Consumer Sector Update for 01/17/2018: FAT,TIF,DAN,F


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Top Consumer Stocks

WMT +1.95%

MCD +0.82%

DIS +1.19%

CVS -0.04%

KO +0.76%

Consumer stocks were broadly higher, with shares of consumer staples companies in the S&P 500 adding more than 1.2% while shares of consumer discretionary firms in the S&P 500 were posting a slightly more than 0.6% gain.

In industry news:

Same-store sales during the week ended Jan. 13 rose 2.6% over year-ago levels, extending the deceleration in growth to a third week, according to the Redbook survey of larger chain retailers. Last week’s rise was the slowest rate since Nov. 11. Sales so far during January were down 0.3% compared with the same period in December, marking the first negative reading for that metric in four weeks.

Among consumer stocks moving on news:

Fat Brands Inc. ( FAT ) shares were slimming down in late Wednesday trading after the restaurant franchisor announced plans to sell up to $50 million of its non-convertible preferred stock and using the proceeds to buy the Hurricane Grill & Wings chain and repay existing debt. The company expects to offer up to 5,000 units at $10,000 apiece, with each unit consisting of 100 shares of preferred Stock plus three-year warrants to purchase another 185 shares at $18 per share.

In other sector news:

+ Tiffany & Co. ( TIF ) climbed to a new record high after the jewelry and specialty retailer Wednesday raised its FY17 guidance following an 8% increase in global net sales during the two months ended Dec. 31 compared with year-ago levels. The company is now expecting net sales last year to rise about 4% over FY16, up from its prior forecast expecting growth in the low single percentage digits. It also increased the outlook for adjusted FY17 per-share earnings to $3.75.

+ Dana ( DAN ) rose Wednesday after the auto-parts company increased its quarterly cash dividend by 66.7% over its most recent distribution to $0.10 per share and authorized a new, $100 mln stock buyback program. It also reported a preliminary 24% rise in FY17 sales to $7.2 bln, topping the $7.14 bln consensus call. Its preliminary call for FY17 EBITDA was $835 mln, roughly in-line with the $837.4 mln Street view.

– Ford Motor Company ( F ) fell after the automaker issued preliminary adjusted FY17 net income of $1.45 to $1.70 per share, straddling the Capital IQ consensus expecting $1.59 per share. It also kept its Q1 regular and supplemental dividends unchanged at $0.15 and $0.13 per share, respectively.

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