Article

Good news for cheese prices after rough year

Gas prices are down more than a quarter from a month ago.

November 17, 2014 by Alicia Kelso — Editor, QSRWeb.com

Record-high cheese prices have been a burden for pizza operators all year, but they are starting to show some signs of relief. The latter part of last week, prices even dipped below the $2 mark.

During an earnings call this morning, executives from NPC International, Pizza Hut's largest franchisee, said they expect this downward trend to continue in the new year.

"Our confidence is shaken from (prices) this year but there does appear to be good news coming on the cheese front," said CFO Troy Cook.

Here's a glimpse at the market this week.

Cheese

Cheese prices fell nearly 20 cents last week on the Chicago Mercantile, averaging $2.01, from $2.17 the week prior.

Prices were $2.26 three weeks ago.

Last week, cheese closed at $2.18 on Monday, $2 Tuesday, $1.99 Wednesday and $1.94 on Thursday and Friday.

Wheat

Wheat prices, meanwhile, jumped 13 cents last week on the Minneapolis Grain Exchange, averaging $5.74, from $5.61 the week prior.  

Wheat was as low as $5.36 last month.

Last week's prices closed at $5.54 Monday, $5.66 Tuesday, $5.81 Wednesday, $5.84 Thursday and $5.89 on Friday.

Gasoline and diesel fuel

Monday's nationwide average for regular unleaded gasoline is $2.88, another drop from $2.92 the week prior. Gas prices were $3.14 a month ago.

Consumers were paying $3.20 at the pump this time last year, according to AAA and the Oil Price Information Service.

Mid-range unleaded is $3.10 today, while the premium unleaded price is $3.28.

The nationwide average for diesel fuel today is $3.62, down a penny from $3.63 the week prior. Diesel prices are also down from $3.65 a month ago and $3.81 a year ago.

Natural Gas

Spot prices rose at market locations across the country during the report week (Nov. 5-Nov. 12), with significantly colder-than-normal temperatures in many locations. The Henry Hub spot price rose from $3.80 per million British thermal units (MMBtu) Nov. 5 to $4.20/MMBtu Nov. 12.

At the New York Mercantile Exchange (Nymex), the December 2014 contract fell slightly over the week, beginning at $4.194/MMBtu Nov. 5 and ending at $4.185/MMBtu Nov. 12.

Pizza company stocks

Shares in Pizza Hut parent Yum! Brands Inc. closed out last Friday at $75.39, up nearly $2 from the week prior, when the company closed at $73.10. Yum's 52-week high of $83.58 was reached in July. Its low of $65.81 was in early October after its Q3 earnings report that included another China supply chain crisis.

Domino's hit another lifetime high last week, its fourth in a row, at $92.48.  The company closed out Friday at $91.87, from $91.22 the week prior. Its 52-week low was $66.18 a year ago.

Papa John's finished out last week at $50.15, down slightly from $50.49 the week prior. PZZA's 52-week high of $55 was in March. Its low of $37.32 was a year ago.

Pizza Inn closed out last week at $7, up from $6.39 the week prior.The company's 52-week high is $9.09, achieved in November 2013. Its low is $5.38, from March.

Shares in Papa Murphy's closed last week at $8.81, down slightly from $8.92 the week prior. In its eighth month on the NASDAQ, FRSH's high/low is $12.10/$8.08, respectively.

Photo provided by Wikipedia.

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