The U.S. stock market experienced a significant pullback on Thursday, February 26th, 2026, as investors grappled with a "sell the news" reaction following the highly anticipated earnings report from the world’s leading artificial intelligence chipmaker. Despite reporting financial results that exceeded even the most optimistic forecasts, the tech-heavy Nasdaq led a broad market decline, highlighting growing concerns about the sustainability of current AI valuations and the potential for a spending plateau a ...

Luis Alvarez/DigitalVision via Getty Images Listen below or on the go on Apple Podcasts and Spotify Investors rotate from AI to A1 as breadth increases. (0:16) Krispy Kreme and Shake Shack surge on earnings. (1:13) S&P 500 triggers sixth Hindenburg Omen signal. (3:26) This is an abridged transcript of the podcast: Our top story so far, investors are going from AI to A1. Looking at forward valuations, the premium investors were paying for the mega caps has faded — and they’re now willing to pay up for ...

Pre-market indexes are swinging back into positive territory from lower early-morning levels, now erasing the big losses in the first part of this week on all but the small-cap Russell 2000, which is break-even over the past five trading days. This morning, the Dow is +110 points, +0.22%, the S&P 500 is +6, +0.09%, the Nasdaq +7, +0.03% and the Russell 2000 +4, +0.18%.Jobless Claims Come In-Line to Lower: 212K, 1.833MIt’s a “normal” Thursday morning, so we get new Weekly Jobless Claims figures, and once aga ...

Key Takeaways New Jobless Claims Remain Low at 212KLonger-Term Claims Come Down As Well: 1.833MCelsius, Shake Shack and Baidu Beat EarningsThursday, February 26th, 2026Pre-market indexes are swinging back into positive territory from lower early-morning levels, now erasing the big losses in the first part of this week on all but the small-cap Russell 2000, which is break-even over the past five trading days. This morning, the Dow is +110 points, +0.22%, the S&P 500 is +6, +0.09%, the Nasdaq +7, +0.03% and t ...

Bloomin' Brands (BLMN) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +6.12%. A quarter ago, it was expected that this owner of Outback Steakhouse and other casual dining spots would post a loss of $0.12 per share when it actually produced a loss of $0.03, delivering a surprise of +7 ...

Key Takeaways PZZA, SG and SHAK to report Q4 amid soft consumer sentiment and traffic pressures.Digital ordering, loyalty programs and menu innovation likely supported Q4 sales trends.Sector earnings are seen up 2.9% year over year, slower than the 16.6% rise in Q3.The restaurant industry enters the fourth-quarter 2025 earnings season amid an increasingly value-conscious consumer environment. As the year progressed, operators placed greater emphasis on affordability, bundled offerings and targeted promotion ...

Core Insights - McDonald's is adapting its menu to cater to customers using weight-loss drugs, focusing on high-protein options to meet the needs of GLP-1 users [1][5] Group 1: Menu Innovations - The company is testing high-protein menu items, which may include grilled chicken strips, cauliflower tortillas, and smaller burgers wrapped in lettuce [2][12] - Current menu items already include protein-rich options like Snack Wraps and Sausage Biscuit sandwiches, with the potential to increase protein content by adding extra ingredients [3][4] Group 2: Market Trends - The adoption of GLP-1 drugs for weight loss has surged, with 12.4% of Americans reportedly using these medications, more than doubling in the past year and a half [7] - Users of GLP-1 drugs are visiting fast food restaurants significantly less, with a 77% decrease in fast food visits and a 74% decrease in pizza restaurant visits [9][10] Group 3: Competitive Landscape - McDonald's is not alone in targeting this market; other chains like Chipotle and Shake Shack have introduced GLP-1 friendly menu items, indicating a broader industry trend towards health-conscious offerings [13][12] - Starbucks has also added protein-focused items to its menu, reflecting a shift in consumer preferences towards healthier options [14]

Earnings Performance - Starbucks reported quarterly earnings of $0.56 per share, missing the Zacks Consensus Estimate of $0.58 per share, and down from $0.69 per share a year ago, representing an earnings surprise of -2.90% [1] - The company posted revenues of $9.92 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.82%, compared to year-ago revenues of $9.4 billion [2] Stock Performance and Outlook - Starbucks shares have increased by approximately 13.7% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.42 on revenues of $9.03 billion, and for the current fiscal year, it is $2.34 on revenues of $38.33 billion [7] Industry Context - The Retail - Restaurants industry, to which Starbucks belongs, is currently ranked in the bottom 19% of over 250 Zacks industries, indicating potential challenges ahead [8] - Another company in the same industry, Shake Shack, is expected to report quarterly earnings of $0.36 per share, reflecting a year-over-year change of +38.5% [9]

Core Viewpoint - Investors in the Retail - Restaurants sector should consider Yum China Holdings (YUMC) and Shake Shack (SHAK) for potential value opportunities, with YUMC currently presenting a more favorable investment outlook [1]. Valuation Metrics - Yum China Holdings has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision activity, while Shake Shack has a Zacks Rank of 5 (Strong Sell), suggesting a less favorable outlook [3]. - YUMC's forward P/E ratio is 17.02, significantly lower than SHAK's forward P/E of 61.86, indicating that YUMC may be undervalued relative to SHAK [5]. - The PEG ratio for YUMC is 1.58, while SHAK's PEG ratio is 2.39, further suggesting that YUMC has a better valuation considering its expected earnings growth [5]. - YUMC's P/B ratio stands at 2.8, compared to SHAK's P/B of 7.36, reinforcing the notion that YUMC is more attractively priced [6]. - These metrics contribute to YUMC's Value grade of A and SHAK's Value grade of D, highlighting YUMC as the superior value option [6]. Earnings Outlook - Yum China Holdings is experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model, making it a more appealing investment choice compared to Shake Shack [7].

Weather Impact on Retail - A winter storm is expected to affect a significant portion of the U.S., potentially impacting consumer behavior and retail sales [2][3] - Costco (COST) is anticipated to benefit from increased sales as consumers engage in pantry-loading ahead of the storm, similar to past events [4] - Anecdotal evidence shows crowded Costco stores in states like Texas and Florida, with shares up 13% year-to-date [5] Restaurant and Retail Sector Challenges - Dine-in restaurants and discretionary retail are likely to face revenue headwinds due to consumers staying indoors during the storm [5][6] - Several restaurant companies have previously reported traffic declines during severe winter weather [6] Capital One Acquisition - Capital One (COF) has announced the acquisition of fintech company Brex for $5.15 billion, with the deal structured as 50% cash and 50% stock [7][8] - This acquisition aims to enhance Capital One's capabilities in serving corporate clients through Brex's technology for corporate cards and expense management [8] Intel Earnings Report - Intel (INTC) reported stronger-than-expected Q4 results but provided a Q1 outlook that fell below analyst expectations, leading to a 12% drop in premarket shares [9][10] - The company expects Q1 revenue between $11.7 billion and $12.7 billion, with adjusted earnings per share projected to break even [10]