Dernières nouvelles pour Invesco Food & Beverage ETF (ARCA:PBJ)

Invesco Dynamic Food & Beverage ETF

PowerShares Dynamic Food & Beverage

Consumer Defensive

Other

Consumer Cyclical

Communication Services

Industrials

The Fund generally will invest at least 90% of its total assets in securities that comprise the Underlying Index. Strictly in accordance with its guidelines and mandated procedures, ICE Data Indices, LLC (ICE Data or the Index Provider) compiles and maintains the Underlying Index, which is composed of common stocks of U.S. food and beverage companies. These companies are engaged principally in the manufacture, sale or distribution of food and beverage products, agricultural products and products related to the development of new food technologies.

Coca Cola Co.

Kroger Co.

General Mills Inc.

Corteva Inc.

Constellation Brands Inc

Mondelez International Inc. Class A

Kraft Heinz Co.

Chipotle Mexican Grill Inc. Class A

Sprouts Farmers Markets Inc.

Dole Plc

Invesco Food and Beverage ETF

Invesco Food & Beverage ETF

PGIM US Large-Cap Buffer 20 ETF - January

SHL Telemedicine Ltd PGIM US Large-Cap Buffer 20 ETF - July

SHL Telemedicine Ltd PGIM US Large-Cap Buffer 20 ETF - June

Kroger Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KR#NYSE">KR</a>) shares are relatively unchanged in the premarket session on Friday.
The grocery giant has entered into Accelerated Share Repurchase agreements with Wells Fargo Bank and Citibank to <a target="_blank" href="https://www.benzinga.com/pressreleases/24/12/n42605891/kroger-announces-agreements-for-5-0b-accelerated-share-repurchase-program" rel="noreferrer noopener">repurchase a total of $5.0 billion in shares of its common stock.</a>
This buyback is part of Kroger&#8217;s broader $7.5 billion share repurchase authorization.
Related: <a target="_blank" href="https://www.benzinga.com//node/42456428" rel="noreferrer noopener">Kroger&#8217;s $7.5 Billion Buyback Blitz: Eyes Lower Grocery Prices And Big Returns After Albertsons Pivot</a>
Under the terms of the ASR agreements, Kroger will pay $5.0 billion to the dealers and expects to receive an initial delivery of approximately 65.6 million shares on December 20, 2024. This represents about 80% of the total shares that could be purchased with the $5.0 billion, based on the closing price of Kroger shares on December 19, 2024.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/24/12/42611748/us-stocks-to-open-lower-as-traders-brace-for-triple-witching-hour-analyst-says-end-of-the-year-recovery-would-not-surprise-anyone" rel="noreferrer noopener">US Stocks To Open Lower As Traders Brace For ‘Triple Witching' Hour: Analyst Says End Of The Year Recovery ‘Would Not Surprise Anyone'</a>
The final number of shares repurchased will depend on the volume-weighted average prices of Kroger&#8217;s stock during the repurchase period, with adjustments as per the ASR agreements.
Kroger has also noted that, in addition to the share repurchase program, it has $2.5 billion in capacity remaining under its share repurchase authorization, giving the company flexibility for future repurchases.
The final settlement for the agreements is expected by the third fiscal quarter of Kroger&#8217;s fiscal 2025.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, KR stock has gained over 35% in the past year. Investors can gain exposure to the stock via&nbsp;Invesco Food &amp; Beverage ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBJ#NYSE">PBJ</a>).
Price Action: KR shares are trading higher by 0.07% to $61.00 premarket at last check Friday.
Photo by Kevin Chen Images via Shutterstock.
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</ul>

Equities

News

Buybacks

Markets

General

Kroger Launches $5 Billion Accelerated Share Repurchase: Details

Kroger Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KR#NYSE">KR</a>) shares are trading higher premarket on Thursday. The company disclosed the termination of its merger agreement with Albertsons Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACI#NYSE">ACI</a>) following a preliminary injunction <a target="_blank" href="https://www.benzinga.com/pressreleases/24/12/n42448447/kroger-reiterates-its-commitment-to-lower-prices-and-initiates-new-7-5b-share-buyback-program" rel="noreferrer noopener">by the U.S. District Court in Oregon</a>.
U.S. District Judge&nbsp;Adrienne Nelson ruled in favor of the U.S.&nbsp;Federal Trade Commission (FTC) in a decision filed in<a target="_blank" href="https://www.benzinga.com/news/legal/24/12/42424808/kroger-stock-up-after-judge-blocks-albertsons-deal-what-you-need-to-know" rel="noreferrer noopener"> Oregon federal court on Tuesday</a>.
The FTC had argued that the proposed deal violated antitrust laws. The companies submitted a plan to the FTC that included the divestiture of hundreds of stores to C&amp;S Wholesale Grocers in order to maintain appropriate competition in the space.
Nelson on Tuesday found that the divestiture plans wouldn't do enough to replace competition that would be impacted as a result of the deal.
Earlier yesterday, Albertsons announced the termination of its proposed merger with Kroger and filed a lawsuit&nbsp;against the grocery giant, accusing Kroger of violating the contractual obligations of the merger agreement by failing to do all it <a target="_blank" href="https://www.benzinga.com/news/legal/24/12/42444582/albertsons-puts-an-end-to-merger-deal-sues-kroger-following-court-ruling-we-believe-strongly-in-the-merits-of-our-case" rel="noreferrer noopener">could to secure regulatory approval</a>.
Later yesterday, Kroger issued a statement that it looks forward to accelerating its flywheel to grow alternative profit businesses and generate increased cash flows.
Rodney McMullen, Kroger&#8217;s Chairman and CEO said, &#8220;The strength of our balance sheet and sustainability of our model allows us to pursue a variety of growth opportunities, including further investment in our store network through new stores and remodels, which will be an important part of our 8 – 11% TSR model over time.&#8221;
Read: <a target="_blank" href="https://www.benzinga.com/24/12/42339652/kroger-pauses-buybacks-for-albertsons-merger-q3-sales-miss-estimates-fy24-outlook-narrowed" rel="noreferrer noopener">Warren Buffett&#8217;s Portfolio Stock Kroger Pauses Buybacks For Albertsons Merger, Narrows FY24 Outlook</a>
Kroger reiterated its commitment to investing in America to lower grocery prices, higher wages, infrastructure, and community support.
Kroger has invested $5 billion in price reductions since 2003 and $2.4 billion in wage increases since 2018, raising average hourly pay by 38% with benefits.
Additionally, Kroger allocates $3.6 billion to $3.8 billion annually in capital investments to build and remodel stores, enhance food processing facilities, improve the customer experience, and create new job opportunities.
Buyback: Kroger&#8217;s Board approved a new $7.5 billion share repurchase program, replacing the previous $1 billion authorization from September 2022.
The company plans to execute an accelerated share repurchase (ASR) agreement for about $5 billion of common stock. Kroger anticipates strong free cash flow and remains focused on capital allocation priorities.
Following the termination of the merger agreement, Kroger will redeem $4.7 billion in senior notes issued on August 27, 2024.
The notes, which include a special mandatory redemption clause, will be redeemed at 101% of their principal amount, plus accrued interest up to the redemption date.
Investors can gain exposure to the stock via Invesco Food &amp; Beverage ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBJ#NYSE">PBJ</a>) and Tidal ETF Trust Newday Ocean Health ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AHOY#NYSE">AHOY</a>).
Price Action: KR shares are up 0.99% at $61.33 premarket at the last check Thursday.
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Photo via Shutterstock.

Large Cap

Movers

AHOY

Kroger's $7.5 Billion Buyback Blitz: Eyes Lower Grocery Prices And Big Returns After Albertsons Pivot

General Mills, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GIS#NYSE">GIS</a>) disclosed a deal to acquire Whitebridge Pet Brands&#8217; North American premium cat feeding and pet treating business from NXMH for $1.45 billion.
The acquisition includes the Tiki Pets and Cloud Star brands, which are leaders in the $24 billion cat feeding and pet treating segments of the $52 billion U.S. pet food market.
The North American Whitebridge Pet Brands business generated approximately&nbsp;$325 million&nbsp;in U.S. Nielsen-measured retail sales in the past twelve months, predominantly in the pet specialty and E-commerce channels.&nbsp;
General Mills plans to fund the acquisition with cash on hand and new debt. This transaction aligns with General Mills&#8217; Accelerate strategy, aiming to enhance growth in core markets and global platforms.
Also, as part of the deal, General Mills will take over two manufacturing facilities in Joplin, Missouri. NXMH will retain Whitebridge Pet Brands&#8217; European operations and brands.
The transaction is expected to close in the third quarter of fiscal 2025, pending regulatory approval and other customary closing conditions.
Jon Nudi, group president, North America Pet, International, and North America Foodservice, General Mills said, &#8220;These brands complement our Blue Buffalo portfolio and will help us incrementally grow in Cat feeding and Treats. We&#8217;re excited to welcome the North American Whitebridge team to General Mills and to provide pet parents with an expanding portfolio of brands to feed and treat their pets like family.&#8221;
In September, the company signed definitive agreements to sell its North American yogurt business to Lactalis and Sodiaal, leading&nbsp;French dairy companies,<a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40836990/general-mills-offloads-us-canadian-yogurt-divisions-in-2-1b-deal-amid-competition-and-market-cha" rel="noreferrer noopener"> for a total of $2.1 billion</a>.
As of August 25, the company had cash and <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/b40915872/general-mills-reports-fiscal-2025-first-quarter-results" rel="noreferrer noopener">cash equivalents of $468.1 million</a>.
Investors can gain exposure to the stock via&nbsp;Invesco Food &amp; Beverage ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBJ#NYSE">PBJ</a>) and First Trust Nasdaq Food &amp; Beverage ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXG#NASDAQ">FTXG</a>).
Price Action: GIS shares are up 0.60% at $65.62 at the last check Thursday.
Photo by huoadg5888 via <a href="https://pixabay.com/photos/pets-cat-dog-animals-mammals-3715733/">Pixabay</a>
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</ul>

FTXG

General Mills Dives Deeper Into Pet Market With This $1.45 Billion Acquisition: Details

General Mills, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GIS#NYSE">GIS</a>) announced that it has signed definitive agreements to sell its North American yogurt business to Lactalis and Sodiaal, leading<a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/b40829103/general-mills-announces-agreements-to-sell-its-north-american-yogurt-business-to-lactalis-and-sodi" rel="noreferrer noopener"> French dairy companies, for a total of $2.1 billion.</a>
Under the agreements, Lactalis will acquire the U.S. yogurt business, while Sodiaal will take over the Canadian yogurt business. The transactions are anticipated to be completed by 2025, pending regulatory approvals and other standard closing conditions.
General Mills expects the combined transactions to be about 3 percent dilutive to adjusted earnings per share in the first year post-close, excluding transaction costs and one-time impacts. The company plans to use the net proceeds from the sales for share repurchases.
In a May <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-09-12/general-mills-said-in-talks-for-2-billion-sale-of-north-america-yogurt-business?srnd=phx-deals&amp;sref=TBDibEcD" rel="noreferrer noopener">note</a>, Bloomberg Intelligence analysts Jennifer Bartashus and Jibril Lawal cited increased competition from Danone (OTC:<a class="ticker" href="https://www.benzinga.com/stock/DANOY#OTC">DANOY</a>) and Chobani Inc., coupled with limited market penetration, as factors prompting discussions about exiting the U.S. yogurt market.
Also Read:<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40321537/packaged-food-sector-to-see-mixed-performance-amid-economic-headwinds-goldman-sachs" rel="noreferrer noopener"> Packaged Food Sector To See Mixed Performance Amid Economic Headwinds: Goldman Sachs</a>
General Mills is also turning its portfolio to growth elements such as premium pet food and organic snacks, the report added.
In 2021, General Mills transferred its European Yoplait operations to Sodiaal in exchange for the Canadian business and reduced royalty rates for the Yoplait and Liberte brands in the U.S. and Canada.
According to Bartashus and Lawal, General Mills&#8217; U.S. retail yogurt business alone generated $1.4 billion in sales in the 12 months leading up to May 19, with Yoplait making up 87% of that total, Bloomberg added.
General Mills plans to provide additional details about the potential financial impact of the transactions when it reports&nbsp;its <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">first-quarter&nbsp;results on September 18, 2024.</a>
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, GIS stock has gained over 10% in the past year. Investors can gain exposure to the stock via Invesco Food &amp; Beverage ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBJ#NYSE">PBJ</a>) and&nbsp;First Trust Nasdaq Food &amp; Beverage ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXG#NASDAQ">FTXG</a>).
Price Action: GIS shares are trading lower by 0.88% to $72.48 at last check Thursday.
Image via Shutterstock
Also Read:<a target="_blank" href="https://www.benzinga.com/news/earnings/24/09/40828733/nasdaq-s-p-500-set-for-modest-gains-as-investors-eye-august-inflation-data-and-ecb-rate-decision" rel="noreferrer noopener">&nbsp;</a>
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</ul>

Asset Sales

Media

DANOY

General Mills Offloads US, Canadian Yogurt Divisions In $2.1B Deal Amid Competition And Market Challenges: Details

The Kroger Co.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KR#NYSE">KR</a>) filed a motion for a preliminary injunction in the U.S. District Court, Southern District of Ohio, against the FTC&#8217;s administrative proceeding challenging its merger with Albertsons Companies, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACI#NYSE">ACI</a>).
The company argues that the FTC&#8217;s use of both its administrative tribunal and a <a target="_blank" href="https://www.benzinga.com/pressreleases/24/08/n40447542/kroger-files-motion-to-enjoin-the-ftcs-administrative-merger-challenge" rel="noreferrer noopener">federal court action violates Constitutional protections.</a>
Kroger&#8217;s motion states that the FTC&#8217;s proceeding violates the Constitution by breaching Article II, as its judge isn&#8217;t removable by the President, and Article III, by resolving private contract rights through the Executive Branch instead of the Judicial Branch.
The company claims the FTC is unfairly splitting its challenge into two tribunals for multiple chances to litigate. While pushing Kroger into an unconstitutional administrative process, the FTC also seeks to block the merger in federal court.
Evidentiary hearings in the federal court are set to begin on August 26 in Oregon.
Rodney McMullen, Kroger Chairman and CEO, said, &#8220;The merger between Kroger and Albertson&#8217;s is squarely focused on ensuring we bring customers lower prices starting day one while securing the future of good-paying union jobs.&#8221;
&#8220;We stand prepared to defend this merger in the upcoming trial in federal court – the appropriate venue for this matter to be heard – and we are asking the Court to halt what amounts to an unlawful proceeding before the FTC&#8217;s own in-house tribunal.&#8221;
The FTC&#8217;s lawsuit filed in February argues that Kroger&#8217;s merger with Albertsons would lead to higher prices for millions of Americans and put pressure on the labor market for unionized grocery workers, reported Reuters.
The $25 billion supermarket merger, announced in October 2022, aimed to create a grocery giant with over 4,000 stores. However, it has faced antitrust lawsuits, with Washington State&#8217;s attorney general leading the challenge <a target="_blank" href="https://www.benzinga.com/markets/equities/24/08/40412956/whats-going-on-with-kroger-stock-premarket-friday" rel="noreferrer noopener">over concerns about rising grocery prices</a>.
The proposed merger was paused last month, awaiting a Colorado District Court ruling on a lawsuit aimed at blocking the deal.
Last week, Kroger disclosed that it has begun private exchange offers for eligible holders to swap any outstanding notes issued by&nbsp;Albertsons and its subsidiaries for&nbsp;up to $7.44 billion in new Kroger notes and cash.
Investors can gain exposure to the stock via&nbsp;Invesco Food &amp; Beverage ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBJ#NYSE">PBJ</a>) and&nbsp;Tidal ETF Trust Newday Ocean Health ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AHOY#NYSE">AHOY</a>).
Price Action: KR shares are down 0.25% at $52.63 premarket at the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock
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</ul>

Legal

Kroger Takes Legal Action Against FTC's Merger Review, Claims Proceeding As 'Unconstitutional'

Vice President Kamala Harris laid out a plan to lower costs for middle-class Americans with a focus on food costs, home ownership costs and health care costs during a speech in swing state <a href="https://www.benzinga.com/news/24/08/40411555/ahead-of-kamala-harris-first-economic-policy-speech-in-north-carolina-campaign-provides-sneak-peek-f">North Carolina Friday.</a>
Improve the Economy: Harris laid out a plan to improve the economy and life for the middle class, which remains a top priority for voters in<a href="https://www.benzinga.com/general/politics/24/08/40407829/harris-vs-trump-vice-president-leads-2024-election-by-4-points-shows-strong-support-from-voters-"> 2024 election polls.</a>
"Our country has come a long way," Harris said.
Harris stated that when she and President Joe Biden took office, millions of people were out of work, and they helped orchestrate one of the largest economic comebacks.
"Our economy is the strongest in the world."
As president, Harris said she will be "laser focused" on building what she called an "opportunity economy."
The opportunity economy will be one where everyone has a fair chance to compete, succeed, and build wealth for themselves and their children.
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Lowering Costs: Harris said a main priority as president of the United States will be lowering costs and building on the foundation of progress already in place.
"Costs are still too high," Harris said.
Harris said a family's salary should be enough to provide a good quality of life.
Her speech focused on the middle-class American, which she called an "essential" part of the country.
The vice president said no child should grow up in poverty, and workers should be able to retire with dignity after years of hard work.
"I grew up in a middle-class household."
Harris recalled her time working at McDonald's during college, earning spending money while some of her coworkers were supporting their families, often working their second or third job.
"As president, I will take on the high costs that matter most."
Harris said food companies are seeing their highest profits in two decades, and some companies are not playing by the rules.
"We need to take action when that is the case."
Harris said she will go "after the bad actors" and work on price-gauging acts.
"We will help the food industry become more competitive."
Trump's tax plan is a national sales tax, Harris told the crowd.
"That will devastate Americans."
Harris said Donald Trump will tax everyday products and necessities that are imported, raising costs for gas, food, clothing, and over-the-counter medication.
The vice president said economists estimate the typical family would pay $3,900 more a year under the Trump tax plan.
Harris said she will continue progress on lowering medical costs, which includes capping the cost of insulin and lowering prescription drug costs for seniors.
Food companies could be on watch with Harris' latest comments, with a focus on passing cost savings on to consumers and not having high profit margins. The Invesco Food &amp; Beverage ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBJ#NYSE">PBJ</a>) tracks many of the top food stocks.
Home Ownership: Another strategic priority from Harris centered on homeownership, with a goal of building three million new homes for sale or rent for the middle class during her "first term" as president.
Harris recalled her family renting homes for most of her life before her mother was able to buy a home. The vice president called homeownership a symbol of pride that comes with hard work and provides financial security.
Homeownership is "out of reach" for many American families, Harris said. A housing shortage is one of the key reasons, the vice president added.
Harris shared that she will work to make a $25,000 credit for first time homebuyers on the purchase of a new home.
"We can do this."
Harris said Trump's plan will add around $1,200 a year to the typical American mortgage.
"He's got it backward."
Homebuilder companies like Lennar Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEN#NYSE">LEN</a>) and D.R. Horton Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) could become popular with investors under a Harris presidency and the call for millions of new homes. The SPDR Series Trust Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) offers exposure to homebuilder stocks.
Tax Cuts: Harris said she will restore two tax cuts that help 100 million or more middle class Americans.
The vice president said the earned income tax credit and child tax credit will allow millions of Americans to keep more income.
"We know this works," Harris said.
Part of the plan calls for $6,000 in tax relief for parents during the first year of a child's life.
Harris said Trump's plan for tax cuts involves handing cuts to billionaires and corporations.
"Look who they fight for. Donald Trump fights for billionaires."
Harris added that Trump's plans will "devastate the middle class."
SPY Price Action: The SPDR S&amp;P 500 ETF Trust is up 0.2% to $554.30 on Friday.
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Photo: Screenshot from CSPAN.

Politics

Trading Ideas

Harris Warns Trump Tax Plan Will 'Devastate Americans,' Vows To Go After 'Bad Actors' Behind Food Prices

The Kroger Co.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KR#NYSE">KR</a>) disclosed on Thursday that it has begun private exchange offers for eligible holders to swap any outstanding notes issued by Albertsons Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACI#NYSE">ACI</a>) and its subsidiaries for <a target="_blank" href="https://www.benzinga.com/pressreleases/24/08/n40406669/kroger-announces-commencement-of-exchange-offers-and-consent-solicitations-for-albertsons-companie" rel="noreferrer noopener">up to $7.44 billion in new Kroger notes and cash</a>.
Apart from this, the company plans to cut grocery prices by $1 billion following its $25 billion merger, reported Reuters.
The supermarket merger, announced in October 2022, aimed to create a grocery giant with over 4,000 stores. However, it has faced antitrust lawsuits, with Washington State&#8217;s attorney general leading the challenge over concerns about rising grocery prices, the report added.
The proposed merger was paused last month, awaiting a Colorado District Court ruling on a lawsuit aimed at blocking the deal.
Read: <a target="_blank" href="https://www.benzinga.com/news/earnings/24/07/39911519/merger-bound-albertsons-companies-q1-sales-beats-estimate-with-pharmacy-and-digital-sales-boost" rel="noreferrer noopener">Merger-Bound Albertsons Companies&#8217; Q1 Sales Beats Estimate With Pharmacy And Digital Sales Boost</a>
The trial is scheduled to start on September 30, according to State Attorney General Phil Weiser.
In July, Kroger revealed the comprehensive list of stores, distribution centers, and plants it plans to divest to gain regulatory approval for its <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39707233/kroger-reveals-divestiture-plan-for-albertsons-merger-approval-report" rel="noreferrer noopener">proposed merger with&nbsp;Albertsons</a>.
Kroger had previously pledged to cut grocery prices by $500 million at Albertsons locations.
The divestiture package, initially consisting of 413 stores, has been increased <a target="_blank" href="https://www.benzinga.com/markets/equities/24/01/36640755/kroger-albertsons-25b-merger-plan-hits-a-snag-anticipates-completion-in-first-half-of-2024" rel="noreferrer noopener">following the Federal Trade Commission&#8217;s (FTC) intervention.</a>
In June, Kroger reported first-quarter adjusted EPS of $1.43, surpassing analyst <a target="_blank" href="https://www.benzinga.com/news/earnings/24/06/39411109/kroger-company-shares-take-off-after-q1-heres-why" rel="noreferrer noopener">expectations of $1.34 per share</a>.
Investors can gain exposure to the stock via&nbsp;Invesco Food &amp; Beverage ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBJ#NYSE">PBJ</a>) and Tidal ETF Trust Newday Ocean Health ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AHOY#NYSE">AHOY</a>).
Price Action: KR shares are up 0.98% at $53.41 premarket at the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock
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What's Going On With Kroger Stock Premarket Friday?

SPDR S&amp;P 500 Index (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust Series (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NYSE">QQQ</a>) <a href="https://www.benzinga.com/news/large-cap/24/07/39736302/tech-stocks-tumble-as-small-caps-reits-gold-miners-rally-soft-june-inflation-ignites-rate-cut-expe">sit near all-time highs</a>. But restaurant stocks have struggled to keep up with the overall market. 
Invesco's Food &amp; Beverage ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBJ#NYSE">PBJ</a>) is down around 2% year-to-date compared to the S&amp;P 500's gain of nearly 18%. Pick Of The Litter: But, in a recent analyst note, Wedbush highlights Cava Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAVA#NYSE">CAVA</a>) as a restaurant stock to watch. It has an outperform rating and a 12-month price target of $100 a share. Wedbush's target represents an upside of around 18% from Cava's current levels of around $85 a share.  Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39555285/chipotle-mexican-grills-pricing-study-affirms-strong-value-proposition-says-analyst">Chipotle Mexican Grill&#8217;s Pricing Study Affirms Strong Value Proposition, Says Analyst</a>
Quoted: "We view CAVA as one of a handful of publicly traded restaurants positioned to deliver positive annual transaction growth over the longer-term, with realistic long-term revenue and unit growth targets," Wedbush analysts Nick Setyan and Michael Symington wrote in the note.&nbsp;
The analysts pointed to the company's growth rate as attractive for investors. They argue that Cava's current EBITDA and margin expectations are "conservative." Cava went public in January 2023. Since then, its stock has increased more than 100% from its debut price of around $40 a share. 
Cava, a Mediterranean chain with a similar model to Chipotle Mexican Grill (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>), has around 350 locations throughout the U.S. It&#8217;s considered a healthier option compared to other fast food chains. Founded in Maryland and headquartered in Washington D.C., Cava has a strong presence in the Northeast and East Coast regions. 
Potential Risks: The analysts cited potential risks to their bullish thesis on Cava. Beware of unexpected fluctuations in input costs, as well as weaker sales in new markets where Cava expands. Now Read: 
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<li><a href="https://www.benzinga.com/news/large-cap/24/07/39736302/tech-stocks-tumble-as-small-caps-reits-gold-miners-rally-soft-june-inflation-ignites-rate-cut-expe">Tech Stocks Tumble As Small Caps, REITs, Gold Miners Rally; Soft June Inflation Ignites Rate Cut Expectations: What&#8217;s Driving Markets Thursday?</a></li>
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Image: Unsplash

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CAVA

Be Choosy When It Comes To Restaurant Stocks, But Pick This Fast-Casual Chain: Analysts

Taking a multivitamin <a href="https://www.benzinga.com/markets/emerging-markets/23/12/36205088/inside-the-multibillion-dollar-supplement-industry-trends-and-insights">once a day</a> has long been considered a path to better health, but a new study refutes that widely held belief.
A study published in JAMA Network Open on Wednesday revealed that after tracking nearly 400,000 healthy adults for over 20 years, researchers found no link between regular multivitamin use and a lower risk of death, <a href="https://www.nih.gov/news-events/news-releases/healthy-adults-taking-multivitamins-daily-not-associated-lower-risk-death#:~:text=The%20analysis%20showed%20that%20people,heart%20disease%2C%20or%20cerebrovascular%20diseases">according </a>to the National Institutes of Health.
The study was led by researchers at the National Institutes of Health's National Cancer Institute.
Also Read: <a href="https://www.benzinga.com/markets/cannabis/23/07/33309720/healthcare-advocates-united-a-push-for-congress-to-recognize-cbd-as-dietary-supplements">Healthcare Advocates United: A Push For Congress To Recognize CBD As Dietary Supplements</a>
&#8220;The analysis showed that people who took daily multivitamins did not have a lower risk of death from any cause than people who took no multivitamins,&#8221; Erikka Loftfield, Ph.D., M.P.H., a researcher with the division of cancer epidemiology and genetics at the National Cancer Institute, wrote in the study.
&#8220;There were also no differences in mortality from cancer, heart disease, or cerebrovascular diseases. The results were adjusted for factors such as race and ethnicity, education, and diet quality.&#8221;
Loftfield also emphasized the importance of assessing the risk of death associated with multivitamin use in different populations, such as those with documented nutritional deficiencies. She highlighted the need to explore the potential impact of regular multivitamin use on aging-related health conditions.
Price Action: Despite the study&#8217;s findings on multivitamin use, related health and wellness companies saw varied market reactions. By Thursday&#8217;s afternoon trading, BellRing Brands, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRBR#NYSE">BRBR</a>) gained 1.08% to $57.89, Herbalife Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HLF#NYSE">HLF</a>) slipped 1.03% to $10.52, and USANA Health Sciences, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USNA#NYSE">USNA</a>) was up 1% to $45.44.
Invesco S&amp;P SmallCap Consumer Staples ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSCC#NASDAQ">PSCC</a>) slipped 0.09% by early afternoon, while VegTech Plant-based Innovation &amp; Climate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EATV#NYSE">EATV</a>) remained unchanged and Invesco Food &amp; Beverage ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBJ#NYSE">PBJ</a>) declined 0.68%.
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Photo: Shutterstock

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Multivitamins Show No Link To 'Lower Risk of Death,' Study Finds

U.S. retail sales for May fell short of expectations, concerning economists, as it could signal a slowdown <a href="https://www.benzinga.com/news/econ-s/24/06/39378193/may-retail-sales-fall-short-suggest-weakening-consumer">in economic growth.</a>
The U.S. Census Bureau reported that sales ticked up 0.1% from April to May, missing expectations of a 0.2% month-on-month increase.
May sales, which totaled $703.1 billion, were up 2.3% from a year ago, while sales for the March 2024 to May 2024 period gained 2.9% from the same period a year earlier, the agency reported.
Nonstore retailers were up 6.8% from last year, while food services and drinking places were up 3.8 % from May 2023.
The market reacted calmly to the retail sales miss, as exchange-traded funds in the retail and food services sectors saw little movement by mid-morning on Tuesday. 
Price action: S&amp;P Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XRT#NYSE">XRT</a>) remained unchanged, while VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>) edged up 0.06% and Amplify Online Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBUY#NYSE">IBUY</a>) gained 0.17%. Meanwhile, Invesco Food &amp; Beverage ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBJ#NYSE">PBJ</a>) went up 0.30%, First Trust Nasdaq Food &amp; Beverage ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXG#NASDAQ">FTXG</a>) slipped 0.38% and Veg Tech Plant-based Innovation &amp; Climate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EATV#NYSE">EATV</a>) gained 0.44%.
Major retailers had mixed reactions to the latest retail sales numbers. Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) went up 0.35% by mid-morning on Tuesday, while Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) slipped 0.90% and The Home Depot, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) picked up 1.31%.
Economists and financial experts weighed in on the latest retail sales data to explain the implications for the market.
Also read: <a href="https://www.benzinga.com/news/24/06/39381240/us-stocks-mixed-retail-sales-increase-0-1-in-may">US Stocks Mixed; Retail Sales Increase 0.1% In May</a>
Resilient consumer to the rescue
Chris Zaccarelli, chief investment officer, Independent Advisor Alliance,&nbsp;said retail sales came in really light on Monday morning and &#8220;while that may be good news for inflation hawks, it could be the beginning of a slowdown in growth,&#8221; which would hurt a lot more than a couple of interest rate cuts would help.
He said the resilient consumer has been &#8220;the big story of this bull market&#8221; and without them, the economy would have slowed or fallen into recession a long time ago.
Zaccarelli noted that stock prices are going up without the help of rate cuts because corporate profits and the economy continue to expand. 
&#8220;Without the consumer, this bull market is going to stall out, so investors need to see more consumer spending and not a material slowdown, which this report could be indicating,&#8221; he wrote.
Industrial Sector &#8216;In Low Gear&#8217;
Bill Adams, chief economist, Comerica Bank, remarked that industrial production was stronger than expected in May, but revisions were negative while capacity utilization was up on the month but still well below its 2022 peak.
He noted that the motor vehicle assembly rate &#8220;edged up a little&#8221; on the month and was 5% above its 2023 average.
&#8220;The industrial sector is operating in low gear, adding to forces pushing inflation lower,&#8221; he said.
&#8220;The big picture is that the industrial sector has been running cooler over the last year and a half.&#8221;
 He said that American consumers have shifted spending priorities toward experiences and away from things, weighing on demand for goods, and high interest rates are restraining business capital spending and demand for construction materials.
He noted that May retail sales figures suggested that real GDP continues to grow more slowly in the second quarter of this year than in the second half of 2023.
&#8216;Consumers Retrench&#8217;
Jeffrey Roach, chief economist at LPL Financial, noted that restaurant spending fell in May &#8220;as consumers retrench&#8221; but that motor vehicle sales rose as dealers increased incentives to entice consumers. He also said, however, that several retail categories such as furniture sales fell for the fourth time in six months as consumers pulled back purchases.
&#8220;Consumer spending is cooling in a fairly orderly fashion,&#8221; he wrote. &#8220;So far, the economy could pull off a soft landing, especially if the Fed is quick to adjust policy as conditions change.&#8221;
&#8216;Analysts Concerned&#8217;
Quincy Krosby, chief global strategist at LPL Financial, noted that the latest retail sales report pushed Treasury yields lower by coming in weaker than expected, but the downward revision for two previous months has &#8220;analysts concerned&#8221; that lower and middle income wage earners are under pressure from higher prices.
&#8220;Should employment data, particularly initial unemployment claims, continue to indicate a more defined softening in the labor market, the Fed may &#8212; as suggested by Fed Chair [Jerome] Powell&#8211;need to recalibrate its timetable in terms of when to commence policy easing,&#8221; she wrote.
Read now: <a href="https://www.benzinga.com/top-stories/24/06/39383798/the-ai-big-10-10-ai-stocks-now-comprise-28-of-s-p-500-up-from-14-in-2023">The &#8216;AI Big 10&#8217;: 10 AI Stocks Now Comprise 28% Of The S&amp;P, Up From 14% In 2023</a>
Image created using artificial intelligence via Midjourney.

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Merrill Lynch Retail HOLDRS Trust due 12/31/41

Economist React To May Retail Sales Data: 'Consumer Spending Is Cooling In A Fairly Orderly Fashion'

New York Attorney General Letitia James announced a <a href="https://ag.ny.gov/press-release/2024/attorney-general-james-stops-discriminatory-hiring-practices-doordash#:~:text=DoorDash%20will%20also%20pay%20a,%2C%E2%80%9D%20said%20Attorney%20General%20James" target="_blank" rel="noreferrer noopener">settlement </a>with the online food delivery platform DoorDash Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DASH#NASDAQ">DASH</a>). The settlement is regarding the rejection of delivery worker applicants with criminal histories. 
This settlement comes after an investigation revealed that DoorDash routinely rejected applicants based on their criminal history without fair assessment, violating state human rights laws and the New York City Fair Chance Act.&nbsp;
DoorDash agreed to reevaluate rejected applicants, revise hiring policies, and pay a $75,000 penalty. They will distribute the penalty to qualifying applicants who&nbsp;were wrongfully&nbsp;rejected.
DoorDash will review and reconsider all 2,898&nbsp;applicants who were rejected, with priority given to the 57 applicants who&nbsp;had&nbsp;submitted appeals.&nbsp;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/05/38565879/doordash-reports-mixed-q1-results-eps-miss-sales-beat" rel="noreferrer noopener">DoorDash Reports Mixed Q1 Results: EPS Miss, Sales Beat</a>
The company also&nbsp;failed&nbsp;to provide proper notice of rights to rejected applicants, as per the statement.
Attorney General James emphasized the importance of fair hiring practices, stating that everyone deserves a second chance and the opportunity to provide for their families.
Public Advocate Jumaane D. Williams commended the settlement, highlighting the significance of fair assessment in employment.&nbsp;
The settlement underscores the importance of fair employment practices and provides hope for applicants with criminal histories seeking job opportunities.
Dash stock has gained 74% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Invesco Leisure And Entertainment ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PEJ#NYSE">PEJ</a>) and&nbsp;Invesco Food &amp; Beverage ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBJ#NYSE">PBJ</a>).
Price Action: DASH shares are trading higher by 0.41% at $115.15&nbsp;at the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

DASH

PowerShares ETF Leisure & Entertainment Port

NY Attorney General Secures Deal: DoorDash Offers Second Chance To Applicants With Criminal Records

Chipotle Mexican Grill Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>) reportedly instructed its employees recently not to opt for chicken in their meals due to high demand but has now lifted the restriction.
Chipotle&nbsp;informed its U.S. employees through email&nbsp;about the reintroduction of chicken al pastor, citing challenges arising from its success,&nbsp;<a target="_blank" href="https://www.bloomberg.com/news/articles/2024-04-25/chipotle-tells-workers-to-skip-chicken-as-customer-demand-surges?srnd=industries-v2&amp;sref=TBDibEcD" rel="noreferrer noopener">reported&nbsp;</a>Bloomberg.
The message from Chief Restaurant Officer Scott Boatwright requested employees to abstain from ordering chicken, stating it was to preserve&nbsp;supply for customers, as per the report.
Chipotle clarified that the directive was a request, not a mandate, and announced employees could resume ordering chicken as usual within a week.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38437634/chipotle-mexican-grill-is-in-a-league-of-their-own-7-analysts-revise-forecasts-afte" rel="noreferrer noopener">Chipotle Mexican Grill Is In A &#8216;League Of Their Own&#8217;: 7 Analysts Revise Forecasts After Q1 Results</a>
CEO Brian Niccol confirmed to Bloomberg that it was a temporary supply crunch but assured that the issue had been resolved with no ongoing challenges.
Employees at&nbsp;Chipotle&#8217;s only unionized U.S. store in Michigan voiced concerns over the company&#8217;s policy enforcement and the need for a secure union contract.
Chicken al pastor&nbsp;was highlighted&nbsp;as a successful marketing initiative&nbsp;contributing&nbsp;to increased sales in the first quarter.
Earlier this week, Chipotle said first-quarter revenue increased 14.1% year-over-year to $2.702 billion, which beat the analyst&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/04/38417218/chipotle-mexican-grill-q1-earnings-revenue-beat-eps-beat-comparable-sales-up-7-and-more" rel="noreferrer noopener">consensus estimate of $2.675 billion</a>.
The fast-casual restaurant chain company reported adjusted earnings of $13.37 per share, which beat analyst estimates of $11.68&nbsp;per share.&nbsp;
Read Next:&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/04/38360106/chipotle-to-spice-up-kuwait-city-new-location-marks-decade-long-international-expansion" rel="noreferrer noopener">Chipotle To Spice Up Kuwait City: New Location Marks Decade-Long International Expansion</a>
Chipotle Mexican Grill stock gained over 54% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Vanguard Total Stock Market ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>) and&nbsp;Invesco Food &amp; Beverage ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBJ#NYSE">PBJ</a>).
Price Action: CMG shares closed higher by 6.33% at $3,111.97 on Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Chipotle Requests Employees To Not Eat Chicken So They Can Sell More, Rescinds Soon

The sub — or submarine sandwich — continues to be a popular <a href="https://www.benzinga.com/topic/food">food item across the U.S.</a>
Witness the massive scale of Subway, one of the world&#8217;s <a href="https://www.benzinga.com/m-a/23/08/33968344/from-foot-longs-to-billions-subways-sandwich-empire-faces-dramatic-turn-with-potential-roark-takeove">largest restaurant operators</a>. But it&#8217;s not just size that matters — location plays a large role in the success or failure of such enterprises.
Placer.ai, the business location analytics company, has been watching the rising success of Subway rival Jersey Mike&#8217;s Subs.
&#8220;Jersey Mike&#8217;s is among the nation&#8217;s fastest-growing franchise dining chains,&#8221; the analyst said. &#8220;Our data shows that the company targets affluent suburbs successfully.&#8221;
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">.@jerseymikesis is among the nation&#39;s fastest-growing franchise dining chains. Its popularity surged in recent years, with 2023 visits up by 14.1% YoY and plans to open 350 new stores in 2024. Our data shows that the company targets affluent suburbs successfully. <a href="https://t.co/QwY2Eovcs1">pic.twitter.com/QwY2Eovcs1</a>
&mdash; Placer.ai (@Placer_ai) <a href="https://twitter.com/Placer_ai/status/1758526381137318262?ref_src=twsrc%5Etfw">February 16, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Indeed, Placer.ai&#8217;s data shows that across its 2,000 or so locations, Jersey Mike&#8217;s is attracting affluent clientele.
The data suggest that 11.8% of Jersey Mike&#8217;s diners are defined as &#8220;prosperous, established couples in their peak earning years living in suburban homes. That compares with 8.4% of all other sub-sandwich chains.&#8221;
Meanwhile, &#8220;affluent middle-aged families and couples&#8221; make up 7.5% of its customers, compared with 5.6% for other chains.
Also Read: <a href="https://www.benzinga.com/news/earnings/24/02/37158707/why-fast-casual-restaurant-chain-shake-shack-shares-are-shooting-higher-today">Why Fast Casual Restaurant Chain Shake Shack Shares Are Shooting Higher Today</a>
Jersey Mike&#8217;s is privately owned under the helm of CEO Peter Cancro. Private equity group Roark Capital Management controls Subway. Whether Subway&#8217;s owner considers an initial public offering remains to be seen.
Meanwhile, shares in the fast food segment are currently doing well:
<ul>
<li>Shares in Potbelly Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PBPB#NASDAQ">PBPB</a>) are up 20.5% in 2024 so far. The chain gained 125% since the start of 2023. Interim results recently showed sales growth of around 6% and average weekly sales of around $24,900. It reports its fully audited earnings next month. </li>
</ul>
<ul>
<li>Shake Shack Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHAK#NYSE">SHAK</a>) shares jumped 26% on Thursday, and are up nearly 34% over the year so far. Since the start of 2023, they have soared 139%. The burger chain <a href="https://www.benzinga.com/news/earnings/24/02/37158707/why-fast-casual-restaurant-chain-shake-shack-shares-are-shooting-higher-today">reported</a> a 20% rise in fourth-quarter revenue to $286.2 million on Thursday, beating consensus expectations of $280.3 million. The company beat adjusted earnings of $31.4 million. It increased its net margin to 11% from 8.2%.</li>
</ul>
<ul>
<li>Earlier this month, Chipotle Mexican Grill Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>) <a href="https://www.benzinga.com/news/earnings/24/02/36968089/chipotle-mexican-grill-q4-earnings-highlights-revenue-beat-eps-beat-guidance-and-unit-count-updates">reported</a> fourth-quarter revenue rose 15.4% to $2.5 billion and a 27.3% rise in diluted earnings per share — both beating Street consensus estimates. Its operating margin grew to 14.4% from 13.6% a year earlier. Chipotle&#8217;s shares were up 7.2% on the day, and are up 14.1% year to date. Since the start of 2023, the shares have climbed 88.2%. Chipotle, which currently owns around 2,000 locations in North America, has set its long-term goal of reaching 7,000.</li>
</ul>
By comparison, the Invesco Food &amp; Beverage ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBJ#NYSE">PBJ</a>), an exchange-traded fund that holds both Shake Shack and Chipotle, is down 1% since the start of 2024.
Slightly better performing has been the AdvisorShares Restaurant ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EATZ#NYSE">EATZ</a>), which carries all three of the above stocks, along with other chains such as Domino&#8217;s Pizza (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DPZ#NYSE">DPZ</a>). EATZ is up 2.3% this year, and up 29% since the start of 2023.
Now Read: <a href="https://www.benzinga.com/news/earnings/24/02/36968089/chipotle-mexican-grill-q4-earnings-highlights-revenue-beat-eps-beat-guidance-and-unit-count-updates">Chipotle Mexican Grill Q4 Earnings Highlights: Revenue Beat, EPS Beat, Guidance And Unit Count Updates</a>
Image: Shutterstock

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Subway Rival Enjoys Spike In Popularity, Plus: Potbelly's Tasty Stock Performance

On CNBC&rsquo;s &quot;<a href="https://www.cnbc.com/video/2023/12/04/final-trades-morgan-stanley-cvs-more.html">Halftime Report Final Trades</a>,&quot; Stephen Weiss of Short Hills Capital Partners said he is staying with U.S. 1 Year Treasury Bill, which&nbsp;<a href="https://www.benzinga.com/trading-ideas/long-ideas/23/11/35636701/jim-cramer-says-this-tech-company-reported-a-dynamite-quarter-i-disliked-these-guys-for-">has over 5% yield.</a>
Jim Lebenthal of Cerity Partners picked CVS Health Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cvs#NYSE">CVS</a>), which is scheduled to hold Investor Day on Dec. 5, 2023.
On Nov. 1, CVS Health said third-quarter sales increased 10.6% Y/Y to $89.76 billion, beating the <a href="https://www.benzinga.com/news/earnings/23/11/35535029/cvs-healths-health-services-and-pharmacy-benefit-management-business-show-strength-in-q3-but-lowers">consensus of $88.25 billion.</a>
Don&rsquo;t forget to check out our <a href="https://www.benzinga.com/premarket/"> premarket coverage here </a> 
Sarat Sethi named Morgan Stanley (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ms#NYSE">MS</a>) as his final trade amid a pickup in market activity.
Morgan Stanley appointed its co-president, Edward (Ted) Pick, as chief executive officer, <a href="https://www.benzinga.com/markets/equities/23/10/35437322/morgan-stanley-appoints-battle-tested-edward-pick-as-ceo-james-gorman-to-assume-role-of-executiv">effective Jan. 1</a>.
Liz Young of BNY Mellon Investment Management picked Invesco Food &amp; Beverage ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pbj#NYSE">PBJ</a>).
Price Action: CVS Health shares closed at $68.48 on Monday, while Morgan Stanley gained 0.4% to $81.21. Invesco Food &amp; Beverage ETF gained 0.7% during Monday&rsquo;s session. 
Check This Out: <a href="https://www.benzinga.com/news/earnings/23/12/36063629/how-to-earn-500-a-month-from-dell-stock-following-last-weeks-upbeat-earnings"> How To Earn $500 A Month From Dell Stock Following Last Week&#39;s Upbeat Earnings</a>
Image: Pixabay

Long Ideas

Morgan Stanley, CVS Health And More On CNBC's 'Final Trades'

On CNBC&rsquo;s &ldquo;<a href="https://www.cnbc.com/video/2022/11/16/final-trades-american-tower-cisco-on-semi-more.html">Halftime Report Final Trades</a>,&rdquo; Liz Young of BNY Mellon Investment Management chose Invesco Dynamic Food &amp; Beverage ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pbj#NYSE">PBJ</a>), saying &ldquo;people will not sacrifice&rdquo; food and beverages in the upcoming holiday season. This year, consumers will likely witness a <a href="https://www.benzinga.com/news/large-cap/22/11/29680834/the-goods-deflation-weve-been-waiting-for-just-in-time-for-the-holidays">goods deflation</a>.
&ldquo;As inflation comes down, the input costs come down,&rdquo; and these companies can perform well, Young added.
Karen Firestone of Aureus Asset Management said American Tower Corp&rsquo;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/amt#NYSE">AMT</a>) shares had declined steeply following Fed rate hikes. The company has price increases built in, indicating a potential for the stock to &ldquo;go much higher,&rdquo; Firestone added.
Check out other stocks making moves in the <a href="https://www.benzinga.com/premarket/">premarket</a>.
Joseph Terranova of Virtus Investment Partners said ON Semiconductor Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/on#NASDAQ">ON</a>) was trading at about 15 times earnings and the company has exposure to EVs.
Jim Lebenthal of Cerity Partners said Cisco Systems Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/csco#NASDAQ">CSCO</a>) has an &ldquo;attractive valuation&rdquo; and offers a &ldquo;good dividend yield.&rdquo; He recommended buying the stock ahead of earnings.

CSCO

American Tower, ON Semiconductor, Cisco Systems And This Defensive ETF Feature On CNBC's 'Final Trades'

-Korea Economic Daily
<a href="https://www.kedglobal.com/newsView/ked202112280001" title="https://www.kedglobal.com/newsView/ked202112280001">https://www.kedglobal.com/newsView/ked202112280001</a>

Rumors

South Korea's E-Mart in Talks to Acquire Unnamed US Food and Beverage Franchise Operator Worth Several Hundred Million Dollars

Restaurants and bars are seeing a boost in business, thanks to two coinciding events: March Madness and the COVID-19 vaccination drive. 
Sports bars and restaurants across the country are seeing full seats again as basketball fans return to watch the NCAA tournament amid a partial reopening, many local news outlets are reporting:
<ul>
<li><a href="https://www.wtol.com/article/news/local/march-madness-brings-much-needed-boost-to-restaurants-bars-after-rough-year/512-dfd81554-f500-4bb9-8474-1c180bb62f99" target="_blank">WTOL</a>&nbsp;in Ohio&nbsp;said the return of the NCAA tournament has brought increased business to local restaurants and bars&nbsp;and that March Madness has drawn more attention this year.</li>
<li><a href="https://fox59.com/sports/big-tournament/march-madness-brings-renewed-sense-of-optimism-to-indys-short-term-rental-industry/" target="_blank">Fox59.com</a>&nbsp;reported&nbsp;that March Madness has brought a major economic boost for restaurants and bars in downtown Indianapolis, which was badly hit during the pandemic. And&nbsp;<a href="https://www.indystar.com/story/money/2021/03/19/march-madness-slowly-boosting-downtown-businesses/4771639001/" target="_blank">Indystar.com</a>&nbsp;said restaurants are witnessing full occupancy&nbsp;and are on a hiring spree.&nbsp;</li>
<li><a href="https://spectrumlocalnews.com/tx/san-antonio/news/2021/03/20/march-madness-is-back-in-business-for-texas-bar-and-restaurants" target="_blank">Spectrum News 1</a>&nbsp;said restaurants in Texas also are seeing a boost in business because of this year&#39;s March Madness.&nbsp;</li>
<li>According to the&nbsp;<a href="https://www.bizjournals.com/charlotte/news/2021/03/26/return-of-march-madness-boosting-bottom-line.html" target="_blank">Charlotte Business Journal</a>, restaurants in Charlotte, North Carolina, have welcomed the return of the March Madness tournament. One establishment,&nbsp;Fox &amp; Hound, has seen a sales jump beating levels in 2019, the last year March Madness was held.</li>
<li><a href="https://www.nbcconnecticut.com/news/local/cts-relaxed-restaurant-capacity-rolls-out-on-day-1-of-ncaa-tournament/2448950/" target="_blank">Nbcconnecticut.com</a>&nbsp;reported that Connecticut saw growth in terms of restaurant business for the first day of the men&rsquo;s NCAA college basketball tournament.&nbsp;</li>
<li><a href="https://www.nwahomepage.com/knwa/march-madness-bring-in-business-to-bars/">KNWA</a> reports bar-and-grills have seen a peak in business due to March Madness.&nbsp;</li>
<li>Restaurants in Las Vegas have seen increased visitors and business with the beginning of March Madness, the&nbsp;<a href="https://www.reviewjournal.com/entertainment/food/march-madness-capacity-shifts-help-fill-las-vegas-restaurants-2310390/" target="_blank">Las Vegas Review-Journal</a>&nbsp;reported.&nbsp;</li>
</ul>
With that in mind, head to Benzinga&#39;s&nbsp;<a href="https://www.benzinga.com/money/best-restaurant-stocks/">Biggest Restaurant Stock Movers of the Day</a> listings to see stocks with exposure to the sector.
On the ETF front, there is also the&nbsp;Invesco Dynamic Food &amp; Beverage ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pbj#NYSE">PBJ</a>), the Invesco Dynamic Leisure and Entertainment ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pej#NYSE">PEJ</a>), and&nbsp;Consumer Discretionary Select Sector SPDR Fund (NYSE:&nbsp;XLY).
Photo by&nbsp;<a href="https://www.pexels.com/@ethnoyou?utm_content=attributionCopyText&amp;utm_medium=referral&amp;utm_source=pexels">Anna Kapustina</a>&nbsp;from&nbsp;<a href="https://www.pexels.com/photo/low-angle-photo-of-basketball-hoop-under-blue-sky-2533684/?utm_content=attributionCopyText&amp;utm_medium=referral&amp;utm_source=pexels">Pexels</a>.

Sports

March Madness Fuels Restaurant Business Across US; Stocks And ETFs In Sector Could Get A Bounce

The U.S. <a href="https://www.benzinga.com/general/restaurants">restaurant</a> industry ended 2020 with 2.5 million fewer jobs and more than 110,000 eating and drinking establishments were either temporarily closed or shut down for good, the National Restaurant Association says in a report.
Job Losses: The majority of restaurants and bars that closed in 2020 were &quot;well-established&quot; businesses that have been operating for an average of 16 years, the restaurant association said in its report titled &quot;2021 State of the Restaurant Industry.&quot; Unfortunately, 16% of restaurants that closed in 2020 had been operating for at least 30 years.
On average, a restaurant that closed employed 32 people, while 17% of restaurants kept at least 50 people employed.
Nearly three out of four restaurant owners who&nbsp;closed their business for good have no immediate desire to <a href="https://www.elluminatiinc.com/restaurant-opening-checklist/">open a new restaurant in</a> the months ahead. Only 48% of owners plan on staying in the food industry in some capacity in the months and years ahead.
State Of The Industry Today: The restaurant and foodservice industry entered 2020 on track to represent 10% of all payroll jobs in the economy, according to the association. But 62% of fine dining operators and 54% of family dining and casual dining operators indicate their staff levels are more than 20% below normal in early 2021.
Approximately 2 million fewer 16 to 34-year-olds are working in the industry today compared to pre-pandemic levels.
&quot;Restaurants were hit harder than any other industry during the pandemic, and still have the longest climb back to pre-coronavirus employment levels,&quot; the report stated.
Menu Innovation For 2021: Restaurant owners continue to adapt their menu items to stay relevant in the consumer&#39;s mind. Half of casual and family dining operators and 63% of fine-dining operators are offering fewer items on the menu today compared to pre-pandemic.
Consumers want to transact with restaurants that offer a simplified menu with a good selection of comfort foods and/or restaurants with healthier options, according to the report. The availability of alcohol was also highlighted as an important addition to a take-out menu.
Pent Up Demand: There is &quot;no doubt&quot; that consumers want to return to restaurants as it represents an &quot;integral part of our social fabric.&quot; Nearly nine out of 10 adults enjoy going to restaurants and 85% of them saying dining out is a better way to spend their time than cooking and cleaning at home.
&quot;Restaurants are the cornerstone of our communities, and our research shows a clear consumer desire to enjoy restaurants on-premises more than they have been able to during the pandemic,&quot;&nbsp;said Hudson Riehle, senior vice president of National Restaurant Association&#39;s Research and Knowledge Group. &quot;We&#39;ve also found that even as the vaccine becomes more available and more social occasions return to restaurants, consumers will continue to desire expanded off-premises options going forward. Both will continue to be key for industry growth.
&quot;With more than half of adults saying that restaurants are an essential part of their lifestyle, we are confident that, with time, the industry is positioned for successful recovery.&quot;
(Photo by <a href="https://unsplash.com/@jaywennington?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Jay Wennington</a> on <a href="https://unsplash.com/s/photos/restaurant?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Unsplash</a>)

Economics

PSCD

Will Restaurants Recover In 2021?

Amid geopolitical tensions, investors have been scampering out of high beta, cyclical sectors to low volatility, defensive destinations. Those moves are benefiting real estate and utilities exchange traded funds, but consumer staples ETFs should not be ignored.
<h3>What Happened</h3>
Just a few dozen U.S.-listed ETFs hit record highs on Tuesday. One of those funds was the Invesco Dynamic Food &amp; Beverage ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pbj#NYSE">PBJ</a>), a more exotic interpretation of the standard consumer staples ETF.
PBJ, which has been around more than 14 years, is now higher by 17% year to date, which is mostly inline with standard staples ETFs.
<h3>Why It&#39;s Important</h3>
As its name implies, PBJ is a food and beverage ETF, so it&#39;s not getting the benefit of exposure to Procter &amp; Gamble (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pg#NYSE">PG</a>) and other sturdy consumer products names. Still, PBJ has a way of making things work for investors and that is largest tied to the methodology behind the Dynamic Food &amp; Beverage Intellidex Index, PBJ&#39;s underlying benchmark.
That index &ldquo;is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value,&rdquo; <a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=PBJ">according to Invesco</a>.
Importantly, PBJ is not a dedicated consumer staples ETF. While that sector represents 80.66% of its weight, the fund has just enough exposure to consumer discretionary names (19.34%) to make things interesting. When the likes of Starbucks (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sbux#NASDAQ">SBUX</a>) and Chipotle Mexican Grill (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cmg#NYSE">CMG</a>), which combine for almost 9% of PBJ&#39;s weight, are soaring, this fund gets very interesting.
<h3>What&#39;s Next</h3>
For investors looking to play some offensive with defensive or those looking to add some adventure to low volatility holdings, PBJ is an ETF that makes sense. Plus, the Invesco fund is a credible way for investors to wade into growth stocks as about a third of the fund&#39;s holdings are classified as growth fare compared to less than 26% with the value designation.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/08/14252862/rate-cuts-could-boost-this-india-etf">Help An India ETF</a>
<a href="https://www.benzinga.com/news/19/08/14245551/a-curious-trend-with-bank-etfs">Interesting Happenings With Bank ETFs</a>

SBUX

Add Some Excitement To Your Consumer Staples Investing With This ETF

Blue Apron, which ships pre-portioned meal kits directly to consumers, <a href="https://www.benzinga.com/news/17/06/9556274/everything-you-need-to-know-about-blue-apron-the-meal-kit-service-that-just-filed">announced </a>Friday its intention to issue an initial public offering.
The impending investment opportunity may entice <a href="https://www.sec.gov/Archives/edgar/data/1701114/000104746917003765/a2232259zs-1.htm#cm16601_use_of_proceeds">investors </a>encouraged by sequential annual revenue growth above 100 percent ━ and other promising factors.
Here are some of the statistics Blue Apron highlighted in its <a href="https://www.sec.gov/Archives/edgar/data/1701114/000104746917003765/a2232259zs-1.htm">S1 filing</a> with the Securities and Exchange Commission.
<h3>The Target Client</h3>
Blue Apron has seized the millennial palate, with more than one-third of its customers (36 percent) between the ages of 25 and 34. Meanwhile, 35 to 44 year olds comprise the next largest cohort (25 percent).
<img alt="" src="https://www.sec.gov/Archives/edgar/data/1701114/000104746917003765/g815638.jpg" style="width: 500px; height: 284px;" /> 
Source: Customer email survey of Blue Apron account holders, November 2016, with 1,804 respondents.
In its present capacity, Blue Apron&rsquo;s greatest market is California, which accounts for 15 percent of customers. New York (8 percent), Texas (7 percent), Florida (5 percent) and Illinois (4 percent) are the company&#39;s next largest markets.
<img alt="" src="https://www.sec.gov/Archives/edgar/data/1701114/000104746917003765/g949140.jpg" style="font-size: 13px; width: 500px; height: 341px;" />
Source: U.S. households data from 2015 U.S. Census Bureau Current Population Survey. Blue Apron Customers as of December 31, 2016.
<h3>Expanding Reach</h3>
Recognizing opportunity to increase its share of the $1.3-trillion grocery sector, Blue Apron has committed to expanding its reach through more aggressive marketing strategies.
The food delivery service increased annual marketing expenses by 929 percent between 2014 and 2016, and the present fiscal year is on pace to exceed last year&rsquo;s $144 million spend. First-quarter allocations rose 144 percent from 2016 to 2017.
The company has also been more strategic in its marketing channels according to S1 charts, shifting its investment emphasis from a customer referral program to media-based outreach.
Notably, the firm sees great potential in non-Internet opportunities. Annual offline media expenditures saw the greatest two-year growth at 3,200 percent, from $2 million to $66 million. That outpaces online media spending, which grew 760 percent from $5 million to $43 million.
<img alt="" src="https://www.sec.gov/Archives/edgar/data/1701114/000104746917003765/g494755.jpg" style="width: 500px; height: 307px;" />
The shifts correlated with linear increases in cumulative net revenue per customer against a cumulative marketing cost per customer of $94.
<img alt="" src="https://www.sec.gov/Archives/edgar/data/1701114/000104746917003765/g235645.jpg" style="width: 500px; height: 314px;" />
Blue Apron&#39;s increased marketing costs corresponded with no visible trends in new customer revenue. Cumulative net revenue throughout a customer&rsquo;s first six months was $402 in 2014, $451 in 2015 and $387 in 2016.
Related Links:
<a href="https://www.benzinga.com/general/biotech/17/05/9515232/alternative-paths-to-the-public-markets-nexeon-medsystems-form-10-ipo-">Alternative Paths To The Public Markets: Nexeon MedSystems&#39; Form 10 IPO And Capital Consciousness</a>
<a href="https://www.benzinga.com/news/earnings/17/05/9430269/why-wall-street-and-the-economy-needs-a-robust-ipo-market"> Why Wall Street, And The Economy, Needs A Robust IPO Market</a>

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