Business

After reporting lagging restaurant sales this quarter, CEOs are turning to value.
McDonald’s, Burger King and Taco Bell are among the chains hoping to bring back customers with meal deals.
Customers are increasingly value-driven, Dine Brands CEO John Peyton told CNBC.

A sign advertises meal deals at a McDonald’s restaurant in Burbank, California, on July 22, 2024.
Mario Tama | Getty Images

Restaurant CEOs have become obsessed with the word “value” in explaining to investors why their sales lagged this quarter while sharing plans to revive traffic in the coming months.
On McDonald’s quarterly conference call last month, executives said the word “value” nearly 80 times, underscoring the fast-food giant’s biggest priority.

And McDonald’s isn’t alone. Other leaders at restaurant companies from Taco Bell owner Yum Brands to pizza chain Papa John’s also used the word dozens of times in their latest conference calls.
“The word ‘value’ has received a lot of airtime in the past few months,” Josh Kobza, the CEO of Burger King parent company Restaurant Brands International, said on Thursday.
There’s a reason for that emphasis. Prices for food away from home have climbed 27.2% since June 2019, according to the Bureau of Labor Statistics. In response, restaurant traffic has fallen and sales are lagging as consumers spend less money dining out, no longer convinced that it’s a good deal.
Many chains are hoping to bring back customers through discounts and promotions, like the $5 meal deals found at McDonald’s, Burger King and Taco Bell.
“In this current economic cycle, consumers have become more deliberate in managing their overall ticket and are showing a preference for brands that are offering compelling value,” Papa John’s finance chief Ravi Thanawala said on the company’s call on Thursday.

Reputations for value

McDonald’s Chris Kempczinski speaks about fresh beef expansion at a McDonald’s event in Oak Brook, Illinois.
Richa Naidu | Reuters

Many restaurant executives acknowledged their chains were falling short.
For example, McDonald’s CEO Chris Kempczinski said his company’s reputation for value has dimmed recently. In the second quarter, the burger giant reported that its U.S. same-store sales declined 0.7% year over year.
“There were also factors within our control that contributed to our underperformance, most notably our value execution,” Kempczinski said on the company’s July 29 conference call. “For 70 years, McDonald’s has defined value in our industry, and we are taking meaningful actions across the world to assert our leadership.”
McDonald’s $5 Meal Deal launched a few days before the end of the second quarter, but the value meal had been attracting low-income consumers and outperforming expectations, executives said. The chain is extending the promotion through August in most markets and working with franchisees on a longer-term discounting strategy.
Meanwhile, unlike McDonald’s and many other restaurants, Chipotle Mexican Grill reported strong same-store sales growth and increasing traffic for its latest quarter. But the burrito chain is still focusing on value, as it’s faced backlash from some customers who allege that the company has been shrinking the size of the portions.

Brian Niccol, CEO of Chipotle Mexican Grill
Adam Jeffery | CNBC

While CEO Brian Niccol denied any corporate scheme to make burrito bowls smaller, he did say the chain will reemphasize generous portions with its workers. After all, those sizable portions have helped Chipotle gain its reputation for value.
“The good news is that we are already beginning to see our actions positively reflected in our consumer scores and our value proposition remains very strong,” Niccol said on the company’s July 24 call.
It isn’t just fast-food executives who are concentrating on value.
Dine Brands, which owns Applebee’s and IHOP, is also seeing low-income consumers pull back their spending, CEO John Peyton told CNBC.
Customers who make less than $75,000 annually aren’t visiting Dine’s restaurants as frequently as they used to, and if they do, they’re sticking to the value menu. Both Applebee’s and IHOP reported surprise same-store sales declines this quarter.
“It’s certainly going to be a tough back half of the year, and it’s a fight for market share for our increasingly value-driven customer,” Peyton said.

Value for shareholders

A drive-through area of a Burger King restaurant in Peoria, Ill.
Daniel Acker | Bloomberg | Getty Images

Companies aren’t just thinking about offering value for customers — they’re also thinking about shareholder value. Restaurant stocks have been under pressure this year as investors grow concerned about the health of the industry. Shares of McDonald’s and Restaurant Brands have both fallen 10% year to date, while Starbucks’ stock has tumbled 21%. The S&P 500 has risen 11% during that period.
Worries about chains’ financial health aren’t confined to the top line. They’re also about profits, particularly as companies lean into discounts. While cheap deals might draw in customers, they can hurt the profitability of restaurants, weighing on earnings and hurting franchisees’ financial health.
And so-called value wars — where chains try to outdo one another with deals — only intensify those concerns as investors fear a race to the bottom.
While such concern hasn’t borne any fruit yet, it’s still early days. For now, it looks like the conversations about value and discounts are bringing some customers back.
For example, Burger King was one of the first chains to unveil a $5 value meal this summer. Its U.S. same-store sales were roughly flat for the quarter, but executives said the deal is attracting customers. Burger King now plans to offer it into October.
When its rivals followed suit with their own $5 discount deals, the Restaurant Brands chain didn’t see any clear impact to its business.
“There are actually some positives to the focus on value across the industry,” Restaurant Brands’ Kobza told CNBC. “I think it has the ability to improve the value-for-money perception of the category with our guests as more people talk about the incredible value that’s offered by our sector. I think that really helps everybody.”

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Disney’s experience showcase at the Honda Center in Anaheim, California on Saturday gave fans a peek into what’s in store for the near future.
A new villains land is coming to Magic Kingdom, Hollywood Studios will get a land inspired by “Monsters, Inc.,” Indiana Jones and “Encanto” rides are coming to Animal Kingdom and Avengers Campus in Disney’s California Adventure is set to double in size with two new attractions.
Disney’s theme parks, which are part of the wider division known as experiences, have long been a top-performing segment for the company.
However in the most recent quarter, Disney’s domestic parks in California and Florida saw slower consumer demand and increased inflation.

A statue of Walt Disney and Mickey Mouse stands in a garden in front of Cinderella’s Castle at the Magic Kingdom Park at Walt Disney World on May 31, 2024, in Orlando, Florida. 
Gary Hershorn | Corbis News | Getty Images

The time of villains has come.
Disney’s classic baddies are getting their own theme park land at the Magic Kingdom in Orlando, Florida.

The company first teased the potential for a villainous takeover at the last D23 Expo in 2022 as part of a series of “blue sky” projects that it was contemplating, but not sure would come to fruition.
While the prospect of exploring what lies beyond Big Thunder Mountain tantalized fans, its lack of tangibility left many wondering what exactly Disney was doing to compete with the upcoming opening of Universal’s Epic Universe.
The answer came on Saturday night during the company’s experience showcase at the Honda Center in Anaheim, California.
“As we sit here together at the Honda Center we have Imagineers hard at work,” Josh D’Amaro said to a roaring crowd. “Everything we have to share with you is in active development … This means dirt is moving. This isn’t blue sky.”
The reveal sent the crowd into a frenzy.

Disney’s theme parks, which are part of the wider division known as experiences, have long been a top-performing segment for the company, especially at a time of flux for linear television networks and cable advertising revenue slumps. Parks have offered stability in recent quarters as Disney shuffles to adapt its entertainment business to match consumer habits that changed after the pandemic.
However in the most recent quarter, Disney’s domestic parks in California and Florida saw slower consumer demand and increased inflation. The company expects this flat attendance will carry over the next few quarters.
Still, Disney is bullish on its experiences division, which encompasses its theme parks, cruise lines and hotels. The company has pledged to invest $60 billion in experiences over the next 10 years — a key part of its strategy to keep the parks fresh and relevant in a competitive segment.
About 70% of that money will go toward new experiences in domestic and international parks, along with cruise lines. The other 30% will go toward technology and infrastructure, including maintenance of existing attractions.
On Saturday, Disney fans got a glimpse at where that investment was being placed with the help of some big names.

Walt Disney World

Rita Ora graced the stage to perform a rendition of “Trust in Me” from “The Jungle Book” to announce the new villains land coming to Magic Kingdom. This new area of the park will include two major attractions as well as shopping and dining.
“So be prepared, you poor unfortunate souls,” D’Amaro teased.
Shaboozey rocked the Honda Center with a rendition of “Life Is a Highway” as part of the announcement that parts of the Florida-based Frontier Land will be rethemed with elements from the movie “Cars.”
This area will differ from the one at Disney California Adventure, D’Amaro told the audience, and will take place in the wilderness. There will be one e-ticket attraction, a thrilling off-road rally race, and a second ride that is more for families. Construction is slated to begin in early 2025.
D’Amaro noted that these expansions at Magic Kingdom are the largest at the park ever.
Over at Hollywood Studios, Disney is set to build a land centered on “Monsters, Inc.” Billy Crystal, the voice of the one-eyed green monster Mike Wazowski, appeared on stage to tease those in attendance about the new area.
Crystal sang a rendition of “If I Didn’t Have You” and received a standing ovation.
This land will feature a major attraction that takes guests on a thrilling tour of the Laugh Factory via a suspended coaster. Audiences cheered for the new ride. Construction starts next year, D’Amaro said.
Animal Kingdom’s Tropical America’s land, set to open in 2027, will feature an Indiana Jones attraction set inside a Mayan Temple. Ke Huy Quan appeared on stage with D’Amaro to tease the new ride and reminisce about his first ever acting role in “Indiana Jones and the Temple of Doom.”
“Josh, I have to ask you, will there be any snakes?” Quan joked.
D’Amaro said construction will start in the fall and guests will have to wait to see what the new story of the Orlando-based ride will have in store.
As part of the Tropical America’s land Disney is creating Pueblo Esperanza, which means village of hope. Here the company is building the Casita Madrigal from “Encanto” and will have an attraction centered on the character Antonio who has the magical gift to talk to animals. The Casita has animated the house furniture to give guests a tour of the home and they will venture into Antonio’s jungle room.
Also part of this area will feature an all new carousel featuring wood carved animals from classic Disney stories.

Disneyland

The world of “Avatar” will make its way to Disney’s California Adventure, D’Amaro shared Saturday. The area will take inspiration from the second film “The Way of Water” and feature a new attraction.
“For our new destination we are inspired by the second movie ‘The Way of Water’ as well as the upcoming ‘Fire and Ash’ as well as future avatar films,” said Ali Rubinstein, executive global management of creative development at Walt Disney Imagineering, during Saturday’s showcase. “And it will be a scale and a level that is worthy of these epic stories.”
This park is also set to open a “Coco” attraction that will follow Miguel through the land of the dead. It will utilize state-of-the-art audio animatronics like the ones seen in the recently refurbished Tiana’s Bayou Adventure. It also takes inspiration from the iconic Haunted Mansion and Pirates of the Caribbean rides. The company is breaking ground in 2026.
Deadpool appeared on stage to poke fun at the parks, including the animatronic dragon that caught fire at Disneyland last year, as well as D’Amaro.
The company then revealed that the Avengers Campus land will almost double in size with the addition of two new attractions. The first is called Avengers Infinity Defense which will take guests on an adventure to stop King Thanos from using stolen portal technology. Riders will help defend iconic location like Asgard, Wakanda and New York City.
The second attraction is Stark Flight Lab where guests will learn how to fly like a superhero. Construction will start next year.
The company also announced that Tiana’s Bayou Adventure, the Splash Mountain revamp, will open November 15. The Walt Disney World Resort version of the ride opened in June.

International parks

Disneyland Paris’ Adventure World theme park will be getting a new area based on “The Lion King” with a log flume attraction based on the Pride Lands. The previously announced Frozen-themed land is due to open in 2026.
Shanghai is getting a new thrill attraction coaster featuring Spider-Man.
“This is going to be a high energy thrill coaster,” said Scott Trowbridge, senior creative executive at Walt Disney Imagineering.
Hong Kong’s park will also have a Spider-Man thrill attraction added to the Stark Expo area.
Tokyo will debut a new nighttime spectacular in September called “Reach for the Stars.” It features characters from “Big Hero Six,” “Up” and super heroes from Marvel.

Disney Cruises

Disney’s cruise line is getting a major expansion. In addition to the five ships already sailing the world, and the four ships in production, Disney will be adding another four ships to the fleet between 2027 and 2031.
D’Amaro brought out All-4-One to sing “This I Swear” to announce the four new ships. Disney will soon have 13 different destinations for its cruise ships.
“Disney Cruise Line is consistently the top-rated line for families because it offers something for everyone,” D’Amaro said. “Expanding our fleet gives more people – in more parts of the world – opportunities for an experience at sea that only Disney can deliver.”

An ‘Epic’ partnership

Disney also used Saturday’s presentation to update fans and shareholders about its $1.5 billion investment in Epic Games.
D’Amaro was joined on stage by creative leads from across the company including Jennifer Lee from Walt Disney Animation, Pete Doctor from Pixar, Kevin Feige from Marvel and Dave Filoni from Lucasfilm to share several upcoming collaborations with Epic Games and Fortnite.
Disney streamed this segment of the show on Fortnite and more than one million people tuned into that live stream, D’Amaro said.
Disney Animation characters will arrive in the game this fall, including Cruella, Hook and Maleficent, Lee teased. Joining them will be Pixar’s the Incredibles, including Frozone, ElastaGirl and Mr. Incredible, Doctor added.
For Lucasfilm, Filoni said new Star Wars characters are coming next week, including IG-11 and a Grogu back bling. Filoni also teased that he and Jon Favreau are working on a Mandalorian and Grogu story for the Star Wars Smugglers Run ride in Galaxy’s Edge.
Marvel has been a partner with Epic since 2018 and more is on the way. Feige said many fans discover Marvel characters through Fortnite and then go read the comics and watch Marvel Cinematic Universe content. Coming next week to the game is a new event centered on Doctor Doom. Audiences at D23 saw a tease Saturday night that included a number of new special weapons, including Captain America’s shield, and a Peely version of Wolverine.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC. More

As Disney seeks to rebuild its reputation and recapture magic at the box office, it is relying heavily on existing, and beloved, franchises.
The company’s three-hour long entertainment presentation at the D23 Expo on Friday detailed a host of theatrical films, television series and stage productions coming over the next few years.
CEO Bob Iger himself has admitted on numerous occasions that Disney sacrificed quality for quantity in recent years and it was his goal upon returning to right the ship.

Bob Iger, CEO, The Walt Disney Company appears at the Disney Entertainment Showcase at D23: The Ultimate Disney Fan Event in Anaheim, California on August 09, 2024.
Araya Doheny | Getty Images Entertainment | Getty Images

When Disney CEO Bob Iger stepped onto the stage at the Honda Center in Anaheim, California on Friday night, the crowd erupted. Some 12,000 Disney fans rose to their feet and cheered, leaving the 73 year-old executive grinning wide as he tried to quiet them back down.
“I was going to say good evening and thank you for that warm welcome, but that was more than a warm welcome,” Iger said to those gathered for Disney’s first showcase at its biannual D23 Expo.

It’s the first time in five years that Iger has attended the exposition event for Disney’s biggest fans, as he briefly retired from his position as chief executive for nearly two years before returning to the helm in November 2022.
His absence coincided with a downturn in Disney’s theatrical business which, like other studios was disrupted by pandemic shutdowns and dual Hollywood labor strikes. Yet, the company’s post-pandemic box office was also beset by executive decisions to increase content production to pad its fledgling streaming service Disney+. Iger himself has admitted on numerous occasions that Disney sacrificed quality for quantity and it was his goal upon returning to right the ship.
On Friday, he opened an explosive — sometimes literally, as Disney loves to use pyrotechnics — three-hour long presentation that detailed a host of theatrical films, television series and stage productions coming over the next few years.
As the company seeks to rebuild its reputation and recapture magic at the box office, it is relying heavily on existing, and beloved, franchises. And, when it does venture into new territory, it is tapping tried-and-true talent in front of and behind the camera.

Revisiting old favorites

Heading into D23, Disney had two major box office successes under its belt from two major franchises.

Its latest Pixar film, “Inside Out 2,” is now the highest-grossing animated film of all time, topping $1.5 billion at the global box office. Its first R-rated Marvel Cinematic Universe flick — “Deadpool & Wolverine” — broke opening weekend records for an R-rated film and is set to surpass the $1 billion mark as early as this weekend.
To open Friday’s entertainment showcase, Auli’i Cravalho and Dwayne Johnson joined a crew of Polynesian dancers and drummers to perform a song from the upcoming “Moana 2.” The hotly anticipated sequel to 2016′s “Moana” arrives in theaters during the Thanksgiving holiday and is expected to become Disney’s third billion-dollar film released in 2024, according to box office analysts.
While the first film generated a little less than $700 million at the global box office, audience fervor for more “Moana” content is expected to drive high ticket sales in November. After all, it was the most streamed film of 2023.

H/O: Moana 2 Movie Stills from teaser.
Courtesy: Walt Disney Studios

Sequels and prequels are a theme for Disney, and across the board in Hollywood. While Iger has cautioned investors in the past that the company will be more selective about which past stories it continues to explore, its entertainment showcase featured numerous additions to popular franchises.
This was particularly apparent at both of its animation studios. Of the seven theatrical titles Disney touted during Friday’s presentation, five were from existing franchises — “Moana 2,” “Toy Story 5,” “Zootopia 2,” “Frozen III” and “Incredibles 3.”
It’s no surprise Disney is going back to the well with these films. The Toy Story franchise has generated $3.2 billion at the global box office, the two Frozen films surpassed $2.7 billion worldwide, the two Incredibles films tallied $1.8 billion globally and “Zootopia” reached $1 billion worldwide during its run in 2016.
Fans were given glimpses of the two original titles coming from Disney — “Elio” and “Hoppers” — which had two drastically different tones. One follows a young boy to outer space as he is mistaken for the leader of Earth the other centers on a young girl who “hops” into the body of a robotic beaver in order to go undercover in the animal world.
Of course, there’s some star power behind these titles. “Elio” is directed by Adrian Molina, who co-wrote 2017’s “Coco” and will feature Zoe Saldana (“Avatar,” “Guardians of the Galaxy”) as part of the voice cast. “Hoppers” has Jon Hamm (“Mad Men”) and Bobby Moynihan (“Saturday Night Live”) voicing characters.
It’s clear that Disney’s strategy across all of its studios is to provide audiences with a selection of familiar favorites alongside a handful of new entrants.
At Lucasfilm, its first Star Wars feature film since 2019’s “The Rise of Skywalker” arrives in 2026 and is titled “The Mandalorian and Grogu.” The flick will follow the much beloved duo from “The Mandalorian.” Footage from Friday’s panel showed Mando and Grogu on an icy planet battling stormtroopers and AT-ATs.

The Mandalorian and the Child (Grogu) on Disney+’s “The Mandalorian.”

Lucasfilm is also set to release the second season of “Andor,” a series that takes place before “Rogue One: A Star Wars Story” and follows the reluctant hero Cassian Andor as he traverses a world choked by the Galactic Empire.
Amidst these popular stories also comes “Skeleton Crew,” which as been billed as a “Goonies”-like adventure series. It stars Jude Law alongside a cast of four kids who accidentally jettison themselves off into space and get lost in the stars.
There are two more Star Wars feature films on the calendar — dated December 2026 and December 2027 — but it is unclear who will direct them or what storyline Disney will center upon. Star Wars remains one of the top franchises at the global box office having generated more than $10 billion in ticket sales since 1977’s “A New Hope” hit theaters.
Other sequels coming to the big screen from Disney in the coming years also include the third Avatar film titled “Avatar: Fire and Ash,” a “Freaky Friday” sequel called “Freakier Friday” and a third “Tron” film called “Tron: Ares.” There will also be a live-action remake of “Snow White” hitting theaters in March and a “Lilo and Stitch” live-action film coming later in 2025.

A Marvel-ous new strategy

Over at Marvel Studios, a reformation is taking place. The studios is in the process of balancing stories centered on its existing characters while trying to bring new heroes — and villains — into the fold.
It was always going to be tough for Marvel to follow-up after “Avengers: Endgame,” but few foresaw the steep fall from grace that would befall the beloved studio. In the wake of Thanos’ defeat, Disney released 10 television series (some with multiple seasons) and a dozen theatrical films. The overabundance of content felt like homework to audiences who once embraced all things Marvel and, worse, much of what was being released wasn’t well-liked.
The Marvel Cinematic Universe’s low point came in the form of 2023′s “The Marvels,” which generated the lowest domestic opening ($46.1 million) and lowest global box office haul (under $200 million) for the franchise ever.
Going forward, the studio appears to be limiting the number of series its producing for Disney+ and keeping its focus on the big screen. Kevin Feige, head of Marvel Studios, wowed audiences at San Diego Comic Con only a few weeks ago with new movie title reveals and the jaw-dropping announcement that Iron Man himself Robert Downey Jr. would return to play Doctor Doom, still had some things left to share with the D23 crowd.

Robert Downey Jr. speaks onstage during the Marvel Studios Panel in Hall H at SDCC in San Diego, California on July 27, 2024.
Jesse Grant | Getty Images Entertainment | Getty Images

In addition to “Captain America: Brave New World,” “Thunderbolts*,” “The Fantastic 4: First Steps,” “Blade,” “Avengers: Doomsday” (previously titled “Avengers: Kang Dynasty) and “Avengers: Secret Wars,” Marvel will have three televisions series coming to Disney+ in the next few years.
“Agatha All Along” comes first in September and centers on the villainous Agatha Harkness from 2021’s “Wandavision” as she seeks to regain her powers alongside a coven of other witches. Kathryn Hahn reprises her role as the titular Agatha and is joined by a cast including Aubrey Plaza and Patti LuPone.
“Ironheart,” starring the character Riri Williams, who was seen in 2022’s “Black Panther: Wakanda Forever,” is set for release in 2025 alongside a rebooted “Daredevil: Born Again.” Notably, the Daredevil show features the entire main cast that starred in the Netflix “Daredevil” show.
D23 audiences cheered the announcements to Marvel’s slate, a sign that interest has not waned for the superhero genre. This fervor mixed with the studios new strategy just might put the MCU back on course.
Of course, Ryan Reynolds may want some of the credit considering the recent performance of “Deadpool & Wolverine.” In a pre-taped video for Friday’s showcase, Reynolds thanked Disney and Marvel for letting the film poke fun at the studio.
“It’s my way of showing love,” he said. “And of course, saving the studio.”
Since the first MCU film was released in 2008, the franchise has generated more than $30 billion at the box office. The MCU is the highest-grossing film franchise of all time and one of the most consistent ticket sales drivers in cinematic history.
“There is nothing we love more than to entertain you, thrill you, surprise you, and fill your hearts with joy and wonder,” Iger said Friday. “And we know that when we do all of that, we’re doing our jobs right.” More

Stellantis will indefinitely lay off up to 2,450 U.S. plant workers in Warren, Michigan, later this year as it discontinues production of an older version of its Ram 1500 pickup.
The company has not announced a vehicle to replace the truck.
The layoffs are expected to start as soon as October.

The 2019 Ram 1500 Rebel pickup truck is displayed at the North American International Auto Show in Detroit on Jan. 15, 2018.
Brendan McDermid | Reuters

DETROIT — Automaker Stellantis plans to indefinitely lay off up to 2,450 U.S. factory workers later this year as it discontinues production of an older version of its Ram 1500 pickup truck in Michigan.
The truck has been largely used as a low-cost pickup to sell to entry-level buyers and fleet customers since the automaker introduced a new generation of the Ram 1500 in 2018. It is produced alongside the Jeep Wagoneer and Grand Wagoneer at the Warren Truck Assembly Plant, located near Detroit.

The current Ram 1500, which was recently updated for the 2025 model year, is produced at a nearby plant. Operations at that facility will continue as planned.
“With the introduction of the new Ram 1500, production of the Ram 1500 Classic at the Warren [Michigan] Truck Assembly Plant will come to an end later this year,” the company said in an emailed statement.
The discontinuation of the Ram 1500 “Classic” vehicle is not unexpected, but the company has not announced a vehicle to replace the truck. That is concerning for local governments, workers and the United Auto Workers union, which represents the plant.

Stock chart icon

Share prices of Stellantis, GM and Ford

Ram CEO Chris Feuell told CNBC last week that the “Classic” version of the pickup would be phased out by the end of this year.
UAW President Shawn Fain was critical of Stellantis leadership regarding the cuts.

“Stellantis CEO Carlos Tavares is a disgrace and an embarrassment to a once-great American company,” Fain said in an emailed statement Friday night. “Meanwhile, Tavares jacks up his own pay by 56 percent while laying off thousands of autoworkers. If any autoworker did as piss poor of a job as Stellantis CEO Carlos Tavares, they would be fired.”
The layoffs are expected to start as soon as October. The final number of indefinite layoffs at the Warren plant, which currently employs about 3,700 hourly workers, may be lower than the announced numbers. Some employees may be given other jobs or positions at other plants.
The layoffs are the latest for Stellantis, which has cut production at several plants amid sales issues and cost-cutting measures.

Read more CNBC auto news

Tavares has been on a cost-cutting mission since the company was formed through a merger between Fiat Chrysler and France’s PSA Groupe in January 2021. It is part of his “Dare Forward 2030” plan to increase profits and double revenue to 300 billion euros, or $325 billion, by 2030.
The automaker last week offered a broad voluntary buyout to U.S. salaried workers in an effort to reduce headcount and costs. Stellantis, which reported disappointing first-half results last month, said if not enough employees participate in the buyout, involuntary terminations could follow. 

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Life Time’s CEO and founder said he has created a stronger and faster pickleball.
The “athletic country club” has invested heavily in pickleball.
Life Time’s stock is up 57% year to date.

Life Time has filed a patent to create The Ultimate Pickleball.
Courtesy: Life Time

Tired of playing with pickleballs he found inconsistent in bounce and durability, Life Time’s founder and CEO Bahram Akradi decided to take matters into his own hands.
On Friday, the upscale fitness and lifestyle company announced it has created what it dubs “the ultimate pickleball.” Life Time will debut the ball exclusively at the company’s clubs later this month.

“This was a problem with the sport and it needed to be solved, so we basically stepped in and solved it,” Akradi said.
Akradi has gone all in on America’s fastest growing sport since 2021, and he remains bullish on its potential. It’s a key piece of the growth strategy for Life Time, which has seen its stock rise 57% year to date. On Aug. 1, the company raised its full year guidance following a strong second-quarter performance.
Life Time will soon sell the ball at its racquet sports pro shops and online. The company is still determining what the price will be.
Life Time’s “athletic country clubs” boast more than 700 permanent pickleball courts. The company plans to reach 1,000 courts by the end of next year.
“Our goal is to provide the right venues for people to play, the right experience, the right consistency,” Akradi added.

Akradi said the company has invested between $50 million and $100 million in pickleball already, and the sport has brought in 6% to 7% of Life Time’s membership dues.
Life Time also hosts professional tournaments at its clubs for Major League Pickleball and the Professional Pickleball Association. The professional organizations use Vulcan as their “official ball,” but Akradi hopes to change that in the future.
In May, the company announced Lululemon as its official apparel sponsor for tennis and pickleball.
The company has also teamed up with tennis legend Andre Agassi and top-rated pickleball player Ben Johns to grow the sport further. More

Delta Air Lines on Thursday said last month’s CrowdStrike outage and subsequent mass flight cancellations cost it some $550 million.
That includes a $380 million revenue hit in the current quarter and an associated $170 million expense.
Delta has said the carrier will pursue legal action against Microsoft and CrowdStrike to recoup the cost of the incident.

A Delta Airlines Airbus A319-114 aircraft taxis at Los Angeles International Airport after arriving from Las Vegas on May 5, 2024 in Los Angeles, California. 
Kevin Carter | Getty Images

Delta Air Lines on Thursday said last month’s CrowdStrike outage and subsequent mass flight cancellations cost it some $550 million and reiterated that it is pursuing damages against the company as well as Microsoft.
The financial impact includes a $380 million revenue hit in the current quarter “primarily driven by refunding customers for cancelled flights and providing customer compensation in the form of cash and SkyMiles,” the Atlanta-based airline said in a securities filing.

The incident, in which it canceled some 7,000 flights, also meant a $170 million expense “associated with the technology-driven outage and subsequent operational recovery,” the carrier said, adding that its fuel bill will likely be $50 million lower because of the scrubbed flights.
Delta struggled more than its competitors to recover from the July 19 outage, which took millions of Windows-based machines offline around the world. The disruptions occurred at the height of the summer travel season, stranding thousands of Delta customers, a rare incident for the carrier that markets itself as a premium carrier that gets top marks for reliability.
“An operational disruption of this length and magnitude is unacceptable, and our customers and employees deserve better,” CEO Ed Bastian said in the filing. “Since the incident, our people have returned the operation to an industry-leading position that is consistent with the level of performance our customers expect from Delta.”
Delta’s cancellations in the days after the outage topped its tally for all of 2019. The U.S. Department of Transportation last month said it is investigating Delta’s response to the outage and flight cancellations.
CrowdStrike responded in a statement on Thursday that Delta “continues to push a misleading narrative” and said that the company’s chief security officer was in “direct contact” with Delta’s chief information and security officer “within hours of the incident, providing information and offering support.”

In a letter to CrowdStrike’s attorney on Thursday, Delta’s lawyer David Boies said 1.3 million customers were affected by the outage and that it shut down 37,000 Delta computers.
CrowdStrike and Microsoft lawyers earlier this week fired back at Delta, saying they reached out to offer Delta help. Microsoft on Wednesday suggested that Delta hasn’t invested enough in its technology compared with rivals.
“If CrowdStrike genuinely seeks to avoid a lawsuit by Delta, then it must accept real responsibility for its actions and compensate Delta for the severe damage it caused to Delta’s business, reputation, and goodwill,” Boies said in the letter to CrowdStrike on Thursday.
About 60% of Delta’s “mission-critical applications” and their data depend on Microsoft and CrowdStrike, he said, adding that the disruption “required significant human intervention by skilled crew specialists to get Delta people and aircraft to the right locations to resume normal, safe operation.”

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E.l.f. Beauty beat Wall Street’s quarterly estimates on the top and bottom lines as sales jumped 50%.
Tarang Amin, CEO of the cosmetics company, said its new Bronzing Drops serum has been wildly popular.
Despite the big sales beat, the beauty retailer posted cautious guidance.

Courtesy: e.l.f Beauty

E.l.f. Beauty’s growth story is still going.
The cosmetics retailer on Thursday blew past quarterly estimates again, posting a 50% gain in sales. 

The company’s sales soared to $324.5 million in its fiscal first quarter, leading it to raise its full-year guidance. That increase follows a staggering 76% jump in the year-ago quarter.
CEO Tarang Amin told CNBC the company saw growth across its categories. He added that its Bronzing Drops serum quickly became a best seller on the company’s website after its launch during the quarter.
Here’s how the cosmetics company performed compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

Earnings per share: $1.10 adjusted vs. 84 cents expected
Revenue: $324 million vs. $305 million expected

The company’s reported net income for the three-month period that ended June 30 was $47.6 million, or 81 cents per share, compared with $53 million, or 93 cents per share, a year earlier.  
Sales rose to $324.5 million, up about 50% from $216.3 million a year earlier. 

Following quarter after quarter of outsized growth, Wall Street has come to expect a lot from E.l.f. Beauty. Though it raised its guidance Thursday, the outlook still fell flat after such a big first-quarter beat. 
For fiscal 2025, E.l.f. now expects sales of between $1.28 billion and $1.3 billion, compared with its previous outlook of $1.23 billion and $1.25 billion. Analysts had expected sales guidance of $1.3 billion, according to LSEG.
The company now anticipates its adjusted net income will be between $198 million and $201 million, compared with a previous outlook of between $187 million and $191 million. E.l.f. expects adjusted earnings per share to be between $3.36 and $3.41, compared with previous guidance of $3.20 to $3.25. Analysts had expected earnings of $3.42 per share, according to LSEG. 
Shares fell about 6% in extended trading.
When it reported fiscal 2024 results in May, E.l.f. disappointed investors with an outlook that came in below expectations. Sentiment later turned around after its finance chief, Mandy Fields, suggested that the company tends to issue conservative guidance. 
“Last year, we started our guidance at 22% to 24% range, ended the year at 77%,” Fields told analysts at the time. “I’m not saying that we’re promising 77% this year for sure. But what I will say is that gives you a little bit of insight into our guidance philosophy.” 
On Thursday, Amin told CNBC that Fields takes a “balanced” approach to guidance and prefers to take things one quarter at a time. 
“If you look at our history over the last five years, these 22 quarters, we typically guide lower than where we eventually come out,” said Amin. “We never want to get ahead of ourselves, and overall the strategy has worked just great … we’re going to take you through what we’re seeing quarter by quarter, and hopefully we continue to kind of beat that.” 
He added that he isn’t concerned about a consumer pullback in the beauty category and remains “bullish” on the broader environment.
“We are hearing kind of in the macro, ‘Hey, is the consumer being choosier?’ I’d say if they are, they’re choosing E.l.f.,” said Amin. “So we’re perhaps differently positioned, and if you look over the last 22 quarters, it didn’t matter what was happening in the category, whether it was the pandemic, whether it was inflationary pressures … you name it, we’ve performed well throughout that, and I think it really comes down to our fundamental business model and how we’re different.” 
E.l.f., a digitally native beauty retailer that was founded in 2004, has gained a newfound relevance among Gen Z and Gen Alpha consumers through marketing that lands with those younger shoppers and meets them where they are on places such as TikTok and Roblox. 
It’s known for creating value versions of prestige favorites, such as its new Bronzing Drops, which customers compare to Drunk Elephant’s product Sunshine Drops. The prestige skin care line offers its product for $38, while E.l.f.’s retails for just $12.
“These bronzing drops were the No. 1 requested item from our community, and our community comes to us and says, ‘Hey, there’s a prestige item there. We love them, but E.l.f., help us out. We can’t afford 38 bucks for bronzing drops,'” said Amin. “So we’ll study it. We’ll put our own E.l.f. twist on it and we’ll introduce ours at $12. Went to No. 1 right away on Elfcosmetics.com.”
The company doesn’t compare its products to any specific brands and instead lets its fan base fill in the blanks.
“Even though we don’t make the comparison ourselves, there’s like a thousand TikTok videos after we launch this product where people are doing side-by-sides or comparing it,” said Amin. “They’re like, it’s $12 versus the $38 item and actually, I like the E.l.f. one better, the quality’s better.'”
In July, the company expanded its collaboration with Roblox that enabled users ages 13 and up to buy limited edition products such as its “e.l.f. UP! Pets Hoodie” and mainstays such as its lip and SPF products. 
During the Olympics, it had splashy marketing campaigns with gymnast Gabby Douglas, a three-time gold medalist, and blind swimmer Anastasia “Tas” Pagonis. It also collaborated with actress Jameela Jamil on the launch of its new Bronzing Drops.
However, all that marketing doesn’t come cheap and has weighed on E.l.f.’s bottom line. During the quarter, selling, general and administrative expenses increased by roughly $88.6 million to $180.6 million, representing 56% of net sales. The spike in marketing spending contributed to a 10% drop in E.l.f.’s net income. 
Amin said the company is spending more on marketing this year than last but that was more a result of timing. He added E.l.f. is working to get marketing spend “more consistent” throughout the year as a percentage of sales. 
“We continue to invest more in marketing because it’s working,” said Amin. “Our marketing ROIs are multiples ahead of the category benchmarks, we’re growing very strong top line. We’re building awareness.” More

Paramount Global intends to cut about 2,000 jobs as part of broader cost savings.
Revenue fell as TV licensing fees dropped 48%, compounding declines in subscription fees and advertising sales.
Paramount’s streaming division swung to a profit of $26 million.

The Paramount Studios in Los Angeles on April 29, 2024.
Eric Thayer | Bloomberg | Getty Images

Paramount Global is cutting 15% of its U.S. workforce, or about 2,000 jobs, part of a broader cost-cutting plan as it prepares for a merger with Skydance Media.
Paramount has identified $500 million in cost savings, which include the head count reductions, as part of $2 billion in synergies related to its transaction with Skydance. The job cuts, which will begin in the coming weeks and largely conclude by year end, will target the company’s marketing and communications department and employees who work in finance, legal, technology and other support functions, the company said during its earnings conference call Thursday.

Paramount agreed to a merger with Skydance Media last month. That deal includes a 45-day go-shop period — in which a special committee of Paramount’s board could find another buyer — that concludes later this month.
Meanwhile, earnings surged as the company’s streaming division swung to an unexpected profit — the first time Paramount has announced a profitable quarter for its direct-to-consumer business.
Shares climbed more than 5% in after-hours trading Thursday.
Here’s how Paramount performed in the quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

Earnings per share: 54 cents adjusted vs. 12 cents expected
Revenue: $6.81 billion vs. $7.21 billion expected

Revenue falls

Second-quarter revenue dropped 11% and missed analyst estimates as licensing, TV advertising and cable subscription sales dropped.

The revenue drop was the largest miss compared to analyst estimates since February 2020, according to LSEG data. Paramount attributed the miss to a decline in TV licensing revenue, which can be difficult for analysts to model given their start and end dates.
Paramount+ revenue grew 46% on year-over-year subscriber growth and higher prices. Paramount+ customers decreased 2.8 million from last quarter to 68 million as the company unwound a Korean partnership deal with entertainment company CJ ENM’s Tving streaming platform.
Paramount’s streaming division turned a profit for the quarter of $26 million after losing $424 million a year ago. Analysts had estimated a loss of $265 million this quarter.
Paramount reaffirmed it’s on track to reach U.S. profitability for Paramount+ in 2025. The streaming service has raised prices and cut content spend.
Paramount’s quarterly profit is helped by not having an NFL licensing charge for the period, which will kick in later in the year.
Shares have slumped 31% so far this year amid declines among cable subscribers and a soft linear TV advertising market.
Paramount also took a $6 billion one-time impairment charge associated with the decline in its cable networks. It comes on the heels of a $9.1 billion write-down from peer Warner Bros. Discovery on Wednesday.
The company had to take the charge as an adjustment forced by its transaction with Skydance.

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