Beyond Meat “Beyond Burger” patties made from plant-based substitutes for meat products sit on a shelf for sale on November 15, 2019 in New York City. Vegetarian alternatives to burgers and sausages, revived by start-ups like Beyond Meat and Impossible Burger, are enjoying a certain enthusiasm that meat giants also want to enjoy.
ANGELA WEISS | AFP | Getty Images
Check out the companies making headlines in midday trading.
Disney — Shares of the media giant ticked up 2% despite reporting weaker-than-expected earnings and suspending its dividend. The company also said operating income dropped 58% from Disney’s theme parks and cruise businesses disrupted by the coronavirus. The company saw strong engagement on its newly-launched streaming service, Disney+.
Wendy’s — Shares of the fast-food chain surged more than 6% after the company reported that its U.S. sales are turning around from the crippling loss of business during coronavirus shutdowns. After plunging in March and the first two weeks of April, the company’s U.S. same-stores sales fell only 2.1% last week.
Beyond Meat — Beyond Meat stock rocketed 19% after the company reported Monday evening that sales more than doubled in the first quarter thanks to newfound demand from its partners and retailers looking to bulk up on alternative meats. The plant-based meat producer also reported net profit of $1.8 million, or 3 cents per share, compared with a net loss of $6.6 million, or 95 cents per share, one year ago. Sales at its U.S. food service channel rose 156% to $22.6 million in the first quarter.
General Motors — Shares of General Motors gained more than 4% after the largest U.S. automaker said it eked out a $294 million profit for the first quarter despite the fallout from the coronavirus pandemic that has shuttered factories and devastated sales. GM’s pretax earnings per share was 62 cents per share, topping Wall Street projections of 30 cents earnings per share, based on Refinitiv consensus estimates.
CVS Health — Shares of CVS rose more than 2.2% in midday trading after the pharmacy retailer reported a spike in sales in the first quarter as consumers rushed to stock up on provisions and prescriptions during the Covid-19 pandemic. CVS CEO Larry Merlo said that the company is in an unusual position among retailers amid the outbreak because it makes a significant portion of its revenues from medications and other health-care goods.
Uber — Shares slid more than 1% after the ride-hailing company announced a number of cost-cutting measures, including layoffs for about 14% of its 26,900 employees. The stock has tumbled 26% in the last three months as people stay home amid the coronavirus pandemic.
FLIR Systems — Shares of FLIR Systems popped more than 9%, the best performer in the S&P 500 as of midday, after the commercial company reported earnings that matched expectations. The company earned 42 cents per share in the first quarter, in line with FactSet estimates. Revenue came in slightly higher than expectations.
Activision Blizzard — Shares jumped more than 5% after the company beat top and bottom line estimates in the first quarter. The company said it saw better-than-expected results from key franchises “as populations sheltering at home turned to our content for entertainment and social connection.”
Nordstom — Shares of the retailer fell 2.7% after the company announced that it would permanently close 16 of its stores. Nordstrom also announced other restructurings that it said will save $150 million. The stock is down more than 58% for the year as retail stores are still completely closed in many parts of the United States due to the pandemic.
Mattel — The toy stock slid more than 5% after the company missed Wall Street expectations on the top and bottom lines for its first quarter. Mattel reported a loss of 56 cents per share on $594 million in revenue. Analysts expected a 41 cent loss and $653 million in revenue, according to Refinitiv. The company’s net sales were down 14% compared with the same period last year, and it withdrew its guidance for 2020.
CNBC’s Jesse Pound, Pippa Stevens, Maggie Fitzgerald and Thomas Franck contributed reporting.
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