Fast Food Giant Takes on Beef Industry Titans
In a shocking move, McDonald’s has filed a lawsuit against the four largest beef processing companies in the US, accusing them of colluding to drive up beef prices. The fast-food chain claims that Cargill, JBS, National Beef, and Tyson Foods worked together to limit supplies and artificially inflate prices, resulting in significant financial losses for McDonald’s.
The lawsuit alleges that the companies conspired to underpay suppliers for fed cattle and reduce beef output, allowing them to reap higher profits. McDonald’s is seeking triple the damages it suffered as a result of the alleged price fixing, as well as legal costs and a court order to end the “conspiracy.”
In other market news, stocks are rebounding after a recent selloff, led by growth stocks. Lower oil prices are boosting investor sentiment, with WTI and Brent crude down over 4%. The potential for a ceasefire between Israel and Lebanon, combined with a lack of further stimulus for the Chinese economy, has halted the recent rally in oil prices.
PepsiCo is experiencing a choppy trading day after missing earnings estimates and guiding for low single-digit organic revenue growth. The company plans to focus on cost management to navigate the current subdued growth environment.
Citi has maintained its buy rating on Nvidia, citing strong cloud data center capex growth. However, the analyst expects the stock to remain range-bound until the April quarter.
Wells Fargo has shaken up its Signature Picks list, removing Amazon and Constellation Brands and adding Microsoft, AvalonBay, and Vertex Pharma. The firm cited limited visibility into further positive estimate revisions for Amazon, which was downgraded to Equal Weight.
In a separate development, an industry group representing companies that manufacture copycat versions of Eli Lilly’s weight-loss drug tirzepatide has sued the FDA over its decision to declare an end to the drug’s shortage. The group alleges that the FDA’s decision was arbitrary and contrary to law.
Leave a Reply