Allegra Stratton: Can we Clean up the UK's Great Stink?
There are plenty of good bits — it's positive that Jon Cunliffe's review recommends stricter oversight of water company ownership. The proposed new regulator could get the power to block changes in the running of water companies if they are not seen to be prioritizing the long-term interests of us all.
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Yahoo
3 hours ago
- Yahoo
Ban Octopus from taking on new customers, says British Gas
The owner of British Gas has called for rival Octopus Energy to be banned from taking on new customers amid an industry spat over new cash requirement rules. Chris O'Shea, the chief executive of Centrica, claimed new financial resiliency requirements were not being properly enforced as he accused the regulator Ofgem of 'criminal' double standards. He said suppliers who were not meeting the new capital rules already should be prevented from accepting new customers until they do so amid fears they may pose a 'systemic risk'. This would include Octopus, which overtook British Gas to become the UK's biggest supplier of gas and electricity in January. Mr O'Shea insisted his comments were not 'sour grapes', but about ensuring regulatory rules were 'fair and evenly applied'. He said: 'You can have a look at Octopus Energy's accounts yourself, and you can see that the shortfall is over £1bn. 'So you've got to ask yourself – why do they not do what we've done? That's all we think. We think that when the regulator brings out rules that they should equally apply them.' He also lashed out at Ofgem for presiding over a 'multi-tier system' and accused the regulator of already costing consumers more than £100 through its bungled handling of the 2021-22 energy crisis. Mr O'Shea added: 'They're increasing the chance of systemic failure in the market. 'And that cost billions of pounds years ago, and Ofgem's fingerprints were all over that. 'I think it is criminal that they are sitting in a situation where that thing could happen again.' On Thursday, Octopus said it was not in breach of Ofgem's cash rules. A spokesman said: 'This is yet more naked self-interest from British Gas. They would do well to obsess about their customers rather than their rivals. 'We fully comply with Ofgem's rules and our resilience meant we not only thrived through the energy crisis but bailed out Bulb – saving British billpayers billions.' A spokesman for the regulator also stressed that the rules allowed for companies to agree a plan to reach the capital buffers over time. The rules introduced by Ofgem this year require energy companies to keep cash in the bank as a safety net, in case customers can't pay. It imposes a capital 'floor' of zero pounds per customer, meaning suppliers should not be running on negative capital, and tells suppliers to aim for £115 per customer as the ideal amount. Three energy suppliers have so far failed to hit the new requirements, which came into force in April. Octopus, which supplies more than 7m households, confirmed it was one of them but said it had agreed a path to compliance with the regulator. Tomato, a much smaller provider with only 12,000 customers, has also failed to meet the requirements. It was banned from taking on new customers in April amid concerns about its multimillion-pound debt pile. The third energy company not meeting the rules has not been publicly confirmed. 'Outrageous' Ofgem Mr O'Shea lashed out against Ofgem, arguing that suppliers that had not met the requirements should be prevented from growing. He said the case of Rebel Energy, which went bust with 90,000 customers before being taken over by British Gas, underlined the need for the rules. Mr O'Shea added: 'They gave suppliers just over two years to meet that. And most suppliers did. 'But there were three that didn't ... They have recently stopped a supplier called Tomato from taking on new customers. But they haven't stopped the others that haven't met this from taking on new customers. And we think that is outrageous. 'We think that Ofgem are not applying their own rules consistently, and they're creating multi-tier regulation.' It marks the latest twist in the long-running battle between British Gas and Octopus. Mr O'Shea and Greg Jackson, the founder and chief executive of Octopus, have previously clashed over issues such as zonal electricity pricing. On Thursday, Ofgem rejected suggestions that it was not enforcing its own rules properly. A spokesman said the regulations meant companies must either meet the capital buffer requirements or have an agreed plan in place to meet them within a set period of time. A spokesman for Ofgem said: 'Our financial resilience controls are clear that where a supplier is not meeting the capital target but has a credible and agreed plan in place, that is not a breach of the rules. 'Capitalisation plans come with restrictions and controls. We expect suppliers to deliver on those plans and adhere to their restrictions and are monitoring closely.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
Yahoo
4 hours ago
- Yahoo
American Airlines CFO Declares Worst Is Over, But Cautious Outlook Sinks Stock
American Airlines Group Inc. (NASDAQ:AAL) on Thursday reported second-quarter 2025 earnings and revenue that surpassed Wall Street expectations, offering a strong performance despite persistent industry headwinds. However, the company issued a cautious forecast for the third quarter and narrowed its full-year guidance, citing ongoing uncertainty in travel demand. The airline reported an adjusted earnings per share of 95 cents, beating the consensus estimate of 77 cents. Revenue for the quarter rose slightly to $14.39 billion, edging past analyst expectations of $14.3 billion. Also Read: On a GAAP basis, American posted net income of $599 million, or 91 cents per share, highlighting operational strength despite economic pressures and weather-related disruptions across its network. American said the results were driven by strong international and premium cabin performance, growth in its loyalty program, and disciplined cost management. Passenger unit revenue in Atlantic markets climbed 5% from the year-ago quarter, while co-branded credit card spending rose 6%. The company also saw a 7% increase in AAdvantage loyalty program enrollments. The company generated $3.42 billion in operating cash flow through the first half of the year and reported $2.48 billion in free cash flow, helping bring its total available liquidity to $12 billion at the end of the quarter. Total debt stood at $38 billion, with net debt of $29 billion. CEO Robert Isom said the airline is well-positioned to navigate current volatility due to its modernized fleet, loyalty initiatives, and a strengthened balance sheet. American noted that disruptive weather events in key hubs impacted operations during the quarter, though the airline said it maintained reliability amid a 36% increase in such incidents. View more earnings on The company recently introduced new loyalty features, including the ability to use miles for upgrades, and expanded premium offerings such as its Flagship Suite inflight experience and Flagship Lounge in Miami. American Airlines reported modest growth in core operational metrics for the second quarter of 2025, with available seat miles (ASM) rising 3.2% year-over-year and revenue passenger miles (RPM) up 0.9%, signaling steady demand and strategic capacity increases. However, the passenger load factor declined by 1.9 percentage points to 84.7%, indicating slightly lower aircraft occupancy amid expanded service levels. The carrier saw some pricing pressure, as passenger yield dipped 1.5% to 19.96 cents, and passenger revenue per ASM fell 3.6% year-over-year. Despite the decline in unit revenue, American benefited from a 15.3% drop in average fuel prices, helping reduce overall operating cost per ASM (CASM) by 0.8%, with CASM ex-fuel and special items rising 3.4%. The airline ended the quarter with 1,539 aircraft in its fleet and 138,100 full-time equivalent employees, slightly higher than the year-ago period. Outlook American Airlines expects a third-quarter 2025 adjusted loss per share between $0.10 and $0.60, below the consensus estimate of a $0.03 profit, citing current booking levels, demand trends, and fuel prices. For the full year, it projects adjusted earnings between a $0.20 loss and $0.80 profit, with a midpoint of $0.30. The company says the upper end is achievable if domestic demand strengthens, while the lower end would only materialize if unexpected macroeconomic weakness emerges. In the earnings conference call, American Airlines' CFO reportedly said that the airline anticipates receiving 50 new aircraft deliveries this year. Capacity is expected to increase by 5% during the peak July period. However, this growth is projected to slow to 2% in August and decrease by 1% in September. The CFO also stated that the worst is over and year-over-year revenue is expected to show sequential monthly improvements throughout the current quarter. Price Action: At last check Thursday, AAL shares were trading lower by 9.63% at $11.46. Read Next:Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article American Airlines CFO Declares Worst Is Over, But Cautious Outlook Sinks Stock originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
4 hours ago
- Forbes
Why Franchising Didn't Take At Panini Kabob Grill In California
Franchising hasn't clicked at Panini Kabob Grill, but the chain is expanding on its own. Pictured is ... More its Del Mar, San Diego location. For many restaurant chains, franchising, which requires less capital, is the fastest route to growth. But don't tell that to Mike Rafipoor, the founder of Panini Kabob Grill, a hybrid fast-casual and full-service Mediterranean eatery that has expanded to 25 locations, all in California. His first outlet opened in 1998. But by 2017 he was ready to franchise and opened up 5 franchised outlets, but for a variety of reasons, bought back 4 of them by 2021, proving that franchising doesn't always jell with every restaurant concept. Prior to launching Panini Kabob Grill, Rafipoor was a serial entrepreneur who was a part-owner of two nightclubs, operated a sushi restaurant, and had run the second-largest car wash chain in Orange County. When eating out, he dined at mostly eateries that served entrees filled with preservatives that weren't the healthy food he craved. He figured he could do better so he opened his Panini Café (its original name) in Corona Del Mar in 1998. Its goal, he says, was to serve food that was 'healthy and fresh but would appeal to customers who, like me, may not have grown up with hummus and tzatziki (a salted yogurt and cucumber dip).' He added kabob to its name and that propelled sales of kabob, and then he added 'grill' because paninis and kabob are cooked on it. He self-capitalized that first location since most banks were hesitant to fund restaurants with their high failure rate. Once Panini Kabob Grill proved a success, he was able to secure bank loans of $3 to $4 million dollars, and repaid them, as he terms it, 'one kabob at a time.' He obtained a loan from Corbel Capital Partners to help fund expansion, but he is still 100% owner. The loan will help him open 4 company-owned locations in 2025 and 5 the next year. Rafipoor opened a second location in La Hoya that cratered, but its next in Beverly Hills soared, and he recognized that he needed to identify locations with a mix of 60% commercial tenants and 40% residential. His goal was creating a blend of luncheon and dinner sales with sufficient foot traffic combined with takeout or delivery. Fast Casual Meets Full-Service He refers to his eateries as a blend between fast-casual and full service. Guests place their orders at a counter, and then, he describes it as a 'full, dine-in experience with food brought to the table, drinks refilled, and the team checks in that everything is delicious.' Its healthy menu includes Atlantic salmon, hormone-free chicken, cage-free eggs, and choice cuts of filet mignon and lamb. He says its ingredients cost more but are worth it. Most guests spend in the $20 range per person, more aligned with fast-casual eateries such as Chiptole or Sweetgreen, but guests checks can rise to over $40 a person when family-style platters are ordered to Went Awry with Franchising Back in 2017 when he was interested in expanding quickly, he met with a franchising consultant from Chicago, assembled a franchising package and started marketing it. It led to 5 Panini Kabob Grill franchisees. But the problem, Rafipoor asserts, was that most of the franchisees owned multiple QSRs (quick-service restaurants) or fast-casual eateries and lacked the expertise to run more of a full-service concept that relies on takeout and third-party delivery. Rafipoor was also able to keep a close view of what franchisees were doing because he had built an elaborate camera system that enabled him to check-in and monitor what was happening at different stations and areas in the restaurant. He could actually spot trouble and intercede to help an employee correct a situation. It's All About the Franchisee He also learned that 'not all business owners are suited for the hospitality industry, and not all franchise owners are a good fit for full-service. It is time-consuming, grueling work.' He also points out, quite candidly, that its franchise agreement was very restrictive and required that franchises had $5 million in liquidity and lived in a 5-to-6-mile radius, and needed to work 50 to 60 hours on premises. Moreover, preparing dishes in a scratch kitchen model was highly demanding. So he reached the conclusion that for 4 of his franchisees 'the time investment and hands-on approach were not the style or type of business that would work for them,' cites Rafipoor. Only one worked out and is still on board. In 2021 he bought back 4 of the franchisees, which are now company-owned. Going Beyond California Now he's looking to expand beyond California to nearby states such as Arizona and Nevada in the coming year, but they will all be company-owned, not franchised. Until now keeping all of its locations within the state of California made his 25 eateries more efficient. It 'established an infrastructure in California to streamline operations, where all purchasing is centralized, ensuring consistency across all locations,' he explains. Rafipoor describes his target audience as people who are 'health-conscious individuals with active lifestyles and families who value made-from-scratch meals.' He describes Panini Kabob Grill's competitive edge as the fact that all meals are made from scratch, so 'everything is prepared fresh daily, including our marinades, sauces, breads and sides.' Asked the keys to its success, Rafipoor replies: 1) Putting its guests health first is the cornerstone of what it does while ensuring that every dish is made to order, 2) Training staff is critical from kitchen prep work to serving the meal of boxing up the kabobs, 3) Location, choosing sites that balance between commercial and residential spaces.
