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Bristol Myers Squibb reported first-quarter revenue that topped expectations as its blockbuster blood thinner Eliquis and several new drugs posted sales growth.
The pharmaceutical giant posted a quarterly loss, however, due to one-time charges associated with its recently closed deals. 
The company also said it is executing a “strategic productivity initiative” that will drive roughly $1.5 billion in cost savings by the end of 2025.

The Bristol Myers Squibb research and development center at Cambridge Crossing in Cambridge, Massachusetts, US, on Wednesday, Dec. 27, 2023. 
Adam Glanzman | Bloomberg | Getty Images

Bristol Myers Squibb on Thursday reported first-quarter revenue that topped expectations as its blockbuster blood thinner Eliquis and several new drugs posted sales growth.
But the pharmaceutical company swung to a quarterly loss due to one-time charges related to its recently closed deals. It also said it plans to cut $1.5 billion in costs by 2025, and reinvest the money in drug development.

Bristol Myers will lay off 2,200 employees this year, discontinue some drug programs, eliminate open roles, consolidate its sites and reduce management layers, among other cost savings. The company said it will prioritize investment in its key drug brands, optimize operations across the company and focus its resources on research and development programs that could deliver the highest returns for the company and the greatest health benefits for patients.
Two-thirds of savings are associated with drug research and development, Bristol Myers Squibb executives said during an earnings call on Thursday. The company has discontinued around 12 drug programs so far and will evaluate others to drop throughout year, said Bristol Myers Chief Medical Officer Dr. Samit Hirawat.
Bristol Myers CEO Chris Boerner added that the majority of savings are coming from existing in-house operations, not from newly acquired companies.
“We are taking important actions to effectively manage the decade,” Boerner said during the call. “Our management team has focused on ensuring the discipline execution required to deliver both this year and set us up for the longer term.”
For the first quarter, Bristol Myers said the charges that weighed it down primarily reflect its $14 billion acquisition of neuroscience drugmaker Karuna Therapeutics and collaboration agreement with SystImmune, a subsidiary of a Chinese biotech startup, to co-develop and market its experimental cancer treatment. 

Those deals come as Bristol Myers faces pressure to launch new drugs and offset the potential loss of revenue from top-selling treatments. The company’s popular blood cancer treatment Revlimid – and eventually, Eliquis and cancer immunotherapy Opdivo – faces competition from cheaper copycats. 
Shares of Bristol Myers fell more than 1% in premarket trading Tuesday.
Here’s what Bristol Myers Squibb reported for the first quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: 

Loss per share: $4.40 adjusted vs. $4.44 expected
Revenue: $11.87 billion vs. $11.46 billion expected 

Bristol Myers, one of the world’s largest pharmaceutical companies, swung to a net loss of $11.9 billion, or $5.89 per share, during the first quarter. That compares to net income of $2.3 billion, or $1.07 per share, for the same period a year ago. 
Excluding certain items, its adjusted loss per share was $4.40 for the period. 
The loss reflects a one-time $6.30 per share charge related to the recently closed deals, Bristol Myers said in a release.
Bristol Myers reported first-quarter revenue of $11.87 billion, up 5% from the year-earlier period. 
The company reiterated its full-year revenue forecast of a low single-digit increase. But Bristol Myers lowered its 2024 adjusted earnings guidance to 40 cents to 70 cents per share to reflect the impact of recent deals. 
That compares with a previous forecast of $7.10 to $7.40 per share, which did not include charges related to its buyouts of Karuna Therapeutics and radiopharmaceutical company RayzeBio, along with divestitures and other items. 

Eliquis, new drugs post growth 

Bristol Myers said revenue growth for the first quarter was primarily driven by higher sales of Eliquis and some of its newer drugs. 
Eliquis booked $3.72 billion in sales for the quarter, up 9% from the year-ago period. Analysts had expected Eliquis to draw $3.59 billion in revenue, according to estimates compiled by FactSet.
Eliquis, which Bristol Myers shares with Pfizer, is among the first 10 drugs facing ongoing price negotiations with the federal Medicare program. The blood thinner is expected to lose market exclusivity by 2028.
The impact of those negotiations on Eliquis is still unclear, Bristol Myers executives said during the call. The final negotiated price for the drug will be published later this year and go into effect in 2026, which is when the company expects a hit to revenue and profit.

George Frey | Reuters

Anemia drug Reblozyl and advanced melanoma treatment Opdualag also posted revenue growth during the first quarter. 
Reblozyl booked $354 million in sales, up 72% from the year-earlier period. Analysts had expected revenue of $330.8 million, according to FactSet.
Opdualag generated $206 million in sales for the first quarter, which is up 76% from the same period a year ago. Analysts had expected revenue of $206.5 million, FactSet estimates said. 
The performance of other new drugs fell short of Wall Street’s expectations. 
Abecma, a cell therapy for a rare blood cancer called multiple myeloma, drew $82 million in sales for the quarter. Analysts had expected $112.6 million in revenue, according to FactSet. 
The U.S. Food and Drug Administration earlier this month expanded its approval of that drug, allowing multiple myeloma patients to use it as an earlier line of treatment.
Meanwhile, Revlimid raked in $1.67 billion in sales, down 5% from the same period a year ago. 
Still, that surpassed analysts’ revenue expectations of $1.22 billion or the drug, according to FactSet estimates.  
Opdivo generated $2.07 billion in sales for the quarter, down 6% from the first quarter of 2023. Analysts had expected the drug to book $2.3 billion in revenue for the period, FactSet estimates said. More

American Airlines swung to a loss in the first quarter.
Its forecast for the current period surpassed analysts’ estimates.
American reiterated its full-year earnings forecast.

A Boeing 737 passenger aircraft of American Airlines arrives from Austin, Texas, at JFK International Airport in New York as the Manhattan skyline looms in the background on Feb. 7, 2024.
Charly Triballeau | Afp | Getty Images

American Airlines swung to a loss in the first quarter, but its forecast for the current period surpassed analysts’ estimates, sending shares roughly 5% higher Thursday.
American expects to earn between $1.15 and $1.45 per share in the second quarter, on an adjusted basis, largely above the $1.18 that analysts compiled by LSEG estimated on average. American reiterated its forecast to earn between $2.25 and $3.25 per share for the full year.

“While we aren’t satisfied with our first-quarter financial results, we have a strong foundation in place, and we remain on track to deliver on our full-year financial targets,” CEO Robert Isom said in an earnings release.
American said it expects second-quarter capacity to be up 7% to 9%, and unit revenues to fall 1% to 3% from last year.
Similar to Southwest, United and Alaska, American is affected by Boeing’s latest quality control and safety crises. American will receive seven fewer aircraft from Boeing than it previously projected, Isom said, adding that he did not expect a material impact from the delays.
“My message is Boeing hasn’t changed since the last time we talked,” Isom told CNBC in an interview. “Get your act together. Deliver.”
Here is how American performed in the first quarter compared with Wall Street estimates compiled by LSEG:

Loss per share: 34 cents adjusted vs. an expected loss of 29 cents
Revenue: $12.57 billion vs. $12.60 billion expected

American posted a loss of $312 million, or 48 cents per share, in the first quarter, compared with a profit of $10 million, or 2 cents per share, during the same period a year earlier. Adjusting for one-time items, including costs associated with new labor contracts, American lost $226 million, or 34 cents per share.
Operating expenses rose nearly 7%, including an 18% rise in salaries and related costs.
Revenue rose 3.1% to $12.57 billion.
— CNBC’s Phil LeBeau contributed to this report. More

Merck reported first-quarter revenue and adjusted earnings that topped expectations as it posted strong sales of its blockbuster cancer drug Keytruda and vaccine products.
The pharmaceutical giant also raised and narrowed its full-year revenue and adjusted earnings outlooks.
Those results come as Merck shows substantial progress in preparing for Keytruda’s patent expiration in 2028.

The exterior view of the entrance to Merck headquarters in Rahway, New Jersey, on Feb. 5, 2024.
Spencer Platt | Getty Images

Merck on Thursday reported first-quarter revenue and adjusted earnings that topped expectations as it posted strong sales of its blockbuster cancer drug Keytruda and vaccine products.
The pharmaceutical giant also raised and narrowed its full-year revenue and adjusted earnings forecasts. Merck now expects 2024 sales to come in between $63.1 billion and $64.3 billion, up from previous guidance of $62.7 to $64.2 billion. 

The company expects full-year adjusted earnings of $8.53 to $8.65 per share, up from its prior forecast of $8.44 to $8.59 per share. 
That outlook includes a one-time charge of roughly 26 cents per share related to Merck’s acquisition of Harpoon Therapeutics in January. The company develops immune-based cancer drugs. The guidance also includes a negative impact of 30 cents per share from foreign exchange changes. 
Here is what Merck reported for the first quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: 

Earnings per share: $2.07 adjusted vs. $1.88 expected
Revenue: $15.78 billion vs. $15.20 billion expected

The company posted a net income of $4.76 billion, or $1.87 per share, for the first quarter. That compares with a net income of $2.82 billion, or $1.11 per share, during the year-earlier period. 
Excluding acquisition and restructuring costs, Merck earned $2.07 per share for the first quarter. Both adjusted and nonadjusted profit for the period include the charge related to the Harpoon deal.

Merck raked in $15.78 billion in revenue for the quarter, up 9% from the same period a year ago. 
Those results come as Merck shows substantial progress in preparing for Keytruda’s patent expiration in 2028. The loss of exclusive rights to the drug will likely cause sales to fall, forcing the company to draw revenue from elsewhere.
But Merck has a handful of new deals under its belt and key drug launches that will help it offset those losses. That includes Winrevair, a medication approved in the U.S. last month to treat a progressive and life-threatening lung condition. Some analysts expect that worldwide sales of Winrevair could reach $5 billion by 2030. 
Merck is also cutting costs under a new restructuring program it announced in February. Those efforts aim to improve the manufacturing network of both its pharmaceutical division and animal health business. 
The company recorded charges of $246 million related to restructuring in the first quarter, which are excluded from its adjusted results. 

Pharmaceutical division sales jump

Merck’s pharmaceutical unit booked $14.01 billion in revenue during the first quarter, up 10% from the same period a year ago. That division develops a wide range of drugs for several disease areas, including oncology and infectious diseases. 
Merck’s immunotherapy Keytruda, which is used to treat several types of cancer, largely drove the growth. Keytruda generated $6.95 billion in revenue during the quarter, up 20% from the year-earlier period. 
Analysts had been expecting $6.71 billion in Keytruda sales, according to estimates from FactSet. 
Merck also reported a jump in sales of Gardasil, a vaccine that prevents cancer from HPV, the most common sexually transmitted infection in the U.S.
Gardasil brought in $2.25 billion in sales, up 14% from the first quarter of 2023. That is in line with the $2.24 billion that analysts expected, FactSet estimates said. 

Source: Merck

Another vaccine called Vaxneuvance, which prevents patients from getting sick with pneumococcal disease, also posted strong growth during the quarter. The shot recorded $219 million in sales, up 106% from the year-earlier period. 
Meanwhile, Merck’s Type 2 diabetes treatment Januvia drew $670 million in sales, down 24% from the same period a year ago. The company said the decline was primarily due to lower prices of the drug, falling demand in the U.S. and generic competition in several international markets.
Analysts had expected Januvia sales of $687.3 million, according to FactSet estimates.
Januvia is one of 10 drugs targeted in ongoing Medicare drug price negotiations, a policy under the Inflation Reduction Act that aims to make costly medications more affordable for seniors.
Sales of Merck’s Covid antiviral pill Lagevrio also fell 11% to $350 million during the quarter. Still, that total blew past analysts’ expectations of $106.4 million in sales, according to FactSet. 
Demand for Lagevrio and other Covid products from companies such as Pfizer and Moderna has plunged over the past year, as cases and public concern about the virus dwindled from their pandemic peaks.
Merck’s animal health division, which develops vaccines and medicines for dogs, cats and cattle, posted $1.51 billion in sales for the first quarter. That is up only 1% from the same period a year ago. 
In February, Merck said it would buy Elanco Animal Health’s aquatic business for $1.3 billion in cash. The deal includes Elanco’s entire portfolio of medicines, vaccines and supplements for aquatic species, along with two manufacturing plants and a research facility. More

Southwest Airlines on Thursday posted a wider loss for the first quarter than the same period last year.
The carrier had previously warned that Boeing’s production slowdown has hampered its growth.
Southwest plans to shut down operations at some airports, including in Syracuse, New York; Bellingham International Airport in Washington; Cozumel International Airport; and Houston’s George Bush Intercontinental.

A Southwest commercial airliner takes off from Las Vegas on Feb. 8, 2024.
Mike Blake | Reuters

Southwest Airlines on Thursday posted a wider loss for the first quarter than the same period last year and warned that Boeing’s airplane delays will hamper its growth into 2025.
The airline expects to grow capacity 4% this year, down from a plan to expand 6%. For the second quarter, it forecast growth of 8% to 9% and said revenue would be down as much as 3.5%.

Shares of Southwest fell roughly 10% in premarket trading.
The airline said in a quarterly filing that it now expects to receive only 20 Boeing 737 Max 8 planes, down from its previous forecast of 46 of them. The carrier will now delay retiring some of its older Boeing planes and is cutting costs, including by offering staff voluntary time off. Southwest said it expects to end the year with 2,000 fewer employees than it had at the end of 2023.
It will also shut down operations at some airports, including in Syracuse, New York; Bellingham International Airport in Washington; Cozumel International Airport; and Houston’s George Bush Intercontinental.
“Achieving our financial goals is an immediate imperative,” CEO Bob Jordan said in an earnings release. “The recent news from Boeing regarding further aircraft delivery delays presents significant challenges for both 2024 and 2025. We are reacting and replanning quickly to mitigate the operational and financial impacts while maintaining dependable and reliable flight schedules for our Customers.”
The Dallas-based carrier operates an all-Boeing 737 fleet and is acutely affected by Boeing’s aircraft delays stemming from its safety and quality crises.

The carrier had previously warned that slower Boeing deliveries were hampering its growth.
Here is how Southwest performed in the first quarter compared with Wall Street expectations, according to consensus estimates from LSEG:

Loss per share: 36 cents adjusted vs. an expected loss of 34 cents
Revenue: $6.33 billion vs. $6.42 billion expected

Southwest lost $231 million, or 39 cents a share, in the first three months of the year, compared with a loss of $159 million, or 27 cents a share, a year earlier when it was dealing with the aftermath of its holiday meltdown.
Adjusting for one-time items, including costs related to labor contracts and fuel, Southwest lost $218 million, or 36 cents a share.
Revenue rose almost 11% to $6.33 billion, slightly below analysts’ estimates as compiled by LSEG.
Correction: Southwest Airlines revenue of $6.33 billion came in slightly below analysts’ estimates as compiled by LSEG. More

Comcast posted quarterly earnings and revenue that beat expectations.
The company lost more broadband subscribers, but revenue increased due to rate increases.
Losses stemming from Peacock weighed on the segment and offset higher revenue.

The Comcast logo is displayed on a tablet.
Igor Golovnov | SOPA Images | Lightrocket | Getty Images

Comcast beat first-quarter earnings expectations on Thursday as broadband drove revenue even as the company and its peers have seen customer growth slow.
Here is how Comcast performed, compared with estimates from analysts surveyed by LSEG:

Earnings per share: $1.04 adjusted vs. 99 cents expected
Revenue: $30.06 billion vs. $29.81 billion expected

For the quarter that ended March 31, net income rose 0.6% to $3.86 billion, or 97 cents a share, compared with $3.83 billion, or 91 cents a share, a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, slid 0.6% to roughly $9.4 billion.
The company’s revenue grew 1.2% to $30.06 billion compared to the same period last year. Revenue from the domestic broadband customers segment boosted that growth as rates increased, even as Comcast lost 65,000 customers during the quarter.
Comcast’s wireless business saw a 21% increase in customers during the quarter to 6.9 million total lines. The company lost 487,000 cable TV customers during the quarter as consumers continued to cut the cord in favor of streaming.
The company’s theme parks adjusted EBITDA fell 3.9% to $632 million during the quarter, due to an increase in operating expenses such as higher marketing and promotion costs, as well as the negative effect of foreign currency. Similarly, earnings for its media business, which includes NBCUniversal, and studios also declined. The three businesses now report under the same segment, which collectively saw revenue rise 1.1% to $10.37 billion.
NBCUniversal got a boost from Peacock. The service added three million paid subscribers during the quarter, bringing its total number of customers to 34 million. Revenue for the streamer rose 54% to $1.1 billion compared to the same period last year. While domestic advertising was flat during the quarter, the company saw its domestic distribution revenue increase, driven by the growth at Peacock.

Losses stemming from Peacock weighed on the segment and offset higher revenue. The company saw an adjusted EBITDA loss of $639 million related to Peacock during the quarter. That improved, however, from an adjusted EBITDA loss of $704 million in the same period last year.
The streamer saw a boost after Universal Pictures’ Academy Award winner and blockbuster film “Oppenheimer” landed on the platform. Comcast said it was the most-watched movie in Peacock history.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC. More

Seafood restaurant Red Lobster is seeking a buyer as it looks to avoid filing for bankruptcy.
The longtime chain, known for its cheddar bay biscuits and unlimited shrimp, has been considering filing for bankruptcy as it contends with sluggish sales and a number of lengthy and costly leases.
Red Lobster has had multiple owners over the last 10 years after Darden Restaurants divested the chain in 2014.

The Times Square Red Lobster will be offering free all-you-can-eat lobster to a select few customers on March 28.
Richard Levine | Corbis News | Getty Images

Beleaguered seafood chain Red Lobster is seeking a buyer as it looks to avoid filing for bankruptcy, CNBC has learned. 
The company has considered filing for bankruptcy to help it restructure its debt and get out of a number of costly and lengthy leases, but it’s also sought a buyer in recent months, people familiar with the matter told CNBC. 

At least one firm had been interested in buying the chain, but a deal never came to fruition.
It’s unclear how the chain will ultimately resolve its financial woes. Red Lobster could secure a buyer, it could declare bankruptcy or its lenders could take control of the company.
Even if Red Lobster finds a buyer, it would be hard for it to avoid filing for Chapter 11 as it is trying to get out of many leases and those contracts can be difficult to break outside of bankruptcy, the people said.  
Bloomberg first reported that Red Lobster was mulling a Chapter 11 filing last week. Red Lobster didn’t return a request for comment. 
The longtime chain, known for its cheddar bay biscuits and unlimited shrimp, is looking for a new home at a time when capital is expensive and large restaurant groups are feeling cautious as the broader casual-dining segment lags.

For the past decade amidst ownership changes, Red Lobster has taken on debt and entered into a number of long-term leases across its 700-plus locations, which have weighed on its balance sheet. 
Jonathan Tibus, a managing partner with advisory firm Alvarez & Marsal, was recently appointed Red Lobster CEO after numerous C-suite departures. That turnover has made it difficult for the chain to implement a turnaround. 
The restructuring expert has decades of experience working with struggling restaurant chains, but many of them were smaller than Red Lobster. Tibus didn’t return a request for comment. 
This year marks the 10-year anniversary of Darden Restaurants’ sale of Red Lobster after investors pushed the company to divest. Private equity firm Golden Gate Capital bought the seafood chain for $2.1 billion and embarked on a turnaround. 
Thai Union Group, a seafood supplier and longtime Red Lobster vendor, bought a minority stake in the chain in 2016. With the help of an investor group dubbed the Seafood Alliance, it bought out Golden Gate’s remaining stake in 2020, months into the pandemic.
Unlike many restaurant companies, Red Lobster survived the pandemic without filing for bankruptcy. But longtime leader Kim Lopdrup retired in 2021, beginning a revolving door of CEOs.
Kelli Valade took the top job in 2021, but left a year later to become CEO of Denny’s. Horace Dawson, hired more than a year after Valade’s exit, was in the job for around six months before the company named Tibus as chief executive in March.
But Red Lobster’s problems are bigger than a leadership vortex. The broader casual-dining segment has struggled for roughly two decades in competition with fast-casual chains like Panera Bread and Chipotle Mexican Grill. The pandemic exacerbated the issue, particularly hurting full-service restaurants like Red Lobster.
The seafood chain has also struggled from some self-inflicted wounds, most notably its disastrous “endless shrimp” promotion. Last year, it changed the offer from once a week to daily to boost slower sales in the second half of the year.
But the offer juiced business too much as diners sought cheap deals, pressuring Red Lobster’s bottom line. As a result, Red Lobster reported $11 million in losses in the fiscal third quarter and $12.5 million in losses the following quarter.
In January, Thai Union Group announced plans to sell its stake in Red Lobster.

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Walgreens said it will start working directly with drugmakers to bring cell and gene therapies to U.S. patients as part of a broader effort to expand its specialty pharmacy services.
As the company moves to “transform” its specialty pharmacy services, it will open a newly licensed facility in Pittsburgh dedicated to cell and gene therapy services.
Specialty pharmacies have become a significant player in the U.S. health system, especially as chronic diseases become more prevalent.

A person rides past a Walgreens truck, owned by the Walgreens Boots Alliance, in Manhattan, New York City, on Nov. 26, 2021.
Andrew Kelly | Reuters

Walgreens on Thursday said it will start to work directly with drugmakers to bring cell and gene therapies to U.S. patients as part of a broader expansion of its specialty pharmacy services.
The company said it is launching a new business unit dedicated to its specialty pharmacy segment, which will include specialty pharmacy subsidiary AllianceRx. The unit will fall under its core U.S. retail pharmacy division. Meanwhile, Shields Health Solutions, a subsidiary that supports health system-owned specialty pharmacies, will remain under Walgreens’s U.S. health-care division. 

Specialty pharmacies have become a significant player in the U.S. health system, especially as chronic diseases become more prevalent.
Specialty pharmacies provide medications that require extreme care in handling, storage and distribution. The treatments are often for patients with chronic, rare or complex conditions such as cancer, Crohn’s disease and HIV. Specialty pharmacies also offer counseling or financial assistance designed to support patients taking those costly treatments.
Among the company’s new investments to “transform” its specialty pharmacy services, it will open a newly licensed facility in Pittsburgh dedicated to services for cell and gene therapies. The 18,000-square-foot center will help drugmakers and health-care providers navigate the complex supply chain for those treatments and manage patient needs, among other issues.

Andrew Brookes | Image Source | Getty Images

Walgreens’ decision to launch cell and gene therapy services comes after a surge in approvals of those drugs in the U.S. in the European Union over the last year. They are one-time, high-cost treatments that target a patient’s genetic source or cell to cure or significantly alter the course of a disease. Some health experts expect cell and gene therapies to replace traditional lifelong treatments that people take to manage chronic diseases. 
The U.S. Food and Drug Administration approved seven cell and gene therapies last year, including the first gene therapies to treat sickle cell disease. That market is only expected to grow: The FDA has predicted that it will be reviewing and approving between 10 and 20 cell and gene therapies each year by 2025. 

Walgreens said its newly launched business unit is the largest independent provider of specialty pharmacy services, with approximately $24 billion in revenue from the segment. Walgreens Specialty Pharmacy business is not partnered with a pharmacy benefit manager, the company noted. 
That gives the company “the flexibility to contract dynamically with any payer,” Walgreens Chief Pharmacy Officer Rick Gates said in the release. “We can partner directly with pharmaceutical manufacturers to facilitate products to market, including limited distribution drugs, and coordinate closely with providers to ensure patients experience a smooth start to treatment.” 
Under the new unit, patients of AllianceRx and the company’s nearly 300 community-based pharmacies now have access to resources that will “build upon the expert care they already receive from their specialty pharmacist,” Walgreens said in the release. That includes clinicians with key disease expertise, nutritionists and nurses.
The company said its community-based specialty pharmacies are located near medical office buildings and health systems, offering specialty drugs “faster than industry average” along with services such as injection training and side-effect management. 
Walgreens said it has more than 1,500 specialty pharmacists, 5,000 patient-advocacy support team members and an unspecified number of dedicated specialty pharmacy teams.
The company also offers more than 1,300 specialty drugs, including 240 “limited distribution” drugs that few specialty pharmacies have access to.

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Chipotle Mexican Grill has no plans to open another Farmesa Fresh Eatery after its initial ghost kitchen location closed.
A little over a year ago, Chipotle announced the opening of its first Farmesa location.
Chipotle’s primary focus now is on its own brand, both in the U.S. and outside of it through its burgeoning international business, CEO Brian Niccol said.

Chipotle is launching Farmesa Fresh Eatery first at Kitchen United’s upcoming Santa Monica location.
Source: Chipotle Mexican Grill

Chipotle Mexican Grill is abandoning its Farmesa Fresh Eatery spinoff after partner Kitchen United closed its ghost kitchens.
A little over a year ago, Chipotle announced the opening of its first Farmesa location at Kitchen United’s Santa Monica location. The spinoff’s menu focused on customizable bowls. Its brand name is a portmanteau of “farm” and “mesa,” the Spanish word for table, in an attempt to communicate its farm-to-table approach.

But the Santa Monica ghost kitchen closed in February as its parent company struggled financially.
Curt Garner, Chipotle’s chief customer and technology officer, told CNBC on Wednesday that the company has no plans to open a freestanding version of Farmesa. However, the brand lives on in the company’s innovation lab for new menu items, he said.
Chipotle’s primary focus now is on its own brand, both in the U.S. and outside of it through its burgeoning international business, CEO Brian Niccol said Wednesday on the company’s earnings call.
“Obviously, if the opportunity presents itself where it would make sense for us to do something outside of the brand, so I would never want to say never, but it’s just not a focus for us right now,” he told analysts.
Instead, the company has been focusing on improving its restaurants’ efficiency and speed to boost sales. Chipotle’s first-quarter earnings and revenue topped Wall Street’s estimates on Wednesday.

In November, Kitchen United announced plans to close or sell all of its locations as it pivoted into software. Ghost kitchens, which are also known as cloud or dark kitchens, allow restaurants to prepare food solely for delivery. 
The format’s popularity soared during the pandemic as eateries looked for ways to make food delivery more profitable. But once customers started returning to dining in person and capital grew more expensive, many ghost kitchen startups like Kitchen United found themselves in trouble.
In March, SBE founder Sam Nazarian bought Kitchen United’s remaining locations and intellectual property for an undisclosed sum to create a new company, Everybody Eats. More