More stories

  • in

    FedEx stock rises on better-than-expected earnings

    FedEx reported fiscal first-quarter earnings that beat on the top and bottom lines.
    The company reported net income of $820 million, compared with $790 million in the year-ago period.
    CEO Raj Subramaniam said the earnings reflect FedEx’s commitment to improving the customer experience.

    A Fedex truck is seen during heavy traffic on Sept. 16, 2025 in New York City.
    Zamek | View Press | Corbis News | Getty Images

    FedEx beat on the top and bottom lines in its fiscal first-quarter earnings report on Thursday.
    The stock rose more than 5% in after-hours trading on Thursday.

    “Despite significant volatility and uncertainty around the global trade environment, our results demonstrate the resilience we have built into our network,” CEO Raj Subramaniam said in a call with analysts Thursday. “They also reflect the dedication of our world class team, who have adapted quickly to serve customers with excellence through an evolving demand environment.”
    Here’s how the company performed in the first fiscal quarter, compared with what Wall Street was expecting based on a survey of analysts by LSEG:

    Earnings per share: $3.83 adjusted vs. $3.59 expected
    Revenue: $22.24 billion vs. $21.66 billion expected

    The package delivery company posted net income of $820 million, or $3.46 per share, for the first fiscal quarter ended Aug. 31, compared to $790 million, or $3.21 per share, in the year-ago period. Adjusted for FedEx Freight spin-off costs and other changes, the company posted net income of $910 million or $3.83 per share.
    Average daily volumes in the U.S. saw an increase of 6% overall, the company reported. FedEx said segment operating results saw improvements this quarter due to higher domestic package volumes, but the FedEx Freight segment operating results fell due to lower revenue and higher wages.
    The company said it sees revenue growth in 2026 in the range of 4% to 6%, compared with a Wall Street estimate of 1.2%. FedEx expects full-year earnings per share for fiscal year 2026 at $17.20 to $19, which is a midpoint of $18.10, compared with an estimate of $18.21.

    Subramaniam said on Thursday that the outlook reflects what remains to be a “dynamic global operating environment.” The company said it incurred $150 million in headwinds from the global trade environment.
    FedEx is continuing the process of spinning off FedEx Freight into a new publicly traded company, with an expected completion date of June 2026, the company said.
    Subramaniam said FedEx moves 17 million packages through its network daily. He added that the company was flexible in the first quarter, adapting to the changing macroeconomic environment.
    Last month, the “de minimis” exception, which permitted shipments under $800 to enter the U.S. duty-free, came to an end globally after President Donald Trump issued an executive order. As a result, FedEx announced it was slightly raising shipping fees.
    The company said the majority of its headwinds in the first quarter were due to the loss of the de minimis exception.
    “Given a significant portion of our de minimis volume exposure previously came from China, we were able to use learnings from experiences in May to help shippers elsewhere navigate the more recent exemption elimination,” Subramaniam said on the call. More

  • in

    Trump’s pressure on the media is mounting, with Kimmel sidelined ‘indefinitely’

    The Walt Disney Co. pulled “Jimmy Kimmel Live!” off the air “indefinitely” from its ABC network after the host made comments linking the alleged killer of conservative activist Charlie Kirk to Trump’s MAGA movement.
    The move is drawing comparisons to CBS’ cancellation of “The Late Show With Stephen Colbert” in July and raising questions about the protection of free speech in a Trump-era broadcast environment.
    The suspension of “Jimmy Kimmel Live!” came amid statements from Federal Communications Commission Chair Brendan Carr that suggested ABC’s broadcast license was at risk because of the remarks.

    Show host Jimmy Kimmel delivers his opening monologue at the 96th Academy Awards in Hollywood, Los Angeles, California, U.S., March 10, 2024.
    Mike Blake | Reuters

    President Donald Trump’s pressure on media companies is mounting.
    On Wednesday, the Walt Disney Co. pulled “Jimmy Kimmel Live!” off the air “indefinitely” from its ABC network after the host made comments linking the alleged killer of conservative activist Charlie Kirk to Trump’s “Make America Great Again” movement.

    The move is drawing comparisons to CBS’ cancellation of “The Late Show With Stephen Colbert” in July and raising questions about the protection of free speech in a Trump-era broadcast environment.
    “We hit some new lows over the weekend with the MAGA Gang desperately trying to characterize this kid who murdered Charlie Kirk as anything other than one of them and doing everything they can to score political points from it,” Kimmel said during a monologue that aired Monday night.
    “In between the finger-pointing there was grieving. On Friday the White House flew the flags at half-staff, which got some criticism, but on a human level you can see how hard the president is taking this,” he continued, teeing up a clip of Trump on the White House lawn.
    Trump was asked how he was holding up in the wake of Kirk’s death, to which he answered, “I think very good,” before pivoting to point out that construction had started on the new $200 million ballroom project.
    “He’s at the fourth stage of grief: construction,” Kimmel joked. “Demolition. Construction. This is not how an adult grieves the murder of someone he called a friend. This is how a 4-year-old mourns a goldfish. OK? And it didn’t just happen once.”

    Kimmel has not been fired, but Disney heads wanted to speak with the host about what he should say when he goes back on the air, according to people familiar with the situation.
    Trump weighed in on the matter Thursday, saying, “They should have fired him a long time ago. … He was fired for a lack of talent.”

    FCC approval

    Kimmel, ABC and Disney are the latest target of Trump’s scrutiny of media companies, which has intensified during his second term marked by high-profile defamation lawsuits, the defunding of public broadcasters and regulatory interference from the Federal Communications Commission.
    “An inexcusable act of political violence by one disturbed individual must never be exploited as justification for broader censorship and control,” Anna Gomez, the lone Democratic FCC commissioner, wrote in a social media post Wednesday. “This Administration is increasingly using the weight of government power to suppress lawful expression.”
    Gomez has been outspoken about the FCC’s and Trump’s interactions with media companies. In late July, when the government agency approved the merger of Paramount and Skydance, she wrote a statement of dissent, saying she was troubled by Paramount’s recent payment to settle a suit brought by Trump against Paramount-owned CBS over a “60 Minutes” interview with then-Vice President Kamala Harris.
    “The Paramount payout and this reckless approval have emboldened those who believe the government can — and should-abuse its power to extract financial and ideological concessions, demand favored treatment, and secure positive media coverage,” she wrote at the time.
    It’s not the first instance of Trump interfering with media mergers. He tried to block AT&T’s $85 billion merger with Time Warner in 2017 unless it sold off CNN. Ultimately, the deal went through in mid-2018.
    The suspension of “Jimmy Kimmel Live!” came amid statements from FCC Chair Brendan Carr that suggested ABC’s broadcast license was at risk because of the remarks.
    In a podcast interview Wednesday, before ABC’s announcement, Carr said the FCC was “going to have remedies that we can look at” with regard to Kimmel’s comments.
    “Frankly, when you see stuff like this, I mean, we can do this the easy way or the hard way,” Carr said. “These companies can find ways to change conduct and take action, frankly, on Kimmel, or there’s going to be additional work for the FCC ahead.”
    In August, Trump posted on his Truth Social platform that ABC and NBC should lose their broadcast licenses for what he called “unfair coverage of Republicans and/or Conservatives.”
    “Crooked ‘journalism’ should not be rewarded, it should be terminated,” Trump said in the post.
    Notably, Disney needs regulatory approval for a deal that would see the NFL buy 10% of ESPN in exchange for NFL Media assets.

    Carr told CNBC’s “Squawk on the Street” on Thursday that Kimmel appeared to “mislead” the American public about facts regarding Charlie Kirk’s killing in the days leading up to his show’s suspension.
    “The issue that arose here, where lots and lots of people were upset, was not a joke,” Carr said.
    “It was not making fun,” Carr said. “It was appearing to directly mislead the American public about a significant fact that probably one of the most significant political events we’ve had in a long time, for the most significant political assassination we’ve seen in a long time.”
    The show’s suspension also came after Nexstar Media Group said its ABC-affiliated stations would preempt Kimmel’s show “for the foreseeable future” beginning Wednesday.
    Nexstar is seeking FCC approval for its planned $6.2 billion merger with Tegna. About 10% of the approximately 225 ABC affiliate stations are owned by Nexstar. Tegna owns about 5% of ABC’s affiliate stations.
    Sinclair, which owns around 40 ABC affiliate stations, also indefinitely preempted “Jimmy Kimmel Live!” It said it would not lift that suspension until it had a formal discussion with ABC about the network’s “commitment to professionalism and accountability” and called on Kimmel to issue a direct apology to Kirk’s family.
    Sinclair said in August it is exploring merger options for its broadcast stations, though it hasn’t yet reached a deal.

    Retaliatory actions

    In addition to clashes with the FCC, media companies have also been the target of defamation lawsuits in recent years. Paramount’s $16 million payout to settle Trump’s suit was the result of the most recent case.
    A lawsuit against ABC News was settled in December 2024, in which the network agreed to pay $15 million toward Trump’s presidential library after Trump claimed anchor George Stephanopoulos made an inaccurate on-air assertion that the then-president-elect had been found civilly liable for raping writer E. Jean Carroll. Trump had been found liable for sexually assaulting and defaming Carroll. Trump denies Carroll’s claims that he attacked her.
    Trump is currently suing The New York Times over articles and a book published during the 2024 campaign and The Wall Street Journal for a story that connected him to Jeffrey Epstein.
    Additionally, Trump has barred specific reporters and whole news organizations from pooled press events for not using preferred terminology or for being critical of Trump.
    The Associated Press is currently restricted from access to White House spaces like the Oval Office and Air Force One because it would not adopt the renaming of the Gulf of Mexico to the Gulf of America. And former CNN reporter Jim Acosta had his credentials stripped back in 2018 after clashing with Trump. The ban was later overturned.
    — CNBC’s Alex Sherman, Luke Fountain and Dan Mangan contributed to this report.
    Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC. Versant would become the new parent company of CNBC upon Comcast’s planned spinoff of Versant.
    Correction: This article has been updated to reflect that Jimmy Kimmel’s comments aired on his show Monday night. A previous version misstated the day.

    Don’t miss these insights from CNBC PRO More

  • in

    Olive Garden owner Darden Restaurants disappoints on earnings but hikes sales outlook

    Darden Restaurants missed Wall Street’s estimates for its fiscal first-quarter earnings.
    The Olive Garden owner raised its fiscal 2026 forecast for revenue growth.

    The exterior of an Olive Garden is seen on June 20, 2025 in Austin, Texas.
    Brandon Bell | Getty Images

    Darden Restaurants on Thursday reported mixed quarterly results, as Olive Garden and LongHorn Steakhouse helped offset weakness in its fine-dining business.
    The company also raised its full-year forecast for revenue growth, although it only reiterated its projections for its earnings. Shares of the company fell more than 9% in morning trading.

    Here’s what the company reported for the quarter ended Aug. 24 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

    Earnings per share: $1.97 adjusted vs. $2 expected
    Revenue: $3.04 billion, in line with expectations

    Darden reported fiscal first-quarter net income of $257.8 million, or $2.19 per share, up from $207.2 million, or $1.74 per share, a year earlier.
    Excluding gains related to the sale of its Canadian Olive Garden restaurants, costs from restaurant closures and other items, the company earned $1.97 per share.
    Net sales climbed 10.4% to $3.04 billion, lifted by the company’s acquisition of Chuy’s Tex-Mex restaurants that was completed last October.
    Darden’s same-store sales rose 4.7% in the quarter. The metric, which tracks results for stores open at least a year, does not include Chuy’s restaurants yet. It also does not include its Bahama Breeze locations, because the company expects to divest the chain before the end of the fiscal year.

    “All our casual-dining brands saw an increase in visits year over year from guests across all income groups, but specifically those in higher-income groups,” Darden CEO Rick Cardenas said on the company’s earnings conference call. “You would expect that could have been some trade down, but it could be trade up from lower-income groups to the great value in casual dining.”
    In recent quarters, the casual-dining segment has won over diners by promoting value offerings as prices at fast-casual and fast-food restaurants climb. To attract price-conscious customers, Darden has kept its menu price hikes below the rate of inflation across its brands. CFO Raj Vennam said the company’s prices were 30 basis points, or 0.3%, below inflation in the fiscal first quarter.
    Olive Garden, the gem of Darden’s portfolio, reported same-store sales growth of 5.9%. The Italian-inspired chain accounts for more than 40% of the company’s overall revenue. Executives credited marketing initiatives, like the Never-Ending Pasta Bowl and first-party delivery through its recent partnership with Uber. Delivery customers order more frequently than dine-in customers, according to Cardenas.
    LongHorn Steakhouse saw its same-store sales increase 5.5% in the quarter, boosted by a 3.2% jump in customer traffic. Even as beef prices spike, Darden executives have pledged to keep LongHorn’s menu price increases below the rate of inflation, betting that diners will stick with the chain for its value.
    The company’s other business segment, which includes Cheddar’s Scratch Kitchen and Yard House, reported same-store sales growth of 3.3%.
    Even Darden’s fine-dining business, which has struggled in recent quarters, reported same-store sales declines of just 0.2%. Wall Street was projecting a steeper same-store sales decrease of 0.9%.
    “I think we’re seeing a little bit more drop off in the business travel that’s leading to some weekday weakness,” Vennam said on the call about Darden’s fine-dining restaurants.
    For fiscal 2026, Darden is projecting revenue growth of 7.5% to 8.5%, up from its prior forecast of 7% to 8% growth. The company reiterated its forecast for adjusted earnings in a range of $10.50 to $10.70 per share.

    Don’t miss these insights from CNBC PRO More

  • in

    Oracle’s Larry Ellison made his $365 billion fortune by breaking every rule of wealth management

    Larry Ellison built the world’s second-largest fortune by holding on to his Oracle shares over nearly five decades of ups and downs.
    At the same time, he’s spent billions to fund his philanthropy, vast real estate holdings, sports investments and his son’s fast-growing media empire.
    A close look at the Oracle chairman’s finances and shareholdings reveals a fortune built on mountains of leverage and risk, allowing him to borrow against his shares and raise cash without giving up shares or control.

    A version of this article appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox.
    Larry Ellison built the world’s second-largest fortune by holding on to his Oracle shares over nearly five decades of ups and downs. At the same time, he’s spent billions to fund his philanthropy, vast real estate holdings, sports investments and his son’s fast-growing media empire.

    How does he manage to spend so much while selling so little?
    A close look at the Oracle chairman’s finances and shareholdings reveals a fortune built on mountains of leverage and risk, allowing him to borrow against his shares and raise cash without giving up shares or control. At a time when many tech CEOs are following their wealth managers’ prudent advice to “take money off the table” and diversify through share sale programs, Ellison represents a triumph of old-school, go-for-broke wealth creation, even at the age of 81.
    “Ellison does seem to stand out,  not just for his wealth but for the sheer size of his pledged shares,” said Michael Sury, associate professor of practice in finance and managing director for the Center for Analytics and Transformative Technologies at the University of Texas at Austin. 
    According to SEC filings, Ellison owned 1.16 billion shares of Oracle stock as of July, representing 41% of the company’s total outstanding shares. His individual share ownership is far and away the largest of any of the top 10 tech billionaires. Elon Musk, for instance, owns less than 20% of Tesla, while Mark Zuckerberg owns about 14% of Meta shares and Jeff Bezos’ stake in Amazon is down to about 8% of shares outstanding after selling more than $18 billion worth in the past two years.

    Get Inside Wealth directly to your inbox

    Ellison has sold Oracle shares over the years, but mostly to exercise options and pay taxes. According to Smart Insider, Ellison has net a total of $5.1 billion from selling shares – representing a fraction of his stake, now worth over $350 billion. The sales included $900 million of shares he sold in 2001, right before the stock plunged on a disappointing earnings report, which sparked an insider trading lawsuit and eventual settlement.

    Oracle has also done its part to turbocharge Ellison’s equity stake. According to Barron’s, Oracle’s share repurchase program has reduced the number of outstanding shares by 36% over the past 15 years. The drop in outstanding shares has boosted Ellison’s stake from 23% of outstanding shares to 41%, even though his number of shares has remained stable.
    Still, Ellison has continued to spend record sums on real estate, sports, collectibles and other assets. His personal empire includes dozens of luxury properties, the Indian Wells tennis tournament, the Hawaiian resort island of Lanai, a collection of vintage fighter jets, a 288-foot mega-yacht and the Eau Palm Beach Resort & Spa in Manalapan, Florida, which he bought for $277 million last year. The purchase came after he paid $173 million for the 62,200-square-foot mansion in Manalapan that marked the highest-ever sale price at the time for Florida real estate.   
    Ellison has also funded a vast array of private companies. He invested in Elon Musk’s purchase of Twitter, now called X, offering Musk “a billion or whatever you recommend,” according to a text exchange that was later made public. Ellison has also invested in several longevity and tech startups, and he co-founded global sailing league SailGP.
    More recently, Ellison has emerged as a behind-the-scenes media magnate. He backed Skydance Media, run by his son David, in its purchase of Paramount for $8 billion, a merger that closed last month. Now, the Ellison family is reportedly backing Paramount’s largely cash bid for Warner Bros. Discovery in what could be a more than $70 billion deal. Oracle is also among the companies teaming up to buy TikTok’s U.S. operations, although it’s unclear whether Ellison himself would personally invest.
    Ellison has also given hundreds of millions of dollars to philanthropy and made headlines last year as part of an NIL deal for University of Michigan football recruit Bryce Underwood that was reportedly worth $10 million. A signer of The Giving Pledge, Ellison posted on X in July that he will be “concentrating his resources” on the new Ellison Institute of Technology, a partnership with the University of Oxford to find solutions to climate change, disease and world hunger.  
    To fund all that spending and still maintain his stake in Oracle, Ellison borrows heavily against his Oracle shares. According to the most recent SEC filing, Ellison has pledged 277 million shares of Oracle common stock as collateral “to secure certain personal indebtedness.” The shares represent about a quarter of his total Oracle shares and would have a market value of more than $82 billion on Wednesday’s closing price.

    Stock chart icon

    Oracle stock over the trailing 3 months.

    Most companies prevent or limit executives from borrowing against their shares to avoid a forced sale during a crisis or share decline. Oracle, however, has given its chairman and largest shareholder more leeway. Oracle’s governance committee stated in an SEC filing that it “believes that Mr. Ellison’s pledging arrangements do not pose a material risk to stockholders or to Oracle in part because the pledged shares secure personal term loans only used to fund outside personal business ventures.” The board said it also believes that Ellison “has the financial capacity to repay his personal term loans without resorting to the pledged shares.”
    Sury said the size and value of Ellison’s pledged shares is “off the charts,” and that most boards would never allow that degree of leverage because of the risks to shareholders.
    “Ellison is an exception,” Sury said. “His wealth and influence make lenders comfortable in a way they would not be with most executives. For many other companies this level of borrowing would raise real governance concerns and likely be viewed as a red flag.”
    It’s unclear how much Ellison has drawn down on the loans. In a rare comment on his borrowing and spending strategy, Ellison told CNBC in 2012 that a $4 billion line of credit against his shares at the time was never drawn down but kept as potential dry powder for big purchases.
    “I’ve got a line of credit just in case I go shopping and something catches my eye,” he said, mentioning the NBA’s Los Angeles Lakers as a potential example if they came up for sale.
    Ellison’s hold-and-borrow strategy stands in stark contrast to the sales of Oracle CEO Safra Catz. Catz has continued to sell the options she receives from Oracle as they vest, maintaining a small stake in the company. She exercised and sold options totaling $2.5 billion in the first half of the year, making her the largest insider seller of the year, according to Smart Insider. She sold through a so-called 10b5-1 program, which is a pre-scheduled share sale program, and missed out on the 50% run-up in Oracle stock in the months following.
    Bankers and wealth advisors to tech founders and CEOs say there is no right or wrong approach to managing a large stock position in a company.
    “It all depends on the person,” said Solenn Séguillon, technology practice head at J.P. Morgan Private Bank in San Francisco, who works with many top tech founders and CEOs. “Everyone has a different comfort level in handling single-stock volatility.”
    Most tech founders and CEOs, she said, are bullish on their own companies and want to hold onto their stakes as long as possible to grow their wealth. At the same time, they typically want to fund other tech ventures launched by friends or colleagues. Borrowing against their shares not only provides cash, but also potential tax benefits, since they can often deduct the interest on the loans if the proceeds are used for investments.
    While some see share pledges and loans as compounding risk, Séguillon said it can be a form of diversification if the loans are used to fund outside investments.
    “Borrowing to invest in a number of assets that are accretive or private companies or a more diversified portfolio can help build a hedge,” she said. “We discuss with our clients how to be mindful of the risks so they don’t end up in a situation where they’re over-levered.” 
    When lending to CEOs or founders with concentrated positions, private banks and wealth management firms say they look at a client’s entire balance sheet rather than just the stock position.
    Kurt Niemeyer, head of Merrill Lending Solutions group, which offers complex loans to the ultra-wealthy, said a loan to a founder or CEO might include a wide range of collateral, such as real estate, art or even a yacht.
    “The larger loans are more focused on the entire balance sheet,” he said. More

  • in

    Covid shot access, coverage at stake as RFK Jr.’s hand-picked vaccine panel convenes 

    Covid shot access and coverage in the U.S. hang in the balance as an influential government vaccine panel hand-picked by Health and Human Services Secretary Robert F. Kennedy Jr. convenes this week in Atlanta. 
    The Advisory Committee on Immunization Practices, or ACIP, is scheduled to vote on recommendations for Covid shots and childhood immunizations for hepatitis B and measles, mumps, rubella, and varicella, or MMRV.
    Some public health experts warn that weakening recommendations for Covid vaccines and other shots could make it harder for some people to access the jabs and have them covered by insurance. 

    Ruth Jones, immunization nurse, holds a Pfizer-BioNTech COVID-19 vaccine (brand name: Comirnaty) at Borinquen Health Care Center in Miami, Florida, on May 29, 2025.
    Joe Raedle | Getty Images

    Covid shot access and coverage in the U.S. hang in the balance as an influential government vaccine panel hand-picked by Health and Human Services Secretary Robert F. Kennedy Jr. convenes this week in Atlanta. 
    The panel, called the Advisory Committee on Immunization Practices, or ACIP, is scheduled to vote on recommendations for Covid jabs and childhood immunizations for hepatitis B and measles, mumps, rubella, and varicella, or MMRV. Kennedy has gutted and restacked that committee with new members, some of whom are vaccine critics, raising concerns that they could soften, delay or fully eliminate recommendations for routine shots proven to be safe and effective. 

    The panel is expected to vote on the hepatitis B and MMRV shot on Thursday, and Covid vaccines on Friday. The Centers for Disease Control and Prevention, whose latest director was ousted by the Trump administration earlier this month, typically adopts the panel’s recommendations. 
    Some public health experts warn that weakening recommendations for Covid vaccines and other shots could make it harder for some people — especially healthy adults and children, along with those in rural areas — to access the jabs and have them covered by insurance. 
    One major health insurance group on Wednesday said its member plans will cover all vaccines already recommended by ACIP, including updated Covid and flu shots, despite any changes the new slate of appointees makes this week.
    Still, any further restrictions on shots by ACIP could have trickle-down effects, further depressing already declining immunization rates for vaccine-preventable diseases and raising the risk of outbreaks.
    “There’s a pretty good likelihood that the decisions coming out of this meeting will further restrict vaccinations or at a minimum, limit or add confusion to the scope of vaccination coverage at a time when we really need to be doing everything possible to make them as widely available as possible,” Neil Maniar, a public health professor at Northeastern University, told CNBC. “There’s a lot of concern that we could see unnecessary outbreaks of diseases.”

    Maniar said the votes are especially critical heading into the fall and winter season, when diseases, particularly respiratory viruses like Covid, spread more easily. 
    The panel’s guidance determines which shots insurance plans and some government-run programs must cover at no cost to patients. In some states, pharmacists are also legally barred from administering vaccines that ACIP does not recommend. 
    If ACIP votes to further restrict shot access, it could normalize policy decisions not grounded in science and further confuse Americans following Kennedy’s other recent moves to change U.S. vaccine policy. Those include the CDC’s decision to drop Covid shot recommendations for healthy kids and pregnant women, and the Food and Drug Administration’s approval of new Covid jabs with limits on who can get them. 
    The FDA’s approval already created confusion leading up to the panel’s meeting this week, as some states are requiring that patients have prescriptions to receive a Covid vaccine. 
    Numerous studies have demonstrated that shots using mRNA technology, including Covid vaccines from Pfizer and Moderna, are safe and effective, and serious side effects have happened in extremely rare cases. One paper in August estimates that Covid vaccines saved more than 2 million lives, mostly among older adults, worldwide between 2020 and October 2024. 
    “To turn around and claim, well, after five years of all of us getting the vaccines and having them save millions of lives all over the world, the shots are no longer safe and effective – it does lead to confusion and uncertainty,” said Dr. Kawsar Talaat, associate professor of international health at the Johns Hopkins Bloomberg School of Public Health. 
    “People don’t know who to trust and who to listen to, and therefore people are less likely to feel comfortable getting the vaccines that could keep them healthy.” 

    Covid vaccines in focus 

    Kennedy has insisted that “anybody” who wants a Covid vaccine can get one, despite several reports and statements from lawmakers describing obstacles. Those hurdles cropped up after the FDA in August approved Covid shots for those 65 and up and younger adults with at least one underlying condition that puts them at higher risk of severe illness from the virus.
    It was a break from U.S. vaccine policy in previous years, which recommended an annual Covid shot for all Americans 6 months and up.
    The CDC panel could tailor its recommendations to the FDA’s approval, or further limit their use, given many members are hostile to mRNA shots and vaccines more broadly. One member, Retsef Levi, has pushed to stop giving mRNA vaccines, falsely claiming in a post on X that they cause “serious harm including death, especially among young people.”
    It’s unclear what exact data will be presented at the meeting on Friday, but some health experts are concerned about whether the presentations will be based on concrete science. One presentation presented to the panel in June included a fabricated citation for a study that does not exist, according to multiple reports.
    “I think it’s really important to see who is speaking at the meeting and what their agenda is,” Talaat said. “There were made-up studies and just falsehoods presented at the last ACIP meeting. I would not be surprised to see similar things at this one.” 
    The Washington Post reported Friday that Trump administration health officials plan to link Covid vaccines to the deaths of 25 children in a presentation to ACIP. The claim is expected to be based on reports submitted to the FDA’s Vaccine Adverse Event Reporting System, or VAERS, which collects unverified side effects from shots.
    Researchers have previously noted an elevated but rare risk of myocarditis, or inflamed heart muscle, in young men in particular. But there is no evidence that the vaccines in use now cause any other major safety risks, including pediatric deaths. 
    Kennedy in September argued that “there’s no clinical data” supporting Covid vaccine recommendations for healthy individuals.
    Talaat said healthy people are less likely to end up in the hospital from Covid. But she noted they could still develop long Covid or put high-risk people around them – whether that be elderly family members or immunocompromised coworkers – at risk of contracting the virus and developing severe illness. 

    Access could vary by state

    If ACIP moves to weaken Covid shot recommendations, access could vary by state, according to Talaat. 
    On Wednesday, the governors of Oregon, Washington, California and Hawaii recommended that all adults and children concerned about the respiratory illness season can receive the Covid vaccine and other common immunizations. The updated guidelines in those states align with mainstream medical groups and aim to ensure access to shots even as the federal government changes guidelines.
    Governors of several Democratic states, including Arizona, Illinois, Maine and North Carolina, have also signed orders intended to ensure most residents can receive Covid vaccines at pharmacies without individual prescriptions. 
    Some states, particularly those led by Republicans, still require a doctor’s orders. 
    Talaat said the people who are “going to suffer the most” are those who live in rural areas because they may not have easy access to a doctor who can provide a prescription or a pharmacy to receive a shot. 
    But recommendations that further limit Covid shots could also force some children and adults to pay out of pocket for them. Talaat and some estimates said more than half of children in the U.S. are covered by the government-run Vaccines for Children program, which offers recommended shots for free. 
    Medicare and Medicaid require that the recommended vaccines are free for patients, while the Affordable Care Act requires private insurers to cover all shots recommended by the panel and the CDC director. 
    America’s Health Insurance Plans’ pledge on Wednesday to cover shots currently recommended by ACIP was significant because of the size of its member plans, which together provide coverage and services to over 200 million Americans. That includes more than a dozen Blue Cross Blue Shield plans, Centene, CVS’s Aetna, Elevance Health, Humana, Kaiser Permanente, Molina, and Cigna.
    But the group doesn’t cover everyone. For example, UnitedHealthcare, the country’s largest private health insurer, is not a member of the group.

    Hepatitis B, MMRV shots

    ACIP on Thursday could reconsider a longstanding recommendation to give all newborns a dose of the hepatitis B vaccine within the first 24 hours of life, which the panel first recommended in 1991. Kennedy and anti-vaccine activists have repeatedly questioned that guidance. 
    But the shot has been a life-saving public health intervention against the disease, which can lead to severe health problems, including liver cancer and failure, and death. Acute hepatitis B infections reported among children and teens dropped by 99% between 1990 and 2019, some studies said. 
    The vaccines are estimated to prevented 38 million deaths among people born between 2000 and 2030 in 98 low and middle-income countries, according to the CDC. The agency said vaccination within the first day of birth, followed by two-to-three additional doses, protects children for life. 
    The panel is expected to vote to recommend delaying the hepatitis B vaccine until age 4, two former senior CDC officials told KFF Health News. 
    Talaat said global rates of hepatitis B in children have fallen thanks to the initial “birth dose” of the shot. While the U.S. now has low levels of the virus, skipping that dose carries risks: a mother can still pass the infection to her baby at birth, and newborns are far more likely to develop a lifelong, incurable infection.
    Meanwhile, ACIP Chair Martin Kulldorff said at the panel’s June meeting that it may consider a proposal to advise against giving a product that combines the measles, mumps and rubella vaccine with the shot against varicella, or chicken pox, to children under 4.  
    The CDC currently recommends getting those vaccines separately for those ages 1 to 2, but parents can opt to get them together for children age 4 and above.
    Fever-induced seizures tied to the combination shot are common in young children – the CDC estimates the risk is at roughly 5% – but don’t cause permanent harm.
    Significant changes made to the schedule or availability of MMRV shots could result in increased hesitancy among parents to get their children vaccinated. The U.S. already surpassed a milestone in reported measles cases in 2025, as it logged the most cases since the disease was declared eliminated in the U.S. More

  • in

    Hyundai adjusts full-year forecast, citing tariffs, ahead of investor day

    Hyundai is increasing its revenue expectations for 2025, despite ongoing U.S. tariffs causing the automaker to lower its expected operating profit for the year.
    The South Korean automaker revised its financial targets Thursday ahead of a CEO investor day in New York City.

    Danielle DeVries

    NEW YORK – Hyundai Motor is increasing its revenue expectations for this year, despite ongoing U.S. tariffs causing the automaker to lower its expected operating profit margin for 2025.
    The new targets call for an operating profit margin this year of between 6% and 7%, down from 7% to 8%, and an increase in revenue of between 5% and 6% — up 2 percentage points — compared with 175.2 trillion South Korean won (US$12.7 billion) in 2024.

    The South Korean automaker revised its financial targets Thursday ahead of a CEO investor day in New York City. It will be the first time the company has hosted the event outside of South Korea. as well as the first for CEO Jose Munoz, who was promoted to lead the automaker beginning this year.
    Along with revising financial targets, the automaker reconfirmed its ambitious growth plans that include increasing annual sales to 5.55 million by 2030. Such results would mark a roughly 34% increase from its global sales last year of 4.14 million units.
    The CEO investor event comes at an inopportune time for the company, as well as relations between the U.S. and South Korea.

    A masked federal agent wearing a Homeland Security Investigations vest guards a site during a raid where about 300 South Koreans were among 475 people arrested at the site of a $4.3 billion project by Hyundai Motor and LG Energy Solution to build batteries for electric cars in Ellabell, Georgia, U.S. September 4, 2025 in a still image taken from a video.
    U.s. Immigration And Customs Enf | Via Reuters

    Munoz will address investors weeks after hundreds of workers were arrested during an immigration raid at a jointly owned battery plant between Hyundai and LG Energy Solution in Georgia.
    About 475 workers, including more than 300 South Koreans, were arrested in the Sept. 4 raid at the plant in Ellabell, Georgia, according to U.S. immigration officials. Many workers who were detained returned home via a chartered plane following discussions between South Korea and U.S. officials.
    The raid, which was the largest single-site enforcement operation in the U.S. Department of Homeland Security’s history, was conducted over suspicions about “unlawful” visas or immigration status of workers at the site, U.S. officials have said. More

  • in

    Spirit CEO says struggling airline will slash flights, braces employees for more job cuts

    Spirit Airlines is planning to reduce capacity 25% in its November schedule, CEO Dave Davis told staff Wednesday.
    Davis hinted at further job cuts or furloughs as the discounter scrambles to cut costs, according to a memo viewed by CNBC.
    Spirit filed for Chapter 11 bankruptcy protection last month for the second time in a year.

    A Spirit Airlines Airbus A320 taxis at Los Angeles International Airport after arriving from Boston on September 1, 2024 in Los Angeles, California. 
    Kevin Carter | Getty Images News | Getty Images

    Spirit Airlines CEO Dave Davis on Wednesday braced staff for more job cuts and said the carrier plans to slash its schedule in November to reduce costs weeks after declaring its second bankruptcy in less than a year.
    The airline is planning its November schedule and Davis told employees in a memo, which was reviewed by CNBC, that they will see a 25% cut in capacity over 2024 “as we optimize our network to focus on our strongest markets.”

    Read more CNBC airline news

    The struggling discount carrier is in negotiations with vendors and aircraft lessors as it tries to shrink itself to more stable footing.
    “These evaluations will inevitably affect the size of our teams as we become a more efficient airline,” Davis wrote in his note to employees. “Unfortunately, these are the tough calls we must make to emerge stronger. We know this adds uncertainty, and we are committed to keeping you as these decisions are made.”
    Spirit didn’t immediately comment on Davis’ note.
    Davis said the company is also planning to meet with the airlines’ union leaders in the coming weeks. The airline has already announced furloughs and demotions of hundreds of pilots. Some flights attendants have already taken voluntary unpaid leaves of absence.
    Spirit, known for its bright yellow planes, low fares and myriad fees, had been successful but high costs, shifting travel preferences and increased competition from larger rivals threw the airline off course. A failed acquisition by JetBlue Airways left the carrier on its own.

    Spirit emerged from bankruptcy in March, with its leaders hoping to find more stable financial footing. But the carrier avoided big changes in the process and instead focused on a deal with its bondholders, which exchanged almost $800 million in debt for equity, and it was greeted after bankruptcy with persistently higher costs and weaker-than-expected domestic travel demand.
    It reported that it lost nearly $257 million since March 13, after it exited Chapter 11, through the end of June.
    Earlier this month, Spirit announced flight cuts to 11 destinations and said it wouldn’t start a 12th as planned, while competitors like United Airlines, Frontier Airlines and JetBlue Airways have unveiled plans for new flights to try to win over Spirit customers. More

  • in

    Cracker Barrel stock falls as company reports mixed earnings after rebrand controversy

    Cracker Barrel reported fiscal fourth-quarter earnings after the bell on Wednesday, missing on earnings per share but beating revenue estimates.
    The restaurant chain previously faced backlash over its rebrand and subsequently suspended its plans.
    CEO Julie Masino said the company is now focusing on the “guest experience” instead.

    In an aerial view, a Cracker Barrel sign hangs on a sign outside of a restaurant in Florida City, Florida, on Aug. 27, 2025.
    Joe Raedle | Getty Images

    Cracker Barrel Old Country Store said Wednesday that the restaurant chain is focusing on enhancing its experiences for guests after it faced intense backlash over an attempted rebrand earlier this summer.
    The company reported mixed fiscal fourth-quarter earnings Wednesday afternoon, and CEO Julie Masino said the company is “optimistic” about its future as it heads into next year.

    The stock sank roughly 10% in after-hours trading.
    Here’s how the company performed compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

    Earnings per share: 74 cents adjusted vs. 80 cents expected
    Revenue: $868 million vs. $855 million expected

    Masino said Cracker Barrel was grateful for customers voicing their “passion for Cracker Barrel in recent weeks,” and that the company is now switching its focus.
    “We conducted extensive research to inform our strategic plan, but what cannot be captured in data is how much our guests see themselves and their own story in the Cracker Barrel experience, which is what’s led to such a strong response to these changes,” Masino said on a call with analysts Wednesday.
    The company is now focusing on innovating in the kitchen and “areas that enhance the guest experience,” Masino said, with the team aiming to return to a “positive trajectory.”

    Still, Cracker Barrel said it expects total revenue for fiscal 2026 of $3.35 billion to $3.45 billion, compared with the $3.52 billion analysts expected, and a same-store traffic decline of 4% to 7%.
    The company faced backlash last month after it announced a complete rebrand, including a redesign of its logo and a remodeling of its restaurants.
    The new logo scrapped the image of a man sitting on a wooden chair leaning against a barrel, instead moving to a simpler black-and-yellow logo featuring only “Cracker Barrel,” without the “Old Country Store.” It had been the company’s latest move in a “strategic transformation” announced in May 2024 to reenergize the brand.
    The restaurants were also scheduled to undergo remodeling to align with the new vision.
    But the rebrand came under intense scrutiny. Users on social media called it “soulless” and “generic,” and conservatives took to social media site X to argue that the logo change was an attempt to remove the American identity of the brand to cater to diversity, equity and inclusion efforts. The stock sank in the wake of the changes.

    Cracker Barrel’s old and new logo.
    Courtesy: Cracker Barrel

    Cracker Barrel responded to the criticism, saying the company could have “done a better job sharing who we are and who we’ll always be.” The chain said the man from the original logo, Uncle Herschel, would still be featured on the menu and part of the Cracker Barrel “family.”
    President Donald Trump even weighed in on the situation, saying Cracker Barrel “should go back to the old logo, admit a mistake based on customer response (the ultimate Poll) and manage the company better than ever before.”
    The same day, the company announced a stunning reversal, shutting down the rebrand and retaining its original branding.
    “We thank our guests for sharing your voices and love for Cracker Barrel. We said we would listen, and we have. Our new logo is going away and our ‘Old Timer’ will remain,” the company said in a statement.
    Masino said on the Wednesday call that four locations with the modern designs are already being reverted to the traditional “Old Timer” signage.
    “That’s why our team pivoted quickly to switch back to our ‘Old Timer’ logo and has already begun executing new marketing, advertising and social media initiatives leaning into Uncle Herschel and the nostalgia around the brand with more to come,” Masino said on the Wednesday call.
    She added that the company is launching “Front Porch Feedback” on Thursday to build on what Cracker Barrel has received over recent weeks. The new tool will allow reward members to comment directly to team members after every visit, Masino said.
    The company also announced it was suspending all of its restaurant remodels.
    Shares of the company rose after the reversal, mostly restoring its losses. Since its first announcement, Cracker Barrel lost and regained almost $100 million in market value.
    “Cracker Barrel is not just an old country store or a restaurant,” Masino said. “It’s the front porch of America, and we take that very seriously.”

    Don’t miss these insights from CNBC PRO More