dom after a week marked by stable commodity prices and higher stock values for all four brands monitored by this website. In fact, Domino's and Papa Murphy's likely had a pizza party after the stock market closed Friday to celebrate a terrific trading week that put both brands nicely ahead in value.  

Cheese
Cheese showed a slight bump in value at the close of markets Friday after a relatively flat month of prices. Friday the cost of the commodity closed up 2 cents on the week, ending Friday at $1.62. 

Wheat
Compared to last week, cash bids for wheat were mixed, with all grain markets in the U.S. being pressured by improved worldwide weather forecasts and increased competition in the global market. 

Wheat ranged from 23 3/4 cents lower to 9 cents higher. Kansas City U.S. No. 1 Hard Red Winter, ordinary protein rail bid was 6 1/2 cents higher, from $5.91 3/4-$6.06 3/4 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 4 to 9 cents higher, from $4.73-$4.89 per bushel. Minneapolis and Duluth U.S. No. 1 Dark Northern Spring, 14.0 to 14.5 percent protein rail, was 23 3/4 cents lower at $7.49 1/2 per bushel.  Portland U.S. Soft White wheat rail was steady to 8 cents lower, from $5.72-$5.90 per bushel.

Vehicle fuel 

Natural gas
Natural gas spot prices fell at most locations for the seven-day reporting period ending on Wednesday, April 25. The Henry Hub spot price fell from $2.84 per million British thermal units (MMBtu) to $2.79/MMBtu last Wednesday.

At the New York Mercantile Exchange (Nymex), the May 2018 contract, which expired last week, rose 5 cents, from $2.739/MMBtu to $2.786/MMBtu. Net withdrawals from working gas totaled 18 billion cubic feet (Bcf) for the week ending April 20. Working natural gas stocks are 1,281 Bcf, which is 41 percent lower than the year-ago level and 29 percent lower than the five-year (2013-17) average for this week.

The natural gas plant liquids composite price at Mont Belvieu, Texas, rose by 15 cents, averaging $7.72/MMBtu for the week ending last Wednesday. The price of natural gasoline, propane, butane, and isobutane rose by 2, 2, 4 and 5 percent, respectively. The price of ethane remained flat week over week.

According to Baker Hughes, on April 17, the natural gas rig count remained flat at 192. The number of oil-directed rigs rose by five to 820. The total rig count increased by five, and it now stands at 1,013.

Pizza company stocks
After a glorious Q1 financial report last week, Domino's soared in value for the week, ending Friday at $248.42, $9.49 over the previous week's close. And that follows another week, where the chain's value soared up $8.61, making the overall per-share gain in value over two weeks $18.10. 

Likewise, Papa Murphy's regained its footing in last week's trading after a 48-cent loss in value the previous week. Last week, the brand closed up substantially though at $5.18, from $4.57 at the previous week's close, when it had lost 48 cents in value over the trading week. 

The gains kept coming last week also for Pizza Hut parent, Yum Brands and Papa John's, albeit not as dramatic as those mentioned above. Yum Brands ended trading Friday at $87.05, up 76 cents from the previous week's close and $1.63 over the last two weeks.

Papa John's closed Friday at $62.29, up 67 cents over the previous week.
 

Photo: iStock

About S.A. Whitehead

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Pizza Marketplace and QSRweb editor Shelly Whitehead is a former newspaper and TV reporter with an affinity for telling stories about the people and innovative thinking behind great brands.