Core Insights - Merck & Co. (MRK) and Bristol Myers Squibb (BMY) are significant players in the pharmaceutical industry with diverse product portfolios [1][2] - Merck is recognized for its leadership in oncology, while Bristol Myers focuses on breakthrough therapies across multiple therapeutic areas [1][2] Merck (MRK) Overview - Merck has over six blockbuster drugs, with Keytruda accounting for 54% of total sales in 2025, driving revenue growth [3][4] - Keytruda's sales increased by approximately 7% in 2025, benefiting from its approval for various oncology indications [4] - The FDA approved Keytruda Qlex for subcutaneous administration in September 2025, with peak sales targeted at $35 billion by 2028 [5] - Other oncology drugs like Welireg, Lynparza, and Lenvima are contributing to growth, alongside a strong launch of Winrevair in pulmonary arterial hypertension [6] - Merck is enhancing its vaccine portfolio, particularly with the new 21-valent pneumococcal conjugate vaccine, Capvaxive [7] - The company has around 80 ongoing late-stage studies, expecting over $70 billion in potential commercial opportunities by the mid-2030s [8] Bristol Myers Squibb (BMY) Overview - BMY's growth portfolio includes key brands such as Opdivo, Yervoy, and Reblozyl, with a strong oncology focus [12] - Opdivo's consistent label expansion has maintained its momentum, and the approval of Opdivo Qvantig has strengthened its franchise [13] - BMY's Reblozyl sales exceed $2 billion annually, and strong performance in cardiovascular drug Camzyos has boosted revenues [14] - However, legacy drugs face significant generic competition, with expected sales declines of 12-16% in 2026 [15] - BMY is pursuing strategic acquisitions and collaborations, including a recent agreement with BioNTech to co-develop a bispecific antibody [16][17] - The company aims for $2 billion in annualized cost savings by the end of 2027, having achieved approximately $1 billion in savings in 2025 [18] Financial Performance and Valuation - MRK's 2026 sales are estimated to increase by 2.59%, but EPS is expected to decline by 38.75% [20] - BMY's 2026 sales are projected to decrease by 2.32%, while EPS is expected to increase by 0.33% [20] - MRK shares trade at 21X forward earnings, while BMY trades at 9.74X, with the industry average at 18.74X [24] - BMY offers a higher dividend yield of 4.22% compared to MRK's 2.79% [25] Investment Outlook - BMY is currently viewed as a stronger near-term investment option compared to MRK, which faces multiple headwinds [9][30] - BMY's strategic initiatives and new drug approvals position it favorably against MRK's challenges, including declining sales of Gardasil and competitive pressures on Keytruda [27][30]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 decreased by 0.5% year-over-year to $122.1 million [15] - Comparable sales grew by 4% in Q3, with an increase of 8% in October [5][16] - Average check increased by 4.6%, including a 2% effective pricing during the quarter [16] - Net loss for Q3 was $9.2 million, or a loss of $0.20 per diluted share, compared to a net loss of $6.8 million, or a loss of $0.15 per diluted share last year [18] - Adjusted EBITDA improved by $1.6 million, or approximately 33%, to $6.5 million [11][18] Business Line Data and Key Metrics Changes - Digital sales channel saw a meaningful year-over-year improvement, driven largely by third-party delivery, which increased by 12% [6] - Restaurant contribution margins improved by 40 basis points to 13.2% from 12.8% in Q3 2024 [16][18] - COGS as a percentage of sales was 25.7%, a 20 basis point increase from last year [17] Market Data and Key Metrics Changes - Company comp traffic decreased slightly by 0.6% in Q3, but was positive in the second half of the quarter [16] - Year-over-year traffic was positive over 1.5% quarter-to-date, extending a positive traffic trend that began midway through Q3 [9] Company Strategy and Development Direction - The company is focusing on closing underperforming restaurants to improve overall sales leverage and enhance profitability [10][20] - The introduction of the Delicious Duos platform is aimed at providing value while maintaining brand equity and profitability [7] - The company is executing a comprehensive cost-savings plan expected to deliver over $5 million in savings across its P&L in 2025 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the path ahead, citing strong sales trends and the success of recent initiatives [4][6] - The company anticipates continued strength in sales and margins, particularly as it laps over a period of heavy promotions and discounts from the previous year [9][21] - Management is optimistic about the impact of restaurant closures on future profitability, expecting a positive contribution of over $2 million in 2026 [20][21] Other Important Information - The board of directors has initiated a review of strategic alternatives to explore ways to maximize shareholder value [15] - The company plans to introduce new menu items, including a collaboration with a popular candy bar, in December [13] Q&A Session Summary Question: Can you discuss the success of the Delicious Duos and its impact on value perception? - Management noted that Delicious Duos filled a value void and is mixing around 4-5% across restaurants, with positive value scores from guests [23][24] Question: How does the company account for organic traffic versus sales transfer from closed stores? - Management indicated that closures have contributed about a 1% lift in sales, with positive traffic outside of sales transfer [25] Question: What are the learnings from the Ramen limited-time offer (LTO)? - Management is encouraged by the trial and repeat business from the Ramen LTO and sees potential for it to be a permanent menu item [26][27]

Core Viewpoint - Hasbro experienced a revenue increase in Q1, driven by strong performance in its gaming segment, but faces challenges due to evolving tariff situations Financial Performance - Net revenues for Q1 reached $887 million, marking a 17% increase, with a 46% surge from Wizards of the Coast and licensed digital gaming [1] - Adjusted operating profit rose to $222 million, an increase of $74 million from the previous quarter, and the company generated $138 million in operating cash flow [2] Tariff Impact - The company stated that tariffs had no material impact on Q1 results, but anticipates a gross impact of $100 million to $300 million from tariffs in 2025 [2] - The estimated net profit impact in 2025 is projected to be between $60 million and $180 million, depending on trade policy and consumer behavior [3] Sourcing and Manufacturing Strategy - Approximately half of Hasbro's toy and game volume originates in China, necessitating sourcing diversification [3] - China will remain a key manufacturing hub due to specialized capabilities, while the company is working with customers to manage inventory and pricing strategies [4] Cost-Saving Measures - Hasbro is accelerating a $1 billion cost-savings plan to mitigate tariff pressures [4] - The company is focusing on maintaining key price points and strengthening retail partnerships to capture market share [4] Strategic Flexibility - The games business and strategic flexibility provide Hasbro with options to navigate potential tariff and consumer outcomes [5]