Business

Popeyes is now the No.2 chicken chain in the U.S.
Both Popeyes and KFC have lost market share to Chick-fil-A over the past year.
KFC’s domestic business has struggled to keep up with the competition.

A Popeyes restaurant is seen in Washington, D.C.
Eric Baradat | AFP | Getty Images

Popeyes has overtaken KFC as the No. 2 chicken chain in the U.S., a decade after Chick-fil-A first unseated KFC from the top spot.
Chicken chains’ battle for stomachs — and dollars — has become more aggressive in recent years. Chick-fil-A moved from a regional player to a nationwide chain that trails only McDonald’s and Starbucks in annual sales. Restaurant Brands International’s Popeyes launched a chicken sandwich in 2019 that turned into a blockbuster menu item and ushered in the chicken sandwich wars. Burger chains such as McDonald’s and Wendy’s jumped onto the trend and added their own offerings, leading to poultry shortages.

In the fray, Yum Brands’ KFC has lost ground. In the past year, its U.S. market share fell to 11.3% from 16.1%, according to Barclays research.
Similar to KFC, Popeyes lost market share in the past year, but still retained enough to leapfrog its rival. The chain saw its U.S. market share shrink to 11.9% from 15%, according to Barclays.
Blame Chick-fil-A, which saw its market share expand to 45.5% from 38.3%. The privately held Atlanta-based chain is more dominant than ever. Chick-fil-A is still closed on Sundays, but industry experts credit its customer service, short menu and efficient drive-thru lanes for its success.
KFC’s domestic business has struggled to keep up with the competition. It took more than a year for KFC to respond to Popeyes’ chicken sandwich. The chain also lost longtime U.S. leader Kevin Hochman last year to Brinker International, where he now serves as CEO.
KFC did not respond to CNBC’s request for comment.

Popeyes, on the other hand, has used the popularity of its chicken sandwich to introduce customers to other menu items and to fuel new restaurant openings. More recently, the chain’s Sweet ‘N Spicy Wings became its most popular launch since the chicken sandwich.
“Game on, Chick-fil-A,” Restaurant Brands International Chair Patrick Doyle said in mid-September at Scotiabank’s Back to School Conference, responding to a question about the chain’s new spot as the No. 2 chicken chain.
Popeyes President Sami Siddiqui said in a statement to CNBC that the chain is still in the early innings as it tries to become the most loved and visited U.S. chicken chain.
“We view this special milestone as an indicator that we’re headed in the right direction with much more growth to come,” he said. More

General Motors secured a new $6 billion line of credit as the automaker braces for additional strikes by the United Auto Workers union.
The targeted strikes have already cost the automaker $200 million during the third quarter, GM said Wednesday.
The new line of credit is “prudent” to bolstering GM’s balance sheet amid expectations that the union may expand and prolong strikes against the company, GM CFO Paul Jacobson said.

DETROIT – General Motors secured a new $6 billion line of credit as the automaker braces for additional strikes by the United Auto Workers union.
“The facility that we announced today is a $6 billion line of credit that I think is prudent in light of some of the messages that we’ve seen from some of the UAW leadership that they intend to drag this on for months,” CFO Paul Jacobson told CNBC’s Phil LeBeau in an interview on “Halftime Report.”

The targeted strikes already cost the automaker $200 million during the third quarter, GM said Wednesday.
A GM spokesman said the $200 million strike cost is due to lost production on wholesale volume, largely due to the UAW’s initial Sept. 15 strike at GM’s midsize truck and full-size van plant in Wentzville, Missouri. The strike has since expanded to GM’s parts and distribution facilities nationwide and, as of last Friday, a crossover plant in mid-Michigan.
As a result of the strike in Missouri, GM also idled its Fairfax Assembly Plant in Kansas, where it builds the Cadillac XT4 SUV and the Chevrolet Malibu sedan, and laid off nearly 2,000 workers.
Both GM CEO Mary Barra as well as Ford Motor CEO Jim Farley have publicly criticized UAW President Shawn Fain and the union’s strike strategy, claiming Fain is not actually interested in reaching deals for 146,000 workers with GM, Ford and Chrysler parent Stellantis.

Members of the United Auto Workers (UAW) Local 230 and their supporters walk the picket line in front of the Chrysler Corporate Parts Division in Ontario, California, on September 26, 2023, to show solidarity for the “Big Three” autoworkers currently on strike. 
Patrick T. Fallon | AFP | Getty Images

“It’s clear that there is no real intent to get to an agreement,” Barra said in an emailed statement Friday night. “It is clear Shawn Fain wants to make history for himself, but it can’t be to the detriment of our represented team members and the industry.”

Fain has consistently said the union is available to negotiate 24/7 and has in turn accused the automakers of slow-walking negotiations.
GM’s newly announced line of credit will require the automaker to maintain at least $4 billion in global liquidity and $2 billion in U.S. liquidity. The terms of the credit agreement also restrict GM from mergers or sales of assets and limits on other, new debt. As of June 30, GM’s total automotive liquidity was $38.9 billion.
The credit line comes more than a month after Ford obtained a $4 billion line of credit to help it manage through “uncertainties” in the market. More

Disney is discounting children’s tickets at its domestic theme parks for a limited time early next year.
The price cuts come as the company’s U.S.-based parks have seen a slowdown in attendance and hotel room occupancy, and consumers have faced higher costs due to inflation.
Still Disney’s parks are a bright spot for the company’s bottom line, and it plans to invest around $60 billion in this division over the next 10 years.

Visitors can avoid lines at Disney World if they buy into the system.
Joseph Prezioso | Anadolu Agency | Getty Images

It’s about to be cheaper for families to visit Disney’s domestic theme parks.
The Walt Disney Company on Wednesday announced new, limited time discounts on children’s tickets at Disneyland and Disney World.

Starting Oct. 24, parents can purchase children’s ticket (valid for kids aged three to nine) for the California-based Disneyland resort for as low as $50 each. Tickets can be used between Jan. 8 and March 10 of next year.
As for the Walt Disney World in Orlando, Florida, children’s tickets and dining plans will be half-off for guests who purchase a four-day, four-night vacation package at one of its resorts. The deal starts Nov. 14 and can be used from March 3 through June 30, 2024.
The price cuts come as the company’s U.S.-based parks have seen a slowdown in attendance and hotel room occupancy as consumers face higher costs due to inflation. Disney is not the only company facing these issues. Universal’s domestic parks, as well as region players like Six Flags and Sea World, have reported lower attendance this year.
Travel agents have pointed to higher ticket prices and a rise in trips to Europe as the major factors in declining domestic theme park attendance.
This is not the first time Disney has offered limited time deals or altered pricing. Earlier this year, the company updated policies at both domestic parks, including modifications to its reservation and ticketing systems for annual pass memberships. The changes came as guests complained about rising prices and longer wait times.

Parks, experiences and products, the division that runs Disney’s parks, has remained a bright spot for the company in recent quarters. Disney has faced ad-related revenue losses within its traditional media business and has had difficulty monetizing its streaming business, as production costs and licensing fees soar.
Meanwhile, the parks division saw a 13% increase in revenue during the third quarter, reaching $8.3 billion.
The company has touted that this segment has expanded at a combined annual growth rate of 6% since 2017, and generated $32.3 billion in operating income over the last 12 months.
Disney is leaning further into the successful business. The company is expected to nearly double its investment in its parks division, with plans to spend around $60 billion over the next 10 years.
Projects already in motion include redesigning Splash Mountain at both domestic resorts with a “Princess and the Frog” theme, as well as updates to existing hotel and resort locations. Disney also plans to nearly double the capacity of its cruise line, adding two ships in fiscal 2025 and another in 2026.
The company provided “blue sky” ideas for its parks during its D23 Expo last year in Anaheim, California. These projects are still in early development and may not see the light of day. This included the possibility of revamping Dino Land at Animal Kingdom in Orlando to be themed as a “Zootopia” or “Moana” area.
At Magic Kingdom, Disney is asking the question: “What is behind Big Thunder Mountain?” The company teased that an area based on “Coco” or “Encanto,” or both, could be in that location. There were also talks about the possibility of bringing to life an area of the Magic Kingdom overrun by Disney villains.
Price points will vary for these projects, if they do come to fruition. The recent additions of the two Star Wars: Galaxy Edge lands in Disneyland and Disney World are estimated to have cost $1 billion each.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC. More

Ford Motor’s third-quarter U.S. new vehicle sales increased 7.7% compared to a year earlier, driven by increased sales of trucks across its lineup.
An ongoing strike by the United Auto Workers union against the Detroit automakers, including Ford, was not expected to directly impact sales during the quarter.

United Auto Workers members strike at the Ford Michigan Assembly Plant on September 15, 2023 in Wayne, Michigan. 
Bill Pugliano | Getty Images

DETROIT – Ford Motor’s third-quarter U.S. new vehicle sales increased 7.7% compared to a year earlier, driven by increased sales of traditional pickup trucks across its lineup.
The Detroit automaker on Wednesday reported a 15.3% increase in truck sales compared to a 5.1% decline in cars and sales of SUVS that were essentially flat.

An ongoing strike by the United Auto Workers union against the Detroit automakers, including Ford, was not expected to directly impact sales during the quarter.
This is a developing story. Please check back for additional updates. More

Moderna on Wednesday said its combination vaccine targeting Covid and the flu will move to a final stage trial after showing positive results in an earlier study.
The biotech company is hoping its shot, mRNA-1083, can win approval from regulators in 2025. 
Moderna and other vaccine makers like Pfizer believe combination shots will simplify what people can do to protect themselves against respiratory viruses that typically surge at the same time of the year.

Artur Widak | Nurphoto | Getty Images

Moderna on Wednesday said its combination vaccine targeting Covid and the flu will move to a final stage trial in adults ages 50 and above this year after showing positive results in an early to mid-stage study.
The biotech company hopes its shot, mRNA-1083, can win approval from regulators in 2025. 

Moderna and other vaccine makers like Pfizer believe combination vaccines will simplify what people can do to protect themselves against respiratory viruses that typically surge around the same time of the year.
“Combination vaccines offer an important opportunity to improve consumer and provider experience, increase compliance with public health recommendations, and deliver value for healthcare systems,” Moderna CEO Stéphane Bancel said in a statement. 
“We are excited to move combination respiratory vaccines into Phase 3 development and look forward to partnering with public health officials to address the significant seasonal threat posed to people by these viruses,” he added.
The mRNA-1083 shot generated an immune response similar to or greater than two currently available flu vaccines from GlaxoSmithKline in the early to mid-stage clinical trial. 
Moderna’s combination shot also produced an immune response similar to its bivalent Covid vaccine, which targets the omicron variants BA.4 and BA.5 and the original strain of the virus. 

The trial evaluated the combination shot in two different age groups: people 50 to 64 years of age and participants 65 to 79. 
The safety data of mRNA-1083 was similar to that of the stand-alone Covid shot, according to Moderna. No new safety concerns were identified with the combination vaccine. 
Moderna is also developing a combination shot targeting the flu and RSV, and another vaccine targeting all three respiratory viruses: Covid, flu and RSV. 
Meanwhile, Pfizer and BioNTech also are developing a vaccine that targets both Covid and the flu. The companies started a phase one trial for the shot in November and said they expect to launch it in 2024 or later. More

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 7.53% from 7.41%.
Applications to refinance a home loan dropped 7% for the week and were 11% lower than the same week one year ago.
Applications for a mortgage to purchase a home fell 6% for the week and were 22% lower than the same week one year ago.

A house is for sale in Arlington, Virginia, July 13, 2023.
Saul Loeb | AFP | Getty Images

Mortgage rates just continue to climb higher, taking a particularly big leap last week. As a result, total mortgage demand fell 6% compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 7.53% from 7.41%, with points rising to 0.80 from 0.71 (including the origination fee) for loans with a 20% down payment. That rate was 6.75% the same week one year ago.

“Mortgage rates continued to move higher last week as markets digested the recent upswing in Treasury yields,” said Joel Kan, MBA’s vice president and deputy chief economist. “As a result, mortgage applications ground to a halt, dropping to the lowest level since 1996.”
Applications to refinance a home loan dropped 7% for the week and were 11% lower than the same week one year ago. Refinances now make up less than one-third of all mortgage applications. Just two years ago, when rates were setting multiple record lows, refinance demand made up roughly three-quarters of all mortgage applications.
Applications for a mortgage to purchase a home fell 6% for the week and were 22% lower than the same week one year ago.
“The purchase market slowed to the lowest level of activity since 1995, as the rapid rise in rates pushed an increasing number of potential homebuyers out of the market,” said Kan, who also noted that adjustable-rate mortgage (ARM) applications increased. The ARMs made up 8% of purchase applications, up from 6.7% about a month ago, when interest rates were slightly lower. ARM’s offer lower rates but are fixed for a shorter term, usually five or 10 years.
A separate, daily survey on mortgage rates from Mortgage News Daily showed the average rate on the 30-year fixed rising even higher this week, hitting 7.72% on Tuesday. Investors are responding to better-than-expected economic data, which could push the Federal Reserve to be more aggressive in its higher interest rate policy. More

Novavax’s updated Covid vaccine won the backing of the FDA and CDC.
That puts the shot, which targets XBB.1.5, on track to roll out weeks after new jabs from Pfizer and Moderna reached Americans.
Health officials see Novavax’s protein-based vaccine as a valuable alternative for people who don’t want to take messenger RNA shots from Pfizer and Moderna.

A vial labelled “Novavax V COVID-19 Vaccine” is seen in this illustration taken January 16, 2022. 
Dado Ruvic | Reuters

Novavax’s updated Covid vaccine won the backing of U.S. regulators on Tuesday, putting the shot on track to roll out weeks after new jabs from Pfizer and Moderna reached Americans.
The Food and Drug Administration authorized Novavax’s single-strain vaccine, which targets omicron subvariant XBB.1.5, for emergency use in people ages 12 and up.

The Centers for Disease Control and Prevention is now including Novavax’s shot in the same recommendation it issued last month for updated vaccines from Pfizer and Moderna. That recommendation says all Americans ages six months and older can receive an updated Covid jab.
Novavax said in a statement that doses of the shot will likely be available within the next few days.
“Novavax’s authorization today means people will now have the choice of a protein-based non-MRNA option to help protect themselves against Covid-19, which is now the fourth leading cause of death in the U.S.,” said Novavax CEO John Jacobs in the statement. “In the coming days, individuals in the U.S. can go to major pharmacies, physicians’ offices, clinics and various government entities to receive an updated Novavax vaccine.” 
Public health officials see Novavax’s vaccine as a valuable alternative for people who don’t want to take messenger RNA shots from Pfizer and Moderna, which teach cells how to make proteins that trigger an immune response against Covid. Novavax’s shot fends off the virus with protein-based technology, a decades-old method used in routine vaccinations against hepatitis B and shingles.
Around 2 million Americans have received the updated Covid vaccines from Pfizer and Moderna so far, the Biden administration said last week, even as patients eager to get their dose have been met with unexpected insurance delays and availability issues.

Regardless, all three shots are expected to help the U.S. combat the spread of Covid this fall and winter, when the virus usually spreads at higher levels. 
The nation is already seeing a surge in cases and hospitalizations. While levels remain far below previous Covid waves in the U.S., it’s still the first notable uptick since last winter and has even prompted the return of mask mandates for a handful of businesses and schools. 
The rise is driven by newer strains of the virus that are gaining ground nationwide as XBB.1.5 gradually declines. That includes EG.5, or Eris, an omicron strain that accounted for 29.4% of all cases as of Saturday, according to the CDC. 
A Novavax spokesperson said last month its new Covid vaccine generated a “broad immune response” against Eris and another fast-spreading strain called XBB.1.16.6 – both of which are descendants of omicron.  
But it’s unclear whether the company’s new vaccine will protect against BA.2.86, a highly mutated omicron strain that health officials are watching closely despite its small number of cases. Novavax last month said it was still testing its vaccine against BA.2.86.
The rollout of Novavax’s new shot comes months after the end of the U.S. Covid public health emergency. 
The end of that declaration means all three manufacturers will sell their updated shots directly to health-care providers and vie for commercial market share.  Previously, the government purchased vaccines directly from manufacturers at a discount to distribute to all Americans for free. 
During the advisory meeting last month, Novavax said the list price of its vaccine is $130 per dose.
Federal and corporate programs are aiming to fill the gap for uninsured Americans. That includes the Biden administration’s Bridge Access Program, which will provide Covid vaccines at no cost to underinsured and uninsured people. 
It’s unclear how many Americans will actually roll up their sleeves and take the new vaccines from Novavax, Pfizer and Moderna.
But roughly 42% of Americans surveyed by the CDC in August said they “definitely will” or “probably will” get a Covid shot this fall, Dr. Megan Wallace, a CDC epidemiologist, said during the advisory meeting. More

United is exercising purchase options on 50 additional Boeing 787-9 Dreamliners and 60 Airbus A321neos.
The airline already ordered 120 narrow-body Airbus 321 and 100 firm orders for Dreamliners.
The carrier is locking in delivery slots as manufacturers’ struggle with their supply chains and delay new aircraft.

A Boeing 787 Dreamliner operated by United Airlines takes off at Los Angeles International Airport (LAX) on January 9, 2013 in Los Angeles, California.
David McNew | Getty Images

United Airlines is ordering 110 additional Boeing and Airbus jetliners, locking in a supply of new planes into the next decade as strong demand and supply chain challenges make new delivery slots scarce.
“We would not normally order jets this far out,” United’s chief commercial officer, Andrew Nocella, told reporters Tuesday. “Production lines, which are now regularly plagued by supply-chain disruptions and delivery delays, are also increasingly sold out for the entire decade.” Deliveries of the new planes are scheduled to start in 2028.

United’s order consists of 50 more Boeing 787 Dreamliners, adding to a firm order of 100 of the twin-aisle planes it announced last December, along with 50 more options. The airline has aggressively expanded its international service to try to capitalize on a resurgence of trips abroad, destinations that the new long-range 787 planes would serve.
The Chicago-based airline is also buying 60 Airbus A321neos, on top of the 120 it previously had on order with the European manufacturer, including 50 of forthcoming extra-long-range version. United added options for 40 more Airbus A321s.
United and other airlines have recently ordered new planes have said one way around infrastructure constraints is to operate larger aircraft with more seats on them, a practice known as upgauging. The airline said it expects an average of more than 145 seats per North American departure in 2027, up 40% from 2019.

United Airlines new amenities kit
United Airlines

The carrier’s upsized order comes as airlines are battling for new, more fuel-efficient aircraft to cater to the post-Covid travel boom. Delivery delays have left airlines with a shortfall of planes, while upgrades that target an increasing number of travelers willing to splurge on premium seats have also run behind schedule.
United on Tuesday announced a revamp of its bedding and amenities kits for its Polaris business class, which include eye serums and a face spray. More