Business

Best Buy’s quarterly results topped Wall Street’s expectations.
The retailer lowered the top end of its sales outlook for the year, however.
CEO Corie Barry said Best Buy still anticipates this year will be “the low point in tech demand.”

A shopper pushes a cart with a TV in front of a Best Buy store in Chicago, Illinois, November 25, 2022.
Jim Vondruska | Reuters

Best Buy on Tuesday surpassed Wall Street’s quarterly sales expectations, but tempered its outlook for the rest of the year as it feels the lull of post-pandemic spending on kitchen appliances, computer monitors and other electronics.
CEO Corie Barry said the company still anticipates this year will be “the low point in tech demand,” before sales bounce back.

“Next year the consumer electronics industry should see stabilization and possibly growth driven by the natural upgrade and replacement cycles and the normalization of tech innovation,” she said in a news release.
Here’s how the company did for the fiscal second quarter that ended July 29, compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

Earnings per share: $1.22 adjusted vs. $1.06 expected
Revenue: $9.58 billion vs. $9.52 billion expected

Shares of the company rose more than 2% Tuesday.
Best Buy is seeing a reversion to pre-pandemic sales levels, as consumers return to more typical spending patterns and feel pressure on their budgets because of inflation. Similar to Home Depot and Lowe’s, Best Buy had outsized gains during Covid, fueled by big purchases that people don’t frequently repeat.
Over the past year, the consumer electronics retailer has felt the sting of inflation and consumers’ shift back to spending on experiences. It is lapping a year-ago period when it paused share buybacks and cut jobs at stores across the country after slashing its forecast. (The company resumed buybacks late last year.)

In the most recent three-month period, Best Buy’s net income fell to $274 million, or $1.25 per share, from $306 million, or $1.35 per share, a year earlier.
Net sales in the quarter dropped from $10.33 billion in the year-ago period.
Comparable sales, a key metric that includes sales online and at stores open at least 14 months, decreased 6.2% compared with the year ago period as customers bought fewer appliances, home theaters and mobile phones. Gaming systems, on the other hand, were sales drivers in the quarter, the company said.
Online sales in the U.S. tumbled 7.1% year over year, but continued to drive a sizable part of the company’s business. E-commerce accounted for nearly a third of the retailer’s total revenue in the U.S., roughly in line with the year-ago proportion.
The retailer narrowed its full-year outlook. It said it now expects revenue to range from $43.8 billion to $44.5 billion. It had previously anticipated between $43.8 billion to $45.2 billion. For comparable sales, it expects a decline of 4.5% to 6% instead of its prior guidance of between 3% to 6%.
It slightly raised its profit expectations, however. It said it expects adjusted earnings per share of $6 to $6.40 instead of prior guidance of $5.70 to $6.50.
On the investor call, Chief Financial Officer Matt Bilunas said sales trends are improving, and the company feels optimistic that may continue in the back half of the year. He said back-to-school has been “slightly better than we expected.” And in the second quarter, he said, the volume of laptops and TVs that the company sold was flat instead of declining.
Best Buy has looked to new categories, such as health care, and launched a paid subscription program, My Best Buy, to keep driving growth. Those drove a slightly better gross profit rate for its U.S. business in the quarter, as it benefitted from those higher-margin businesses.
On a call with investors, Barry said the company is seeing positive traction since relaunching My Best Buy as a three-tier program in late June, including year-over-year growth of paid memberships. The lowest tier of the program is free, but the top tier costs $179.99 per month.
The retailer has reevaluated its store footprint as online sales drive higher costs. On a call with investors, Barry said the company is on track with its brick-and-mortar plans for the fiscal year. The company plans to close 20 to 30 stores, remodel eight stores to turn them into more experiential shops and expand outlet stores from 19 to about 25.
As it gears up for the holidays, Barry said Best Buy expects that shoppers will return to “pre-pandemic behavior,” such as “looking for great deals and convenience and traffic will be weighted toward promotional events.”
Shares of Best Buy closed on Monday at $74.07, bringing the company’s market value to $16.16 billion. So far this year, the company’s stock is down nearly 8%. That contrasts with the S&P 500’s approximately 15% gains during the same period. More

Nio lost $835 million in the second quarter, more than twice its year-ago loss.
Deliveries were down in the period as it transitioned to new models amid China’s economic slowdown.
But deliveries rebounded in July as new and revamped models began shipping.

Nio’s ET5 stands on display at the Central China International Auto Show on May 25, 2023, in Wuhan, China.
Getty Images | Getty Images News | Getty Images

Chinese electric vehicle maker Nio lost $835.1 million in the second quarter, more than twice its year-ago loss as deliveries of its upscale EVs slipped amid a transition to an updated vehicle platform and a broader economic slowdown in China.
Here are the key numbers from Nio’s second-quarter earnings report, compared with Wall Street estimates as reported by Refinitiv.

Revenue: 8.77 billion yuan ($1.21 billion), vs. 9.25 billion yuan expected.
Adjusted loss per share: 3.28 yuan (45 cents), vs. 2.45 yuan expected.

The company’s shares were down more than 6% in premarket trading following the news.
Nio’s adjusted figures exclude share-based compensation expenses. On a GAAP basis, the company reported a net loss of $835.1 million, or 51 cents per share.
In Chinese yuan, the company reported a net loss of 6.06 billion, or 3.70 yuan per share. A year ago, Nio reported a net loss of 2.76 billion yuan, or 1.68 yuan per share, on revenue of 10.29 billion yuan.
Nio’s gross margin on vehicles for the second quarter was 6.2% in the second quarter, down from 16.7% a year ago but up from 5.1% in the first quarter of 2023.
Nio launched a revamped version of its mainstay ES6 crossover on its new “NT2.0” platform in May, and a station wagon version of its ET5 sedan in June. The refreshed lineup is already driving better results, with 20,462 vehicles delivered in July alone.

The company delivered just 23,520 vehicles in the second quarter as it sold down the last of its outgoing models with substantial discounts.
CEO William Bin Li said in a statement that the July result was enough to put Nio at the top of China’s sales charts for EVs priced above 300,000 yuan (about $41,000) for the month.
“We expect a solid growth in vehicle deliveries in the second half of 2023,” he said.
Nio also boosted its balance sheet in July, closing a $738.5 million equity investment from a fund controlled by the government of Abu Dhabi on July 12. The company had $4.3 billion in cash and equivalents on hand as of the end of June.
Nio now expects to deliver between 55,000 and 57,000 vehicles in the third quarter, up significantly from the 31,607 EVs it delivered in the third quarter of 2022. It expects its revenue for the period to fall between $2.61 billion and $2.69 billion, up from $1.83 billion in the year-ago period. More

General Motors is working with Google to explore opportunities to implement AI technologies across the automaker’s business, the companies announced Tuesday.
The broad partnership around generative, or conversational, AI between the Detroit automaker and Google Cloud unit expands upon previous work between the two companies on GM’s OnStar Interactive Virtual Assistant.
Similar to other industries, the potential applications of AI, including the well known ChatGPT, have emerged as a growing discussion in the automotive industry.

The GM logo is seen on the facade of the General Motors headquarters in Detroit, Michigan, March 16, 2021.
Rebecca Cook | Reuters

DETROIT – General Motors is working with Google to explore opportunities to implement AI technologies across the automaker’s business, the companies announced Tuesday.
The broad partnership around generative, or conversational, AI between the Detroit automaker and Google Cloud unit expands upon previous work between the two companies on GM’s OnStar Interactive Virtual Assistant (IVA) that launched in 2022.

The IVA system is powered by “intent-recognition algorithms” that use Google Cloud’s conversational AI technologies, providing OnStar users with responses to common inquiries, as well as routing and navigation assistance, GM said Tuesday.
Similar to other industries, the potential applications of artificial intelligence, including the well-known ChatGPT, have emerged as a growing discussion in the automotive industry. Some use cases could include vehicle validation, software and in-car assistance such as the OnStar service.
“Generative AI has the potential to revolutionize the buying, ownership, and interaction experience inside the vehicle and beyond, enabling more opportunities to deliver new features and services,” said Mike Abbott, a former Apple executive and GM’s executive vice president of software and services, in a statement.
GM previously said it was exploring uses for ChatGPT as part of its broader collaboration with Microsoft.
Mercedes-Benz earlier this year also announced a partnership to test in-car ChatGPT artificial intelligence in more than 900,000 vehicles in the U.S. The German luxury automaker said the emerging technology will be used for audio requests through its Hey Mercedes voice assistant, which is expected to greatly expand the system’s capabilities. More

Electric utilities in the western U.S. are facing billions in damages over allegations that their failure to shut power off in extreme weather led to catastrophic wildfires.
Hawaiian Electric has been hit with a dozen lawsuits over the Maui wildfires that have killed at least 115 people and destroyed the town of Lahaina.
PacifiCorp and Xcel Energy are also facing lawsuits over the 2020 Labor Day wildfires in Oregon and the 2021 Marshall Fire in Colorado.
These lawsuits come after PG&E pleaded guilty to 84 counts of involuntary manslaughter in the catastrophic 2018 California Camp Fire.
Aging, fragile power infrastructure combined with drought conditions and high winds have created a recipe for disaster.

Electrical workers repair power lines leading into the fire ravaged town of Lahaina on the island of Maui in Hawaii, August 15, 2023.
Mike Blake | Reuters

Electric companies in the western U.S. are facing mounting lawsuits alleging that their failure to prepare for extreme weather has resulted in repeated, catastrophic wildfires that have taken scores of lives and caused billions of dollars in damages.
Hawaiian Electric is the latest utility to face allegations of negligence. Maui County sued the power company for damages on Thursday over its alleged role in the devastating wildfires on Maui this month that have killed more than 100 people and burned the historic town of Lahaina to the ground.

The Maui County complaint is the 12th lawsuit filed against Hawaiian Electric. The suits allege that downed power lines operated by the company contributed to the deadliest U.S. wildfire in more than a century.
The suits accuse the utility of negligence for failing to shut off power even after the National Weather Service had issued a “red flag” warning of an increased fire risk due to high winds from Hurricane Dora and drought conditions on the island.
Hawaii Electric pushed back against some of those claims in a statement Sunday.
The credit agency Fitch has said the litigation could pose an existential threat to the company. Pacific Gas & Electric in California filed for bankruptcy in 2019 when facing billions of dollars in liability for wildfires.
The allegations leveled against Hawaiian Electric echo lawsuits brought against PG&E in California over the 2018 Camp Fire, Berkshire Hathaway’s PacifiCorp in Oregon over the 2020 Labor Day wildfires and Xcel Energy in Colorado over the 2021 Marshall Fire.

Before all these catastrophic wildfires, the companies did not shut the power off despite high winds that can knock down power lines and combine with dry or outright drought conditions to create a high fire risk.
The wildfire risk posed by aboveground power lines is well documented. More than 32,000 wildfires were ignited by transmission and distribution lines in the U.S. from 1992 to 2020, according to U.S. Forest Service data.

Paul Starita, an attorney who represents Lahaina residents in one of the suits against Hawaiian Electric, said utilities are not doing enough to harden their infrastructure against extreme weather and clear brush to prevent catastrophic fires.
“They’re just not doing it,” said Starita, senior counsel at Singleton Schreiber, a law firm that has represented 12,000 victims in fires caused by utilities. “And when you know the system has a problem — shut down the power,” he said.
The industry suffers from a culture that is slow to change and has historically had a financial incentive to not overspend on infrastructure because their performance has been judged on how much money they save their customers, said Alexandra von Meier, an electric grid expert.
“The industry just is changing more slowly than the climate is,” said von Meier, an independent consultant and former professor at the University of California, Berkeley. “The industry needs different standard practices today than they needed 10 years ago. They just haven’t adapted yet.”
The failure to adapt swiftly to climate change has had catastrophic consequences in lives lost, homes destroyed and increasingly for the utilities’ own business interests.

Lives lost, billions in damages

The Maui fires have killed at least 115 people with hundreds still missing. The town of Lahaina is destroyed. Moody’s estimates the wildfires have caused up to $6 billion in economic losses.
Fitch, Moody’s and S&P recently downgraded Hawaiian Electric’s credit rating to junk status, with Fitch warning that the company faces more than $3.8 billion in potential liability for the Maui wildfires.
Though the lawsuits point the finger at Hawaiian Electric, the authorities are still investigating the cause of the Maui wildfires. The Bureau of Alcohol, Tobacco, Firearms and Explosives has deployed a team with an electrical engineer to assist Maui County fire officials in determining the origins of the blazes.
Just two months before the Maui fires, Colorado law enforcement officials found that a power line operated by the Minnesota-based utility Xcel Energy likely caused one of the two initial fires that led to the 2021 Marshall Fire in Boulder County. The line had become unmoored from its pole during high winds.
The Marshall Fire killed two people, destroyed more than 1,000 homes and dozens of commercial buildings, and burned 6,000 acres of land. Colorado’s insurance commissioner has put the total property losses at more than $2 billion, making it the costliest wildfire in state history.
Boulder County District Attorney Michael Dougherty said during a news conference in June that criminal charges were not brought against Xcel because there was no evidence of worn materials, shoddy construction and substandard conditions in its power line.
Xcel CEO Bob Frenzel said the company strongly disagrees with the investigation’s conclusion that the power line likely contributed to the blaze. He said Xcel will vigorously defend itself in court against mounting lawsuits.
The company said it is aware of eight lawsuits representing at least 586 plaintiffs and expects further complaints, according to its latest quarterly financial filing. If Xcel is found liable for the Marshall Fire, the total damages could exceed the company’s insurance coverage of $500 million, according to the filing.

Days after Boulder County released its Marshall Fire findings, a jury in Oregon found that Berkshire Hathaway’s PacifiCorp was to blame for four of the 2020 Labor Day wildfires and ordered the company to pay $90 million in damages to 17 homeowners.
PacifiCorp said the damages sought in the various lawsuits, complaints and demands filed in Oregon over the wildfires total more than $7 billion, according to the company’s latest financial filing. The utility has already incurred probable losses from the fires of more than $1 billion, according to the filing.
The Labor Day wildfires in Oregon killed nine people, destroyed more than 5,000 homes and burned 1.2 million acres of land in the most destructive multiple-fire event in the state’s history.
Though the official cause of the fires is still under investigation, homeowners in the class-action lawsuit said downed power lines operated by PacifiCorp triggered the fires. They accused the company of acting negligently by failing to shut the power off. PacifiCorp has said it will appeal the June jury verdict, which could take years.
The company said in its latest financial filing that government agencies have informed the company that they are contemplating actions in connection with some of the 2020 wildfires.
These catastrophes came years after the devastating 2018 Camp Fire in California that should have served as an urgent, tragic warning to the industry.
The Camp Fire killed 85 people, destroyed more than 18,000 buildings and burned over 153,000 acres of land. The town of Paradise, like Lahaina in the Maui fires, was almost completely destroyed by the inferno.
The Camp Fire was ignited by a power line that PG&E failed to maintain with components dating back to 1921. The company was indicted and ultimately pleaded guilty to 84 counts of involuntary manslaughter.
PG&E filed for bankruptcy protection in 2019 in the face of $30 billion in wildfire liability. The company reached a $13.5 billion settlement with victims and emerged from bankruptcy in 2020.

Aging power lines

The century-old infrastructure that led to the 2018 Camp Fire, though particularly egregious, is not an isolated problem. Most of the transmission and distribution lines in the U.S. have reached or surpassed their 50-year intended lifespan, according to the American Society of Civil Engineers.
And this aging infrastructure is running up against an accelerating number of disasters due to climate change, according to ASCE. Maui County has alleged Hawaiian Electric operated wood utility poles that were severely damaged by decay, putting them at increased risk of toppling during a high wind event.
And even if a utility perfectly maintains and operates its equipment, it is next to impossible to guarantee there will never be a spark with aboveground transmission and distribution infrastructure, von Meier said.
The smartest solution is to install the transmission lines, switchgear and transformers underground, she said. The problem is that this is expensive. It costs about 10 times as much to install electrical infrastructure underground compared with aboveground, von Meier said.
“To really reinforce the infrastructure, both to make it reliable in the face of extreme weather and to keep it from causing fires, is going to be very, very expensive,” von Meier said. The U.S. is facing an investment shortfall of $338 billion in electric infrastructure through to 2039, according to ASCE.
The Edison Electric Institute, the trade association that represents investor-owned electric companies, said the industry has invested $1 trillion over the past decade in upgrading and maintaining infrastructure and is on track to invest more than $167 billion in 2023.
“Substantial investments in adaptation, hardening, and resilience are being made to help mitigate risk,” said Scott Aaronson, EEI’s head of security and preparedness.
“Unfortunately, there is no such thing as zero risk, which is why we are working to drive down that risk and ensure we are prepared to respond safely and efficiently when incidents do occur,” Aaronson said.
Joseph Mitchell, a scientist who has served as an expert on wildfires for the California Public Utilities Commission, said electric companies in the Golden State are moving to install their lines below ground to mitigate the risk.
But Mitchell said insulating aboveground power lines with a protective covering is also an effective solution that is cheaper and can be rolled out more quickly. There is also technology coming to market that can de-energize power lines automatically when there’s a problem, he said.

Power shut-offs

The utilities all failed to shut the power off before these wildfires. Hawaiian Electric CEO Shelee Kimura said during a news conference earlier this month that cutting power would have jeopardized Lahaina’s water supply and people who rely on specialized medical equipment.
“The electricity powers the pumps that provide the water, and so that was also a critical need during that time,” Kimura said.  
“There are choices that need to be made and all of those factors play into it,” Kimura said. “So every utility will look at that differently depending on the situation.”
Hawaiian Electric subsequently said downed power lines appear to have caused a morning brush fire in Lahaina, but the power was off when a second fire broke out that afternoon. The cause of the second fire is still under investigation.
Von Meier and Mitchell both said that a decision to shut off power is not an easy one. It comes with risks that can also potentially put lives in jeopardy, but Mitchell said it is the right decision when lines are going to be pushed to their limit during high winds in potential fire conditions.
“You’re talking about potential criminal liability here. The financial liability is going to be humungous for these fires,” said Mitchell, who founded a wildfire consulting firm called M-bar Technologies.
Von Meier said the risks of shutting power off underlines a deeper planning and resilience problem in U.S. infrastructure. Drinking water should not be in jeopardy if the grid goes out, she said, and people with specialized medical equipment should be provided with reliable solar-powered backup batteries.
“Nobody in an electric utility should be in a situation where their decision to shut the power off means that life-sustaining equipment will fail,” she said.
Kimura also said Hawaiian Electric had no program in place for a power shutdown. The utilities need to learn the lesson that clear guidelines need to be in place for when power should be cut, von Meier said.
“It’s sort of the same story every time — people don’t think it can happen there,” Mitchell said of wildfires ignited by power lines. “Everybody has to learn the hard way. Hopefully, this is the last time and people will come up with contingency plans.” More

Warner Bros. Discovery’s streaming platform Max will feature content from pay TV company AMC Networks between Sept. 1 and Oct. 31.
The move comes as media companies look for creative ways to bolster their arsenals and attract more viewers.
As part of the deal, Max will feature more than 200 episodes of newer AMC shows, such as “Anne Rice’s Interview with the Vampire” and “Fear the Walking Dead.”

Jodie Comer and Sandra Oh attend the premiere of BBC America and AMC’s ‘Killing Eve’ at ArcLight Hollywood on April 01, 2019 in Hollywood, California.
Emma McIntyre | Getty Images

Streaming services are leaning more on pay TV.
Warner Bros. Discovery’s Max will feature more than 200 episodes of recent AMC Networks content for two months. The arrangement will run from Friday through Halloween.

The move comes as media companies look for ways to bolster streaming platforms as they work to become profitable. It also provides a bigger audience for AMC Networks’ pay TV shows, even though the company has its own streaming service, AMC+.
It will also add more programming to Max this fall as the recent writers’ and actors’ strikes halt Hollywood production of TV shows and films.
“Subscribers turn to Max to find a deep and diverse selection of stories for the whole household,” Meredith Gertler, executive vice president, global content strategy, planning and analysis, said in a news release. “The AMC+ collection pop up is an excellent example of how we can use innovative strategies to add value to our content offering.”
The AMC shows offered on Max will be available to both ad-supported and commercial-free subscribers at no additional cost. An “AMC+ Picks on Max” tab will be featured on the app.
The company’s marquee channel, AMC, has been known for hit shows like “Mad Men,” “Breaking Bad” and “The Walking Dead.” However, those shows won’t be available on Max this fall.

AMC Networks shows coming to Max

Anne Rice’s Interview with the Vampire, season one
Dark Winds, season one
Gangs of London, seasons one and two
Fear the Walking Dead, seasons one through seven
Killing Eve, seasons one through four
A Discovery of Witches, seasons one through three
Ride with Norman Reedus, seasons one through five

Instead, episodes of newer AMC content, such as “Anne Rice’s Interview with the Vampire,” “Dark Winds,” “Fear the Walking Dead” – a spinoff of the hit show that concluded recently – and the first four seasons of “Killing Eve” will be available to Max viewers.
The partnership will also give consumers the chance to view this AMC programming, which is featured prominently on its own service AMC+. Fan favorite shows like “Breaking Bad” and its spinoff, “Better Call Saul,” already have licensing deals with Netflix and seasons are featured there.

AMC, WBD face down cord cutting

Like its pay TV peers, AMC has been contending with the changing media landscape as consumers flee the traditional bundle in favor of streaming.Last year AMC laid off a significant number of employees before replacing its interim CEO with Kristin Dolan, spouse of chairman James Dolan.
In a memo to staff during the layoffs, James Dolan called it a “confusing and uncertain time for the TV industry,” CNBC previously reported.

A scene from “Interview with the Vampire” TV show
Source: AMC

“It was our belief that cord cutting losses would be offset by gains in streaming,” he wrote. “This has not been the case. We are primarily a content company and the mechanisms for the monetization of content are in disarray.”
Last year, AMC and its library of content was being eyed by NBCUniversal’s streaming platform, Peacock, as a potential way to add to its library, CNBC previously reported.
For Warner Bros. Discovery, this shows the continued emphasis on adding to its streaming platform.
Last week, the company announced it would add CNN news as a 24/7 live news hub to Max in late September. 
The company is also looking to add sports to the streamer by the start of Major League Baseball playoffs this fall, CNBC previously reported.
Earlier, the company relaunched HBO Max as Max, combining content from Warner Bros. and Discovery+ under one roof. 
Disclosure: NBCUniversal is the parent company of CNBC and Peacock. More

Brazilian beauty conglomerate Natura & Co is looking for a buyer for The Body Shop.
The company, which owns the Avon brand and is in the process of selling its Aesop line to L’Oreal, has posted numerous quarters of declining sales at the banner.
The Body Shop, which has a heavy mall footprint in the U.S., saw sales decline 12% during its second quarter.

Roberto Machado Noa | LightRocket | Getty Images

Brazilian beauty conglomerate Natura & Co is considering a sale of The Body Shop after the skin care and cosmetics line saw another quarter of declining sales, according to a Monday securities filing.
Natura & Co, which owns the Avon and Natura brands and is in the process of selling its Aesop line to L’Oreal, wrote in the filing that its board of directors “recently authorized its management to explore strategic alternatives for The Body Shop,” the filing said. 

Those alternatives include a “potential sale” of the business, according to the document. 
“There can be no assurance that this process will result in any transaction. Natura does not intend to comment on or provide updates regarding this matter unless and until it determines that further disclosure is appropriate or required,” the filing said. 
Late last year, Sao Paulo-based Natura denied rumors that it was considering a sale of The Body Shop. But a year later, it’s looking for a buyer after sales at the brand declined for numerous quarters. 
On Aug. 15, the company announced second-quarter results and said sales at The Body Shop fell 12% to 800 million Brazilian reals, or $163.7 million. 
The brand, which sells natural skin, hair and makeup products, has a heavy mall footprint in the U.S. It has faced pressure on its top line for numerous quarters. 

Executives have worked to boost sales and reduce costs at the chain in a bid to grow margins and generate cash. 
Retail as a whole has seen sluggish sales amid consistent inflation and high interest rates, but the beauty sector has been a rare bright spot. Numerous cosmetics companies have reported consistent growth and profits.
However, The Body Shop has struggled to hang on to its market share and meet customers where they are after consumer habits shifted during the Covid pandemic, executives said during an August earnings call. 
To reverse the sales slump, the company has tried to boost digital sales and revamped its product line to focus more on skin care. More

“We are currently experiencing a technical issue and have applied traffic flow restrictions to maintain safety,” the U.K.’s air traffic control provider said Monday.
There have been reports of disruption in air travel across the country.
Scottish airline Loganair earlier said on X that there was a “network-wide failure of UK air traffic control computer systems this morning.”

Virgin Atlantic Airways Airbus A350-1000 aircraft seen taxiing in front of the air traffic control tower at London Heathrow airport in U.K.
Nurphoto | Nurphoto | Getty Images

The U.K.’s air traffic control provider reported a technical issue Monday which saw flights across the country disrupted.
“We are currently experiencing a technical issue and have applied traffic flow restrictions to maintain safety,” NATS said in a statement. “Engineers are working to find and fix the fault.”

NATS clarified that “UK airspace is not closed” following reports on social media site X, formerly known as Twitter.
It did not provide further details on the cause of the issue or what flight restrictions had been put into place.
Gatwick Airport, London’s second-largest airport, said it was “seeing delays, and [flight] cancellations are likely,” while Luton Airport said the air traffic control issue was “affecting UK airspace, resulting in disruption to flights.”
Meanwhile, Stansted Airport said it was “aware of a nationwide air traffic control issue that is affecting flights in and out of airports across the country.”
Edinburgh Airport said passengers should not come to the airport before checking the status of their flight with their airline.

The issue with air traffic control was announced earlier by Scottish airline Loganair, which said on X that there was a “network-wide failure of UK air traffic control computer systems this morning.”
Flight tracking website Flightradar24 shared an image on X of live air traffic data at 12:35 p.m. London time.
In an accompanying statement, it said that U.K. airports, including Heathrow, appear to be “significantly limiting departures,” although arrivals continue. It added that all of its most tracked flights are currently London arrivals. More

IHOP, best known for its pancakes, is making its biscuits menu available nationwide for the first time.
The restaurant chain has been branching out into different menu categories, such as burritos and savory crepes.
In its latest quarter, IHOP’s same-store sales grew just 2.1%.

IHOP’s new lineup of biscuit sandwiches.
Source: IHOP

For the first time ever, IHOP is making its biscuits menu available nationwide.
The Dine Brands chain, best known for its pancakes, has been branching out into different categories, from burritos to savory crepes, after slashing its menu by a third during the early days of the Covid-19 pandemic. The new menu items have largely focused on drawing in diners during lunch and dinner hours and attracting more takeout orders. IHOP has also brought back some old favorites, such as its Cinn-A-Stack pancakes.

However, the chain’s menu strategy hasn’t been enough to offset consumers’ cautious spending behavior. In its latest quarter, IHOP’s same-store sales grew just 2.1%, despite higher menu prices compared with the year-ago period. Sister brand Applebee’s fared even worse, reporting a same-store sales decline of 1% for the same period.
Shares of Dine Brands have fallen 25% this year, dragging its market value down to $856 million.
Starting Monday, IHOP’s sales — and Dine Brands’ stock — could get a boost from its biscuits menu. The chain has sold biscuits in certain regions, such as the South, but it decided to take the plunge and bring them to menus nationwide.
The new lineup includes a buttermilk biscuit; a breakfast biscuit sandwich made with bacon, American cheese, cheese sauce and eggs; a chicken biscuit sandwich that features pickle chips and country gravy; and a fresh strawberries and cream biscuit filled with cheesecake mousse, strawberries and syrup.
The breakfast biscuit sandwich, with a choice of a side, will be available until Sept. 26 for $7 to appeal to budget-minded consumers.

IHOP Chief Marketing Officer Kieran Donahue told CNBC that consumer research showed diners across the country would be interested in eating the chain’s biscuits.
“We wouldn’t have put this on our menu if we didn’t think it had national appeal,” she said.
But first, the chain upgraded its biscuit recipe. The result is a biscuit that’s flaky with a little crunch on the top, according to Donahue.
Biscuit sandwiches have been growing more popular with consumers, according to data from Datassential, a food and beverage market research firm.
Chick-fil-A’s national expansion outside its Southeast stronghold has brought the Southern breakfast staple further into the mainstream. When Wendy’s rolled out its breakfast nationwide in early 2020, biscuits joined croissants and English muffins as the bases for its breakfast sandwiches.
But biscuits aren’t on menus as much as they used to be. They can be found at 11.8% of U.S. restaurants, down from 14% in 2020, according to Datassential. Still, while their availability has shrunk, biscuits are growing more popular as sides and appetizers, the firm found.
In line with that trend, IHOP crafted its biscuits menu to be versatile. For example, the fresh strawberries and cream biscuit could be a sweet breakfast or a dessert.
Donahue also said that the chain made sure the biscuits could work for takeout as well. More than a fifth of IHOP’s sales come from to-go orders. More