Latest news with #HispanicConsumers
Yahoo
5 days ago
- Business
- Yahoo
Jack in the Box CEO says Hispanic consumers pulling back spending over 'uncertainty'
By Waylon Cunningham (Reuters) -Hispanic consumers in Jack in the Box's core markets "face uncertainty and have pulled back their spending," with the issue having an outsized impact on the U.S. fast-food chain's sales, its CEO said. Same-store sales for Jack in the Box declined 7.1% in the third quarter ended July 6. The company also reported a decline of 2.6% in same-store sales for another taco chain it owns, Del Taco. Jack in the Box CEO Lance Tucker, speaking on an earnings call on Wednesday, separated the pullback of Hispanic consumers from other trends, such as a drop in spending by lower-income consumers that he said was "well in line with industry trends" Tucker said the proportion of Hispanic consumers at Jack in the Box, which has core markets in Texas, California and the U.S. Southwest, is twice as high as some major competitors. Tucker did not specify the "uncertainty" he believes Hispanic consumers are facing. U.S. Immigration and Customs Enforcement officers have been intensifying efforts in recent months to deliver on Republican President Donald Trump's promise of record-level deportations. Rita Fernandez, director of immigration policy at UnidosUS, which describes itself as the largest Latino civil rights group in the country, said many migrants have been withdrawing from public life. "Jack in the Box is a favorite destination and dining choice for many Hispanics," she said, but "a day laborer who is undocumented maybe isn't going to take that lunch break at Jack in the Box if he doesn't know if he'll encounter ICE on the way." Tucker said the pullback in spending from Hispanic consumers has been "pretty consistent" since the beginning of the year. Trump's second term began in January. The timeline is consistent with what Wingstop CEO Michael Skipworth said last week, when he said areas with a high proportion of Hispanic and low-income consumers have had weaker demand since the beginning of the year. 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
Reuters
5 days ago
- Business
- Reuters
Jack in the Box CEO says Hispanic consumers pulling back spending over 'uncertainty'
Aug 7 (Reuters) - Hispanic consumers in Jack in the Box's (JACK.O), opens new tab core markets "face uncertainty and have pulled back their spending," with the issue having an outsized impact on the U.S. fast-food chain's sales, its CEO said. Same-store sales for Jack in the Box declined 7.1% in the third quarter ended July 6. The company also reported a decline of 2.6% in same-store sales for another taco chain it owns, Del Taco. Jack in the Box CEO Lance Tucker, speaking on an earnings call on Wednesday, separated the pullback of Hispanic consumers from other trends, such as a drop in spending by lower-income consumers that he said was "well in line with industry trends" Tucker said the proportion of Hispanic consumers at Jack in the Box, which has core markets in Texas, California and the U.S. Southwest, is twice as high as some major competitors. Tucker did not specify the "uncertainty" he believes Hispanic consumers are facing. U.S. Immigration and Customs Enforcement officers have been intensifying efforts in recent months to deliver on Republican President Donald Trump's promise of record-level deportations. Rita Fernandez, director of immigration policy at UnidosUS, which describes itself as the largest Latino civil rights group in the country, said many migrants have been withdrawing from public life. "Jack in the Box is a favorite destination and dining choice for many Hispanics," she said, but "a day laborer who is undocumented maybe isn't going to take that lunch break at Jack in the Box if he doesn't know if he'll encounter ICE on the way." Tucker said the pullback in spending from Hispanic consumers has been "pretty consistent" since the beginning of the year. Trump's second term began in January. The timeline is consistent with what Wingstop CEO Michael Skipworth said last week, when he said areas with a high proportion of Hispanic and low-income consumers have had weaker demand since the beginning of the year.
Yahoo
22-07-2025
- Business
- Yahoo
Coca-Cola Stock Dips as Pricing Pressure Offsets Q2 Earnings Beat
July 22 - Shares of Coca-Cola (NYSE:KO) dipped more than 1% Tuesday morning despite the company posted better-than-expected second-quarter earnings, fueled by stronger pricing and resilient demand for its zero-calorie sodas. Revenue for the quarter rose 2.5% year over year to $12.62 billion, topping LSEG estimates of $12.54 billion. Higher prices helped offset a 1% decline in global beverage volumes, with North America seeing weakness tied to consumer pressure in lower-income groups. Volumes slipped in key regions including India, Mexico and the U.S., partly due to a now-resolved boycott by Hispanic consumers. CEO James Quincey noted that economic uncertainty and pricing sensitivity weighed on sales in some markets. Coca-Cola added it anticipates its annual comparable EPS to fall in the range of the upper limit of its historical goal of 2 percent to 3 percent growth with help of a weaker U.S. dollar. There is also an expansion strategy of the company to introduce an American version of its Coke in cane sugar in some of the markets where it is already marketed, such as in Mexico. The step comes as part of a wider trend of the industry moving to lighter ingredients, though analysts warned it will increase expenses and increase supply chain complexity. The Coca-Cola also stated that it is remaining pessimistic on the expenses due to world trade dynamics. The company is still trying to look into cheaper packaging following a sharp increase in tariffs in the United States on foreign supply of imported aluminum which increased by 50%. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
03-07-2025
- Business
- Yahoo
Trump's immigration crackdown is hurting sales of America's most popular beer
Modelo and Corona owner Constellation Brands (STZ) is warning about the impact President Trump's immigration crackdown is having on its beer business. Executives said consumer sentiment deteriorated and socioeconomic headwinds increased during its latest quarter amid rising concerns among its core Hispanic consumer base. "Our Hispanic consumer, which reflects roughly half our business ... is very interested in beer," CEO Bill Newlands said on a call with investors. But, Newlands said, "occasions on which beer is consumed have decreased ... [they're] not going out to eat as much as they had, they're having less social occasions at home." Beer shipment volumes fell 3.3% in the quarter, Constellation said Tuesday. The company's Modelo Especial is the bestselling beer in the US. "A lot of Hispanic consumers are apprehensive to leave their house or ... deviate from their routine or go out," Dave Williams of Bump Williams Consulting told Yahoo Finance. "That results in fewer opportunities and occasions where beer would slot into the mix." "The abruptness of this slowdown ... makes me feel like there's a lot more of it tied to the cyclical aspect of these consumer behaviors due to the recent ICE raids or deportation scares, whether you're legal or not ... that's on top of the other structural aspects that beer brands in general," Williams added. The company also highlighted that while "total population and Hispanic unemployment rates remained at similar levels as in the preceding quarter," employment growth for consumers who tend to be its core audience, like construction workers, saw the sector's growth decelerate "noticeably." According to the Bureau of Labor Statistics, construction job growth has slowed consistently this year, falling to a rate of 1.5% in May, down from 2.8% a year ago. In Constellation Brands' fiscal first quarter 2026 results, the company saw its volume growth for beer decline 3.3%, a tick more than the 2.4% drop Wall Street expected. Its revenue and adjusted earnings also just missed the Street's expectations, coming in at $2.52 billion and $3.22 per share. The Street was looking for $2.55 billion in revenue and earnings of $3.32 per share. For the fiscal year, the company reiterated that it expects organic net sales growth for its beer category to be in the range of 0%-3% growth; it expects wine and spirits sales to decline 17%-20%. Williams said while Modelo Especial still holds the title of top beer brand in the US, it was "coming up against some size and scale challenges" compared to recent years of growth, especially after taking the top spot from Anheuser-Busch's (BUD) Bud Light two years ago. Constellation stock rose over 4.5% on Wednesday, but shares have tumbled so far this year, down more than 20% as investments weigh potential risks, including the impacts to Hispanic consumers and low-income consumers but also lower consumption of alcohol by younger consumers. An advisory from the Biden administration's Surgeon General earlier this year linking alcohol use to cancer, as well as the potential impacts from GLP-1 drugs and tariffs, have also weighed on sentiment toward the stock, JPMorgan analyst Andrea Teixeira said. Constellation Brands brews most of its beer in Mexico and sells it in the US. It has been compliant with the US-Mexico-Canada trade agreement since it was implemented several years ago. About 39% of its beer is shipped in aluminum cans, which are still subject to a 25% tariff. Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@ 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
The Independent
02-07-2025
- Business
- The Independent
Modelo and Corona sales drop amid Trump's immigration crackdown
Constellation Brands, maker of Modelo and Corona beers, reported a two percent drop in beer sales during the second fiscal quarter of 2025. The company attributes the sales decline primarily to fears among Hispanic consumers regarding Immigration and Customs Enforcement (ICE) Deportation activities. CEO Bill Newlands stated that Hispanic customers, who account for about half of the company's beer sales, are reducing social occasions where beer is consumed due to these fears. Additional factors contributing to Constellation Brands' lower-than-expected earnings include tariffs on aluminum imposed by the Donald Trump administration. Other companies, such as Coca-Cola, have also reported sales declines partly due to weakening consumer sentiment among Hispanic consumers, linked to the administration's immigration crackdown.
