Core Insights - Generative AI is viewed as a transformative technology by Amazon's CEO Andy Jassy, indicating its potential to significantly enhance customer experiences across the company [1] - Elon Musk predicts that humanoid robots could create a market worth $250 trillion by 2040, representing a substantial shift in the global economy driven by AI innovation [2][3] - Major firms like PwC and McKinsey acknowledge the multi-trillion-dollar potential of AI, suggesting a broad consensus on its economic impact [3] Company and Industry Analysis - A breakthrough in AI technology is believed to be redefining work, learning, and creativity, leading to increased interest from hedge funds and top investors [4] - There is speculation about an under-owned company that may play a crucial role in the AI revolution, with its technology posing a threat to competitors [4][6] - Prominent figures in technology and investment, including Bill Gates and Warren Buffett, recognize AI as a significant advancement with the potential for substantial social benefits [8] Market Opportunities - The AI ecosystem is expected to reshape business, government, and consumer operations globally, indicating a vast market opportunity for investors [2] - The narrative suggests that investors may soon regret not owning shares in a specific AI company that is positioned to capitalize on this technological wave [9]

Core Insights - Wingstop Inc. (WING) has experienced a decline in performance, likened to the myth of Icarus, suggesting that the company may have overextended itself [1] Company Overview - Wingstop is a player in the U.S. restaurant industry, which includes various segments such as quick-service and fast casual dining [2] - The company has been under scrutiny for its recent performance, indicating potential challenges in maintaining growth [1] Analyst Background - The analysis is conducted by a seasoned equity analyst with a focus on the U.S. restaurant sector, utilizing advanced financial modeling and sector-specific KPIs to identify investment opportunities [2] - The analyst has a comprehensive background in finance and business management, holding an MBA in Controllership and Accounting Forensics, along with a Bachelor's in Business Administration [2]

THIS IS "THE CLOSE." ROMAINE: STOCKS GETTING SOME OF THEIR MOJO BACK. I'M ROMAINE BOSTICK. >> I'M KATIE GREIFELD.WE ARE KICKING OFF TO THE CLOSING BELL. SOME MOJO. THAT IS HIGHER THAN WHERE WE FINISH THE DAY.CONSIDER WE WERE A LITTLE BIT HIGHER SO IT LITTLE BIT OF AN ENTHUSIASM DRAIN, LEADING THE WAY. IT IS HIGHER BY ABOUT TWO BASIS POINTS. IT WAS A LITTLE BIT MORE HAWKISH THAN SOMEWHERE EXPECTING.AND BITCOIN BITCOIN DOWN ABOUT 2%. ROMAINE: WE WILL TALK ABOUT WHY WE ARE SEEING WEAKNESS IN STOCKS. A MAJOR DR ...

Market Overview - Major U.S. indices showed a rebound with the S&P 500 up approximately 0.6%, the Dow up about 0.3%, and the Nasdaq composite up around 0.8% [6] - The trading day ended with a total of 317 stocks advancing and 185 declining, indicating a generally positive market sentiment [7] Booking Holdings - Booking Holdings reported earnings per share (EPS) of $48.80, aligning closely with street estimates, and revenue of $6.35 billion, slightly above the expected $6.13 billion [8][9] - Gross bookings reached $43 billion, surpassing the anticipated $41.99 billion, but the stock saw limited movement post-announcement [9] - The company’s CEO emphasized the focus on generative AI as an opportunity rather than a threat, aiming to enhance value for travelers and partners [11][12] - Booking Holdings anticipates first-quarter room nights to increase by 5% to 7% and gross bookings growth in the low double digits, with a forecast of 14% to 16% growth for the first quarter [13] Avis Budget - Avis Budget reported a revenue miss of $2.66 billion against expectations of $2.74 billion, resulting in a net loss attributed to a $518 million asset impairment [15] - The company noted a 21% decrease in per unit fleet costs but provided a full-year adjusted EBITDA forecast of $800 million to $1 billion, with the upper end below street estimates [15] Omnicom - Omnicom's fourth-quarter revenue was reported at $5.5 billion, exceeding the street estimate of $4.52 billion, although adjusted EPS was slightly below expectations at $2.59 [17] Cadence Design Systems - Cadence Design Systems experienced a significant stock increase of approximately 7.6% after reporting fourth-quarter results that beat expectations and provided a positive outlook [18] Wingstop - Wingstop shares rose about 10% after reporting adjusted EPS and domestic comp sales growth for the fourth quarter that exceeded consensus estimates, despite concerns about consumer spending [20] DoorDash - DoorDash's fourth-quarter EPS was reported at $0.48, missing estimates of $0.55, with revenue also falling short of expectations for the first quarter [21][22] eBay - eBay's fourth-quarter net revenue was $2.97 billion, surpassing estimates of $2.87 billion, and the company announced plans to acquire Depop from Etsy for approximately $1.625 billion [23][25] Molson Coors - Molson Coors reported net sales of $2.66 billion, slightly below analyst estimates, but underlying EPS beat expectations at $1.21 per share [26] - Year-over-year net sales declined by about 3%, reflecting ongoing challenges in the beer market [27] Carvana - Carvana's fourth-quarter adjusted EBITDA was reported at $511 million, missing the street estimate of $535.7 million, while revenue was $5.6 billion, exceeding expectations [28]

And right now we are 2 minutes away from the end of the trading day. Romaine Bostick here with Katie Greipel taking you through to that closing bell with the global simulcast Carol Massar and Tim Stenovec pop up on the screen. Welcome to our audiences across all of our Bloomberg platforms.That's television, that's radio. That's our partnership with YouTube passing the most crucial moments of the day. Carol Massar Yes, we had a little bit of a rebound rally here on the day, some of the gains being given back ...

Financial Performance - System-wide sales increased by 12.1% year-over-year to approximately $5.3 billion for fiscal year 2025[178] - Total revenue rose by 11.4% to $696.9 million, with net income increasing by 60.3% to $174.3 million, or $6.21 per diluted share[178] - Adjusted EBITDA increased by 15.2% to $244.2 million compared to $212.1 million in the prior fiscal year[178] - Total revenue for fiscal year 2025 was $696.9 million, an increase of $71.0 million, or 11.4%, compared to $625.8 million in fiscal year 2024[193] - Adjusted net income for fiscal year 2025 was $114.5 million, compared to $110.3 million in fiscal year 2024, with adjusted earnings per diluted share increasing to $4.08 from $3.75[192] Restaurant Growth - The total number of restaurants reached 3,056, representing a 19.2% increase from the previous fiscal year, driven by 493 net unit openings[178] - The company has added over 1,000 net new units since the beginning of fiscal year 2023, representing a 56.0% increase in system-wide footprint[177] - The franchise model is approximately 98% of the restaurant base, with 2,999 franchised locations and 57 company-owned restaurants[176] Sales and Revenue Sources - Digital sales accounted for 73.2% of system-wide sales, indicating a significant shift towards online transactions[178] - Royalty revenue, franchise fees, and other increased by $33.4 million, driven by $22.6 million from new franchise development and a $19.1 million increase in royalty fees[194] - Advertising fees rose by $30.0 million, attributed to a 12.1% increase in system-wide sales and a higher national advertising fund contribution rate[195] - Company-owned restaurant sales increased by $7.6 million, with $6.4 million from new restaurants and $1.2 million from same-store sales growth of 2.6%[196] Costs and Expenses - Total costs and expenses for fiscal year 2025 were $517.6 million, an increase of $57.4 million, or 12.5%, compared to $460.2 million in fiscal year 2024[192] - Interest expense increased by $14.5 million, or 68.1%, to $35.8 million, primarily due to a $500.0 million increase in outstanding debt from a securitized financing transaction[204] Cash Flow and Dividends - Net cash provided by operating activities was $153.1 million, a decrease of $4.5 million from $157.6 million in the prior fiscal year[211] - The company paid quarterly cash dividends of $0.27 per share in the first two quarters of 2025 and $0.30 per share in the third and fourth quarters, totaling $31.8 million in fiscal year 2025[217] - A dividend of $0.30 per share was approved on February 17, 2026, expected to total approximately $8.3 million[217] Stock Repurchase - The company repurchased approximately $221.9 million, $314.7 million, and $125.4 million of its common stock in fiscal years 2025, 2024, and 2023, respectively[219] - Since August 2023, the company has repurchased 2,585,149 shares at an average price of $258.64 per share, with $91.3 million remaining for repurchase[220] Debt and Financing - The company's long-term debt totaled $1,209.1 million as of December 27, 2025, consisting of the 2024, 2022, and 2020 Notes[228] - The company completed a securitized financing transaction on December 3, 2024, issuing $500.0 million of Series 2024-1 5.858% Fixed Rate Senior Secured Notes[214] - The capacity of the revolving financing facility was increased from $200.0 million to $300.0 million, allowing for borrowings up to $300.0 million[215] - The company had no outstanding borrowings under its Variable Funding Notes as of December 27, 2025, reducing exposure to interest rate increases[228] Taxation - The effective tax rate for fiscal year 2025 was 26.5%, up from 26.1% in the prior fiscal year, mainly due to increased state income taxes[207] Cost of Sales - Bone-in chicken wings accounted for approximately 20.5% and 19.8% of company-owned restaurant costs of sales in fiscal years 2025 and 2024, respectively[227] - A hypothetical 10.0% increase in bone-in chicken wing costs in fiscal year 2025 would have increased costs of sales by approximately $2.0 million[227] Average Unit Volume - The domestic average unit volume (AUV) was reported at $2.0 million, reflecting a decrease from the previous year's AUV of $2.138 million[186]

Core Viewpoint - Nestle is considering reducing its involvement in the ice cream business, including a potential reduction of its stake in the Froneri joint venture, as it reviews various options [1]. Group 1: Company Actions - Nestle is evaluating options to decrease its presence in the ice cream sector, which may involve selling some of its fully-owned ice cream operations to Froneri [1]. - The company has not provided any comments regarding these deliberations, and Froneri has not responded to inquiries [1]. Group 2: Froneri Joint Venture - Froneri, a joint venture between PAI Partners and Nestle, was recently valued at 15 billion euros (approximately $17.69 billion) following investments from Goldman Sachs and the Abu Dhabi Investment Authority [1]. - PAI Partners may consider increasing its stake in Froneri if Nestle opts to reduce its shareholding, or Nestle could sell part of its stake to other investors like ADIA [1]. Group 3: Market Context - Froneri produces well-known ice cream brands such as Haagen-Dazs and Rowntree's, and it competes with the newly independent Magnum Ice Cream Company, which separated from Unilever last year [1].

Core Insights - Wingstop's stock experienced a significant increase of over 12% amid heavy trading, driven by elevated short interest of over 17% of the tradable float, which likely intensified buying pressure [1][6][7] Quarterly Metrics - Wingstop reported system-wide sales of $1.3 billion in Q4 2025, reflecting a 9.3% increase from 2024 - The company opened 124 net new restaurants, achieving a domestic restaurant average unit volume (AUV) of $2.0 million - Domestic same-store sales decreased by 5.8% compared to the previous year, while digital orders constituted 73.2% of system-wide sales - Operating income rose to $46.835 million from $41.840 million a year ago - Adjusted EBITDA increased by 9.8% to $61.878 million from $56.348 million year-over-year [2] Restaurant Network - As of December 27, Wingstop operated 3,056 restaurants globally, with 2,586 located in the U.S. and 470 in international markets and U.S. territories - Among U.S. locations, 2,529 were franchised and 57 were company-owned, while all international units were franchised - The company ended the quarter with cash and equivalents totaling $196.572 million [3] Dividend Declaration - On February 17, Wingstop declared a quarterly dividend of 30 cents per share, amounting to approximately $8.3 million, scheduled for payment on March 27, 2026 [4] Outlook - The company anticipates flat to low-single-digit growth in domestic same-store sales for fiscal 2026 - Global unit growth is projected at 15% to 16% - Selling, general and administrative expenses (SG&A) are expected to be between $151 million and $154 million, including $3 million in restructuring charges - Stock-based compensation expense is estimated at about $32 million, with net interest expense around $43 million and depreciation and amortization expected to be approximately $30 million [5] Elevated Short Interest - Wingstop has a short float of approximately 3.66 million shares, representing 17.33% of its publicly traded float, indicating a high level of short interest among investors - Trading volume reached about 1.90 million shares, significantly exceeding the 100-day average volume of roughly 724,785 shares, indicating heightened trading activity [6]

You can find original article here Nrn. Subscribe to our free daily Nrn newsletters. Wingstop reported a second quarter in a row of declining same-store sales for the fourth quarter ended Dec. 27. But despite the 5.8% decline, driven mainly by macroeconomic consumer pressures, the fast-casual chain beat investor expectations and stocks soared on Wednesday.  Overall, in 2025, Wingstop reported 12% systemwide sales growth, offset by a 3% decline in same-store sales. The company is actively executing ...

Core Viewpoint - Wingstop shares experienced a significant increase after the company exceeded profit expectations despite a decline in domestic same-store sales and revenue falling short of forecasts [1] Group 1: Financial Performance - The company topped profit expectations, indicating strong operational efficiency or cost management [1] - Domestic same-store sales declined, suggesting potential challenges in customer retention or market competition [1] - Revenue missed forecasts, which may raise concerns about overall sales growth and market demand [1]