Business

The Justice Department is dropping its case against Fat Brands and Andy Wiederhorn, the restaurant operator’s chair.
More than a year ago, the company and Wiederhorn were indicted for an alleged “sham” loan scheme.
The reversal comes after the DOJ’s shake-up following the start of President Donald Trump’s second term.

Andy Wiederhorn, former Fatburger CEO.

The Justice Department is dropping its case against Fat Brands and its chair Andy Wiederhorn.
In May 2024, the company and Wiederhorn were indicted by a federal grand jury in Los Angeles on charges of wire fraud, tax evasion and other counts related to what prosecutors alleged was a “sham” loan scheme that netted Wiederhorn $47 million.

On Tuesday, federal prosecutors filed to dismiss all charges against Wiederhorn, two other people and the restaurant company that owns Fatburger, Johnny Rockets and Great American Cookies.
Wiederhorn has maintained his innocence since he was indicted. He was previously convicted about two decades ago for filing a false tax return and paying an illegal gratuity to an associate, serving more than a year in federal prison.
“With this indictment behind us, I look forward to focusing on the continued growth and success of FAT Brands,” he said in a statement.
Wiederhorn stepped down as CEO of Fat Brands in 2023 after the company disclosed that the U.S. Securities and Exchange Commission was investigating him. Fat Brands and Wiederhorn haven’t resolved the separate civil complaint from the SEC stemming from the same alleged conduct that sparked the Justice Department charges.
Prosecutors also asked the federal court to dismiss separate criminal charges levied against Wiederhorn of being a federal felon in possession of a handgun and ammunition.

The reversal from the DOJ comes after the agency’s shake-up following the start of President Donald Trump’s second term. In March, the White House fired Adam Schleifer, the assistant U.S. attorney in Los Angeles who led the prosecution against Wiederhorn. Schleifer later alleged that his dismissal was the result of a smear campaign against him led by Wiederhorn.
Despite the turnover, Justice Department officials in California told The Oregonian in April that the prosecution against Fat Brands and Wiederhorn would continue.
Months earlier, the company donated $100,000 to Trump’s inauguration fund.
Shares of Fat Brands climbed 7% Wednesday morning on the news. The stock has a market cap of less than $43 million.

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Cinemark is adding 20 new ScreenX theaters to its portfolio, expanding its partnership with South Korea-based CJ 4DPlex.
CJ 4DPlex Americas CEO Don Savant said six of those new screens will be open in time for the openings of “Wicked: For Good” and “Avatar: Fire and Ash.”
While premium large format receipts still represent a small portion of the overall box office, it’s a growing segment of the business.

ScreenX is the world’s first multi-projection cinema with an immersive 270 degree field of view.

Singing witches and blue aliens are set to hit the big screen before the end of the year and bring in droves of moviegoers. Cinemark is preparing for the high demand by adding more unique premium screens to its U.S.- and Latin America-based locations.
On Wednesday, the third-largest U.S. cinema chain announced it’s adding 20 new ScreenX theaters to its portfolio, expanding its partnership with the South Korea-based CJ 4DPlex. Eighteen of those screens will be built in the U.S.

The expansion marks ScreenX’s first foray into Latin America.
ScreenX is a premium film format that utilizes additional displays on the right and left walls of the auditorium, called wings, to create a 270-degree panoramic field of view. Cinemark already has six ScreenX locations and expects to open six more before the end of the year.
“That’s been a big goal for us, to get as many theaters open for the last part of the year for ‘Wicked: For Good’ and, of course, ‘Avatar: Fire and Ash,’ which is such a seminal movie for all of the industry,” Don Savant, CEO of CJ 4DPlex Americas, told CNBC.
CJ 4DPlex and Cinemark entered into a six-theater beta test together in 2022, but with the dual writers and actors strikes delaying production and theatrical releases, it took longer to expand the number of locations domestically, Savant said.
“They just needed to see a consistent flow of content,” he said.

The investment from Cinemark in adding more ScreenX theaters is part of a wider trend in the theatrical industry. In the wake of the pandemic, moviegoers have gravitated more and more toward seeing films on premium large format screens. These locations, often referred to as PLFs, offer an elevated viewing experience and charge higher ticket prices. The physical screens are often bigger than traditional movie screens or have auditoriums that feature higher-quality sound systems or seating options.
CJ 4DPlex is also the company behind 4DX movie theaters, auditoriums with motion seats, practical effects and sensory elements to immerse viewers in a movie.
Savant said the company is focused on “differentiating cinema” and providing audiences with experiences they can’t get from streaming offerings or in-home entertainment systems.
While PLF receipts still represent a small portion of the overall box office, it’s a growing segment of the business. And moviegoers have demonstrated they’re willing to pay more for these experiences.
So far this year, premium tickets have represented 22% of domestic sales, according to movie data firm EntTelligence. The average cost of an adult ticket year to date for a PLF is $17.61, nearly a dollar higher than the same ticket during the end of 2024.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC. NBCUniversal is the distributor of “Wicked: For Good.”

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The AIA/Deltek Architecture Billings Index (ABI) remained in negative territory in June with a score of 46.8, down from 47.2 in May. Anything below 50 is considered negative sentiment. 
“Business conditions were soft nationwide in June, with a slight billing increase in the South for the first time since October,” said Kermit Baker, chief economist at AIA, the American Institute of Architects.
One bright spot was inquiries into new projects, which increased for the second consecutive month and grew at the strongest pace since last fall.

Two architecture teachers discuss a student’s final project work.
Erdark | E+ | Getty Images

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Architecture firms are reporting a drop in billings as concerns about the broader economy and tariffs impact commercial real estate development and spending.

The AIA/Deltek Architecture Billings Index (ABI) remained in negative territory in June with a score of 46.8, down from 47.2 in May. Anything below 50 is considered negative sentiment. 
“Business conditions were soft nationwide in June, with a slight billing increase in the South for the first time since October,” said Kermit Baker, chief economist at AIA, the American Institute of Architects. “Other regions saw declining billings, though at a slower pace. While all specializations experienced softer billings, the decline slowed for commercial/industrial and institutional firms. Multifamily firms faced the weakest conditions, with further declines.”

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One bright spot was inquiries into new projects, which increased for the second consecutive month and grew at the strongest pace since last fall with a score of 53.6. This suggests that clients are starting to send out requests for proposals and will start working with architecture firms on potential projects. 
AIA notes that these inquiries do not necessarily translate into actual projects. The value of newly signed design contracts also fell for the 16th straight month. Billings are not likely to improve until the value of these new design contracts also sees gains. 
The AIA also put out its midyear forecast:

First the good news: In spite of stubbornly high long-term interest rates, inflation rates stalled above the Federal Reserve Board’s target, falling consumer confidence scores, disappointing levels of home building activity, rising tariff rates for many inputs to construction, and construction labor shortages exacerbated by restrictive immigration policies, the outlook for the remainder of the year and into 2026 is largely unchanged from where it was at in the beginning of the year.  
The bad news: The outlook for spending entering the year was very pessimistic. 

The AIA forecasts that overall spending on nonresidential buildings, not adjusted for inflation, will increase only 1.7% this year and grow very modestly to just 2% next year. 
Spending on the construction of manufacturing facilities, which had been a bright spot in recent years, is now expected to decline 2% this year, with an additional drop of 2.6% next year. Institutional facilities are expected to be the strongest sector with projected gains of 6.1% this year and another 3.8% in 2026.
In addition to a slowing economy, unclear and constantly changing tariff policy is creating growing uncertainty in the architect, engineer and construction services industry. 
“Not knowing what products will cost in the future, whether they will be available, how these changes might affect their supply chain, and whether they will provoke a trade war with the exporting countries are all questions that the AEC industry is asking before proceeding with planned projects,” according to the report. 

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Starbucks reported that same-store sales fell for a sixth straight quarter as CEO Brian Niccol tries to implement a turnaround strategy.
The company beat Wall Street’s quarterly revenue estimates, and comparable sales in China rose.

Consumers walk in front of a Starbucks coffee shop in Galeria Krakowska shopping mall in central Krakow, Poland, on July 11, 2025.
Dominika Zarzycka | Nurphoto | Getty Images

Starbucks on Tuesday reported its sixth straight quarter of same-store sales declines as the company implements a turnaround strategy.
CEO Brian Niccol said in a statement that the company’s comeback is ahead of schedule, based on his past experience, which includes turning around Chipotle Mexican Grill after a series of food-safety scandals.

“While our financial results don’t yet reflect all the progress we’ve made, the signs are clear — we’re gaining momentum,” Niccol said in a prerecorded video published with the earnings report. 
Shares of the company rose 4% in extended trading.
Here’s what the company reported for the quarter that ended June 29 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

Earnings per share: 50 cents adjusted. It was not immediately clear if it was comparable to the 65 cents expected.
Revenue: $9.5 billion vs. $9.31 billion expected

Starbucks reported fiscal third-quarter net income attributable to the company of $558.3 million, or 49 cents per share, down from $1.05 billion, or 93 cents per share, a year earlier.
Excluding restructuring costs and other items, the company earned 50 cents per share. A discrete tax item and a one-time investment hosting the company’s three-day event for U.S. store managers weighed on the company’s earnings per share by 11 cents.

Net sales rose 4% to $9.5 billion. 
But global same-store sales declined 2%, a steeper drop than estimates of a 1.3% decrease, according to StreetAccount estimates.
However, Starbucks’ North American cafes performed better than expected. The chain’s North American same-store sales fell 2%, a smaller decline than the 2.5% projected by Wall Street, according to StreetAccount. Transactions fell 3%, but average ticket rose 1% in the quarter.
“In the U.S., partner engagement is rising, customer connection scores are up, shift completion is at a record high, non-Starbucks Reward customer transactions returned to growth, and more coffeehouses are delivering positive transaction comps,” Niccol said in the video.
On the company’s conference call, he told analysts that the company’s licensed stores on college campuses saw same-store sales increase, showing that younger consumers are reconnecting with the brand.
To bring back customers, Starbucks is doubling down on hospitality. The chain is rolling out its “Green Apron Service” program, which emphasizes customer interactions. Executives have said that the program tested successfully, leading the company to accelerate its rollout.
The chain is also building fewer new U.S. locations, instead focusing on improving its current cafes. In recent years, Starbucks had removed seats from many of its cafes, citing the shift to mobile ordering and drive-thru transactions. But Niccol wants to replace thousands of removed seats as part of a broader effort to make its cafes comfortable again.
In China, the company’s second-largest market, Starbucks reported same-store sales growth of 2% for the quarter. Transactions climbed 6%, but average ticket fell. Starbucks has cut prices for its drinks in China to compete better with lower-priced rivals, such as Luckin Coffee.
This quarter marked the first time in a year and a half that the company’s China business saw its same-store sales increase. Under pressure from increased competition, a weaker economy and the distraction of the struggling U.S. business, Starbucks has been weighing selling a stake in its China business, which overall could be valued at up to $10 billion, CNBC has previously reported.
“We’ve received significant interest from more than 20 interested parties, and we’re evaluating options,” Niccol told analysts. “We remain committed to our China business and want to retain a meaningful stake.”
Heading into the final quarter of the company’s fiscal year, Chief Financial Officer Cathy Smith said the company is “conservative” on how Starbucks’ results will look in the fiscal fourth quarter compared with the year-ago period. She cited an uncertain consumer environment, although she also noted the company’s excitement about its coming innovation and the return of the Pumpkin Spice Latte.
Over the next year, Starbucks plans to invest $500 million in labor, including the rollout of the “Green Apron Service” program, according to Smith.
Starbucks yanked its full-year forecast in October, shortly after Niccol took the reins of the company and months before Smith joined.
Looking ahead to fiscal 2026, Starbucks has big plans. Niccol said the chain will launch protein cold foam, improved artisanal food options, coconut-water based drinks, a new Starbucks app and a “refreshed” Rewards program.
The company plans to host an investor day in the fiscal second quarter of 2026.

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Athleta poached top Nike executive Maggie Gauger to become its next CEO — its third in two years.
Gauger led Nike’s women’s business in North America and her departure is a blow to the sneaker giant, which is trying to grow its women’s segment.
Since Elliott Hill took the helm of Nike last fall, he has made the women’s business a central part of his strategy as he works to turn around the business and return it to growth. 

A Nike and Athleta store.
Kylie Cooper | Reuters | Michael Brochstein | SOPA Images | LightRocket | Getty Images

Gap’s Athleta has tapped the head of Nike’s women’s business in North America as its next CEO, delivering a blow to the sneaker company as it tries to win back more female shoppers. 
Maggie Gauger, who has spent more than 20 years at Nike, is the third CEO hired to helm Athleta in the last two years as the women’s athleisure brand’s sales decline. She’ll replace Chris Blakeslee, the former Alo Yoga executive who was hired to replace Mary Beth Laughton in 2023. 

Under Blakeslee’s direction, Athleta partnered with high-profile athletes such as swimmer Katie Ledecky and WNBA star Kate Martin, and won over new shoppers with different types of products. However, the strategy has not translated with Athleta’s existing customer base. For four out of the past six quarters, the brand’s revenue and comparable sales dropped, which dragged down its parent company’s overall performance. 
“Over the past two years, Chris has led the early stages of Athleta’s reset, recentering the brand to win with innovative performance product and refining the brand’s point of view, helping to position Athleta for the future,” Gap CEO Richard Dickson said in a news release.
“We are thrilled for Maggie Gauger to join as CEO of Athleta as we look to accelerate the brand’s reinvigoration. Maggie blends proven business transformation capabilities, deep consumer centricity, product fluency, and a heartfelt commitment to empowering women and girls. This combination of skills and experiences will equip her to lead Athleta into its next chapter of growth.”
Gauger’s decision to become Athleta’s next CEO is a big win for a brand so squarely focused on serving female shoppers, but a major loss for Nike at a pivotal time for the sneaker giant. 
Since Elliott Hill took the helm of Nike last fall, he has made the women’s business a central part of his strategy as he works to turn around the business and return it to growth. 

In its first Super Bowl ad in decades, Nike targeted female athletes in its “So Win” campaign. It later announced it would be partner with Kim Kardashian’s activewear line Skims as it looked to get an edge over competitors such as Athleta, Alo Yoga and Vuori. 
Nike has said previously that about 40% of its customers are women, but most apparel brands prefer to have more female consumers than male because they tend to shop more and spend more on clothes. Plus, the gender gap has given Nike’s competitors a foothold in the athletic apparel business, which could be a growth area for the company. 
Gauger was in charge of closing that gender gap in Nike’s most important market, but now that work will fall to a new leader, adding another layer of transition at a vulnerable time for company. 
Still, the company’s leadership bench is still well stacked. Amy Montagne, the current president of Nike, previously served as the head of the brand’s global women’s division and has been with the retailer for 20 years.
Gauger is slated to take on the new role on Aug. 1 and Blakeslee will stay on as an advisor to “support a smooth transition,” the company said in a press release. Nike did not respond to CNBC’s request for comment. 

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United Airlines and the flight attendants’ union reached a tentative agreement for a new labor deal in May.
The tentative labor deal called for immediate raises of at least 26%, as well as other quality-of-life improvements.
Of the 92% of eligible voters who cast ballots, 71% voted against the contract, the union said.

United Airline flight attendants picketed outside Terminal B at Logan Airport, seeking a new contract.
John Tlumacki | Boston Globe | Getty Images

United Airlines flight attendants voted down a new labor contract that called for immediate raises of at least 26% and other quality-of-life improvements, their union said Tuesday.
The flight attendants’ last raise was in 2020. Their union, the Association of Flight Attendants-CWA, which represents the airline’s some 28,000 cabin crew members, and the airline had reached a tentative agreement in May.

“United Flight Attendants today voted to send a strong message to United Airlines management by rejecting a tentative agreement that didn’t go far enough to address the years of sacrifice and hard work to make the airline the success it is today,” said Ken Diaz, president of the union’s United chapter.
He said the union will survey members on key improvements they want in another contract.

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Of the 92% of eligible voters who cast ballots, 71% voted against the contract, the union said.
U.S. flight attendants have pushed for wage increases for years. Flight attendants at other airlines, pilots and other work groups secured new labor deals in the wake of the Covid-19 pandemic.
United’s flight attendants voted last year to authorize the union to strike if a deal wasn’t reached. They had also sought federal mediation for the labor talks.

The airline said in a statement that it will keep working with the union.
“Our flight attendants are the best in the industry and this tentative agreement included numerous improvements and industry-leading pay,” United said in a statement. “While this vote will result in a delay and the AFA has outlined several steps to return to negotiations, including coordination with the National Mediation Board, we remain focused on getting our flight attendants the contract they deserve.”

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Royal Caribbean Cruise Group raised its full-year guidance.
Royal Caribbean reported growth in bookings during the second quarter from the prior period, especially from travelers booking closer to their departure date.
CEO Jason Liberty told CNBC the cruise company is adapting to take advantage of evolving consumer preferences.

Royal Caribbean raised its full-year guidance Tuesday on the back of strong cruise bookings.
The company now expects 2025 earnings of between $15.41 and $15.55 per share on an adjusted basis, up from prior earnings per share guidance of $14.55 to $15.55.

CEO Jason Liberty noted traveler preferences are evolving, saying there’s an increase in people choosing to vacation more frequently and are opting for experience-driven travel. Royal Caribbean said 75% of consumers report they plan to spend the same amount or more on leisure travel over the next 12 months.
“Our experiences are designed to meet these evolving expectations,” Liberty said.
Royal Caribbean reported growth in bookings during the second quarter from the prior period, especially from travelers booking closer to their departure date. It’s a trend Liberty attributed to the growing number of younger cruisers, with millennials or younger generations now accounting for about half of total guests. And, they’re willing to pay a premium, Liberty added.
“In the weeks coming up to a sailing, the very few cabins that we would have left on each voyage, people not only were trying to get those cabins, but they were willing to pay considerably more money to ensure they get the vacation experience that they’re looking for,” Liberty said in an interview.
The company reported second-quarter adjusted earnings per share of $4.38 on revenue of $4.54 billion. Wall Street had expected earnings per share of $4.09 and revenue of $4.55 billion, according to estimates compiled by LSEG.

The cruise line’s income rose to $1.2 billion, or $4.41 per share, an increase from $854 million, or $3.11 per share, a year earlier.
Meanwhile, the cruise line reported capacity was up 5.8% compared to the year before, with 2.3 million guests taking a Royal Caribbean cruise during the second quarter.
Still, shares of Royal Caribbean fell 5% Tuesday.
The company noted bookings for its new ships launching this year, Star of the Seas and Celebrity Xcel, are performing well.
“The strong demand we are seeing across our new ships and land-based destinations reinforces that our strategy is working and resonating with today’s traveler,” Liberty said.
— CNBC’s Krysta Escobar and Dawn Giel contributed to this report.

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NFL Commissioner Roger Goodell told NFL employees that one league employee has been seriously injured in a shooting Monday.
He said everyone else at the NYC headquarters has been accounted for.
The shooting, which was first reported at 6:30 p.m. Monday, was at 345 Park Avenue in New York, where several major businesses — including Blackstone, KPMG and the NFL — are located.

NFL Commissioner Roger Goodell told employees in an email early Tuesday morning that one of the league’s employees was seriously injured in a Monday shooting at a Midtown Manhattan office tower.
“A gunman committed an unspeakable act of violence in our building at 345 Park Avenue,” Goodell said. “The employee is in stable condition and NFL staff are at the hospital supporting his family.”

The commissioner said the NFL believes all other employees are safe and accounted for.
The shooting, which was first reported at 6:30 p.m. Monday, was at 345 Park Avenue in New York, where several major businesses — including Blackstone, KPMG and the NFL — are located.
Police said 27-year-old Shane Devon Tamura drove from Las Vegas to New York and opened fire at the building, killing four people, including New York police officer Didarul Islam. The suspect also died, according to police. Tamura worked in the surveillance department at Horseshoe Las Vegas, Caesars said.
Blackstone said one of its employees, Wesley LePatner, was killed in the shooting.

An NYPD officer and at least four civilians were killed in a shooting at an office skyscraper, home to the NFL, Blackstone and KPMG, in midtown Manhattan on Monday evening on July 28, 2025.
Selcuk Acar | Anadolu | Getty Images

In a press conference on Tuesday, New York City Mayor Eric Adams said a preliminary investigation indicated Tamura intended to go to NFL offices but took the wrong elevator bank.

Adams said authorities found a note the gunman left that might have suggested a grievance against the NFL over a claim that he suffered from chronic traumatic encephalopathy, or CTE.
CTE is a brain injury thought to be linked to repeated trauma to the head.
Tamura played high school football in California but never played in the NFL, Adams said.
Goodell told New York employees that they should work remotely on Tuesday and that he will be increasing security at the building in the days and weeks to come.
He also directed employees to grief counselors and support options.
“Every one of you is a valued member of the NFL family. We will get through this together,” Goodell said.
If you or someone you know is in crisis, call or text 988 to reach the Suicide and Crisis Lifeline or chat live at 988lifeline.org. You can also visit SpeakingOfSuicide.com/resources for additional support.
Correction: This story has been updated to correct a time reference to when Tamura played high school football. More