Raphael Stevens

Pepsi introduced a prebiotic version of its namesake cola that will include three grams of prebiotic fiber.
Four months ago, the beverage giant bought prebiotic soda brand Poppi for nearly $2 billion.
For its part, Coke introduced its Simply Pop prebiotic soda brand in February.

Pepsi Prebiotic Cola.
Courtesy: PepsiCo

PepsiCo on Monday announced that it will launch a prebiotic cola under its namesake soda brand, starting this fall.
Pepsi Prebiotic Cola comes just four months after the beverage giant announced its $1.95 billion acquisition of upstart Poppi. Soda consumption has broadly fallen over the past two decades in the U.S. But prebiotic sodas, fueled by Poppi and fellow newcomer Olipop, have won over health-conscious consumers over the past five years with their gut-health claims. The acquisition closed in May.

Prior to the deal, Pepsi had reportedly aimed to launch its own functional soda under its Soulboost brand, but canceled those plans.
As demand for its drinks falls domestically, Pepsi is leaning into health trends such as the protein and fiber crazes to attract customers. In the second quarter, the company’s North American beverage volume shrank 2%. Its namesake soda was one of the few bright spots, helped by the success of Pepsi Zero Sugar.
Consumers will be able to buy Pepsi Prebiotic Cola online starting in the fall and in retailers next year. The new drink contains three grams of prebiotic fiber — one gram more than Poppi’s soda — but only a third as much as Olipop’s fiber content.
The new Pepsi beverage also contains five grams of cane sugar. In the U.S., classic Pepsi is sweetened with corn syrup.
Artificial sweeteners and high-fructose corn syrup have come under fire from Health and Human Services Secretary Robert F. Kennedy Jr. and his “Make America Healthy Again” agenda. President Donald Trump, a longtime fan of aspartame-sweetened Diet Coke, claimed in a social media post on Wednesday that Coca-Cola has agreed to put “REAL Cane Sugar” back in its namesake soda, which contains corn syrup in the U.S. The company has not confirmed the announcement.
For its part, Coke introduced its Simply Pop prebiotic soda brand in February to consumers on the West Coast and in the Southeast, just weeks before Pepsi announced the Poppi deal. Executives could share more updates on the line’s performance during Coke’s earnings conference call Tuesday morning.

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Domino’s Pizza CEO Russell Weiner told CNBC that he thinks the company can steal market share from its competitors during the industry downturn.
The pizza chain reported second-quarter U.S. same-store sales growth of 3.4%, topping StreetAccount estimates of a 2% increase.
Executives said that Domino’s grew sales across all income cohorts, including low-income customers, bucking the industry trend.

As the restaurant industry aims to lure frugal consumers with discounts and deals, Domino’s Pizza thinks it can steal diners from its competitors.
“I think the industry headwinds are actually tail winds for us. Meaning, of course, they’re headwinds, but we’re going to gain [market] share during this time frame,” CEO Russell Weiner told CNBC on Monday.

Domino’s on Monday reported second-quarter U.S. same-store sales growth of 3.4%, topping StreetAccount estimates of a 2% increase. The chain’s first-ever stuffed crust pizza, which was introduced in March, boosted sales, but so did the deals Domino’s offered. Executives said that Domino’s grew sales across all income cohorts, including low-income customers, bucking the industry trend.
“We’re able to lean into value in the things that people want value on,” Weiner said, naming Domino’s $9.99 “Best Deal Ever” promotion as one example.
“The reason it’s the best deal ever is because everybody else right now is giving you a deal on something you don’t want, something that may be your second choice,” he added.
Fast-food restaurants, from McDonald’s to Yum Brands’ KFC, have been promoting value menus and combo meals for more than a year to combat sluggish traffic. While fast-food chains typically see consumers trade down to their cheaper meals during times of economic hardship, diners faced with years of high inflation have been opting to eat at home — or spend on what they really think is worth their dollars.
Look no further than the recent success of Chili’s, which has posted double-digit same-store sales growth over the last four quarters. After investing in its operations and menu, Chili’s promoted its food by comparing its pricing to that of fast-food rivals; for just a few dollars more, customers can get the full dine-in experience.

Weiner said he sees a parallel to Domino’s business.
“This is something systemic,” he said. “Until people’s wages get back to the point where they’re outgrowing pricing, this is going to stay. I think that’s why you’re seeing what you’re seeing at Chili’s, but that’s why you’re going to see the positive stuff that you’re seeing in Domino’s.”
Still, Domino’s has its challenges. If prices are too high for Domino’s delivery customers, they’ll eat at home instead.
“We’ll lose an occasion, not to a competitor, but to an eating at-home occasion,” Weiner said.
The pizza chain’s earnings also missed Wall Street’s expectations, hurt by a $27.4 million charge from its investment in its China licensee. The company posted earnings of $3.81 per share, compared with estimates of $3.95, according to consensus estimates from LSEG. Revenue met Wall Street estimates of $1.15 billion.
Shares of the company fell more than 2% in afternoon trading on Monday.
Domino’s rivals aren’t expected to share their second-quarter results for several more weeks. Pizza Hut-owner Yum Brands won’t report its earnings until Aug. 5, followed by Papa John’s on Aug. 7.

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Subway announced Jonathan Fitzpatrick as the sandwich chain’s next CEO.
Former CEO John Chidsey left the company at the end of 2024, a year after Subway’s sale to Roark Capital.
Last year, Subway’s sales fell 3.8%, according to Technomic data.

Jonathan Fitzpatrick, CEO of Subway.
Courtesy: Subway

Sandwich chain Subway has tapped former Burger King executive Jonathan Fitzpatrick as the company’s latest CEO, effective July 28.
The announcement on Monday follows a monthslong search for former CEO John Chidsey’s successor. Chidsey retired at the end of 2024 after five years with the company. His tenure included the $9.6 billion sale of the then-family-owned chain to private equity firm Roark Capital in 2023.

Fitzpatrick joins Subway after spending more than 12 years leading another Roark-backed company, Driven Brands, an automotive services provider. Prior to Driven Brands, he served as Burger King’s chief brand and operations officer after holding other roles across the chain’s business. Fitzpatrick stepped down from Driven Brands earlier this year.
Chidsey’s resume also includes time at Burger King. A decade before joining Subway, Chidsey led Burger King until its buyout by 3G Capital, which eventually formed Restaurant Brands International.
The leadership change-up comes during a tough time for fast-food restaurants. Consumers aren’t dining out as often, and when they do, they’re looking for deals. Such discounts can weigh on restaurants’ already razor-thin profit margins.
Subway comes with its own set of challenges. With more than 19,500 locations, it is the largest U.S. restaurant chain by number of stores, but competition from fast-casual eateries and other sandwich chains has eroded its market share over the past 15 years.
Last year, its sales fell 3.8%, according to Technomic data.

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The Food and Drug Administration said it has appointed former biotech executive George Tidmarsh as the agency’s top drug regulator.
Tidmarsh, an adjunct professor of pediatrics and neonatology at Stanford University’s School of Medicine, will lead one of the most crucial FDA divisions that reviews the vast majority of new drug applications.
He brings a long history of drug development experience to the Center for Drug Evaluation and Research, or CDER, which regulates over-the-counter and prescription treatments, including biologic therapies and generics.

FILE PHOTO: The headquarters of the U.S. Food and Drug Administration (FDA) is seen in Silver Spring, Maryland November 4, 2009. 
Jason Reed | Reuters

The Food and Drug Administration said Monday it has appointed former biotech executive George Tidmarsh as the agency’s top drug regulator.
Tidmarsh, an adjunct professor of pediatrics and neonatology at Stanford University’s School of Medicine, will lead one of the biggest and most crucial divisions of the FDA, which reviews the vast majority of new drug applications.

The Center for Drug Evaluation and Research, or CDER, regulates over-the-counter and prescription treatments, including biologic therapies and generics. The acting head of CDER, Jacqueline Corrigan-Curay, announced in June she was retiring. 
Tidmarsh will step in as the FDA and its regulatory process face massive upheaval under Health and Human Services Secretary Robert F. Kennedy Jr. Kennedy has pursued deep staff cuts across HHS and, in some cases, brought in new employees who either lack relevant scientific and medical experience or share his skepticism of vaccines. 
But Tidmarsh’s extensive background in the industry and involvement in the development of seven now-approved drugs is likely a sigh of relief for the pharmaceutical industry. His previous comments signal that he could take a more hard-line approach to regulating drugs. 
In an opinion piece in April, Tidmarsh slammed regulatory decisions made by a key official pushed out of the FDA under Kennedy, Peter Marks. That includes supporting the accelerated approval of Biogen’s ill-fated Alzheimer’s drug, Aduhelm, and overruling FDA staff to expand approval of Sarepta Therapeutics’ Duchenne muscular dystrophy treatment Elevidys.
Last week, the FDA asked Sarepta Therapeutics to halt all shipments of Ele­vidys after three patients died from liver failure after taking it or a similar treatment. The company later said it would not stop shipments to treat patients with the condition who can still walk, saying data shows “no new or changed safety signals” within that group.

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In an interview with CNBC on Friday, before the Tidmarsh appointment was announced, Marks said his previous decisions on the gene therapy were “made on the best available knowledge at the time.” At that time, the debate centered around efficacy, not safety, he said.
Marks said he doesn’t think it’s “unreasonable” to ask Sarepta to pause shipments until “you do a real review of everything that is going on.”
Tidmarsh will likely have a say on that controversial accelerated approval process and the FDA’s approach to prescription drug advertising. He served as CEO of La Jolla Pharmaceuticals and Horizon Pharma, the latter of which he founded before Amgen bought it for $28 billion. Tidmarsh also founded Threshold Pharmaceutical, and held senior positions at other biotech companies. 
“Dr. Tidmarsh is an accomplished physician-scientist and leader whose experience spans the full arc of drug development—from bench to bedside,” said FDA Commissioner Dr. Marty Makary, in a statement. “His appointment to lead CDER brings exceptional scientific, regulatory, and operational expertise to the agency.”
— CNBC’s Angelica Peebles contributed to this report.

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Southwest Airlines tickets with seat assignments will go on sale on July 29, the airline told CNBC.
The carrier plans to end its hallmark open-seating policy on Jan. 27.
There will be eight boarding groups starting next year.

A Southwest Airlines Boeing 737 airplane departs from Harry Reid International Airport as another airplane taxis in Las Vegas, Nevada, on March 15, 2025.
Kevin Carter | Getty Images News | Getty Images

Southwest Airlines passengers will fly in assigned seats for the first time on Jan. 27, the carrier told CNBC. Customers can start buying tickets with assigned seats on July 29.
The move ends more than half a century of open seating on the airline, a policy that has set it apart from rivals for decades — along with two free checked bags. Both things are changing as Southwest’s leaders seek new revenue streams to keep up with more profitable rivals.

Southwest said in March that its host of initiatives would add $800 million to earnings before interest and taxes this year and $1.7 billion in 2026.
The airline first announced it would end its open seating a year ago, but it had yet to set a date.
The changes are part of Southwest’s massive overhaul of its business model. The carrier in March also said it would start charging many customers to check bags and announced new fare types this spring. Top-tier customers are exempt from many of the new restrictions and fees.
Southwest used computer models and live tests to ensure the new policies wouldn’t slow down boarding and would get planes back in the the money-making air quickly.
“We wanted to make sure that, as we designed a boarding construct that sort of paired well with assigned seating, that we were optimizing for efficiency, but also the second priority: balancing that with making sure that we’re taking care of our most loyal customers, so tier members, cardholders and customers who buy our most premium products,” Stephanie Shafer Modi, managing director of fares and ancillary products at Southwest, told CNBC.

Come Jan. 27, the hallmarks of Southwest’s open-seating policy — setting an alarm to secure a place in the boarding line, the A-B-C groups, the big stanchions marking off boarding order and the on-board scramble for a favorite seat — will be gone.
That all will be replaced by eight boarding groups, based on seat selection, status and other factors. The most loyal and biggest spenders will get on first, but seat location will determine boarding position. Here’s the order:

The first two groups will include the top tiers of elite frequent flyers, and those with top classes of tickets.
Groups three through eight will be for “Choice” and “Basic” ticketholders depending on their seat location.
Credit card holders and Rapid Rewards credit card members will board no later than Group 5.

There will be two queues.

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The airline didn’t disclose prices for seat assignments as an add-on fee, which on rival airlines, can vary depending on route and demand. Access to some seats will depend on the type of fare, and Southwest will sell standard seats, preferred seats and extra-legroom seats.
Southwest has been busy reconfiguring its Boeing planes to include extra-legroom seating. About 200 aircraft are complete, or about 25% of the fleet, a spokesman said. While those seats aren’t on sale yet, the airline has been selling earlier boarding to customers before their flight, which would increase their chances of getting extra-legroom seats.
Southwest customers have shown that sitting together is a priority, Shafer Modi told CNBC, while acknowledging that it will look different with the new boarding process.
“I think that if families want that sense of control, they have the optionality to pick their seats through … our existing products that we’re selling,” she said. “We will try to do our best to make sure that families are seated together no matter how they buy a ticket.”

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An investment group led by LVMH’s private equity arm is buying 20% of private jet company Flexjet.
L Catterton, the private equity firm backed French luxury giant LVMH, is leading an $800 million investment in Flexjet that will also include brand partnerships and collaborations.
The deal highlights the luxury industry’s rapid expansion into the experience economy as wealthy consumers increase their spending on travel, dining and special events.

A FlexJet Gulfstream G450 airplane approaches San Diego International Airport for a landing on May 9, 2025 in San Diego, California.
Kevin Carter | Getty Images News | Getty Images

An investment group led by LVMH’s private equity arm is buying 20% of private jet company Flexjet, marking the latest push by the luxury industry to expand into travel.
L Catterton, the private equity firm backed French luxury giant LVMH, is leading an $800 million investment in Flexjet that will also include brand partnerships and collaborations. The investment group also includes affiliates of KSL Capital Partners and the J Safra Group. Flexjet will continue to be controlled by parent company Directional Aviation Capital.

The deal highlights the luxury industry’s rapid expansion into the experience economy as wealthy consumers increase their spending on travel, dining and special events. LVMH acquired hospitality group Belmond in 2018 for $3.2 billion, and has been building out its Cheval Blanc and Bulgari hotel and resort brands.
Global sales of luxury goods declined 2% last year to 363 billion euros as demand from Gen Z and Chinese consumers fell, according to a report from Bain and Altagamma. Luxury hospitality, however, grew by 4%, while gourmet food and fine dining surged 8% and sales of yachts and private jets grew 13%.
For Cleveland-based Flexjet, the deal creates a relationship with the world’s largest luxury giant and its portfolio of more than 75 coveted brands, from Louis Vuitton and Dior to Dom Perignon and Tiffany.
With the private-jet industry becoming increasingly competitive and dominated by industry leader NetJets, Flexjet aims to be more like an exclusive membership club, offering luxury experiences and bespoke services. Flexjet already has partnerships with Belmond, yacht maker Ferretti Group and Bentley Motors, collaborating on jet interiors and curated events.

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“We have been trying to move Flexjet into an experiential role,” said Kenn Ricci, chairman of Flexjet and principal of Directional Aviation. “If you think about luxury travel and where it is today, I keep thinking about a Flexjet community. When you have an experience at a hotel, you get to have it for a week, and you get to know what that experience is. But when you fly on a jet, it happens four hours, five hours. So how do we create that Flexjet community?”

Ricci said most of the proceeds of the deal will go to expanding and improving Flexjet’s infrastructure. That includes buying larger, long-range planes to fill rapidly growing demand for international travel. The company will also build up its infrastructure overseas, with added maintenance facilities and ground handling. And Flexjet will continue adding and training flight crew through its special cabin attendant academy. About 25% of the proceeds will be used to pay a special dividend to shareholders.
Ricci said Flexjet is projecting EBITDA of about $425 million this year, up from $398 million in 2024 and more than double the levels in 2020. The company offers fractional ownership and leasing options, as well as jet cards. Its fleet of 318 aircraft is expected to reach 340 by the end of 2025, and it has over 2,000 Flexjet members under the fractional and leasing program, according to the company.
Ricci said L Catterton approached Flexjet with the potential deal as the private equity firm seeks to stay ahead of the changing definitions of luxury among the wealthy.
“(L Catterton) presented us some ideas about where they see the future of luxury,” Ricci said. “They basically see that the luxury of the future is time. And they see that in private travel, you can recoup time.”
Ricci said the details of potential brand partnerships or collaborations have yet to be announced. But he cited as a model Flexjet’s partnership with Belmond, which includes special deals and enhanced stays at the company’s luxury hotels in Venice and Ravello, Italy; and Mallorca, Spain, as well as other locations.
He said the company’s bespoke aircraft cabins, modeled after individually designed rooms at the best hotels, would also continue to be a competitive advantage.
“When faced with a behemoth like NetJets, we don’t need to be the largest,” he said. “We want to be the boutique.”
L Catterton is 40% owned by LVMH and the family office of CEO Bernard Arnault. It manages $37 billion in equity capital across consumer brands including Birkenstock, Thorne and ETRO.
Scott Dahnke, global CEO of L Catterton, said in a statement Flexjet’s history “is one of never settling in pursuit of thoughtful innovation to best fulfill the desires of the consumers within their unique and exciting marketplace.” More