Business

Businesses need to remain diligent in their diversity, equity and inclusion, or DEI, efforts as layoffs continue, according to McKinsey senior partner Shelley Stewart.
In an interview with CNBC, Stewart warned that an increase in layoffs could pose a challenge to the DEI pledges that many businesses made following the murder of George Floyd by police.

Since December 2020, the amount of money that companies publicly committed to racial equity has increased from $66 billion to $340 billion. However, “it has been challenging to actually meet these ambitious goals to deploy this capital,” Stewart said.
Stewart told CNBC that Black Americans have historically been disproportionately affected during economic downturns.
Because Black workers are underrepresented in the tech industry, he said, they may not be hit disproportionately in that sector. Nonetheless, he stressed the importance of increasing the number of Black workers in tech, urging businesses to continue “thinking about ways to increase representation as we think about emerging from this thing on the other side.”
Stewart encourages companies to continue their DEI efforts by working with diverse suppliers, saying partnering with diverse businesses is “the biggest lever that corporations have to directly impact society other than wages.”
“Inclusive growth is better for companies, better for society, better for our global economy and our domestic economy,” he said. “Folks that stick to that, I think, will emerge on the other side stronger.”
Watch the video to learn more about the commitments that companies have made to address inequality and the impact that an economic downturn could have on these DEI pledges.

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Former South Carolina Republican Governor Nikki Haley speaks at the Republican Jewish Coalition Annual Leadership Meeting in Las Vegas, Nevada, on November 19, 2022.
Wade Vandervort | AFP | Getty Images

Nikki Haley, a former governor for South Carolina and United Nation’s ambassador, announced she was entering the 2024 presidential race on Tuesday, making her the first Republican to challenge her former boss and ex-President Donald Trump for the Republican nomination.
Haley, 51, dug into the difference in ages between 80-year-old President Joe Biden and her challenger Trump, who’s 76. While Biden hasn’t formally announced his candidacy, he’s expected to do so in the coming weeks.

“Republicans have lost the popular vote in seven out of the last eight presidential elections. That has to change,” Haley said in a video posted to her Twitter account. She called for a new generation of leaders, saying Biden’s record was “abysmal” and that the “Washington establishment has failed us over and over and over again.”
In announcing her run a day before she’s scheduled a formal campaign launch in Charleston, S.C., Haley called for fiscal responsibility and secured borders.
Haley has been assembling a team to explore a potential run for weeks, despite previous claims that she wouldn’t run if Trump decided to launch his third campaign for the White House.
She enters the race trailing Trump and other would-be challengers in public polls.
A Morning Consult poll on Tuesday, for instance, shows Trump backed by 47% of Republican primary voters, while just 3% of respondents said they would pick Haley. Florida Gov. Ron DeSantis, who is widely expected to enter the race, has 31% of the GOP support while Trump’s former Vice President Mike Pence, who’s likewise hinted at a possible run, has 7% of the vote.

One of Trump’s staunchest Republican opponents in the U.S. House, former Rep. Liz Cheney, R-Wyo., is neck-and-neck with Haley at 3% of the vote. None of those potential challenges have formally announced a run.
Born and raised in South Carolina, Haley noted how her Indian parents made her “different” from most other Americans, which forced her to look for similarities with other people instead. She acknowledged the deep political divide as well as the racial and socio-economic tensions in the nation right now, saying she’s seen and heard of atrocities overseas that underscore the freedoms Americans enjoy.
“I’ve seen evil,” she said. In China, the leaders are committing genocide while the Iranian government murders people who challenge its policies, she said. “Even on our worst day, we are blessed to live in America,” she said.
The political rancor in the U.S. is seen as a vulnerability by many at home and abroad, she said.
“The socialist left sees an opportunity to rewrite history. China and Russia are on the march. They all think we can be bullied, kicked around,” she said. “You should know this about me, I don’t put up with bullies and when you kick back, it hurts them more if you’re wearing heels.”
Haley’s widely anticipated announcement makes her just the second candidate in what’s likely to become a wide Republican primary field. Other GOP names getting presidential buzz include DeSantis, Pence, South Carolina Sen. Tim Scott, former Secretary of State Mike Pompeo and Sen. Ted Cruz of Texas.
But for now, Haley is Trump’s sole rival, putting her in a potentially awkward spot as she has shifted her attitude toward with the former president in the wake of the Jan. 6, 2021, Capitol riot by a mob of his supporters.
The riot, which was fueled by false claims of election fraud Trump had trumpeted, disrupted the transfer of power to Biden. Not long after the attack, Haley said she was “disgusted” by what Trump had done.
But like other Republicans, she reverted to a more positive view of Trump, who remains highly popular with a large chunk of the GOP base.
This is breaking news. Please check back for updates.

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Restaurant Brands International on Tuesday posted strong fourth-quarter results.
It named Chief Operating Officer Joshua Kobza as its new chief executive, effective March 1, succeeding José Cil.
Restaurant Brands has benefited from inflation-driven demand for affordable fast-food options, despite facing headwinds due to rising costs and foreign exchange.

In this photo illustration, a Burger King Whopper hamburger is displayed on April 05, 2022 in San Anselmo, California. A federal lawsuit has been filed and is seeking class-action status alleging that fast food burger chain Burger King is misleading customers with imagery that portrays its food, including the Whopper burger, as being much larger than what is actually being served to customers. 
Justin Sullivan | Getty Images

Restaurant Brands International on Tuesday posted a strong fourth quarter and named Chief Operating Officer Joshua Kobza as its new chief executive, effective March 1, replacing José Cil.
“Over the past several years, the Board of Directors has worked with management to build a thoughtful succession plan for key positions, so this is a natural transition for Josh to lead our next phase of growth,” Chairman Patrick Doyle said in a Tuesday announcement.

Cil will stay on with the company for a year as an advisor to help with the transition.
The leadership change comes as the company works to revive and expand some of its key restaurants. Restaurant Brands houses chains Burger King, Tim Hortons, Popeyes and most recently Firehouse Subs.
Here’s how Restaurant Brands performed in the fourth quarter, compared with what Wall Street anticipated, based on an average of analysts’ estimates compiled by Refinitiv:

Adjusted earnings per share: 72 cents vs. 74 cents
Revenue: $1.69 billion vs. $1.67 billion expected

For the three months ended Dec. 31, the company reported net income of $336 million, or 74 cents per share, up from $262 million, or 57 cents per share, a year earlier.
Quarterly revenue of $1.69 billion marked a year-over-year increase of about 9%.

Restaurant Brands reported overall same-store sales growth of 8% during the fourth quarter and systemwide sales growth of nearly 12%.
Its flagship burger chain, Burger King, saw same-store sales growth of 8.4% during the period. In the U.S. only, sales grew by 5%.
The company has been working to rejuvenate Burger King’s domestic sales and in September announced a $400 million investment plan to boost Burger King advertising campaigns and renovate the chain’s restaurant locations.
At the end of the fourth quarter, the company said it had funded $30 million of that turnaround plan. The company previously said it expects to reap the benefits of the turnaround in 2025.

Joshua Kobza, previously chief financial officer of Restaurant Brands International Inc., speaks during a Senate Permanent Subcommittee on Investigations hearing in Washington, D.C., U.S., on Thursday, July 30, 2015.
Andrew Harrer | Bloomberg | Getty Images

Tim Horton’s same-store sales grew by 9.4% during the period. In Canada alone, same-store sales for the coffee brand rose 11%. The chain has been expanding more internationally, especially eyeing Texas and Florida to target Canadians who travel to warmer climates for the winter.
Popeyes saw same-store sales grow by 3.8%. The chain, which saw a spike in sales with its 2019 debut of its chicken sandwich, has since stabilized and saw just 1.5% growth in the U.S.
Restaurant Brands added Firehouse Subs to its portfolio in 2021. That chain saw a 0.4% same-stores sales increase during the period.
Restaurant Brands has not been immune to industry-wide rising costs and losses in China and Russia. The company said it took less of a hit from Covid-related disruptions during the fourth quarter, though it noted that it had to temporarily close some of its restaurants in markets like China that experienced a resurgence in cases.
It also said that it did not generate any new profits from Russia in 2022 and does not anticipate any in 2023 either. The company last year suspended corporate support for a large Burger King franchise in the country in light of Russia’s invasion of Ukraine.
Covid and the war in Ukraine have created a tough macroenvironment for the company due to foreign exchange headwinds and climbing interest rates. Restaurant Brands said Tuesday that it expects “adverse impact on our business” if it cannot adjust prices to compensate for higher costs.
So far, higher prices domestically have not scared away the company’s consumer base. Fast food companies across the industry have seen boosted demand among budget-conscious customers, beating out fast-casual dining options.
Yum Brands reported a strong fourth quarter last week, mostly propped up by its Taco Bell segment as weak China sales weighed on Pizza Hut and KFC. The company credited U.S. momentum to its chains’ affordable options.
Similarly, McDonald’s profited from changes in consumer spending behavior with a fourth-quarter revenue bump fueled by higher menu prices and increased demand.

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A new survey finds that 64% of couples admit to being “financially incompatible” with their partners.
New couples should share the state of their individual finances before they met on a predetermined “money date.”
Divorces among long-term couples are often the result of decreased openness about finances over time.
All couples need to plan for the unexpected, from emergencies to incapacitation and death.

Luminola | E+ | Getty Images

Talking about money with your romantic partner or spouse can be tough — especially when you don’t understand or know much about how they think about money.
A new survey finds that 64% of couples admit to being “financially incompatible” with their partners, with different philosophies about spending, saving, and investing their money.

Unfortunately, this friction can lead some to commit so-called financial infidelity, hiding purchases from their partner. In this survey by the fintech firm Bread Financial, 45% of coupled adults admitted they’re guilty.
Even if there is no financial cheating, money issues can still cause strain in relationships, arguments or even divorce. One in 5 couples identifies money as their greatest relationship challenge, according to the most recent Couples & Money survey by Fidelity Investments.  
More from Personal Finance:5 money moves can set you up for financial success in 2023These strategies can help you dig out of holiday debt Nonprofit stresses education to change face of angel investing
Many financial advisors recommend communicating about how each of you handles your finances to figure out your partner’s “money mindset.” It’s part of the work you need to do to help build a stronger relationship, financial psychologists say. Having that “money talk” is more important than whether you merge your accounts or go with the “yours, mine, ours” approach. 
So how do you start what can be a difficult conversation? Here are some tips about delving into the “money talk” no matter what stage of the relationship you’re in. 

If you’re newly partnered or married

Jeong Hoon Choi / Eyeem | Eyeem | Getty Images

Gen Z and millennials may argue with their partner over finances more than older couples. Millennials may also talk more frequently about money than baby boomer couples. But if you’ve just coupled, what’s that icebreaker?
Start with a simple question about how your partner handled their finances before you got together. A simple question like whether they’re taking advantage of their 401(k) or 403(b) retirement plan at work can tell you a lot about their planning, said Lawrence Sprung, a certified financial planner and founder and wealth advisor at Mitlin Financial in Hauppauge, New York. Then do this: 

Open the books: Show one another your financial information. This “show and tell” can be a way to talk about how much student loan or credit card debt you have or how you intend to save for retirement. 
Set a time and place for a special date: Pick a day and location that’s most convenient and calm for both of you for the money talk. You want to be able to focus and not be interrupted. 
Align your finances: Figure out who will handle certain money matters or how you’ll split these expenses. Make sure you both have access to shared accounts. Then decide who will pay which bills or if you’ll pay for them from a joint account. 

For those married for several years

Among women, more than 20% of marriages that end in divorce last about 10 years, according to the U.S. Census Bureau. Part of the reason those relationships end may be due to a lack of communication on many fronts. “Money dates” may become less frequent as other priorities take over, such as moving into a new home, starting a family, changing jobs. Still, it’s important to keep talking:

Review your household budget: Set aside time to review your total financial picture at least once a year. Going over the year-end credit card, savings, investment, and retirement account statements can be a good place to start to see where you stand.
Maximize your resources: You want to make the most of your combined income. Whether your merge accounts or not, you’ll need to figure out how to build your savings, while affording your necessary and discretionary expenses. Pay yourselves first by making regular savings account contributions to build an emergency fund and putting part of your pay in a retirement plan for the future. 
Then, “outline what your shared expenses are, what they cost, and how much each partner will contribute to the expenses,” said Dr. Megan Ford, a financial therapist based in Athens, Georgia. “This isn’t always an easy 50/50 split when incomes are uneven” — or if one of you is out of work right now. That’s why stashing cash in an emergency fund while working is essential.  

If you’re an older couple near or in retirement

Many older couples say thinking about saving enough for retirement and making enough money for the life they want are two issues that keep them up most at night. You’ll likely sleep more soundly if you do this: 

Get on the same page about your future: The Fidelity study found 48% of couples disagree about what age they play to retire, and 52% disagree about how much should be saved by that time. Consider you may live well into your 80s or longer. Plan for how much money you will need for future goals and make sure it will be enough to last.
Focus on managing debt: While shopping and spending may cause the biggest rift in relationships, the second most common contentious financial matter for boomers is credit card debt, according to Bread Financial’s survey. It’s time for both of you to review those annual statements again to see how much debt you are in. 
Talk to a financial professional: Having both of your speak to a financial advisor can help you continue to focus on your future, develop a financial plan and build a financial team to help. The earlier you speak with a financial professional, the better.  

All couples need to plan ahead for ‘what if’

One of the most important conversations couples can have about their finances — no matter how old they are — is the one about who will make decisions for them if they get ill or are injured and can’t make them for themselves. At the same, it’s important to discuss the financial legacy you’d like to leave your partner and/or loved ones. All of that is essential to estate planning. 

Make sure you have critical estate-planning documents: In addition to your will or trust, you should have a health-care proxy, living will or advanced medical directive, and durable power of attorney. 
Review beneficiaries on your retirement and life insurance plans: Make sure they reflect the person that you want to be named, especially for same-sex couples or if you’re on a second marriage or are now uncoupled after a divorce or death of your partner.

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Coca-Cola’s quarterly revenue topped Wall Street’s estimates, while its earnings were in line.
The beverage company said its unit case volume, which strips out the impact of currency and price changes, fell 1%.
For 2023, Coke projects comparable revenue growth of 3% to 5% and comparable earnings per share growth of 4% to 5%.

Nurphoto | Getty Images

Coca-Cola on Tuesday reported quarterly revenue that beat analysts’ expectations, driven by higher prices on its drinks.
But those higher prices have hurt demand for Coke products like Simply Orange Juice and Fairlife Milk. Coke said its unit case volume, which strips out the impact of currency and price changes, fell 1% in its fourth quarter.

Shares of the company rose 1% in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

Earnings per share: 45 cents adjusted vs. 45 cents expected
Revenue: $10.13 billion vs. $10.02 billion expected

The beverage giant reported fourth-quarter net income attributable to the company of $2.03 billion, or 47 cents per share, down from $2.41 billion, or 56 cents per share, a year earlier.
Excluding an impairment charge tied to its Russian business and other items, Coke earned 45 cents per share.
Net sales rose 7% to $10.13 billion, driven by 12% growth in pricing and a more expensive mix of drinks sold.

Unit case volume was flat in North America and slipped 5% in its Europe, Middle East and Africa segment. CEO James Quincey said last quarter that European consumers were changing their behavior in response to soaring inflation.
Both Coke’s sparkling soft drinks segment and its water, sports, coffee and tea division reported flat volume for the quarter, although there were some bright spots. Coke Zero Sugar’s volume climbed 9%, and its coffee business saw volume increase 11% as the company expanded its Costa brand.
The weakest spot was Coke’s juice, value-added dairy and plant-based beverages segment, which saw its volume shrink 7% in the quarter. The company said the suspension of its Russian business weighed on the division.
For 2023, Coke projects comparable revenue growth of 3% to 5% and comparable earnings per share growth of 4% to 5%. Wall Street was forecasting revenue growth of 3.9% and earnings per share growth of 3% for the year.
Read the Coca-Cola earnings report here.

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5 Things to Know

New inflation data is due this morning.
President Biden is set to name Lael Brainard his top economic advisor.
NBC wants to bring back the NBA.

Pichai Pipatkuldilok / Eyeem | Eyeem | Getty Images

Here are the most important news items that investors need to start their trading day:

1. Feeling the love

Stocks shrugged off last week’s woes to finish in the green Monday. Will the bulls get another Valentine on Tuesday? A lot of that will depend on what the latest consumer price index number says about the state of the economy. (See below.) Other than that, investors will be looking at another interesting earnings slate, with Burger King owner Restaurant Brands and Coca-Cola reporting before the bell and Airbnb set to post results after the close. Follow live markets updates.

2. The heart of the matter

Sutthichai Supapornpasupad | Moment | Getty Images

Markets are hoping for a love letter straight from the Bureau of Labor Statistics’ heart, with the consumer price index inflation number due to hit at 8:30 a.m. According to Dow Jones, economists project that CPI grew 0.4% in January, which translates to 6.2% year-over-year growth. So-called core CPI, which excludes energy and food, is expected to rise 0.3% and 5.5%, respectively. But some market observers are girding for a surprise. If January’s CPI bucks recent trends and comes in stronger than expected, that could spook investors into thinking that the Fed will become even more aggressive in its rate-raising plan to tame price increases.

3. Biden’s choice

Lael Brainard, vice chair of the US Federal Reserve, prior to taking the oath of office during a ceremony in Washington, D.C., on Monday, May 23, 2022.
Al Drago | Bloomberg | Getty Images

Fed Vice Chair Lael Brainard is set to become President Joe Biden’s top economic advisor with Brian Deese on his way out. Multiple outlets reported that Brainard will take over as the head of the White House’s National Economic Council. Likewise, longtime Biden confidant Jared Bernstein is expected to soon replace Cecilia Rouse as chair of the Council of Economic Advisors. The move could position Brainard to be the next in line for Treasury secretary if Biden wins another term and Janet Yellen departs. Brainard, a Democrat with dovish economic views, is a veteran of Treasury Department during the Obama administration.

4. The real thing

Bottles of Coca Cola products are displayed in a cooler at Colonial Liquors on February 10, 2022 in Corte Madera, California.
Justin Sullivan | Getty Images

Coca-Cola’s earnings didn’t exactly set hearts aflutter on Wall Street, but they came in just fine. Earnings were in line with expectations, while revenue beat, driven by price increases. The beverage giant, a Dow component, also gave guidance for the year roughly in line with Street views. Economic issues were top of mind for the company’s leaders. “While 2022 brought many challenges, we are proud of our overall results in a dynamic operating environment,” CEO James Quincey said in an earnings release Tuesday morning.
Read more: Burger King’s owner crowns a new CEO

5. NBC’s heart’s desire

Michael Jordan #23 and the Chicago Bulls celebrate after winning the 1991 NBA Championship against the Los Angeles Lakers
Andrew D. Bernstein

It’s Pavlovian. Any time a longtime NBA fan hears “NBA on NBC,” they are likely to think of Marv Albert’s emphatic play-by-play, Michael Jordan’s heroics and John Tesh’s (yes, that John Tesh) epic theme music, also known as “Roundball Rock.” CNBC’s Alex Sherman delivered a big dose of nostalgia Monday evening when he reported that NBC would aggressively court the NBA once again, after 20 years without it. As things stand, Disney’s ABC/ESPN and Warner Bros. Discovery’s Turner Sports have broadcast rights for the NBA. But Warner CEO David Zaslav has said he’s skeptical of paying so much for NBA rights, and Comcast (which owns NBC and CNBC) senses an opportunity bring back the league. Amazon and Apple, of course, are also interested in pro basketball rights, and the NBA could end up with more than two partners after the 2024-25 season.

– CNBC’s Alex Herring, Jeff Cox, Amelia Lucas and Alex Sherman contributed to this report.
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Ford said it intends to cut 3,800 product development and administration jobs in Europe in the next three years.
The company attributed the layoffs to the transition to a “leaner” structure as it focuses on producing electric vehicles.
Roughly 2,300 jobs will be cut in Germany, 1,300 in the U.K. and 200 elsewhere in Europe.

Ford F-150 Lightning at the 2022 New York Auto Show.
Scott Mlyn | CNBC

Automaker Ford on Tuesday said it intends to cut 3,800 jobs in Europe over the next three years to adopt a “leaner” structure as it focuses on electric vehicle production.
The company plans to slash 2,300 jobs in production development and administration in Germany, 1,300 in the U.K. and 200 posts elsewhere in Europe. It said it will retain roughly 3,400 engineering roles in Europe, focused on vehicle design and development, alongside the creation of linked services.

The automaker said it employs approximately 34,000 people in Europe.
The overhaul will not affect Ford’s aim to offer an all-electric fleet by 2035. The company expects production of its first European-built electric passenger vehicle to start later this year.
“These are difficult decisions, not taken lightly. We recognize the uncertainty it creates for our team, and I assure them we will be offering them our full support in the months ahead,” said Martin Sander, general manager of Ford Model e in Europe.
“Paving the way to a sustainably profitable future for Ford in Europe requires broad-based actions and changes in the way we develop, build, and sell Ford vehicles. This will impact the organizational structure, talent, and skills we will need in the future.”
The Ford restructure comes as the company picks itself up from the ashes of brutal fourth-quarter results that were down $11 billion on the same period of last year and came in $1.1 billion short of the automaker’s own guidance. Ford Chief Financial Officer John Lawler attributed the company’s depressed earnings largely to execution and supply chain management hurdles, as the vehicle producer fell short of expected sales by 100,000 units last year.

“We have to change our cost profile,” Farley told CNBC on Feb. 3. “We know what we have to go after. I’d love to give you all the metrics and all the specific gaps we see. But you know, whether it’s absenteeism, the number of sequencing centers, the number of wiring harnesses we have, we know what it is.”
At the time, Farley signaled that the solution to Ford’s drive toward efficiency was not simply to cut jobs:
“There are things we could do in the short term, but I don’t want to just make the output the cuts without redesigning the work. This has to be sustainable and that’s how we’re thinking about it nowadays,” he said.
Automakers have been locked in a tight race to capture market share as they wheel in new and competitively priced electric vehicles.
During his fourth-quarter results presentation, Farley noted that Ford’s EV business was not yet profitable — a year after separating it from the company’s internal combustion engine business and upping its expected investment in EVs and other technologies to $50 billion by 2026.
The company on Jan. 30 announced plans to raise output and cut prices of its electric Mustang Mach-E crossover, within weeks of rival Tesla trimming prices for U.S.-sold models across the board and for its Model 3 and the Model Y within Europe.

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Wonya Lucas is the CEO of Hallmark Media, the parent of cable-TV networks such as the Hallmark Channel.
She was tasked with expanding its audience as subscribers leave the pay-TV bundle.
Lucas has focused on diversifying the casts and storylines of Hallmark’s content while staying true to the feel-good brand.

President and CEO at Hallmark Media Wonya Lucas speaks onstage during Hallmark Media’s star-studded kickoff of ‘Countdown To Christmas’ with a special screening of “A Holiday Spectacular” featuring the world famous Rockettes at Radio City Music Hall on October 20, 2022 in New York City.
Mike Coppola | Getty Images

Wonya Lucas landed a job as the CEO of the Hallmark Channel with two directives: Keep its brand intact and disrupt its playbook. At the same time. 
Since mid-2020, Lucas has been the CEO of Hallmark Media, the parent of the cable-TV network known for its romantic storylines and feel-good holiday movies. In that time, Hallmark has diversified its casts and storylines — and changed how the channel itself is distributed as subscribers flee for streaming services. And she’s done it all while staying true to the Hallmark brand, which Lucas said is always on her mind. 

“My first goal was understanding the audience, but then also understanding what I called the opportunity audience,” Lucas said in an interview with CNBC. 
Lucas is a veteran in the media industry. She held top jobs at Turner Broadcasting networks like TNT and TBS and also at the Discovery Channel — years before they were brought together in the Warner Bros. Discovery merger — as well as The Weather Channel and TV One. She also spent parts of her career on the brand management side of household consumer companies like Coca-Cola and Clorox. 
She credits that brand expertise for her focus and success at Hallmark. Her colleagues also point to that brand consciousness, even as she makes changes at Hallmark. 

Content rules 

Hallmark rakes in some of its highest ratings and buzz during its “Countdown to Christmas,” which begins in October with weekly holiday content.    
Courtesy: Hallmark Media

Under Lucas, Hallmark’s “Countdown to Christmas” movie slate has increasingly changed. 
This past season one of its most successful movies, “Three Wise Men and a Baby,” a play on the 1980s flick “Three Men and a Baby,” didn’t feature a plot that revolved around romance at all. But the storyline departure paid off: The movie about three brothers taking care of a mystery baby during the holiday season was the most-watched cable-TV movie of the year, averaging 3.6 million viewers, according to Nielsen.

“I think she’s very committed to drawing in a new audience and figuring this out. I came here for Wonya because she shared her vision of things with me, and I said, ‘Yes, I am signing on for that,'” said Lisa Hamilton Daly, Hallmark’s head of programming.  
Other films included “Christmas at the Golden Dragon,” about the family behind a Midwestern Chinese restaurant; “Hanukkah on Rye,” a romance about two competing deli owners; and “All Saints Christmas,” a tale about an R&B singer heading home for the holidays. 

Arrows pointing outwards

Christmas at the Golden Dragon.
Hallmark Media

“At the end of the day,” Lucas said, “the consumer needs or desires to see themselves in the love story.”
When Lucas became CEO of Hallmark Media, which also includes the Hallmark Movies and Mysteries network, it had also been coming out from under a firestorm of controversy. Earlier in 2020, Bill Abbott, the longtime CEO who had helped turn the network into a behemoth, left the company following a controversy over commercials featuring a same-sex wedding ceremony. Facing pressure from a conservative group, Hallmark pulled the ads. It reversed course shortly after a gay-rights advocacy group tried to launch an advertising boycott. 
Neither Hallmark nor Abbott have commented on why he left, but the controversy did stir questions about the network’s content. 

Zola ad of same-sex marriage.
Courtesy of Zola

Diversity was of the utmost importance when Lucas took over. Hallmark had been criticized for its films and series often dominated by storylines of heterosexual romance featuring primarily white casts. That meant that large swaths of the audience looking for more relatable content might feel shut out . 
“Her towering strengths met exactly what we needed to do in the business, at a time when we were trying to broaden the content and storytelling,” said Mike Perry, the CEO of Hallmark Cards, the parent company of Hallmark Media. 
“We needed someone strong strategically and someone who has a keen insight into our viewer. That’s Wonya,” Perry said.  
Tapping into the brand, Lucas thought about what they could draw from the greeting card line and its verticals, such as Mahogany, Hallmark’s decades-old line of Black American cards and products.
During Lucas’ short tenure, there have been more films centered on self-love, and others with storylines such as a plus-size woman finding love and a family helping their autistic son during the holidays. Although storylines are morphing, and the casts, while still chock full of fan favorites like “Mean Girls” and “Party of Five” star Lacey Chabert, have changed, Lucas and Hamilton Daly continue to work to keep the content true to Hallmark’s love-centric brand. 

Lisa Hamilton Daly, Hallmark’s head of programming (far left) and Wonya Lucas (far right) with actors Holly Robinson Peete and Lyriq Bent, who costarred in “Our Christmas Journey,” a 2021 film about family with an autistic son.  
Courtesy: Hallmark Media

Hallmark is also leaning more into content throughout the year, such as a summer movie theme — last year was travel, this year is weddings — and on various seasons besides the winter holidays. This month is “Loveuary” on the Hallmark Channel, with movies focused on love, but each with a twist, such as one about a chocolatier rumored to have the recipe to finding true love, and another about two strangers on a road trip realizing new priorities.
Hamilton Daly, who came to the cable-TV network after working as the director of scripted series at Netflix, stressed it was the change coming under Lucas that was her sole reason for taking the leap. 
“That was clear to me. There needed to be more diversity in both casting and storylines,” Hamilton Daly said. She pointed to “Three Wise Men and a Baby” and the new series called “Ride,” a drama about a family in the rodeo that has “Yellowstone” vibes, as examples of that push. 
“We took the leash off of some of our creators and told them to stay inside the bumpers of the brand, but have more leeway to think of stories in a different way,” said Hamilton Daly. “We also brought in new producers, from different places that I knew before.” 

Distribution diversity 

As the number of subscribers leaving the pay-TV universe accelerated in recent years, it was important to make sure Hallmark’s expanded audience had access to its content. 
But even with successes like “Three Wise Men and a Baby,” and Hallmark’s strong holiday season ratings, the network still saw a decline in viewership year over year as cord-cutting ramped up. 

Arrows pointing outwards

Three Wise Men and a Baby
Hallmark Media

In December, a peak ratings month for Hallmark, the network averaged about 1.3 million viewers, down about 40% from five years earlier. Overall in 2022, Hallmark Channel averaged 980,000 viewers, down 20% from 2018. 
Still, Hallmark commands some of the highest ratings on entertainment cable TV. “Countdown to Christmas” begins as early as October, and the channel is the top-watched entertainment cable network among households, total viewers and various age groups among women during the fourth quarter of the year. 
While Lucas thinks there’s life left in linear TV, Hallmark streaming is a chief priority.
Hallmark does have a subscription streaming service, Hallmark Movies Now, which begins at $4.99 a month. Last month, Lucas hired Emily Powers, who helped grow niche streamer BritBox’s North America business, to run Hallmark’s streaming and digital platform division. She’s tasked with relaunching Hallmark’s streaming service and future ad-supported channels. 
Additionally, Hallmark is available not only on virtual pay-TV bundles like FuboTV, but also smaller competing services like FrndlyTV and Philo, which have cheaper subscriptions and target audiences only looking for entertainment channels. News and sports, which snag the highest ratings, elevate the costs of pay-TV bundles. 
Lucas also has been thinking outside of the box. She said she isn’t interested in the typical licensing deals with streaming services where they just provide content that gets lost in the shuffle.
This speaks to the deal Hallmark signed with NBCUniversal’s Peacock last year. 
“To be honest, when Peacock knocked on the door, I thought it was going to be the same conversation and I went into it thinking, ‘OK, this will be over in like 10 minutes,'” said Lucas. “But they had me when they described their services as being centered around fandom.” 
The deal made Lucas think of when she worked at TNT and the network had rights to WWE wrestling matches. WWE taught her the importance of fandom when delivering content. 
What made the deal different was that it included simulcasts of Hallmark networks on Peacock.  
“It took a lot of forward thinking for Wonya to think, ‘How do I get better distribution and streaming distribution for my content, and still maintain [traditional pay-TV deals], which I think she navigated successfully,'” said Mark Lazarus, NBCUniversal’s head of TV and streaming, who worked with Lucas decades ago at Turner. 
Lucas admitted it did take some negotiating to smooth any ruffled feathers with their traditional distribution partners. 
“I think Hallmark is a great fit for her because it aligns with her values and positive energy,” said Lazarus.
Lucas’ focus on the integrity of brands tends to steer most of her thinking, something that stuck out to several leaders she’s worked with in the industry. 
“She’s an ace at navigating brands, from The Weather Channel to Hallmark. She’s always thinking about how you propel the brand and what partnerships do that,” said Rashida Jones, president of MSNBC. Jones was an up-and-coming producer at The Weather Channel when Lucas was in charge. 
The two ran into each other recently at the Sundance Film Festival. Jones said it has been probably 20 years since they’d last seen each other. “I finally got to tell [Lucas] how much I looked up to her at the time I worked with her,” Jones said.
“You know the phrase, ‘If you can see it, you can be it?’ I know it’s cliche, but it’s true. She was one of the earliest examples of a woman, and a woman of color at that, at the helm,” Jones added. “I always said if I can do a quarter of what Wonya did in her career, I would consider myself successful.” 
Disclosure: Comcast owns NBCUniversal, the parent company of CNBC and MSNBC.

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