Restaurants/Pubs

Gulf IPO may be Delivery Hero’s only tasty morsel

11 Nov 2024

The Frankfurt-listed group is selling 15% of Talabat in Dubai. A potential $13 bln valuation would mean an arm with a third of its sales is worth more than Delivery Hero itself. Yet beyond the Gulf, a value-boosting breakup looks hard given the business overall makes a loss.

McDonald’s moves off the grill and into the fryer

23 Oct 2024

An E. coli outbreak prompted the $210 bln fast-food chain to yank its Quarter Pounder in some places. The response suggests it can handle a health crisis quicker than Chipotle did. With high prices already hurting sales, though, it can’t afford to scare off more customers.

Beijing IPO meddling leaves bad taste in Hong Kong

23 Sep 2024

Regulators have put three bubble tea firms’ offerings on hold. Why? Because listed peers have performed poorly amid tough competition, Reuters reports. That may be true, but it’s a decision for companies and investors. China’s heavy handedness bodes ill for the city’s bourse.

Big Beer’s stumbles leave investors ice cold

14 Aug 2024

Heineken shares are down after it disappointed investors hoping for a sport-fuelled profit party. Rival Carlsberg’s valuation has fallen due to a $4 bln soft drinks takeover. For CEOs, emerging markets growth and deals in the right areas are the only way to add fizz to stocks.

Starbucks CEO starts with venti expectations

13 Aug 2024

The coffee chain added over $20 bln in market value as it named former Chipotle chief Brian Niccol as its new boss. Niccol has useful skills, from digital marketing to steering founder-led companies. Starbucks is bigger, though, as are the personalities he will have to navigate.

Diageo’s succession hangover has fuzzy duration

30 Jul 2024

The $67 bln drinkmaker’s 2023 promotion of CEO Debra Crew was seamless. But Diageo’s share price has slumped since, and some of the problems are self-inflicted. Crew’s future may hinge on a rebound of US consumer sentiment, rather than any bold change of strategy.

Booze-free beverages are no small beer

11 Jul 2024

Carlsberg’s $4 bln deal to buy soft-drinks maker Britvic is just the latest foray by a big brewer into serving the alcohol-averse. In this Viewsroom podcast, Breakingviews columnists discuss whether it’s a seismic tobacco-like shift or a frothy attempt to fizz up profit margins.

Big Beer’s low-alcohol Plan B has too much froth

9 Jul 2024

Carlsberg, AB InBev and Asahi have set toppy targets for their teetotal products. Health concerns and Gen Z’s aversion to alcohol imply that’s a safe bet. But at $13 bln the market is still puny – and if the likes of Coca-Cola muscle in there will be a smaller barrel to share.

Britvic can swerve Carlsberg dilution

21 Jun 2024

The soft drinks maker rebuffed a $4 bln cash deal from the Danish beer giant. Carlsberg wants to boost its no-alcohol business, so may yet return with a more generous offer. But Britvic’s cocktail of geographic expansion and low-sugar drinks means it can also grow on its own.

Big Macs are pricing out American shoppers

23 May 2024

The driving force of the world’s largest economy, US consumers, may be buckling under higher costs on everything from lattes to burgers. In this Viewsroom podcast, Breakingviews columnists debate whether Main Street stalwarts like Starbucks or McDonald’s face a reckoning.

US antitrust push invites creative dealmaking

4 Apr 2024

Policymakers and trustbusters are eyeing new restrictions on mergers and acquisitions. In this Viewsroom podcast, Breakingviews columnists unpack some imaginative workarounds being used by companies ranging from Big Tech to fast food.

McDonut is a happy meal without M&A mess

26 Mar 2024

Krispy Kreme will sell donuts at McDonald’s, sending shares in the pastry maker up 25%. That cuts costs to build stores, akin to synergies, while the $200 bln burger chain takes on little risk. In a world with high rates and harsh trustbusters, it’s a smart twist on dealmaking.

Starbucks union is labor’s mighty mouse moment

6 Mar 2024

An organization representing workers withdrew its board nominees for the $103 bln coffee company after getting some concessions, which look perfunctory. But the structure of Starbucks’ workforce isn’t amenable to successful collective bargaining. Even a small labor win is a win.

Capital Calls: HSBC, Delivery Hero

30 Jan 2024

Concise views on global finance: The global bank will pay a 57 mln pound penalty for misreporting depositor protection data; the Frankfurt-listed meal delivery company has sold a 4.5% stake in rival Deliveroo, at a loss.

Diageo investors seem braced for a beerier future

30 Jan 2024

The $78 bln drinks giant’s sales of spirits fell in the second half of 2023, but Guinness held up. If investors thought Diageo could hit its sales targets, it would be worth more. One takeaway is that they think more of its future revenue could come from less highly valued beer.

Capital Calls: UK real estate merger

11 Jan 2024

Concise views on global finance: LondonMetric’s all-share move for domestic peer LXi isn’t a bargain, but creates a 4 bln pound landlord with benefits for both sides.

Starbucks strike is a union buzzkill

16 Nov 2023

Baristas at 200 stores will walk out during the $118 bln chain’s “Red Cup” promotion. It’s bold given the state of organized labor, but threatens little impact. A coffee shutdown just isn’t as disruptive as freezing capital-intensive, lengthy production cycles for cars or movies.

Capital Calls: McDonald’s resilience

30 Oct 2023

Concise views on global finance: The Golden Arches’ global same-store sales rose 9% thanks to both selective menu-price increases and smaller meals in different markets. It demonstrates the company’s ability to keep pace with disparate economies’ stretched consumers.

Apollo may get noodle LBO thrown back in its face

12 Oct 2023

The buyout group could gobble up the UK-listed owner of the Wagamama chain for $862 mln. It looks like a good deal for the acquirer. Apollo’s decision to drop its John Wood takeover this year shows it’s no soft touch, but investors can still hold out for a better dish.

Capital Calls: Deliveroo

14 Sep 2023

Concise views on global finance: The UK food delivery company’s shares rose 5% amid hopes of a potential deal, but a rich takeout looks unlikely.