Russian Fire for Pizza Stocks

Earlier this week, we heard Dean Foods (DF) bemoaning the pain of higher milk costs. We touched on this yesterday in the Corner of Wall & Main, calling out corroborating indicators from Domino's Pizza (DPZ) and Papa John's (PZZA) and the ripple effect on cereal demand. These are among the many rising input prices that we've seen over the last several months. They make it difficult to own the shares of companies that rely on those inputs. Looking at price charts of Domino's, Papa John's or even recently public take-and-bake pizza company Papa Murphy (FRSH), all of the shares are well off highs put in earlier this year.

I attribute the fall to the impact of rising prices -- wheat and cheese for the pizza companies -- which should not be shocking; food, including cheese costs, and labor represent 50%- 60% of a typical Domino's owned store's sales. A more conservative spending tone on the part of consumers is also hitting these companies. The last three retail sales reports have flubbed, and we've seen a tick higher in the savings rate even though disposable income edged down during the June quarter....382 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.