Latest news with #JonTower
Business Insider
06-08-2025
- Business
- Business Insider
Citi Keeps Their Hold Rating on Yum! Brands (YUM)
Citi analyst Jon Tower maintained a Hold rating on Yum! Brands today and set a price target of $156.00. The company's shares closed today at $139.50. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. According to TipRanks, Tower is a 5-star analyst with an average return of 12.2% and a 58.88% success rate. Tower covers the Consumer Cyclical sector, focusing on stocks such as Starbucks, Chipotle, and Cracker Barrel. In addition to Citi, Yum! Brands also received a Hold from TR | OpenAI – 4o's Ella Servetta in a report issued today. However, on the same day, Barclays maintained a Buy rating on Yum! Brands (NYSE: YUM).
Yahoo
14-07-2025
- Business
- Yahoo
Starbucks to mandate workers return to office 4 days/week as CEO Brian Niccol continues turnaround efforts
Starbucks CEO Brian Niccol is doubling down on his push to return staff to the office. On Monday, CEO Brian Niccol said in a note to staff that its support partners and people managers will be required to come to the office four days a week starting in late September. Starbucks is also broadening expectations for which workers need to relocate to its North American hubs in either Seattle or Toronto, and those workers now expected to be in-person in either location will have a year to make the move. The company said it will also offer buyouts to employees that don't plan to meet these expectations as part of this broader mandate. "We are reestablishing our in-office culture because we do our best work when we're together," CEO Brian Niccol wrote. "We share ideas more effectively, creatively solve hard problems, and move much faster. Being in person also helps us build and strengthen our culture. As we work to turn the business around, all these things matter more than ever." In April, the company reported US same-store sales fell for the fifth-straight quarter to start 2025, a result Niccol called "disappointing." Starbucks' stock is up just 2% year-to-date, compared to the S&P 500's nearly 7% gain. The company is navigating a major brand overhaul amid an environment in which consumer spending has been under pressure. Niccol joined the company last year in a high-profile move from Chipotle, where he'd served as CEO since 2018. Citi analyst Jon Tower of wrote in a recent note to clients that he's eager to hear more about "updates on timeline and potential costs related to remodels and progress on menu simplification," in the company's upcoming quarterly report. The company disclosed in a filing earlier this month top executives could earn up to $6 million in stock grants if it meets cost-cutting reduction goals. "We're driving significant change across the company while staying true to our core values," Niccol wrote Monday. "We know we're asking a lot of every partner as we work to turn the business around. And we understand that the updated in-office culture may not work for everyone." Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@ Click here for all of the latest retail stock news and events to better inform your investing strategy
Yahoo
09-05-2025
- Business
- Yahoo
Why this analyst is 'not that concerned' about consumer health
Texas Roadhouse (TXRH) stock is up after reporting mixed earnings results. Citi director and restaurant analyst Jon Tower explains how consumer behavior and macroeconomic headwinds are shaping the restaurant industry. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. Take a look at one stock. We are watching at the market open here and that is Texas Roadhouse shares are higher up over 5% after the company posted mixed earnings for the first quarter with lower than expected earnings, but a 3.5% increase in same store sales. On the earnings call, leadership acknowledged some of the macro headwinds including consumer sentiment and of course tariffs. The comments echo concerns voiced by other companies like McDonald's, which said they were not immune to industry volatility. Chipotle on its call saying consumers reduced restaurant visits due to econ concerns. Joining us now on this, John Tower, City's restaurant analyst to break down how consumer demand is impacting the sector. John, it's always great to get your insights before we get into the individual companies here. I just want to get your macro take on the sector and on the health of the consumer. How would you describe how the consumer is holding up amid the macro uncertainty right now? I think fairly well. I mean, we had a really noisy first quarter with weather really being a significant factor and then April May, excuse me, March, and then April came along caused a lot of noise for consumers. Confidence fell, uh, quite a bit during the month and I think that caused a lot of folks to pull back, um, at least temporarily. But we're also hearing from a number of companies that April actually improved relative to what they were seeing certainly during February, March. So it's it's a bit of a mixed bag. I I'm not all that concerned on the health of the consumer at the moment. And look, I I don't know where we're going to go from from the US economy standpoint, but if we do go to a slowdown, I think the restaurant category is actually set up relatively well to outperform other parts of consumer discretionary. When you hear this number of businesses talking about remaining focused on the fundamentals of our business, things what they can control, what what are the main controllables, the variables that are are a little bit more in their hands that they can essentially kind of pull levers here and there to ensure that they do navigate what is an uncertain environment that all of them have acknowledged in some capacity or another? It's great value, great service, it's relevant products. It's staying in front of the guest with good news, meaning, you know, you're you're staying out there with important or relevant products, right? You're not just saying, here's a value price point. It's here's a value price point with new product news behind it. And it's high quality food, right? And you're getting in an environment that you want to be and it's not a tired restaurant with poor service. It's, you know, frankly a waiter or waitress coming up to you and saying, hey, how you doing? And I hope you're having a great day. And oh, by the way, you know, we're coming to your table more often to make sure that your drinks are topped off, you're getting what you want. It's really those soft touches that will drive customers back to the store rather than, you know, eating at home or going to a competitor. So I think all of those, it's really soft things, but they matter in times when consumers are pulling back. And so within that, some people will hear value and read through to say, well, it sounds like more promotions as well. To what extent then do some of those promotions start to hit the margins? Yeah, I think a lot of the operators have gotten smarter about how they promote, when they promote, and value engineering any sort of promotion that they put forth to the guests. So it's not just straight discounting, it's ensuring that whatever they put forth on their menu, they're making some profits, not only clearly for the company itself, but in a franchise model, ensuring that their franchisee profitability is not, you know, falling in the tank. So I everything that you're going to see out there might, you know, decrease profit dollars modestly, um, but they're also hoping that it drives traffic to the store. And then when a guest comes through, they're adding, say a beverage to the occasion, adding a side item that they wouldn't have done, uh, had they not come to the store in general. So it's much more thoughtful than it used to be, say, even thinking back to the financial crisis when there's a lot of panic setting in across the industry and there's just straight discounting to get guests in the door. This is a much more methodical industry, much more analytics behind it. So I I do think that as we see promoting come through, more discounting come through, it's not just straight up discount, unprofitable. It's more thoughtful and profitable promotions. John, thanks so much for taking the time here with us today just after the opening bell. Appreciate it. Good to see you. Thank you. 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
Yahoo
24-04-2025
- Business
- Yahoo
Texas Roadhouse downgraded to Neutral from Buy at Citi
Citi analyst Jon Tower downgraded Texas Roadhouse (TXRH) to Neutral from Buy with a price target of $164, down from $213. The company is one of the higher-quality names in the firm's universe and Citi isn't questioning the operations or the brand's relevancy/longevity, but it also sees data suggesting a soft patch for traffic and comps without upcoming catalysts, the analyst tells investors in a research note. Citi adds that beef cost risks are magnified without ongoing beats on traffic and flow-thru to buffer estimates. Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on TXRH: Disclaimer & DisclosureReport an Issue Texas Roadhouse downgraded to Neutral from Buy at Citi Hold Rating for Texas Roadhouse Amidst Traffic Slowdown and Rising Costs Texas Roadhouse price target raised to $179 from $178 at Barclays Texas Roadhouse price target lowered to $190 from $232 at BofA Texas Roadhouse Stock (NASDAQ:TXRH) Slips Despite Americans Increasingly Preferring It
Yahoo
21-02-2025
- Business
- Yahoo
Domino's to report fourth quarter results as investors look for new avenues of growth
Domino's (DPZ) investors are hungry for more. For the company's fourth quarter results, Wall Street expects Domino's to report revenue of $1.48 billion, with same-store sales up 1.72% year over year. Adjusted earnings are expected to come in at $4.93, up from $4.48 the prior year. After battling bad weather conditions in the fourth quarter, Citi analyst Jon Tower wrote in a client note that "shares appear to have already moved on from what is likely a soft fourth quarter and start to the first quarter." Ahead of the company's report on Monday before market open, shares are up more than 12% year to date, compared to the S&P 500's (^GSPC) 5% gain. However, Domino's one-year gain of 13% lags the S&P's 23% jump. In its third quarter results, the company expected to end 2024 with annual global retail sales growth of approximately 6%. Challenges around its international unit growth are expected to be a "key focus for longer-term investors," Tower said. Many analysts are focused on its largest franchisee, Domino's Pizza Enterprises (DPE), which plans to close 205 unprofitable locations. The majority of those restaurants will be in Japan. Stifel analyst Chris O'Cull anticipates the closures will result in a roughly 100 basis-point headwind to global net unit growth in 2025. Here's what Wall Street expects from Domino's in the fourth quarter, compared to the year prior: Adjusted earnings per share: $4.93, versus $4.48 Revenue: $1.48 billion, versus $1.40 billion US same-store sales growth: 1.72%, versus 2.80% Company-owned: 1.79%, versus 5.90% Franchise: 1.74%, versus 2.60% International same-store sales growth: 1.63% versus 0.10% Here's what Wall Street expects from Domino's in its fiscal 2024 results, compared to the year prior: Adjusted earnings per share: $16.70, versus $14.66 Revenue: $4.74 billion, versus $4.48 billion US same-store sales growth: 3.63%, versus 1.60% Company-owned: 4.30%, versus 5.40% Franchise: 3.63%, versus 1.40% International same-store sales growth: 1.37%, versus 1.70% In third quarter results, Domino's had set a goal to exit the year with a 3% increase in US sales through Uber. CEO Russell Weiner told investors on the recent earnings call that third-party order aggregators like Uber and DoorDash are boosting results because their users are high-income customers. Tower said investors are focusing on expanding the third-party delivery service to DoorDash (DASH) and on menu innovation. At the end of the first quarter, it will no longer have exclusivity with Uber (UBER), which could give Domino's a boost as it lists on other apps. "DoorDash is bigger than Uber, so that would certainly be ... a more significant impact on our business than Uber," Weiner said, adding that being on all the order aggregators is a $1 billion opportunity. Innovation around stuffed crust pizza, which could come in the second half of 2025, could also be a boon, per Deutsche Bank research analyst Lauren Silberman. Other initiatives to drive same-store sales in the US this year include the company's loyalty program, app and website upgrades, and value platforms, Silberman noted. TD Cowen analyst Andrew Charles told Yahoo Finance ahead of the Super Bowl that the brand is leading its industry with its value perception. The pizza chain also secured a nod from the Oracle of Omaha recently. A SEC filing disclosed Warren Buffett's Berkshire Hathaway (BRK-B) holds 2.38 million shares in Domino's as of the end of 2024, making it the fourth largest shareholder. Berkshire also took a stake in Constellation Brands (STZ), which CFRA analyst Garrett Nelson called "a big vote of confidence." — Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@ Sign in to access your portfolio
