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The higher prices that food makers have been warning about for months have hit U.S. grocery carts.
Seafood prices are up 18.7%, on average, in the 13-week period that ended April 24, while baked goods such as doughnuts and rolls cost about 7.5% more than in the same period last year, new data from NielsenIQ show. In fact, 50 of the 52 categories tracked by the data provider are more expensive than a year ago, with only butter and milk holding essentially flat while everything around them skyrockets.
Rising commodity costs are partially behind the surging prices, with the Bloomberg Commodity Spot Index which tracks 23 raw materials now at its highest level in almost a decade. Surging transport costs and supply chain disruptions are contributing, too, as is a continued bump in consumer demand as more Americans cook at home.
JD.com. Its revenue grew by 97% year over year in 2020.
But Pinduoduo s share-price climb seems to have run out of steam, despite continued strength for some other tech bellwethers.
Facebook share prices even hit an all-time high last week, underscoring that there s sustained demand among investors for quality tech names. Pinduoduo stock, on the other hand, is now trading down about 37% from its peak in mid-February.
Here s why the company and its stock may have fallen out of favor.
Image source: Getty Images.
3 reasons Pinduoduo stock has tumbled in 2021
Pinduoduo s emergence as a major force in e-commerce has been nothing short of remarkable. In just five short years, it went from an unknown start-up to China s biggest e-commerce platform, with more active buyers than Alibaba. Revenue grew at a stunning rate and hit 59.5 billion yuan ($9.2 billion) in 2020, almost doubling year over year.
“Americans, now that they are increasingly vaccinated, with capacity restrictions being lifted across the country, with good weather, with a strong economy, people are returning to restaurants,” he told Nation’s Restaurant News after the earnings call. “And it s because they want to gather and celebrate community and literally hug each other again, because we haven t done that for 13 months.”
He also said Dine Brands was still shopping for another concept.
Peyton told investors that the improvement in sales at Applebee’s and IHOP also was driven by historically high consumer savings and federal stimulus checks as well as unemployment rates that are at their lowest level since the pandemic started. Sales might be buoyed further if a new federal infrastructure bill is passed, he said.
Operator
Hello, and welcome to the First Quarter 2021 Dine Brands Global Earnings Conference Call. My name is Christian, and I ll be your conference operator today. [Operator Instructions].
I ll now turn the call over to Mr. Ken Diptee, Executive Director of Investor Relations. Sir, you may begin.
Ken Diptee
Executive Director, Investor Relations
Good morning, and welcome to Dine Brands First Quarter 2021 Conference Call. I m joined by John Peyton, CEO; Allison Hall, Interim CFO and Controller; Jay Johns, President of IHOP; and John Cywinski, President of Applebee s. Before I turn the call over to John, please remember our safe harbor regarding forward-looking information. During the call, management may discuss information that is forward-looking and involves known and unknown risks, uncertainties and other factors, which may cause the actual results to be different than those expressed or implied. Please evaluate the forward-looking information in the context of these facto
Bearish
In the last 3 months, 11 analysts have offered 12-month price targets for Dine Brands Global. The company has an average price target of $100.09 with a high of $115.00 and a low of $80.00.
This current average has increased by 9.86% from the previous average price target of $91.11.
What Are Analyst Ratings?
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish analyst ratings for stocks. Analysts typically rate each stock once per quarter.
Analysts may suggest actions like buy , sell , hold , or similar verbage for each stock based on research compiled from the corresponding company. Analysts who suggest buy are telling traders to purchase the stock based on forecasted growth. On the flip side, analysts who suggest sell are telling traders to dump the stock becau