Restaurants/Pubs

Starbucks strike is a union buzzkill

16 Nov 2023

Baristas at 200 stores will walk out during the $118 bln chain’s “Red Cup” promotion. It’s bold given the state of organized labor, but threatens little impact. A coffee shutdown just isn’t as disruptive as freezing capital-intensive, lengthy production cycles for cars or movies.

Capital Calls: McDonald’s resilience

30 Oct 2023

Concise views on global finance: The Golden Arches’ global same-store sales rose 9% thanks to both selective menu-price increases and smaller meals in different markets. It demonstrates the company’s ability to keep pace with disparate economies’ stretched consumers.

Apollo may get noodle LBO thrown back in its face

12 Oct 2023

The buyout group could gobble up the UK-listed owner of the Wagamama chain for $862 mln. It looks like a good deal for the acquirer. Apollo’s decision to drop its John Wood takeover this year shows it’s no soft touch, but investors can still hold out for a better dish.

Capital Calls: Deliveroo

14 Sep 2023

Concise views on global finance: The UK food delivery company’s shares rose 5% amid hopes of a potential deal, but a rich takeout looks unlikely.

Capital Calls: Virgin Galactic

16 Jun 2023

Concise views on global finance: Shares of Richard Branson’s space tourism company rocketed 30% higher on news it would launch its first commercial flight in two weeks. The customer demand required alongside competition from Elon Musk and Jeff Bezos make the valuation a moonshot.

Pricey services are weary ratesetters’ last battle

1 Jun 2023

The rising costs of flights, restaurants and concerts are hampering central bank efforts to drag consumer price inflation back down to 2%. In the US the post-pandemic consumption boom is fading. In Europe and the UK, though, higher wages are prolonging the fight.

Chipotle’s burrito spat heats up restaurant wars

6 Apr 2023

The US fast-casual eatery sued rival salad chain Sweetgreen for trademark infringement over its signature chicken bowl. Although the fight ended amicably, it demonstrates the lengths to which scrappy restaurant operators will go to chase consumer dollars, and what’s at stake.

Capital Calls: Nike, Stablecoins, Meme stocks

22 Mar 2023

Concise views on global finance: The Air Jordan maker grew quarterly revenue 14% despite inventory woes and China’s slow reopening; diverging demand for Circle and Tether cryptocurrencies raises questions about how investors are assessing risk; and GameStop’s shares surged 40%.

Supersized restaurant valuation gaps due to shrink

21 Feb 2023

As fears of an economic slump persist, consumers may swap Chipotle and its peers for cheaper fare served up by the likes of Taco Bell. Higher labor and ingredient costs are squeezing all eateries, but the premium investors pay for ones higher on the food chain looks overcooked.

Capital Calls: McDonald’s, Spotify

31 Jan 2023

Concise views on global finance: The burger chain’s comparable sales growth despite rising prices proves there’s pricing power at the bottom of the market; shares in the $21 bln music-streaming service leapt after founder Daniel Ek unveiled rapid subscriber growth.

Capital Calls: Rio Tinto, Grocery delivery M&A

9 Dec 2022

Concise views on global finance: After a shambolic process, the $118 bln miner has succeeded in buying out the 49% of Turquoise Hill Resources it doesn’t own; Turkish grocery delivery player Getir gobbles up German rival Gorillas for $1.2 bln.

Capital Calls: Cineworld needed AMC’s apes

19 Aug 2022

Concise views on global finance: The U.K.-based cinema chain is preparing for bankruptcy, according to the Wall Street Journal, while similarly debt-beleaguered AMC is still standing – an object lesson in the power of becoming a favorite of retail traders.

Food delivery’s next gig is software-as-a-service

10 Aug 2022

As demand for takeaways slows, $28 bln DoorDash and rivals are searching for new sources of revenue. One option is to sell their tech to food retailers. But that assumes others can make a bigger success of a business model that has struggled for profitability.

McDonald’s serves nuggets of inflationary insight

26 Jul 2022

Same-store sales rose nearly 10% in the second quarter. Rising menu prices have also yet to deter customers, suggesting the Golden Arches has still managed to hang on to recession-proof qualities. If customers keep trading down, however, that balance will be harder to strike.

Benettons swap motorway power for airport clout

11 Jul 2022

The Italian tycoons will exchange their stake in road and airport caterer Autogrill for at least 20% of duty-free player Dufry, without getting a premium. The combined $5.6 bln group is a bet on long-distance travel recovering. Other investors must decide whether to hop on board.

Capital Calls: Amazon/Just Eat Takeaway

6 Jul 2022

Concise views on global finance: The $1.2 trillion e-commerce giant is reprising its deal offering Prime subscribers membership of UK food delivery outfit Deliveroo with the U.S. arm of its $3 billion Dutch rival.

AB InBev’s low-alcohol miss has sobering effect

27 May 2022

The world’s biggest brewer wants 20% of its beer volume in 2025 to contain little or no alcohol. Hitting the booze-free target requires unlikely growth of 30% a year. That puts a dampener on CEO Michel Doukeris’s do-gooder vibes, as well as his sales and margin potential.

Capital Calls: AB InBev

5 May 2022

Concise views on global finance: Anheuser-Busch InBev’s revenue grew 11% in the first quarter compared to last year, but rising prices are a particular headache for the debt-laden brewer.

Italian motorway menu serves the Benettons well

21 Apr 2022

The dynasty may merge its Autogrill chain with $4 bln Swiss duty-free specialist Dufry. Though slightly bigger, the latter is suffering the worse Covid-19 hangover. Even though they’re surrendering control, the Benettons would still have a strong hand to get a good deal.

Just Eat Takeaway faces humiliating U.S. exit

20 Apr 2022

The food delivery group may sell Grubhub, a business it bought last year for $7.3 bln, an embarrassing U-turn for CEO Jitse Groen. Expanding into the tough U.S. market always looked tricky. Getting out when there are few buyers, just as consumers are squeezed, will be harder.