Smucker Falls Most in Decades, McDonald's Slumps, Circle Declines

On this edition of Stock Movers:

- JM Smucker (SJM) declined the most in nearly four decades after saying US tariffs increasing costs in its coffee business will hurt profit, continuing a challenging run for the biggest US packaged food producers. The company, which owns the Folgers and Cafe Bustelo coffee brands, said adjusted earnings this fiscal year will be as much as $9.50 a share. The impact of higher coffee costs and US levies reduced that forecast by roughly $1 a share, Smucker said. Shares sank as much as 14% on Tuesday in New York, the biggest intraday drop in data compiled by Bloomberg that extends back to 1988. The company generated about a third of its revenue from coffee last fiscal year. It raised prices for the beverage in May. And it expects to boost them again in August. Overall, prices will be up about 20% this year, Smucker said.

- McDonald's (MCD) shares slipped on Tuesday after Redburn Atlantic gave the burger chain its sole sell rating, saying shifting consumer patterns due to weight-loss drugs and inflation are cause for concern. Shares of McDonald’s fell as much as 1.7% in Tuesday trading on the downgrade, a two-notch cut from Redburn’s previous buy rating. Redburn held a buy rating on the stock since initiating coverage in 2023. As more Americans turn to GLP-1 drugs like Ozempic to lose weight, McDonald’s could see as much as a $428 million annual impact to revenue, representing about 1% of system sales, Redburn Atlantic analysts Chris Luyckx and Edward Lewis wrote. “A 1% drag today could easily build to 10% or more over time, particularly for brands skewed toward lower-income consumers or group occasions.”

- Circle (CRCL) shares fell for the first time since the stablecoin firm launched its IPO. Shares initially soared after the company debuted in trading last week, at one point sending the stock 247% above the IPO price.

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