Food & Beverage

Domino's price pumps up, as pump prices dip down

A bit of happier news related to those recently escalating gasoline prices came to delivery-centered pizza operators this week in the form of slightly lower gas prices.

Investors put some wind in Domino's sails last week in the form of higher stock prices. (Photo: iStock)

June 21, 2021

Despite at least one media outlet, The Manual, pushing Amazon Prime Day shoppers to buy an outdoor pizza oven today and make their own pies, few investors appear to think they'll do so. In fact, trading around pizza restaurant company stocks last week suggests Wall Street is confident consumers will keep letting brands like Domino's and Papa John's do the cooking for the foreseeable future as the value of those two stocks each made nice gains last week.

At Domino's, for instance, investors' purchases of that stock pushed its closing price of that company up $7.23 over the previous week's close to $460.19. Meanwhile, at Papa John's investors increased the value of that stock by $1.26 on the week, to close Friday at $103.84.

That elevating stock price trend failed to materialize for the two other pizza restaurant businesses monitored by Pizza Marketplace. Mixed QSR and pizza restaurant parent company, Yum Brands, posted a loss at Friday's close for the week, falling to $114.64 from the previous Friday's close of $119.65. Finally, Dallas-based Pizza Inn and Pie Five parent, Rave Restaurant Group, dropped one cent over the week to close Friday at $1.42.

Cheese

On the Chicago Mercantile Exchange last week, average prices for cheese over the week trended up, with barrels gaining almost 1 cent, to an average of $1.61 and blocks up 2 cents to $1.50. Barrels closed at $1.54, while 40-pound blocks came in at $1.49.

Nationally, the U.S. Department of Agriculture reported that cheesemakers remain busy, with milk availability at heightened levels, despite temperatures over 90 degrees in most of the Midwest and into triple-digits in parts of the South and Southwest.

Cheese inventory levels vary by plant, but are generally steady to growing. Nonetheless, with barrel prices nearly a dime higher than block prices in the current market, there is some general concern about over all market stability.

Wheat

September Chicago soft red winter wheat futures gained nearly 22 cents to nearly $6.65, while September Minneapolis Grain Exchange spring wheat futures gain nearly 7 cents to $7.63. September Kansas City hard red winter futures rose 20 cents to $6.14, the U.S.D.A. said. The organizations said it expects wheat export totals for 2021/22 in the U.S. to essentially fall 9% under last year's quantity at 24 ½ million metric tons.

Auto fuel

Over last week, the American Automobile Association said that the national average price for a gallon of regular gasoline fell a cent to $3.07, reversing a weeks-long upward trend. In fact, in its latest weekly report, the U.S. Energy Information Administration showed growth in gasoline demand and stocks.

Demand increased from 8.48 million barrels per day (b/d) to 9.36 million b/d, while total domestic gas stocks increased by 2 million barrels(bbl) to 243 million bbl. The increase in total supply, even as gas demand increased, helped to limit pump price fluctuations last week. However, rising crude oil prices could mean higher prices later this month.

Nationally, states that saw the biggest changes in gas prices last week were led by Colorado (up 7 cents), followed by Michigan (up 6 cents), then Montana and Wyoming, which were both up 5 cents.

This morning the national average for a gallon of regular was $3.07, down a cent from a week earlier, but still up 3 cents from last month. Mid-grade fuel ($3.42) and premium ($3.69) were each down a half-cent on the week, but up 4 cents and 5 cents, respectively, on the month.
Diesel today averaged $3.23, up a cent on the week and 4 cents for the month, while E85 came in at an average today of $2.58, even with last week, but 3 cents higher than last month.

Natural gas

Natural gas spot prices rose at most locations for the latest report week ending on June 16, which the U.S. Energy Information Administration said was in response to persistent extreme heat across the western United States and the resulting demand for electric power for air conditioning. The Henry Hub spot price rose from $3.10 per million British thermal units (MMBtu) to $3.17/MMBtu over that period.

The natural gas plant liquids composite price at Mont Belvieu, Texas -- the main pricing and storage hub for hydrocarbon gas liquids on the Gulf Coast -- rose by 20 cents/MMBtu and averaged $8.46/MMBtu for the seven days ending June 16. Ethane prices rose 4% following the rise in natural gas prices at the Houston Ship Channel, which increased 6%. Prices for propane and isobutane both increased by 3% following the 3% increase in Brent crude oil. Normal butane and natural gasoline prices rose 1%.