The Invesco S&P 500 Equal Weight Consumer Staples ETF (NYSEMKT:RSPS) and the First Trust Nasdaq Food & Beverage ETF(NASDAQ:FTXG) differ most in cost, portfolio focus, and recent performance -- with RSPS charging lower fees, maintaining a tighter sector tilt, and outpacing FTXG over the past year. Both RSPS and FTXG target the U.S. consumer staples space, but with distinct approaches. RSPS takes an equal-weighted slice of the S&P 500’s consumer staples sector, while FTXG tracks a smart-beta index focused ...

Company Overview - Beyond Meat is a consumer staples company focused on producing pre-packaged meat alternative foods, competing with larger companies like General Mills and Mondelez, but lacks their scale, marketing budget, and manufacturing capabilities [1][2] Market Position and Competition - Beyond Meat is an industry upstart in the meat alternative space, facing competition from other brands with relatively low barriers to entry, where innovation is crucial for success [3][4] Historical Performance - The company experienced significant growth prior to its IPO, with consumer segment sales rising 185% and food service segment sales increasing 312% in its first full year as a public company in 2019, marking the peak of its business performance [4] - However, sales results became mixed in 2020, with declines in foodservice sales both domestically and internationally, and U.S. retail sales struggling in 2021 despite some strength in foodservice [5] - In 2022, Beyond Meat's overall sales rose only 0.4%, indicating a stagnation in growth as positives and negatives offset each other [5][6] Current Status - Beyond Meat's stock has fallen to penny stock status, reflecting a significant decline in consumer enthusiasm and market performance [6]

Core Thesis - The Hershey Company is viewed positively by investors, with a current share price of $185.08 and trailing and forward P/E ratios of 27.67 and 27.70 respectively [1] Group 1: Stock Performance and Turnaround - Hershey's stock performance illustrates the timing of corporate turnarounds, with the author noting a purchase at $189 in November 2023, resulting in a slightly negative position nearly two years later [2] - Significant turnarounds in high-quality businesses typically require about three years, with two years for stabilization and an additional year for course correction [2] Group 2: Market Dynamics and Challenges - The primary disruption for Hershey was a sharp increase in cocoa prices, which created temporary margin pressure, similar to challenges faced by Mondelez [3] - Other companies, like Disney, have experienced longer turnaround cycles, with issues not being addressed until leadership changes occurred [3] Group 3: Investment Timing and Strategy - The key insight is the importance of timing in entering turnaround situations; early investment in Hershey before the market adjusted to cocoa price shocks resulted in capital being tied up [4] - A more strategic entry point could have been around $165 in June 2025, providing immediate upside [4] - Position sizing is crucial; investing in large tranches while the stock was declining exacerbated timing issues [5] Group 4: Fundamental Resilience - Despite challenges, the investment thesis for Hershey remains intact, with easing cocoa pressures and the business regaining stability, approaching breakeven [5] - A previous bullish thesis highlighted Hershey's strong market share, pricing power, and long-term growth potential, with a stock price appreciation of approximately 19.16% since coverage [6]

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Company Outlook - Mondelez lowered its full-year outlook [1] Cost Pressure - High cocoa prices continue to present an obstacle to Mondelez [1] Product Portfolio - The company is the maker of Oreo cookies and Ritz crackers [1]

Group 1: Cocoa Price Movements - Cocoa prices closed lower on Friday, with December ICE NY cocoa down 1.43% and December ICE London cocoa down 1.73% [1][2] - The decline in cocoa prices was influenced by a stronger dollar, leading to long liquidation in cocoa futures [2] - Cocoa prices had previously reached one-week highs due to weather concerns in West Africa, including heavy rain in the Ivory Coast and dryness in Ghana and Nigeria [2][4] Group 2: Supply and Demand Factors - Tighter cocoa inventories are supportive for prices, with ICE-monitored cocoa inventories in US ports falling to a 4.25-month low of 2,092,823 bags [4] - The Ivory Coast's cocoa exports showed a 5.8% increase year-on-year, but this was a slowdown compared to a previous 35% increase [4] - Weak global cocoa demand has negatively impacted prices, with significant declines in cocoa grindings reported in Europe, Asia, and North America [10] Group 3: Crop Conditions and Quality - Optimism about this year's cocoa crop harvest in West Africa is present, with a cocoa pod count reported to be 7% above the five-year average [6] - Quality concerns regarding the Ivory Coast's mid-crop cocoa are supportive of prices, with a projected decline of 9% in this year's mid-crop compared to last year [8] - Ghana's projected cocoa production for 2025/26 is expected to increase by 8.3%, which may exert bearish pressure on cocoa prices [11] Group 4: Global Cocoa Deficit and Future Projections - The International Cocoa Organization revised its 2023/24 global cocoa deficit to -494,000 MT, the largest deficit in over 60 years [12] - A forecasted global cocoa surplus of 142,000 MT for 2024/25 marks the first surplus in four years, with production expected to rise by 7.8% year-on-year [12]

Cocoa Prices and Market Dynamics - Cocoa prices are currently rising, with December ICE NY cocoa up by 0.88% and December ICE London cocoa up by 1.45%, driven by weather concerns in West Africa [1] - Heavy rainfall in the Ivory Coast has hindered farmers' access to cocoa fields, while dryness in Ghana and Nigeria has negatively impacted crop health [1] - Tighter cocoa inventories in the US, which have fallen to a 3.75-month low of 2,123,868 bags, are also supporting price increases [3] Supply and Demand Factors - Cocoa prices had previously dropped to 1.5-month lows due to expectations of increased supply amid weakening demand, with notable declines in chocolate sales reported by major companies [4] - Optimism regarding this year's cocoa crop harvest in West Africa is present, with a cocoa pod count reported to be 7% above the five-year average [5] - The pace of cocoa exports from the Ivory Coast has slowed, with shipments reported at 1.81 million metric tons, a 5.8% increase from last year but lower than previous months [7] Quality and Production Concerns - Quality issues with the Ivory Coast's mid-crop cocoa, attributed to late rain, are contributing to price support, with an estimated mid-crop of 400,000 metric tons, down 9% from last year [8] - Nigeria's cocoa production is projected to decline by 11% year-on-year to 305,000 metric tons for the 2025/25 crop year, which may also support cocoa prices [9] Global Demand Trends - Weakness in global cocoa demand has been a bearish factor, with significant declines in cocoa grindings reported in Europe (-7.2%), Asia (-16.3%), and North America (-2.8%) [10] - Ghana's projected increase in cocoa production by 8.3% year-on-year to 650,000 metric tons for the 2025/26 crop year may exert downward pressure on cocoa prices [11] Global Cocoa Market Outlook - The International Cocoa Organization has revised its 2023/24 global cocoa deficit to 494,000 metric tons, the largest in over 60 years, while forecasting a surplus of 142,000 metric tons for 2024/25 [12]

Core Viewpoint - Kraft Heinz is planning to split into two publicly traded entities by the latter half of 2026, reversing the 2015 merger, which has been criticized for its poor performance [2][3] Group 1: Industry Context - The spin-off reflects challenges in the packaged food industry, including stagnant demand, changing consumer preferences, and increased competition from private labels [3] - The stock price saw minimal change, increasing by only 1% in pre-market trading, while shares have decreased by 21% over the past year, indicating skepticism from investors [3] Group 2: Company Structure Post-Split - The new structure will consist of Global Taste Elevation Co., which includes higher-growth brands like Heinz and Kraft Mac & Cheese, and North American Grocery Co., focusing on U.S. staples like Oscar Mayer and Kraft Singles [4] - Pre-split, Kraft Heinz was trading at approximately 1.3× sales, lower than competitors like Mondelez (2.3×) and Kellanova (2.2×), but slightly above Conagra (1.0×) and Campbell Soup (1.1×) [5] Group 3: Financial Projections - Management anticipates a 60/40 revenue split between the two new entities, projecting Global Taste to generate around $16 billion and North American Grocery about $11 billion based on a 2024 run rate of $27 billion [6][7] - If Global Taste achieves Mondelez-like multiples of 2.0–2.3× revenue, its market cap could reach $32–$36.8 billion, while North American Grocery might trade at 1.0–1.1×, resulting in a combined value of $43–$49 billion, compared to Kraft Heinz's current valuation of $33 billion [7] Group 4: Market Considerations - The market typically does not assign top-tier multiples to both halves of a breakup; if Global Taste trades at 1.6–1.8× and North American Grocery at 1.0×, the total value could drop to $37–$40 billion [8] - The success of the split hinges on the ability of both companies to achieve consistent growth and restore investor confidence, with proponents viewing it as a chance for independent valuation and skeptics fearing it may expose deeper structural issues [9]

And right now we are 2 minutes away from the end of the trading day. Romaine Bostick here with Scarlet Fu taking you through to that closing bell with a global simulcast. Carol Massar and Tim Stenovec Join us from the radio booth.Welcome to our audiences across all of our Bloomberg platforms, including our partnership with YouTube. A rare down day for the S&P 500 after six straight record highs. A bit of a pullback today, down 3/10 of 1%.Yeah, it's like we're waiting for something, maybe a Fed meeting or ma ...

Mondelez posted quarterly results that topped estimates, but reiterated its annual outlook https://t.co/LPNB6k8rDg ...