Two businesses that had good things happen on Wall Street Monday were a shoe company and a foods company, which are very opposite. Both saw the values of their stocks increase because of positive occurrences.
Shares of Steve Madden Ltd., which is headquartered in Long Island City, N.Y., saw an increase on Monday equaling about 3.7 percent or $1.96. This increase was after two Goldman Sachs analysts upgraded their rating of the company’s stock. Stock settled at $55.27 per share.
The footwear company was founded by Steve Madden, who is a New York native. Named Company of the Year for 2006 at the Footwear News Achievement Awards in New York City, the company offers a variety of apparel and home products. Founded in 1990, the company has revenue estimated to be a $431 million annually.
Tyson Foods, which is the nation’s largest meat producer, saw stocks increase 4.1 percent, reaching $29.69 after it announced that is profits for last quarter more than tripled. Founded in 1931, Tyson Foods is headquartered in Springdale, Ark.
Experts indicated the high profits were due in part to an increase in chicken sales as well as an increase in chicken prices. Pork and beef have traded near record levels in recent months, so people have once again turned to chicken, which is viewed as the cheaper protein. At the same time, the chicken supply has been limited because of an Avian Flu outbreak in Mexico that caused the need for new hens to repopulate Mexican farms, thus the end result has been chicken prices have gone up.
Tyson has said the company has no more capacity for hens, and they don’t anticipate any changes in that aspect in the near future. Swings in chicken prices have also affected many family run operations, putting numerous chicken farms out of operation. The end result has been an increase in chicken prices, which has been beneficial for Tyson Foods.
A decline in corn prices will result in $500 million less being spent on chicken feed through September 2014, according to reports. While some of those savings will benefit customers, those figures will account for approximately 4 percent of chicken revenue and will offer a decent buffer against any upcoming price declines so experts believe Tyson Foods is safe and will continue to see profits through the remainder of the year.
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