Article

Commodities: Pizza stocks improving

Overall, it was not a bad week for pizza restaurateurs on the market. While cheese and wheat prices continued to rise, that was offset last week by falling fuel prices nationally. Meanwhile, pizza stocks made healthy gains across the board.

July 11, 2016 by S.A. Whitehead — Food Editor, Net World Media Group

Overall, last week was a break-even week on the commodities market for pizza restaurateurs. While cheese and wheat prices continued to rise, that was offset last week by falling fuel prices nationally. Meanwhile, many pizza stocks made healthy gains last week across the board. 
 

Cheese
Cheese prices continued to rise, but only slightly last week when prices closed at $1.63 Friday, up only half a cent from the previous week's close. But two weeks ago, prices were 12 cents lower, closing on June 24 at $1.51. 

Wheat
Wheat prices closed up for the week at $4.98 on Friday, an increase of 9 cents from the previous Friday's close, when the price of wheat was declining overall. 

Gasoline and diesel fuel
The current average price for a gallon of regular nationwide is $2.23, down slightly from a week ago when it was $2.27, and substantially from a month ago when it was $2.38, as well as a year ago when it was $2.76. Mid-grade gas was down to $2.50 a gallon, compared with $2.54 a week ago, $2.62 a month ago and $2.98 last year. Premium gas was $2.74 on average, down slightly from $2.77 a week ago and $2.85 a month ago. Last year, premium was going for $3.17 on average nationally. Finally, diesel fuel remained at $2.37, the same as it has been since last month, but down substantially from the price last year, which was $2.82 a gallon. 

Natural gas
Natural gas spot prices fell at most locations for the reporting period of Wednesday, June 29, to Wednesday, July 6. The Henry Hub spot price ended five weeks of increases, falling by 18 cents from $2.93/MMBtu last Wednesday to $2.75/MMBtu. At the New York Mercantile Exchange, the August 2016 contract also declined, falling from $2.863/MMBtu last Wednesday to $2.786/MMBtu yesterday.

Net injections to working gas totaled 39 billion cubic feet (Bcf) for the week ending July 1. Working gas stocks are 3,179 Bcf, which is 20 percent above the year-ago level and 23 percent above the five-year (2011-15) average for this week.

According to Baker Hughes, for the week ending Friday, July 1, the natural gas rig count declined by 1 to 89. Oil-directed rigs increased by 11 to 341, the largest weekly increase in the rig count since December 2015. The total rig count increased by 10 over the week.

The natural gas plant liquids composite price at Mont Belvieu, Texas, rose by 3 cents, closing at $5.41/MMBtu for the week ending July 1. The price of natural gasoline fell 2 percent, but the prices of all of the other natural gas liquids products rose. Propane and isobutane each rose by 1 percent, and butane and ethane rose by 2 percent.
This report week (Wednesday, June 29, to Wednesday, July 6), the Henry Hub spot price fell 18 cents from $2.93/MMBtu last Wednesday to $2.75/MMBtu yesterday. At the Chicago Citygate, prices fell 19 cents from $2.86/MMBtu last Wednesday to $2.67/MMBtu yesterday. Prices at PG&E Citygate in California fell 60 cents from $3.26/MMBtu last Wednesday to $2.66/MMBtu yesterday. Prices fell in California as temperatures moderated.

Pizza company stocks

Shares in Pizza Hut parent Yum! Brands Inc. closed Friday at $85.76, up $1.45 cents from the previous close of $84.31.  
Domino's was up substantially to $135.11, which was also up substantially from the previous close at $133.86.
Meanwhile, Papa John's rose 88 cents to $68.48 and Papa Murphy's rose 7 cents to $7.16. 

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.