Avocado Prices & Extend Hours
Inflation relief for CMG, will they pass it on to the consumer? CVGW commentary on avocado prices.
"We expect Grown volume to rebound in 2023, as various industry sources estimate the Mexican avocado crop to be 10% to 20% larger in 2023. Additionally, Jalisco fruit will be available for export to the United States for the entire season. With the current supply estimates, we also expect pricing on a per unit basis to be less in 2023 than in 2022."
"Gross gross profit fell sequentially as avocado volume declined about 2% and we manageds the business for margin during the quarter amid still challenging supply demand conditions for most of the quarter. With the Peruvian season in full swing and new crop Mexican harvest hitting the market, avocado prices fell sharply from Q3 levels down about 45% for the quarter. Profit per carton decline from Q3 and averaged below our targeted range for the quarter, but began to recover in October as the Peruvian supply tapered off."
A number of Reddit threads suggest that CMG will be extending its hours of closing from 10 PM to 11 PM. Does CMG need the extra SSS in 2023? Will the extra hour add to profitability and margin improvement?
A very surprising survey from CivicScience
We are LONG DPZ but not for these reasons.
About a third of Domino's diners think their financial situation will improve in the next six months, which is on par with the national average. Similarly, 30% think the overall U.S. economy will improve, although that increased significantly from the prior month. Diners at both establishments are more confident in the job and housing markets than the average consumer. While just one-in-five Domino's customers think it's a good time to make a major purchase, this is more than two times higher than the average U.S. consumer. As inflation is easing ever so slightly, price sensitivity among Domino's diners was down from the prior month, as were those that say they are being careful about their spending. Seasonality is likely a contributing factor here, with holiday spending in full swing. Domino's diners skew slightly higher than both the national average and Pizza Hut diners on the CivicScience Consumer Financial Health Index. Their outlook on having a higher income and more investments is the current driver for this distinction.
