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    Applebee’s owner Dine Brands to lean on value, marketing to reverse sales declines

    Dine Brands is trying to boost sales in 2025 after reporting its fourth straight quarter of domestic same-store sales declines for Applebee’s and IHOP.
    Applebee’s promotions failed to cut through the noise as the restaurant industry at large advertised value meals to attract low-income consumers, and sales spiked at rival Chili’s.
    The restaurant company plans to widen its array of value offerings and improve its messaging, particularly with younger consumers.

    Michael Siluk | UCG | Universal Images Group | Getty Images

    Dine Brands hopes to boost sales this year with a wider swath of value meals and buzzier advertising after a rough 2024 for Applebee’s and IHOP.
    “We had a soft year in 2024, which disappoints us, but we’re focused on improving that in 2025,” Dine Brands CEO John Peyton told CNBC. “We’ve got to have compelling messages and compelling promotions and compelling reasons to drive traffic into the restaurants.”

    Dine on Wednesday reported fourth-quarter U.S. same-store sales dropped 4.7% at Applebee’s and 2.8% at IHOP, ending the year with four straight quarters of domestic same-store sales declines for its two flagship brands. Shares of Dine have fallen 50% over the last 12 months, dragging its market cap down to $386 million.
    The company’s down year followed three years of strong growth for the company, driven by pent-up demand as diners returned to IHOP and Applebee’s after the pandemic. But like many restaurant companies, Dine saw a pullback last year from customers who make less than $75,000. After several years paying higher prices for groceries, rent, gas and other necessities, consumers opted to stay home to cook their meals or visit other chains that offered better deals or flashy promotions.
    The slowdown in restaurant spending led a slew of casual-dining restaurant chains to file for bankruptcy over the last 12 months. Familiar names like Red Lobster and TGI Friday’s sought bankruptcy protection to reorganize their struggling businesses and offload their worst-performing restaurants. Most recently, On the Border filed for Chapter 11 bankruptcy on Tuesday.
    Applebee’s promotions have failed to cut through much of the noise from the so-called value wars that have ignited across the restaurant industry, at chains from McDonald’s to Bloomin’ Brands’ Outback Steakhouse. Even a triad of recent pop-culture moments last year couldn’t boost its profile: a pivotal cameo in the tennis drama film “Challengers,” an Applebee’s-motivated meltdown on “Survivor” and a shoutout from football legend Peyton Manning during Netflix’s roast of his former rival Tom Brady.
    “You’ve got most of the restaurant companies are advertising value, and they’re advertising full meal deals, and so it’s harder to break through with a message when there are so many similar messages out there,” Dine’s Peyton said.

    But it’s not impossible to break out from the pack. Chili’s, which is owned by Brinker International, won over diners with its viral Triple Dipper and $10.99 burger combo after spending months turning around its business.
    In its most recent quarter, Brinker reported same-store sales growth of 27.4%. Thanks to its dramatic comeback, the company has become the rare casual-dining darling of investors. Brinker’s stock has soared over the last year, nearly tripling its value in the same period and raising its market cap to $6.29 billion.
    For now, the star of Applebee’s value promotions, the two for $25 deal, routinely accounts for roughly a fifth of the chain’s tickets, according to Peyton. But Applebee’s is looking to add to its value offerings later this spring or in the early summer with options that appeal to larger groups or to customers who don’t want to order with their dining partner.
    Dine is also trying to improve its social media presence.
    “At both IHOP and Applebee’s, we know we need to do better there. We know we need to be more relevant. We know that we have to be part of the conversation and the culture,” Peyton said.
    A new president for Applebee’s could help with that goal.
    Peyton is currently pulling double duty serving as interim president for the chain after Tony Moralejo stepped down effective Tuesday. Peyton said the company is looking for a replacement “with a great marketing background” who understands how to connect with younger customers, on top of being a great leader with an understanding of franchising and some restaurant experience. (Yum Brands’ Lawrence Kim joined Dine as IHOP’s president in early January, succeeding Jay Johns.)
    Looking to 2025, Dine is trying to communicate better with its customers and use its menu innovation to attract younger diners, according to Peyton.
    But Dine’s confidence in its ability to attract customers seems shaky. For 2025, the company is projecting Applebee’s same-store sales to range between a 2% decline and a 1% increase and IHOP’s same-store sales to range between a 1% decrease and a 2% gain. More

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    Donald Trump’s tariffs are a throwback to the 1930s

    Mar 6th 2025 <!–>Donald Trump’s tariffs are roiling the global trading system. But the president’s tariff-mania is far from unprecedented in American history. The last time tariffs of this scale were in place was after the passage of the Tariff Act of 1930, better known as the Smoot-Hawley tariff. The bill sparked a trade war […] More

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    Rare Michael Jordan, Kobe Bryant rookie jerseys expected to sell for $20 million at auction

    Sotheby’s is auctioning off Michael Jordan and Kobe Bryant rookie jerseys.
    The two items are expected to fetch a combined $20 million.
    The sale comes as rookie memorabilia sees a surge in popularity and pricing.

    Michael Jordan of the Chicago Bulls (L) eyes the basket as he is guarded by Kobe Bryant of the Los Angeles Lakers.
    Vince Bucci | AFP | Getty Images

    Rare pieces of memorabilia from two of the National Basketball Association’s biggest icons are hitting the auction block and are expected to sell for a combined $20 million.
    Sotheby’s announced on Thursday that it is putting up for auction Michael Jordan and Kobe Bryant rookie jerseys that were worn during each of their first NBA games. The auction comes as rookie memorabilia has seen a recent surge in popularity and pricing.

    “The historical weight of these two jerseys is difficult to overstate. They are as rare as they come,” said Brahm Wachter, Sotheby’s head of modern collectables, in a statement.
    The jerseys will be available in separate lots beginning March 21.

    Sotheby’s is auctioning off rare jerseys from Michael Jordan’s and Kobe Bryant’s rookie season.

    The Jordan jersey was first worn Oct. 5, 1984, in Peoria, Illinois, where he played his first game for the Chicago Bulls in front of a crowd of just 2,000 people.
    Sotheby’s said jerseys from Jordan’s rookie season are “unicorns” and rarely seen on the market.
    Jordan ended up averaging 28.2 points per game that rookie season, earning him Rookie of the Year honors. He went on to win six NBA championships and has cemented his name as one of the greatest basketball players of all time.

    Sotheby’s expects the iconic jersey to fetch about $10 million.
    A second lot is offering Bryant’s first jersey from his 1996-97 rookie reason with the Los Angeles Lakers. Sotheby’s said the rare jersey was worn during Bryant’s first preseason and regular season games.
    Bryant entered the NBA at just 18 years old and went on to win five NBA championships and two Finals MVP awards. He died in a tragic helicopter crash in 2020.
    Bryant’s jersey is also expected to sell in the $10 million range.
    Sotheby’s says rookie memorabilia has seen a recent uptick in demand among its customers. In October 2023, Victor Wembanyama’s game-worn San Antonio Spurs jersey sold for $762,000, and in August 2022, a 1952 Topps Mickey Mantle rookie card sold for $12.6 million.
    “Early rookie jerseys represent the genesis of an athlete’s career. For collectors in search of true one-of-one treasures, this is a once-in-a-lifetime opportunity to own iconic pieces of basketball history,” said Wachter. More

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    Macy’s turnaround starts to take shape, but ailing stores weigh on quarterly results

    Macy’s beat Wall Street’s earnings expectations but fell short on revenue as CEO Tony Spring works through his plan to revitalize the business.
    The company’s so-called First 50 locations – the stores that Macy’s is devoting more resources to as part of its turnaround plan – outperformed the overall company.
    In December, activist investor Barington Capital revealed it’s taken a stake in Macy’s and wants the department store to cut costs and consider monetizing its real estate portfolio.

    Macy’s flagship store in Herald Square in New York, Dec. 23, 2021.
    Scott Mlyn | CNBC

    Macy’s delivered another quarter of mixed results on Thursday as investors wait and see how quickly CEO Tony Spring can pull off a turnaround of the business with yet another activist investor looking to take the chain private.
    Across the business, which includes the Macy’s banner, Bloomingdale’s and Blue Mercury, comparable sales during the all-important holiday quarter were down 1.1%. But comparable sales across its owned and licensed businesses, plus its online marketplace, were up 0.2%, which is the highest the metric has been since the first quarter of 2022. 

    Plus, the so-called First 50 locations – the stores that Macy’s is devoting more resources to as part of its turnaround plan – saw comparable sales up 0.8%, marking the fourth quarter in a row the metric has been positive. 
    The two bright spots in an otherwise worse-than-expected set of results suggest Macy’s turnaround is showing some signs of life – it just might take a bit longer than expected. 
    For fiscal 2025, Macy’s is expecting adjusted earnings per share of $2.05 to $2.25 and sales of between $21 billion and $21.4 billion, lower than Wall Street expectations of $2.31 per share and $21.8 billion, according to LSEG.
    Macy’s shares were down more than 4% in premarket trading.
    Here’s how the department store performed during its fiscal fourth quarter, compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:

    Earnings per share: $1.80 adjusted vs. $1.53 expected
    Revenue: $7.77 billion vs. $7.87 billion expected

    The company’s reported net income for the three-month period that ended Feb. 1 was $342 million, or $1.21 per share, compared with a loss of $128 million, or a loss of 47 cents per share, a year earlier. Excluding one-time items including impairments and settlement and restructuring charges, Macy’s reported earnings of $507 million, or $1.80 per share. 
    Sales dropped to $7.77 billion, down about 4% from $8.12 billion a year earlier. Like other retailers, Macy’s benefited from an extra selling week in the year-ago period, which has skewed comparisons. 
    Macy’s mixed results come just over a year into CEO Spring’s tenure as the legacy department store’s chief executive. While Bloomingdale’s and Blue Mercury saw another quarter of positive comparable sales, growing 4.8% and 6.2%, respectively, Macy’s namesake banner continues to be the company’s laggard with comps down 1.9%. 
    To address long-standing issues at the legacy banner, Spring has implemented an aggressive store closure plan that includes shuttering 150 stores and a strategy to fix its better-performing locations. As Macy’s and other department stores have shrunk over the years, it’s faced criticism for neglecting its stores, not having enough staff and falling behind on the retail essentials that are necessary to win in any environment. 
    Spring has started to address those issues by investing in 50 locations and providing better staffing, merchandising and visual presentation of the company’s varied assortment. So far, the plan appears to be working. Those locations have performed better than the bulk of the chain and the company plans to expand the strategy beyond those 50 stores.
    Still, Macy’s will have about 350 namesake locations left over after it finishes closing stores, and it will take time – and capital – to extend its strategy to the bulk of the chain. Whether or not investors have the patience to see Macy’s strategy play out remains to be seen. 
    In December, activist investor Barington Capital revealed it has a position in Macy’s and wants the company to cut spending, explore selling its luxury brands and take a hard look at its real estate portfolio. It’s the fourth activist push at the department store in the last decade.
    Like the activists that had come right before it, Arkhouse and Brigade, many suspect that Barington is mainly after Macy’s lucrative real estate portfolio and is more interested in juicing it for profit than doing the work necessary to revitalize the chain. Still, Macy’s must act in the interest of shareholders and if it’s not doing enough to return value quickly, an activist could eventually win out.
    Macy’s on Thursday announced its intent to resume share buybacks under its remaining $1.4 billion share repurchase authorization, “market conditions pending.” 
    “Building on our momentum, we continue to elevate the customer experience, deliver operational excellence and make prudent capital investments,” Adrian Mitchell, Macy’s chief operating officer and chief financial officer, said in a statement. “We remain committed to generating healthy free cash flow and returning capital to shareholders through share buybacks and predictable quarterly dividends.” 

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    Aid cannot make poor countries rich

    The capital of Malawi, one of the world’s poorest countries, runs on aid. A city built in the 1970s by the World Bank, Lilongwe’s straight streets are filled with charities, development agencies and government offices. Informal villages house cooks and cleaners for foreign officials; the entrance to each is marked with the flag of its national sponsor. Over the past five decades, policymakers have reached a division of labour: Britain funds schools, Japan backs energy projects, Europe supports agriculture and Ireland nurtures a cottage industry of justice activists. In the health ministry, maintained with Chinese money, doors are labelled by donor, not department. Many read “USAID”. More

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    It is not the economic impact of tariffs that is most worrying

    Canada’s business press remained sanguine. Belligerent statements by the American president, one Toronto-based newspaper wrote, were mere campaign rhetoric; he would ultimately decide against tariffs that might “arouse resentment in Canada”. Such confidence turned out to be gravely misplaced. In 1930 Herbert Hoover signed into law the infamous Smoot-Hawley tariffs, named after their congressional sponsors. The average levy on American imports increased from 40% in 1929 to 60% by 1932, and the global trade system unravelled. More

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    China has more room to act on fiscal policy amid global uncertainties, finance minister says

    China has more room to act on fiscal policy amid domestic and external uncertainties, Finance Minister Lan Fo’an told reporters on Thursday.
    China on Wednesday announced it was raising its on-budget deficit to 4% of the country’s gross domestic product — the highest since at least 2010.
    “China has delivered a pro-growth message here at the [National People’s Congress], in line with expectations,” said Aaron Costello, head of Asia at Cambridge Associates.

    China’s Minister of Finance Lan Fo’an speaks during a press conference in Beijing on Nov. 8, 2024. 
    Adek Berry | Afp | Getty Images

    BEIJING — China has more room to act on fiscal policy amid domestic and external uncertainties, Finance Minister Lan Fo’an told reporters on Thursday.
    He was responding to a question during China’s “Two Sessions” annual parliamentary meeting about the country’s plans for proactive fiscal policy this year. The gathering this year comes as U.S. President Donald Trump has raised tariffs on Chinese goods for the second time in roughly a month. Beijing has responded to Washington’s latest levies with targeted duties and restrictions on U.S. companies.

    China on Wednesday announced it was raising its on-budget deficit to 4% of the country’s gross domestic product — the highest since at least 2010.
    The government also plans to issue 1.3 trillion yuan ($178.9 billion) in ultra-long-term special treasury bonds in 2025, marking a 300 billion yuan hike from last year. The increased amount is primarily set to support the consumer trade-in program.
    China said it aims to issue 4.4 trillion yuan of local government special-purpose bonds this year — or a 500 billion yuan increase from last year — to help ease the financial strains of local authorities.

    China has made spurring consumption its top priority for the year ahead, according to a government work report shared Wednesday. Zheng Shanjie, head of the National Development and Reform Commission, the top economic planner, on Thursday said that a more detailed plan for boosting consumption would be released soon.
    The country on Wednesday also said it would target a GDP increase of around 5% this year, while lowering its inflation target to 2% — the lowest in around 20 years.

    “China has delivered a pro-growth message here at the [National People’s Congress], in line with expectations,” said Aaron Costello, head of Asia at Cambridge Associates. The NPC is part of the “Two Sessions” meeting.
    Costello noted that, beyond specific stimulus programs, the bigger issue facing China has been low business and consumer sentiment. He pointed to encouraging signals such as Chinese President Xi Jinping’s meeting with many tech entrepreneurs last month to encourage private business growth.

    Rising trade tensions

    Officials speaking on Wednesday and Thursday have emphasized that it will take hard work for China to reach its 5% target. China’s economy grew by 5% last year, but benefitted from strong exports that offset lackluster consumption and the drag from domestic real estate.
    When asked about U.S. trade tensions, Minister of Commerce Wang Wentao reiterated Beijing’s strong language on the trade tensions, but called for the two sides to meet soon for discussions.
    Other officials speaking Thursday did not name U.S. trade dealings explicitly, but a few made uncharacteristic public allusions to the White House’s growing restrictions on China. The U.S. has blacklisted several major Chinese tech companies and limited their access advanced semiconductors for training artificial intelligence models.
    “The more others pressure us, block us, it will only push us to innovate independently,” Zheng said in Mandarin, translated by CNBC. He spoke while talking up China’s exports of integrated circuits and robotic development.
    When laying out measures to support technological development, the head of China’s central bank, Pan Gongsheng, said that, while the country welcomed foreign investors, it “opposed the establishment of improper investment barriers.” More

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    China doubles down on AI and tech innovation as Trump ratchets up trade pressure

    The undercurrent of China’s annual parliamentary meetings this week is U.S. trade tensions — and how Chinese technology is offsetting that pressure.
    “Internationally … an increasingly complex and severe external environment may exert a greater impact on China in areas such as trade, science and technology,” Chinese Premier Li Qiang said in his annual report on government work.
    Among the top priorities for the year, Li said, is supporting “the extensive application of large-scale AI models.”

    A security guard watches during the opening session of the National People’s Congress (NPC) in the Great Hall of the People in Beijing on March 5, 2025. 
    Wang Zhao | Afp | Getty Images

    BEIJING — The undercurrent of China’s annual parliamentary meetings this week is U.S. trade tensions — and how Chinese technology is offsetting that pressure.
    The largely ceremonial gathering of delegates in Beijing this year came just as U.S. President Donald Trump addressed Congress and imposed new tariffs on Chinese goods. It’s a clear drag on exports, while Chinese companies have only faced tougher restrictions on accessing high-end semiconductors and other advanced tech.

    “Internationally … an increasingly complex and severe external environment may exert a greater impact on China in areas such as trade, science and technology,” Chinese Premier Li Qiang said in his annual report on government work at the opening ceremony of the National People’s Congress on Wednesday, according to an official English translation of the Chinese.
    It was an unusually grim assessment at least among the seven parliamentary meetings I have attended. But I also sensed a greater willingness to support the private sector than in the past — especially as it relates to tech innovation, such as with Chinese AI company DeepSeek.
    “We will promote the healthy and well-regulated development of the platform economy and give better play to its role in inspiring innovation, expanding consumption and stabilizing employment,” Li said in the work report.
    That marked the latest signal that Beijing now wants to support the private sector after previously taking a far more restrictive stance and imposing large fines on tech giants Alibaba and Tencent, often called “platform“ companies in China. Many companies and industries in China have historically been dominated by the state.

    DeepSeek’s recent rise demonstrated to many international investors — who had grown cautious on the slowing economy — how a Chinese company could compete with the U.S. on AI, regardless of White House sanctions.

    Beijing was quick to affirm the startup’s success. DeepSeek’s Liang Wenfeng attended a meeting with Premier Li in January, and a symposium with Chinese President Xi Jinping in February.

    AI to counter protectionism?

    While DeepSeek didn’t get a specific mention in the government work report, a member of the team that drafted the report named it — and applications such as Kuaishou’s Kling AI for video generation — while talking to the press on Wednesday about China’s rapid AI development.
    “Historically, technological progress is often an important force for breaking through barriers and protectionism,” Chen Changsheng, who is also deputy director of the State Council Research Office, said in Mandarin translated by CNBC.
    “We look forward to how under the current international backdrop, AI will become a positive energy to promote cooperation and multilateralism,” he said.

    HONG KONG, CHINA – JANUARY 28: In this photo illustration, the DeepSeek apps is seen on a phone in front of a flag of China on January 28, 2025 in Hong Kong, China.  
    Anthony Kwan | Getty Images News | Getty Images

    “Tech” got one more mention in this year’s report versus last year, and “reform” got 10 more mentions, according to the Chinese-language versions. Tech self-reliance also got its own sub-section in China’s latest annual work report, in contrast to a passing mention in 2024.

    A new law

    China’s legislature has been discussing a new law to support the private sector. Beijing has said it would be enacted as soon as possible after further discussions and revisions.
    This year, policy will likely be driven more from the bottom up, rather than the top down, said Ding Wenjie, investment strategist for global capital investment at China Asset Management Co., according to a CNBC translation of her Mandarin-language remarks.
    She expects growth in AI and leading tech to spur development of other industries, but cautioned that it will likely take companies more than just one or two quarters to see results.
    China’s parliamentary meetings officially wrap up early next week. More official comments on tech and the private sector law are expected to trickle out in coming days.
    Among the top priorities for the year ahead, Premier Li said, is supporting “the extensive application of large-scale AI models.” Beijing plans to increase funding for biomanufacturing, quantum technology, AI-linked robotics and 6G technology.

    The industry-specific goals come as China is trying to boost consumer spending, minimize the drag from real estate and navigate trade tensions with the U.S.
    China’s “policy focus is to accelerate AI adoption and autonomous driving, while make gradual progress in restructuring housing and [local government financing vehicle] debt,” Morgan Stanley’s chief China Economist Robin Xing and a team said in a note Wednesday. They noted that the “fiscal package came as expected: a [2 trillion yuan ($280 billion)] expansion with mild support on consumption.”
    Chinese official comments during this week’s meetings hint at a preference for open-source models.
    Chen on the work report drafting team warned against “excessive” use of private AI projects that could fragment the market, and instead called for “large-scale applications.”
    China will also work to increase computing capacity and develop “a system of open-source models,” the economic planning agency, called the National Development and Reform Commission, said in its plan for the year ahead. More