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Pizza trading: Soaring Domino's settles, Rave recedes

While the news wasn't great for Domino's and Rave Restaurant Group, Pizza Hut parent, Yum Brands, and Papa John's reported gains over last week's trading activity.

Image: iStock

July 20, 2020 by S.A. Whitehead — Food Editor, Net World Media Group

In pizza restaurant brand trading last week, Domino's soaring value of the previous week, settled back down to reality last week, while the value of the ailing Pizza Inn and Pie Five parent, Rave Restaurant Group, continued to falter, bringing that company ever closer to the threat of delisting.

After hitting an all-time high of $398.31 per week earlier following its positive Q2 2020 earnings report, Ann Arbor, Michigan-based Domino's Pizza Inc. floated back down $8.09 over trading last week to close Friday at $390.22.

That brand's biggest competitors in Papa John's International Inc. and Pizza Hut parent, Yum Brands Inc., however, made nice gains. Papa John's added $2.93 in value over the week's buying and selling to close Friday at $91.73.

Yum Brands traders also smiled on the company, raising its value $1.77 over the week to finish off Friday at $90.57.

Dallas-based Rave Restaurant Group's closing price, howver, dropped to yet another all-time low of 65 cents Friday, down 4 cents from the previous week.

As previously reported, Nasdaq ltwo weeks ago told Rave Restaurant Group that based on its most recent quarterly report for the period that ended March 29 it was no longer complying with Nasdaq's continued listing standard for minimum stockholders' equity of at least $2.5 million. The company now has about three weeks (until Aug. 14) to release a plan to regain compliance, which would then buy the company another 180 days to comply with the listing standard.

Cheese

On cheese markets, barrels closed at $2.43, while 40-pound came in at $2.66 on Friday in Chicago, according to the U.S. Department of Agriculture. The weekly average for barrels gained 4 cents over the week to average $2.42, while blocks gain a nickel to average $2.83.

After falling to $1 amid the early COVID19 closures, block cheese prices tripled in value to $3 Monday at the close in Chicago. But that value didn't hold, as block prices slid further down to something nearer the barrel prices last week.

Cheese demand remains strong, according to the U.S.D.A, though Midwestern cheese makers tell the department that as market prices peak, their customers are buying in a "hand-to-mouth" fashion. Active production is reported nationally, with barrels proving a bit more available than blocks across the country.

Wheat

After reports that China might purchase U.S. soft red winter wheat early in the week stirred up some action in the wheat markets, pricing for the commodity regained its footing and trended fairly even with previous weeks last week. Wheat prices ended up mixed Friday, but mostly lower.

September Chicago soft red winter futures fell a quarter to $5.35, while Kansas City hard red winter futures dropped 3 cents to close at $4.49 and Minneapolis hard red spring wheat futures dropped 13 cents to $5.13 a bushel, the U.S.D.A. reported.

According to the U.S.D.A., 68% of the country's total winter wheat area was harvested by July 13. is harvested. U.S. spring wheat was rated down slightly to 68% good to excellent, while North Dakota remained at 61% good to excellent. In Minnesota and Montana, spring wheat rating dropped with Minnesota coming in at 76% good to excellent and Montana registering 79% good to excellent.

U.S. spring wheat ratings this week fell several points to 68% good to excellent. Total crop ratings in North Dakota remained the same at 61% good to excellent. Minnesota spring wheat ratings fell slightly to 76% good to excellent. In Montana, spring wheat rated as good to excellent decreased 3 points to 79%.

Auto fuel

Last week, the national average for a gallon of regular unleaded gasoline bumped up a penny to $2.20, which is a dime more than what we paid last month at this time, but still 59 cents less than last year, according to the American Automobile Association. The U.S. Energy Information Administration reported that total domestic gasoline supplies fell by 3.1 million barrels (bbl) last week, bringing the current level to 248.5 million bbl. Last week, demand for gas fell slightly from 8.77 million barrels a day (b/d) to 8.65 million b/d.

Domestic crude prices fell after the administration's weekly report showed total domestic crude inventories dropped by 7.5 million bbl to 531.7 million bbl. AAA said that decreasing crude stocks could mean that crude production is beginning to meet demand. That, in turn, could reduce price volatility, as COVID-19 outbreaks continue to grow worldwide.

This morning, the national average for a gallon of regular unleaded was $2.20, even with last week, but up 7 cents from last month. Mid-grade ($2.54) and premium ($2.80) followed that same trend. Diesel today averaged $2.43, down a cent from last week and even with last month. E85 came in today at $1.99, a nickel lower than last week, but still 4 cents higher than last month.

In the past week, the highest increase in the average price paid for gas occurred in Delaware, where prices increased 7 cents on the week, followed by a 5-cent boost in New Mexico and Maryland. Finally, prices increased 4 cents a gallon on average in the states of Missouri, Indiana and Washington.

Natural gas

Natural gas spot prices fell at most locations for the most recent week reported that ended on July 15. The Henry Hub spot price fell from $1.79 per million British thermal units (MMBtu) to $1.71/MMBtu over that period, the U.S. Energy Information Administration said.

At the New York Mercantile Exchange, the price of the August 2020 contract decreased 5 cents, from $1.82/MMBtu to $1.78/MMBtu, while the price of the 12-month strip, averaging August 2020 through July 2021 futures contracts, declined 2 cent/MMBtu to $2.42/MMBtu.

The natural gas plant liquids composite price at Mont Belvieu, Texas, rose by 23 cents/MMBtu, averaging $4.78/MMBtu for the week. The prices of natural gasoline, ethane, isobutane, propane, and butane all rose, by 12%, 8%, 7%, 2%, and 1%, respectively.

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.