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Axios
4 days ago
- Entertainment
- Axios
Historic Beach Theatre returns to life in St. Pete Beach
Some 500 days, three hurricanes and one massive renovation later, the historic Beach Theatre officially opens tonight. Why it matters: It marks a new era for the sky-blue St. Pete Beach landmark, which originally opened in 1940 and has sat closed since 2012. Grand-opening celebrations are planned throughout the weekend, featuring live local music and showings of " A New Wave: Revival of The Beach Theatre," a documentary about the theater's history and renovations. What they're saying: "It's so surreal," the theater's director, Hannah Hockman, 26, told Axios. "It's been a long road to finally get here, but we're so excited to finally welcome people back." State of play: Hockman, a St. Pete Beach resident with a theater degree from Eckerd College, bought the venue with her entrepreneur parents on Leap Day last year, and renovations began in August. Among the upgrades, per the Tampa Bay Times: a brand-new interior with 175 tall-person-approved seats, an "Art Deco meets beach" decor theme, and touches from history, like vintage movie posters and the original red marquee letters. The new-and-improved venue will show two or three movies and hold at least one live event per month. A play festival, featuring staged readings of three works by local playwrights, is already on the docket for September. Flashback: The original theater opened on Jan. 15, 1940, with a showing of "Dust Be My Destiny," the St. Pete Catalyst reported. It was Pinellas County's first theater built to accommodate films with sound. As its ownership changed hands over the decades, the theater hung onto its independent roots and underwent cosmetic upgrades, like new seats and fresh paint. Its most recent run was helmed by Hollywood screenwriter Michael France Jr. and featured regular weekend screenings of "The Rocky Horror Picture Show." The aging theater closed in 2012, and France died the next year. The owner before the Hockmans bought the venue in 2021 and decided to sell after seeing how much work it would take to revamp it. What's next: While tonight's event is sold out, the theater will host grand-opening celebrations all weekend, as well as on Monday night for hospitality and entertainment industry workers who work weekends, Hockman said.
Miami Herald
06-07-2025
- Business
- Miami Herald
Burger King, Popeye's CEO sounds the alarm on troubling issue
Fast-food chains in the United States and across the world have struggled. Customers have increasingly pushed back against what they perceive as high prices. The problem is that in many cases, the various fast-food giants are just passing on their increased costs. Labor costs have gone up all across the United States, while the price of every item that makes up your fast food meal has likely increased as well. Related: Iconic pizza chain's franchisees close multiple restaurants It's a double-edged sword where consumer feel they are being taken advantage of, while the businesses are simply trying to maintain their profit margins. People expect their fast-food burger meal to be cheap. They want value meal options and price points for complete meals that are at least under $7, but in many cases under $6 or even $5. Chains like Burger King and Popeye's, which are both owned by Restaurant Brands international (QSR) , also don't really have the luxury of playing with portion size. People know what a Whopper looks like, and the same goes for Popeye's chicken. Don't miss the move: Subscribe to TheStreet's free daily newsletter That puts the company in the challenging position where it has to both maintain its profit margin and not raise prices. It's a situation that may very well be impossible. RBI CEO Josh Kobza talked about the problems facing not just his company, but also his rivals. Kobza had to walk a narrow line during his company's first-quarter earnings call. He had to be upbeat, while also explaining away mediocre results and preparing Wall Street for potentially more mediocrity to come. "Through the first few months of 2025, we've been navigating a highly dynamic macro backdrop, one that's evolving differently across each of our key markets. As a global franchisor, offering convenience and everyday value for guests, we're certainly better positioned than many others to navigate this evolving environment, but we're not immune, and our Q1 results reflect that," he shared. Overall, RBI, which also includes Tim Horton's, held its own in a challenging climate. More Retail News: Home Depot spends billions on major acquisitionHershey makes major change candy lovers may not have seen comingStarbucks brings back fan-favorite menu item after 2-year hiatus "First quarter consolidated comparable sales were 0.1% or just over 1%, excluding the impact from Leap Day, and net restaurant growth was 3.3%. This translated into system-wide sales growth of 2.8% and organic adjusted operating income growth of 2.6%. We anticipated that Q1 would be our softest quarter of the year and believe that some of the macro noise may have driven further softness," he added. Those numbers aren't bad, but they're below where Kobza wants them to be. When everyone else doesn't perform very well, it makes your slight gains look better. It's sort of like not having tall friends if you are on the short side. "We continue to perform reasonably well compared to many of our global peers, reflecting the underlying strength of our brands and the quality of the plans we are executing to improve on the fundamentals that our guests care about most. We know relative performance alone isn't enough and doesn't pay the bills for us or our franchisees, though, which is why we're focused on delivering improved absolute results through the balance of the year," the CEO said. Kobza noted the pricing pressure his various brands have been facing. "In any environment, our guests are focused on quality, service, and convenience at a fair price. And our teams are focused on exactly that, improving the value proposition for our guests at each of our brands and making that experience better each time they come in," he added. Related: Popular restaurant chain closes all locations, no bankruptcy That's a challenge, given what consumers want - maybe not more for less, but at least the same for the same. He highlighted that various RBI brands have been delivering on that challenging problem. "Whether that is newly remodeled restaurants of Burger King and Popeye's or improved service standards at Tim Hortons in the p.m. daypart, we're spending our time on what matters most," he said. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
09-06-2025
- Business
- Yahoo
Airbnb, Inc. (ABNB): A Bear Case Theory
We came across a bearish thesis on Airbnb, Inc. (ABNB) on Wolf of Harcourt Street's Substack. In this article, we will summarize the bears' thesis on ABNB. Airbnb, Inc. (ABNB)'s share was trading at $137.29 as of 5th June. ABNB's trailing and forward P/E were 34.85 and 31.45 respectively according to Yahoo Finance. A family boarding an airplane with their suitcases, symbolic of the company's reach into the global travel industry. After years of promise and steady ownership since 2021, the investor exited their Airbnb position following a disappointing Q1 2025 and underwhelming product updates. Nights and Experiences Booked grew just 8%, the slowest rate since the pandemic, partly due to tough comps from last year's Leap Day. Gross Booking Value rose 7% year-over-year to $24.5 billion, but this too marked a slowdown, even after adjusting for FX. The Average Daily Rate dipped 1% (up 1% ex-FX), and the take rate softened slightly to 9.3%. Revenue increased just 6%, or 11% on a normalized basis, but momentum remained weak. Operating margin shrank from 5% to 2%, mainly due to elevated product development and marketing costs tied to the Summer Release. Net income also slipped to $154 million, buoyed by interest income, without which Airbnb would have been unprofitable. That said, free cash flow remained robust at $1.78 billion in Q1, reflecting Airbnb's capital-light, high-margin model. The long-anticipated Summer Release failed to inspire confidence. Airbnb expanded into local services—chefs, photographers, massages—and rebranded Experiences across hundreds of cities, while also revamping its app. But these were not game-changers. The lack of a loyalty program, despite its proven success at peers like and Uber, was seen as a glaring omission. New verticals like Services appear to offer limited repeat usage, are potentially lower-margin, and introduce operational overhead. With adjusted FCF margins already high and margin expansion opportunities limited, future upside hinges on reaccelerating top-line growth. Without clear evidence that this is achievable, the author exited, concluding that while Airbnb remains a good business, it may no longer be a good stock. Previously, we summarized a on Airbnb (ABNB) by Chit Chat Stocks, which contrasts sharply with the bearish view from Wolf of Harcourt Street. The stock has since then been stable, experiencing a 0.3% appreciation in value. Chit Chat argues Airbnb is expanding its value proposition through Experiences and Services, laying the groundwork for deeper engagement, higher spending per user, and long-term platform expansion. Airbnb, Inc. (ABNB) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held ABNB at the end of the first quarter which was 54 in the previous quarter. While we acknowledge the risk and potential of ABNB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
04-06-2025
- Business
- Yahoo
ARCO Q1 Earnings Call: Flat Sales and Margin Pressure Amid Challenging Consumer Environment
Fast-food chain Arcos Dorados (NYSE:ARCO) fell short of the market's revenue expectations in Q1 CY2025, with sales flat year on year at $1.08 billion. Its GAAP profit of $0.07 per share decreased from $0.14 in the same quarter last year. Is now the time to buy ARCO? Find out in our full research report (it's free). Revenue: $1.08 billion (flat year on year) Adjusted Operating Income: $45.15 million vs analyst estimates of $52.01 million (4.2% margin, 13.2% miss) Adjusted EBITDA Margin: 8.5% Locations: 2,439 at quarter end, up from 2,381 in the same quarter last year Same-Store Sales rose 5.6% year on year (38.6% in the same quarter last year) Market Capitalization: $1.55 billion Management attributed Arcos Dorados' flat sales in Q1 to a combination of external and internal factors, including lower guest volumes across the quick-service restaurant industry, unfavorable calendar effects from Leap Day and Holy Week, and currency depreciation in key markets. CEO Marcelo Rabach noted that digital and loyalty channels remained resilient, with almost 60% of sales coming through digital platforms and a growing base of nearly 19 million monthly app users. While off-premise channels helped offset weaker in-restaurant traffic, CFO Mariano Tannenbaum highlighted that higher food and paper costs, especially in Brazil due to rising beef prices, weighed on margins. Management emphasized that operating performance improved later in the quarter, especially in March, and that Brazil and SLAD divisions provided some margin stability despite broader challenges. Looking ahead, Arcos Dorados' leadership expects an improved operating environment as the year progresses, supported by a robust marketing plan and ongoing digital initiatives. Management indicated that early Q2 sales trends, particularly in Mexico and Brazil, have strengthened as negative calendar effects subside and brand activations ramp up. CFO Mariano Tannenbaum stated, 'We expect margins for 2025 will be similar to 2024, excluding the positive impact of prior-year payroll reversals in Brazil,' as the company pursues pricing actions aligned with inflation, enhanced supplier negotiations, and continued cost discipline. CEO Marcelo Rabach expressed confidence in capturing further market share and leveraging the company's modernized restaurant base, while remaining cautious on consumer spending trends. Management identified several factors that shaped Q1 results, including digital channel growth, segment-specific consumer dynamics, and varied margin performance across regions. Digital channel penetration: The company's digital sales accounted for nearly 60% of system-wide sales, with digital platforms and the loyalty program driving customer engagement and frequency. Off-premise channels, such as delivery and mobile ordering, remained resilient as consumers pulled back on in-restaurant dining. Brazil's mixed performance: Brazil saw a modest constant-currency revenue increase but faced a soft consumer climate and heightened beef costs, which pressured margins. Marketing campaigns, including sponsorships and menu innovations, helped maintain brand preference and market share despite external pressures. NOLAD region dynamics: The NOLAD division (Mexico, Panama, Costa Rica, and others) experienced comparable sales gains in Mexico, but overall revenue was impacted by currency depreciation and weaker traffic in Panama and Costa Rica. Digital campaigns and value-focused promotions were used to maintain customer engagement. SLAD division recovery: SLAD (South Latin America Division) posted strong comparable sales growth, led by Argentina's rebound from prior economic instability and robust performance in Uruguay and Venezuela. Digital sales penetration in SLAD reached 70% in some markets, underscoring the effectiveness of ongoing digitalization efforts. Margin pressures and cost management: Rising food and packaging costs, particularly in Brazil, drove margin contraction, although management cited some relief from payroll expense efficiencies and positive royalty fee changes in other divisions. The company is prioritizing pricing adjustments and supplier negotiations to mitigate further cost headwinds. Management's outlook for the remainder of 2025 centers on digital engagement, disciplined pricing, and adaptation to shifting consumer spending patterns. Digital and loyalty expansion: Continued investment in digital platforms and the expansion of the MyMcDonald's loyalty program are expected to drive higher customer frequency and off-premise sales. Management aims to have the loyalty program active in all major markets by year-end, further increasing digital penetration. Margin stabilization strategies: Management plans to offset rising input costs through pricing actions aligned with inflation, improved supplier negotiations, and operational efficiencies, including enhanced scheduling systems. The company expects EBITDA margins to be broadly stable year-on-year, adjusted for prior-year payroll credits in Brazil. Macro and consumer headwinds: Leadership remains cautious about consumer spending, especially in Brazil and NOLAD, due to ongoing economic volatility. Management's strategy emphasizes protecting traffic through competitive pricing and promotions, with an eye on fixed cost leverage as sales volumes recover. In upcoming quarters, the StockStory team will watch closely for (1) sustained improvement in sales trends in Brazil and NOLAD as calendar effects normalize, (2) signs that margin stabilization efforts—such as pricing and supplier negotiations—are taking hold, and (3) continued momentum in digital and loyalty program adoption. The pace of restaurant openings and the ability to maintain cost discipline in a volatile macro environment will also be important indicators. Arcos Dorados currently trades at a forward price-to-sales ratio of 0.3×. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Courier-Mail
25-05-2025
- Business
- Courier-Mail
McDonald's battles ‘fierce' Aussie competition as global sales drop
Don't miss out on the headlines from Restaurants & Bars. Followed categories will be added to My News. The famous golden arches might be losing their glow, with McDonald's recording a surprising drop in global sales as the fast-food giant battles 'fierce' competition in Australia. McDonald's reported a one per cent fall in global comparable sales in the first quarter of the year compared to the same period in 2024, which included a Leap Day. In its US birthplace, McDonald's recorded a 3.6 per cent decline in sales – marking the biggest sales drop since the pandemic, when restrictions were in place. McDonald's attributed a decrease in the number of comparable customer transactions at restaurants as a major factor behind its decline in US sales. McDonald's Chairman and CEO Chris Kempczinski said customers were 'grappling with uncertainty'. 'McDonald's has a 70-year legacy of innovation, leadership, and proven agility, all of which give us confidence in our ability to navigate even the toughest of market conditions and gain market share,' Mr Kempczinski said. McDonald's recorded a 3.6 per cent decline in sales in the US. Picture: Charly Triballeau/AFP In Australia, research suggests the fast-food giant's sales are rising, with market research firm IBISWorld estimating McDonald's sales to be $5.7 billion in 2024-2025, compared to $5.4 billion in 2023-2024. But it's not all good news, with the fast-food giant having to fight off hungry competitors eating into its market. 'While absolute sales figures might be rising, it is anticipated that McDonald's is losing market share to other fast food providers in Australia,' IBISWorld Industry Team Leader Disha Jeswanth told adding 'McDonald's faces fierce competition from several sources'. 'Within the fast food segment, the main differentiator is price in terms of value for money.' According to IBISWorld, McDonald's market share has consistently dropped from 21.5 per cent in 2021-2022 to 19.3 per cent in 2024-25. McDonald's is fighting off hungry competitors eating into its Australian market. Picture: Glenn Campbell Aside from competing against KFC, Dominos as well as burger joints of the likes of Hungry Jack's and Grill'd, McDonald's is also facing off with Mexican food brand Guzman y Gomez (GYG) which has proven itself to be a 'major emerging competitor'. 'Guzman y Gomez is capturing market share through its perceived healthier food offerings,' said Ms Jeswanth. 'While a large burger meal at Maccas is averaging above $15 these days, GYG is offering a burrito bowl for a similar price. The brand is also marketing its use of free-range chicken and high-quality ingredients. 'GYG's next move involves expanding into drive-thru operations, which will further weigh on McDonald's demand.' 'Grill'd, on the other hand, although it doesn't compete with Maccas on the basis of price, is offering gourmet burgers that are often a healthier choice.' To counter this, Ms Jeswanth notes McDonald's has continued sourcing over 90 per cent of its ingredients locally and using 100 per cent RSPCA-approved chicken. 'McDonald's also provides nutritional information with its food orders to maintain transparency. However, public perception around McDonald's food quality remains a challenge.' Guzman Gomez is a major emerging competitor against McDonald's. Picture: NewsWire/Gaye Gerard Jump in price An increase in prices, as other restaurants have done amid rising cost-of-living and inflation, have also hurt McDonald's reputation. 'McDonald's value proposition has long centred on providing affordable meals, appealing especially to budget-conscious consumers,' said Ms Jeswanth. 'However, consistent price increases in recent years, driven by rising input costs and wages have eroded this perception of value.' The price of a large fries has increased by more than 50 per cent since 2019, from $3.20 to $4.85 as of this month, while a classic Angus burger is up more than 25 per cent from $7.95 to $10. The increase has come at a time when cost-of-living pressures has changed Australians' spending habits. 'Lower-income households and younger consumers are extremely cautious of their discretionary spending', said Ms Jeswanth. McDonald's has seen an increase in prices in recent years. According to Finder's Consumer Sentiment, only 61 per cent of Australians reported spending money on food delivery or takeaway services per week in May 2025, compared to 68 per cent in May 2022. 'The cost of living is putting significant pressure on household budgets, and one area many Australians are cutting back on is non-essential spending such as takeaway,' Graham Cooke, head of consumer research at Finder told 'Fast food prices of some menu items at McDonalds have been rising faster than inflation. 'At the same time, local fast-food brands have diversified their offerings.' 'When groceries, energy bills, and housing costs rise, the convenience of restaurant-prepared meals becomes a luxury that is harder to justify for many individuals and families,' he added. 'What might have been a weekly or even bi-weekly habit could shift to a monthly treat or only for special occasions.' X Low customer satisfaction According to Sydney-based Fonto, which conducts weekly surveys of customer experiences at 19 Quick Service Restaurants (QSR) across Australia, McDonald's consistently underperforms on customer satisfaction compared to other brands across the last 16 months. In the first quarter of the year ending in April, McDonald's scored 69 per cent overall satisfaction – a drop from 71 per cent compared to the same period last year. Out of the top 15 brands, the fast-food giant was ranked last in the first quarter of this year. 'We're seeing consistently that McDonald's ranks towards the very bottom,' Fonto CEO Ben Dixon told adding it sits in the bottom third of 19 brands. Meanwhile, competitors GYG, Crust and Grill'd made up the top three brands for overall satisfaction. 'They're really focusing on fresh and healthy, they're brands that an athlete would consider buying from, and their prices aren't too far away. The gap in price used to be quite significant between, say, a Grill'd burger and a McDonald's meal, and it's not as big anymore.' Grill'd beef burgers range from $13.50 to $16.50, according to current prices listed on its website. In the first quarter of the year, McDonald's ranked 13 for price out of the top 15 brands. 'McDonald's customers have consistently got the least satisfaction with their prices than any of the other brands,' said Mr Dixon. 'So people feel like they're still paying a lot, and the quality is not there for what they're paying.' Grill'd recorded 88 per cent overall satisfaction among customers surveyed by Fonto between February and April 2025. Between March 2024-May 2024, Grill'd's overall satisfaction jumped from 85 per cent between to 88 per cent between February and April 2025. Over the same period, McDonald's dropped from 74 per cent to 69 per cent respectively. Despite the low customer satisfaction, 75 per cent of McDonald's customers told Fonto they didn't consider going elsewhere. Mr Dixon said one major reason behind this decision is proximity, with McDonald's owning over 1,000 restaurants across the country. 'If you're in a regional or rural area then it's hard to consider going somewhere else if there's nothing for a long way away,' he said. McDonald's over 1,000 restaurants across the country. Picture: Evan Morgan But as competitors open more stores the game could change. Last year, GYG announced its goal to expand its network to over 1,000 stores. 'The question that everyone probably needs to think about is, if every town had a strip, and in that strip was a McDonald's, a Hungry Jack's, a KFC and a Subway, would McDonald's hold the massive market there that it does?' Mr Dixon questioned. 'Or would people move between them because they don't want to eat a burger every night, or because the quality and the satisfaction is not necessarily as high in some of those restaurants?' The future of fast food in Australia New competitors such as US-based chicken chain Wingstop – which opened its first store in Australia this month – is also looking to take a bite out of an increasingly crowded market. 'McDonald's has stood the test of time in the Australian market, there is always the risk of losing market share to new competitors,' said Ms Jeswanth. 'International fast food giant Wendy's is set to expand to over 200 locations in Australia over the next decade, proving to be a direct competitor to Maccas.' To compete, Ms Jeswanth said brands will need to focus on providing premium quality and healthier meals at affordable prices. 'Consumer behaviour is tilting towards sustainable and healthier options, and fast food giants will need to match these preferences (including plant-based options) to remain viable in his highly competitive market,' she said. The fast food market is predicted to become more crowded in Australia. Picture: Glenn Campbell 'Despite McDonald's loyalty and scale within Australia, the brand will need to focus on bettering its offerings to remain competitive.' Mr Dixon agrees 'the competition will just get tougher'. 'If I was McDonald's or a McDonald's franchisee, I'd have my work ahead of me,' he said. 'They've got to think seriously about how they reinvent themselves again, or what they do differently to continue to dominate.' contacted McDonald's for comment but was referred to its first-quarter sales data. Originally published as McDonald's battles 'fierce' competition in Australia as global sales drop
