Latest China supply crisis hits Yum! Brands stock hard

Aug. 4, 2014 | by Alicia Kelso

The entire stock market took a bit of a hit last week, but few companies were affected as deeply as Yum! Brands after that company fights another chicken supply chain crisis in China, its largest market.

Wheat prices continued to fall last week and are down more than 50 cents than it was last month. Gas prices also continued to tumble despite geopolitical tensions, driven by an abundance in refinery production.

Here's a glimpse at the market this week:


Cheese prices held steady-ish for a second week in a row, averaging $1.99 on the Chicago Mercantile, from $2 the previous two weeks.

Last week’s prices closed at $1.97 Monday, $1.98 Tuesday, $1.97 Wednesday and Thursday, and $2.06 on Friday.


The cost of wheat continued to fall last week on the Minneapolis Grain Exchange, averaging $6.15, from $6.21 the week prior. Three weeks ago, wheat was $6.65.

Prices were near the $8 mark last quarter and around $6.02 in the beginning of the year.

Last week, prices closed at $6.21 Monday, $6.10 Tuesday, $6.12 Wednesday, and $6.16 on Thursday and Friday.

Gasoline and diesel fuel

The nationwide average price for regular unleaded fuel is down to $3.50, another drop from the previous week, when gas was $3.52. According to the AAA and the Oil Price Information Service, prices a month ago were $3.66.

Last year at this time, consumers were paying $3.61 at the pump.

Today's mid-range unleaded is $3.70, down from $3.71 the week prior. Premium gas is $3.87, from $3.88.

Diesel fuel prices are averaging $3.83, down a penny from $3.84 the week prior. The price of diesel fuel was $3.90 a month ago, and $3.88 a year ago.

Natural Gas

Natural gas prices generally fell at most market locations this report week (July 23—July 30). The Henry Hub spot price declined from $3.79 per million British thermal units (MMBtu) July 23 to $3.76/MMBtu July 30.

At the New York Mercantile Exchange (Nymex), the August 2014 contract began the report week on July 23 at $3.762/MMBtu. September took over as the front-month contract July 30, supplanting the August contract, which settled at expiration on July 29 at $3.808/MMBtu. The September futures contract closed at $3.786/MMBtu July 30. The price of the 12-month strip increased, from $3.855/MMBtu July 23 to $3.863/MMBtu July 30.

Pizza company stocks

Shares of Pizza Hut parent Yum! Brands Inc. closed out last week at $69.40, from $73.84 the week prior and $82.47 three weeks ago. The company has been hit hard by another supply chain crisis in China, its largest market. Yum! hit its 52-week high last month, at $83.58. Its 52-week low was a year ago at $64.08.

Domino's finished last week at $72.00, from $74.61 the week prior after the company’s positive Q2 earnings report. DPZ hit a new lifetime high in March, at $80.61. The company’s 52-week low was $60.86 a year ago.

Papa John's shares finished last week at $41.69, down from $44.24 the week prior. PZZA hit its 52-week high in March at $55. Its low of $32.99 was a year ago.

Pizza Inn Holdings closed out last week at $7.47, down slightly from $7.51 the week prior. The company’s 52-week high was $9.09 a year ago. Its low was $5.38, also a year ago.

Papa Murphy's closed out Friday at $8.24, down from $8.99 the week prior. In its fourth month on the NASDAQ, FRSH’s high/low is $12.10 and $8.08, respectively. Its low was last week.

Photo provided by Wikipedia.

Topics: Cheese, Domino's Pizza, Equipment & Supplies, Food Cost Management, Operations Management, Papa John's, Papa Murphy's Take 'N' Bake Pizza, Pizza Hut, Pizza Inn

Alicia Kelso
Alicia has been a professional journalist for 15 years. Her work with, and has been featured in publications around the world, including NPR, Good Morning America, Voice of Russia radio, and Franchise Asia magazine. View Alicia Kelso's profile on LinkedIn

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