Even so, second-quarter sales of the Omaha-based food maker fell short of estimates.
ConAgra said the US$2.7 billion sale of its private-label operations to TreeHouse Foods was on track and expected to close in the first quarter of calendar year 2016. The spinoff of its Lamb Weston business is expected to close in Autumn of next year.
“In our branded business we achieved our objective of delivering strong margin expansion by continuing to focus on price/mix, productivity, and portfolio segmentation,” Sean Connolly, chief executive of ConAgra, said in a statement. “At Lamb Weston, we continued to generate good growth, particularly in our international business.”
“We’re encouraged by the progress we’re seeing in advance of separating into two independent pure-play companies,” added Connolly.
McDonald’s Japan on the chopping block
Shares of McDonald’s Holdings Co (Japan) tumbled 7.9% in Tokyo after the Nikkei newspaper reported its US parent plans to cut its stake in the operator of the McDonald’s chain in Japan, which has sunk into losses thanks to a flurry of food safety scandals.
McDonald’s Corp is seeking to sell between 15-33% of McDonald’s Holdings Co (Japan)’s outstanding shares, Nikkei reported, without citing sources. A McDonald’s executive has met five or so potential buyers including trading houses and investment funds.
Cattle futures prolong surge on US cattle report
Cattle futures climbed the most in six years, extending a rally after the US Department of Agriculture's Cattle-On-Feed report on Friday showed farmers moved a record-low number of cattle into feedlots in November.
Cattle futures for February delivery jumped 3.6% to US$1.30025/lb on the Chicago Mercantile Exchange on Monday. In the past year prices have dropped more than 20% from record highs to hit the lowest level in more than two years last Thursday.
Wet, cold weather in US Plains states including Kansas and Nebraska probably led to skinnier cattle, Steve Wagner, a market analyst at CHS Hedging in Inver Grove Heights, Minnesota, said.
