Just Eat Takeaway.com Down 7% After NYC Council Votes in Favor of Fee Cap
Shares of Grubhub owner Just Eat Takeaway.com NV were recently down 7%, to $17.51, after the New York City Council voted Thursday to make current regulations for food-delivery apps permanent, including a cap on fees.
Other parts of the bill include licensing requirements and a prohibition against listing restaurants without their approval. In 2020, the council passed legislation temporarily prohibiting third-party services from charging restaurants more than 15% per delivery order. Grubhub has said a permanent cap would cause "unprecedented, damaging and long-term consequences" for restaurants, workers and customers.
DoorDash Inc. was down 1%, to $188.30. Uber Eats owner Uber Technologies Inc. rose 0.5%, to $40.83.
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USDA Says Agricultural Exports Will Stay on Record Pace -- Market Talk
1120 ET - The USDA says that agricultural exports in 2021 are on a record-setting pace, which is expected to continue in 2022. According to the USDA, the fiscal year 2021 forecast for exports is $173.5B or 24% higher than the previous year and nearly $17B above the previous record set in 2014. The USDA also says that it forecasts US farm and food exports at a record $177.5B in 2022. These records are driven by higher demand from China, as well as strong demand from Canada and Mexico. "As we work to build back better, exports remain a vital engine spurring growth in the US economy," says Agriculture Secretary Tom Vilsack. CBOT grain futures are lower in trading Friday.(firstname.lastname@example.org; @kirkmaltais)
Food Company Sovos Brands Files for Initial Public Offering
Sovos Brands Inc., filed paperwork for its initial public offering, the latest company seeking to tap the public markets to fuel its growth.
The company behind Rao's Homemade sauces, noosa yogurt and Birch Benders pancake and waffle mixes didn't disclose how many shares it intends to offer to the public or how much it plans to raise in the offering, according to registration documents filed with the Securities and Exchange Commission Friday.
The Louisville, Colo.,-based Sovos plans to list its shares on the Nasdaq Stock Market under the symbol SOVO.
Delivery Hero Can Bolster Quick-Commerce With Gorillas Investment -- Market Talk
0729 GMT - Delivery Hero's intention to invest EUR200 million-EUR400 million in quick-commerce platform Gorillas, reported by German newspaper Manager Magazin on Thursday, would boost its presence in a growing market where the food-delivery company is already one of the largest players, Bryan Garnier says. "Quick commerce can capture tens of billions of euros within the European food market while becoming profitable after a few years even if a consolidation wave will be needed by then," the brokerage says. The minority stake in Gorillas would be an opportunity for Delivery Hero to invest in a pure player active in different geographies and facilitate a potential future acquisition, it says. (email@example.com)
Hog Futures Finish Higher on Supply Questions -- Market Talk
1506 ET - Considerations about hog supply served to lift CME futures today, with the most-active contract closing up 3.2% to 90.725 cents per pound. That makes it 4.7% that hog futures have risen in the past four trading sessions. While US supply of hogs is dipping, supply from Canada isn't -- which may become a source of pressure for futures soon, says Steiner Consulting Group. "Strong productivity growth and higher breeding stock should bolster Canadian pig supplies in the second half of this year, helping offset some of the reduction expected in US hog numbers," says the firm. Meanwhile, live cattle futures closed trading down 0.4% to $1.29125 per pound. (firstname.lastname@example.org; @kirkmaltais)
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