Domino's, Ford, Kraft Heinz: Stocks That Defined the Week
By Francesca Fontana
Domino's Pizza Inc.
Some U.S. companies are ready to hire but can't find enough
workers. Domino's Pizza is trying to make driver jobs more
attractive in part by getting drivers more deliveries per hour,
while chicken company Pilgrim's Pride Corp. expects to pay out more
than $40 million this year to retain workers and compete for new
ones. Domino's shares rose 3% Thursday.
Kraft Heinz Co.
Kraft Heinz is pouring it on as customers demand more ketchup.
The food giant said on Thursday that it is expanding manufacturing
capacity for some of its best-selling foods, including the coveted
condiment and macaroni and cheese, which remain in high demand a
year into the coronavirus pandemic. Kraft Heinz said its profit and
revenue for the latest quarter topped expectations, as cost cuts
and higher prices offset the effect of higher shipping and
commodity costs. Kraft Heinz shares gained 3.9% Thursday.
DraftKings is betting big on the media business. The digital
sports-betting company agreed to pay at least $50 million over
three years to distribute a popular sports and pop-culture podcast
hosted by former ESPN host Dan Le Batard. DraftKings is looking to
make money on the deal, which was reported Tuesday, by selling
advertising and sublicensing the podcast to radio stations and
other audio providers. The company wagers that radio shows and
sports recaps will drive additional customers to its betting
products. Earlier in April, DraftKings said it hired former Verizon
Communications Inc. executive Brian Angiolet to set the strategy
for its media business. DraftKings shares lost 0.2% Tuesday.
United Parcel Service Inc.
United Parcel Service delivered better-than-expected revenue
despite supply-chain woes.
Small and midsize businesses drove gains in the U.S., outpacing
larger customers' growth rate for the third consecutive quarter.
Chief Executive Carol Tomé, a former Home Depot Inc. finance chief
and longtime UPS board member, is focusing on cutting costs and
reining in spending while raising shipping rates and getting more
business from higher-margin customers such as smaller businesses
and the healthcare industry.UPS, like its rival FedEx Corp., has
been handling a surge in e-commerce orders during the Covid-19
pandemic as customers shop from home. UPS shares rose 10.4%
Ford Motor Co.
Ford expects rough terrain ahead. The auto maker on Wednesday
posted $3.3 billion in net income, its highest quarterly result in
years, but warned the financial toll from the continuing global
computer-chip shortage will likely worsen. The company said the
lack of semiconductors will force it to cut second-quarter
production, but it expects the situation to improve after June. The
chip supply problems are impairing an otherwise favorable backdrop
for Ford to accelerate a turnaround plan from Chief Executive Jim
Farley. Pent-up demand for cars, federal stimulus and continued low
interest rates have driven shoppers back to dealerships in recent
months. Ford shares fell 0.5% Wednesday.
McDonald's customers are flocking to the company's latest
chicken sandwich. The fast food giant said on Thursday that its new
menu items helped it beat sales expectations in the U.S., while
business abroad remained volatile because of shifting Covid-19
restrictions. Sales of new chicken sandwiches introduced in
February are outpacing those of previous versions and beating
expectations despite rising competition, McDonald's said. In recent
months, the company also has introduced meals in collaboration with
celebrities such as the musician Travis Scott and rolled out a
spicy-nuggets promotion to increase sales. McDonald's shares added
Big tech keeps getting bigger. Amazon reported record quarterly
profit Thursday, capping a blockbuster earnings season for the
world's largest technology companies. Profits for the e-commerce
giant in the year since the pandemic started exceeded $26 billion,
more than the previous three years combined. Amazon, Apple Inc.,
Facebook Inc., Alphabet Inc.'s Google and Microsoft Corp. all
reported significant gains in profits and revenue (see B5),
underscoring how the pandemic put them increasingly at the center
of daily life around the world. Amazon shares lost 0.1% Friday.
Write to Francesca Fontana at email@example.com
(END) Dow Jones Newswires
April 30, 2021 18:55 ET (22:55 GMT)
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