Raphael Stevens

Bowlero CEO Tom Shannon called discrimination claims against the fast-growing bowling alley operator “absurd.”
He acknowledged the federal probe into those allegations may have hurt its stock price.
CNBC reported last month that the Equal Employment Opportunity Commission wants to settle its sprawling investigation into age discrimination and retaliation claims

Bowlero CEO Tom Shannon on Wednesday called discrimination claims against the fast-growing bowling alley operator “absurd,” but acknowledged the federal probe into those allegations may have hurt its stock price.
“These allegations are frankly absurd. They don’t pass the sniff test. They don’t pass any common sense,” Shannon told CNBC’s “Mad Money with Jim Cramer.”

The U.S. Equal Employment Opportunity Commission in January proposed to settle its sprawling investigation into age discrimination and retaliation claims against Bowlero for $60 million, CNBC reported last month. Talks over the settlement failed in April, and the case is being referred to the EEOC’s general counsel “for potential enforcement action,” a letter sent by the agency shows.
Shannon said Wednesday that he did not think any potential action taken against Bowlero, the world’s largest owner and operator of bowling alleys, would “be material to the company in any way.” But he acknowledged the probe could have contributed to recent struggles for the company’s stock, which has dropped more than 7% in the last month, driven largely by the company’s disappointing commentary about foot traffic during its earnings call last month.
“Could [the investigation] be driving the stock down?” Cramer asked Shannon on Wednesday.
“I mean, I suppose,” he said.
“Look, we have never been hit by a lawsuit. We have never been hit with anything, you know, in terms of evidentiary findings or anything like that,” Shannon added.

President and CEO of Bowlmor AMF Tom Shannon attends Shay Mitchell hosts the Grand Opening of Bowlero Playa Del Rey on May 25, 2016 in Playa del Rey, California.
Jerod Harris | Getty Images

The EEOC investigation into Bowlero involves claims from at least 73 former employees who allege they were fired based on their age or out of retaliation, company filings with the Securities and Exchange Commission show.
The agency’s proposed settlement is not public. It was revealed to CNBC by lawyer Daniel Dowe, who represents more than 70 former employees who made claims against Bowlero to the EEOC.
Asked by Cramer about whether the EEOC released the settlement information, Shannon said he thought the complainants’ attorney put the information out there “along with a complicit journalist” at CNBC.com.
CNBC said it stands by the reporting on Bowlero.
“Our story about Bowlero went through a rigorous review process,” a CNBC spokesperson said in a statement.
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Mercedes-Benz and Microsoft are partnering to test in-car ChatGPT, the companies announced Thursday.
Mercedes said an optional beta program for U.S. customers will begin Friday.
Mercedes will consider further integration of the technology.

The Mercedes-Benz EQS SUV.
Mercedes-Benz

Mercedes-Benz and Microsoft are partnering to test in-car ChatGPT artificial intelligence, available to more than 900,000 vehicles in the U.S., the companies announced Thursday.
The luxury automaker said the emerging technology will be used for audio requests through its Hey Mercedes voice assistant, which is expected to greatly expand the system’s capabilities. It is the first implementation of ChatGPT in a vehicle, according to a Microsoft spokesperson.

Mercedes said an optional beta program for U.S. customers will begin Friday. Customers can enroll via the company’s app, called Mercedes me, or directly from the vehicle using the voice command, “Hey Mercedes, I want to join the beta program.”
“While most voice assistants are limited to predefined tasks and responses, ChatGPT leverages a large language model to greatly improve natural language understanding and expand the topics to which it can respond,” the carmaker said in a release.
Similar to other industries, the potential applications of ChatGPT in the automotive industry have emerged as a growing discussion. While some, such as General Motors, say their autonomous vehicles already utilize advanced AI, or machine learning, the Mercedes partnership marks one of the first specific-use cases for ChatGPT.
GM earlier this year said it was exploring use cases for ChatGPT in its vehicles as part of a broader collaboration with Microsoft, an investor in OpenAI, which created the technology.

Eric Boyd, corporate vice president of Microsoft’s AI platform, said the new integration will increase voice commands and interaction, task capabilities and allow follow-up questions, in addition to other things.

“Unlike standard voice assistants that often require specific commands, ChatGPT excels at handling follow-up questions and maintaining contextual understanding. Drivers can ask complex queries or engage in multi-turn conversations, receiving detailed and relevant responses from the voice assistant,” Boyd wrote in a blog post.
Based on the findings of the three-month beta program and customer feedback, Mercedes will consider further integration of the technology, according to the companies. More

Toyota’s stock is having its best week since 2009, following the company disclosing plans for its next-generation electric vehicles and shareholders voting in favor of new leadership.
Shares of Toyota on the New York Stock Exchange hit a new 52-week high Thursday of more than $169 per share.
If shares can retain their current momentum, it would be the stock’s best week since April 2009, when it increased 14.5%.

Akio Toyoda, Chairman of Toyota Motor Corp.
Yoshikazu Tsuno | Gamma-rapho | Getty Images

DETROIT – Toyota Motor’s stock is having its best week since 2009 following the company disclosing plans for its next-generation electric vehicles and shareholders voting in favor of its new leadership, including former CEO Akio Toyoda as chairman.
Shares of Toyota on the New York Stock Exchange on Thursday achieved a new 52-week high before closing at $168.18 per share, up 1.6% during intraday trading and roughly 13% this week.

If shares can retain their current momentum, it would be the stock’s best week since April 2009 when they increased 14.5%. It would also mark only the third double-digit weekly gain in more than two decades.
The notable increase in the relatively mundane stock follows additional details about the company’s EV strategy, which has previously been criticized by some for not being aggressive enough.
Ahead of its annual meeting Wednesday, Toyota outlined plans for a new generation of EVs to rival industry leaders Tesla and China-based BYD. The company said it plans to launch its next-generation EVs starting in 2026, including vehicles with highly touted “solid-state batteries” by 2027 or 2028.
Solid-state batteries can be lighter, with greater energy density and provide more range at a lower cost than today’s EVs with lithium-ion batteries.

People arrive to attend an annual shareholders’ meeting for Toyota Motor in the city of Toyota, Aichi Prefecture on June 14, 2023. Toyota is under pressure from large institutional investors for chairman Akio Toyoda to step down over his lukewarm embrace of electric vehicles.
Str | Afp | Getty Images

Takero Kato, president of BEV Factory, said that Toyota is targeting a driving range of 1,000 kilometers (620 miles) for its EVs. BEV Factory aims to produce about 1.7 million vehicles by 2030, he said.

“Proactive disclosure of a new tech strategy featuring next-gen batteries and giga casting delivered a riposte to the view that it is lagging in BEVs. We await quantitative disclosure on BEV profit ahead,” Morgan Stanley analyst Shinji Kakiuchi said Wednesday in an investor note.
Following the announcements, Toyota shareholders Wednesday aligned their voting with company recommendations, including leadership approval and voting down a shareholder proposal requiring Toyota to review its climate-related lobbying activities.
Shareholders also approved the company’s new leadership and board, including the appointment of CEO Koji Sato as a director and Toyoda – grandson of automaker’s founder – as chairman.
Shares of Toyota on the NYSE are up about 23% this year, as the auto industry continues to recover from the coronavirus pandemic and supply chain issues that led to record low vehicle inventory levels.
Toyota’s gains put it in the middle of Japanese automaker stocks, ahead or in-line with the Detroit automakers and behind shares of Tesla, which have more than doubled in 2023.
Here’s how other automaker stocks have performed this year compared to Toyota:

Auto stocks so far this year

*Shares of these companies are traded in the U.S. as American depositary receipts. More

Cava Group made its public market debut on the New York Stock Exchange under the ticker “CAVA.”
The company sold 14.4 million shares, raising nearly $318 million and valuing the restaurant chain at roughly $2.45 billion.
Cava’s debut could inspire other restaurant chains to follow its lead, helping to snap the IPO market’s drought.

A banner for the Mediterranean restaurant chain Cava is displayed outside of the New York Stock Exchange (NYSE) as the company goes public on June 15, 2023 in New York City.
Spencer Platt | Getty Images

Shares of Mediterranean restaurant chain Cava soared as much as 117% in its market debut Thursday.
The company’s stock closed at $43.78 per share, up from its opening trade of $42 per share. Its closing price gives it a market value of $4.88 billion and makes it the top-performing IPO this year for companies valued above $500 million.

Cava Group priced its IPO at $22 per share on Wednesday, above the expected range of $19 to $20. The company sold 14.4 million shares, raising nearly $318 million and initially valuing the restaurant chain at roughly $2.45 billion.
The stock trades on the New York Stock Exchange under the ticker symbol “CAVA.”

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Although it was founded in 2006, Cava opened its first fast-casual location in 2011, modeling its build-your-own Mediterranean meals after the formula made popular by Chipotle Mexican Grill. The chain built a customer base by introducing some eaters to ingredients like harissa and tahini and positioning itself as a healthy and convenient option. The company also sells its dips, spreads and salad dressings in grocery stores.
Cava acquired Zoes Kitchen in 2018, taking the rival Mediterranean chain private for $300 million. It’s spent the last five years converting Zoes Kitchen locations into Cava restaurants, contributing to its footprint of 263 locations as of April 16.
Last year, Cava’s net sales climbed to $564.1 million, 12.8% higher than the year earlier.

“You’re seeing the inflection point in the business, and all of that robust structure we’ve invested in, the restaurant growth, starting to take hold and drive tailwinds to the business,” CEO Brett Schulman said on CNBC’s “Squawk on the Street.”
But its losses also widened from $37.4 million in 2021 to $59 million in 2022.Still, industry experts say that the chain has demonstrated a clear path to profitability, making it more attractive for investors looking for growth stocks. In the first quarter, it reported a net loss of $2.1 million, narrower than its $20 million net loss in the year-ago period.
The restaurant company plans to use the proceeds from its IPO for new location openings and general corporate purposes.
Cava adds to the growing number of publicly traded fast-casual chains. Sector leader Chipotle made its public market debut back in 2006 and has seen its market value grow to $56.9 billion.
More recently, salad chain Sweetgreen went public in November 2021. It now has a market value of $1.2 billion. Investors have dinged the stock for the company’s lack of profit, although shares have climbed more than 25% this year.
Cava’s debut could inspire other restaurant chains to follow its lead, helping to snap the IPO market’s drought. Brazilian steakhouse Fogo De Chao and Korean barbecue chain Gen Restaurant Group have both filed regulatory paperwork confidentially, while both Panera Bread and Fat Brands’ Twin Peaks have shared an intent to issue an initial public offering in the near future. More

“Junk fees” are extra costs tacked on at the end of purchases, often for concert tickets, resorts and rentals.
President Joe Biden has made ending the practice a priority. Live Nation and SeatGeek agreed to commit to show all fees up front for ticket purchases.
The issue reached a boiling point recently when customers were faced with exorbitantly high prices for Taylor Swift’s Eras tour tickets.

(L to R) Tobi Parks, CEO of xBk, US President Joe Biden and Lael Brainard, assistant to the President and director of the National Economic Council participate in an event about protecting consumers, in the East Room of the White House in Washington, DC, on June 15, 2023. 
Andrew Caballero-Reynolds | AFP | Getty Images

WASHINGTON — Several large companies, including Ticketmaster parent Live Nation, are vowing to end surprise “junk fees” following a pressure campaign from the Biden administration.
“Junk fees” are extra costs tacked on at the end of purchases, often for concert tickets, resorts and rentals. President Joe Biden has made ending the practice a priority and invited representatives from Live Nation, Airbnb, SeatGeek and others to meet with him Thursday.

Both Live Nation and SeatGeek agreed in advance of the meeting to commit to show all fees up front for ticket purchases, the White House said. Iowa venue xBk is expected to as well. Airbnb in December began including all fees in the final price after calls from the White House to do so.
“Today’s voluntary actions demonstrate that companies both big and small recognize the importance of providing consumers with honest, up-front all-in pricing, rather than tricking them with surprise fees at the end of checkout,” the White House said in a statement. “It is also just a first step towards addressing junk fees in the economy.”
“This is a win for consumers in my view, and proof that our crackdown on junk fees had real momentum,” Biden said Thursday following the meeting, adding that there is more to do.
Biden first began his campaign against “junk fees” nine months ago and included calls for private companies to do so in his State of the Union address this year. The issue reached a boiling point in November, when customers were faced with exorbitantly high prices for Taylor Swift’s Eras tour tickets.
“President Biden has been working to lower costs for hardworking families by bringing down inflation, capping insulin prices for seniors, and eliminating hidden junk fees,” National Economic Council director Lael Brainard said in a statement. “More companies are heeding the president’s call so that Americans know what they’re paying for up front and can save money as a result.”

Brett Goldberg, co-CEO of TickPick, said in an interview after the meeting he thought it was productive but worried it wouldn’t go far enough. TickPick from its inception has used all-in pricing, meaning no surprise junk fees.
“There’s just so much negative sentiment around ticketing, and even though it doesn’t solve all the problems, the vast majority of what people talk about is the hidden fees,” Goldberg said. “Yes there’s the cost component, but it’s the additional slap in the face when you’re getting ready to pull the trigger on expensive tickets and then it ends up being 20 to 30% more.” More

Airlines are offering nonstop flights that can top 18 hours
The Covid pandemic grounded a lot of long-haul international service.
Qantas is studying a nonstop from New York to Sydney that could take around 20 hours.

The first class suite on Qantas’ ultra-long-range A350-1000.
Courtesy: Qantas

Long flights are making a comeback.
It is one of the clearest signs yet that airlines are betting that the rebound of international travel, devastated in the Covid pandemic, will continue to grow.

On Wednesday, Qantas launched service between New York and Sydney with a stop in Auckland, New Zealand, on Boeing 787 Dreamliners, instead of a previous stop in Los Angeles. But the Australian carrier is focusing on even longer routes: Nonstop flights from Sydney to New York and London. Flights could clock in at around 20 hours, enough time to watch most of the Star Wars Skywalker Saga.
“You don’t have to take your bags off, you don’t have to transfer, you don’t have a chance of misconnecting,” Qantas CEO Alan Joyce told CNBC on Thursday at a showcase of the airline’s new cabins in New York. The airline estimates the new routes could reduce travel time by more than three hours compared with flights with stops in other airports.
For eight years, Qantas has been working with sleep scientists who have studied passenger moods, sleep patterns and food intake in hopes of limiting the impacts of jet lag on super-long flights, with test runs in 2019. They found that delaying meal service and keeping passengers awake longer with cabin lights help to fight the impacts of jet lag when they arrive at their destination.
Qantas is planning to operate the new nonstops on ultra-long-range Airbus A350-1000 planes starting as soon as late 2025. They will seat 238 passengers, far fewer than the more than 350 passengers that standard versions of the planes can fit. Qantas limited the number of people on board to fit more spacious seating and to account for weight and the plane’s range.
The airline has ordered 12 of the special planes.

“Qantas is the only airline wanting to do this. Because from Australia, we’re so far away from everywhere that we can justify at least 12 [of these] aircraft,” Joyce said.

Courtesy: Qantas

The planes will be outfitted with six enclosed, first-class suites that include a table for two, a reclining chair, a 32-inch touch-screen television and a 2-meter (more than 6.5-foot) flatbed. It will also have 52 business-class suites with lie-flat beds and 40 premium economy seats, as well as 140 seats in economy class.
They will also have what Qantas calls a “Wellbeing Zone” that has handles for stretching, on-screen exercise guides and refreshments. Wi-Fi will be complimentary, Qantas said.
Joyce said the airline’s international capacity is back to 85% of pre-pandemic levels and that he expects that to fully recover next March.

Passengers onboard QF7879 are taken through exercise classes during the flight from London to Sydney direct on November 15, 2019 in Sydney, Australia.
James D. Morgan | Getty Images

Yet even though ultra-long-haul flights are technically possible thanks to more efficient engines and aircraft, they face other challenges.
“There’s technical feasibility, and then there’s economic feasibility,” said Robert Mann, an airline industry analyst and former airline executive.
Singapore Airlines, for example, launched a nonstop flight from Newark, New Jersey, to Singapore that took about 18 hours (times vary due to winds and other factors) in 2004, a bet on business travel and that customers between the two destinations would pay to avoid connecting in another airport. In 2008, it offered reconfigured cabins that solely featured 100 business class seats on the A340-500.
But it discontinued the flight in 2013 as the carrier got rid of the fuel-guzzling, four-engine aircraft. It relaunched it in 2018 with a mix of business-class and premium-economy seats, pausing it during the pandemic and relaunching it last year.
In November 2020, the carrier introduced what is currently the world’s longest flight, from New York’s John F. Kennedy International Airport to Singapore.
Here is a look at the world’s longest flights by distance, according to airline data firm OAG: More