Key Takeaways Dillard's shares rose 12.7% in a month, outperforming the retail sector and the S&P 500.Q3 sales grew 3% in total and comps, led by apparel and accessories strength.DDS stock trades above 50/200-day averages, reflecting momentum and investor confidence.Dillard's Inc.’s (DDS) recent stock performance reflects strong investor confidence in its fundamentals and strategic initiatives. The company’s shares have seen a 12.7% appreciation in the past month compared with the broader industry's 15.1% g ...

Financial Data and Key Metrics Changes - The company reported revenue growth of 12.8% for the third quarter, reaching over $1.4 billion, driven by a 5.5% increase in average weekly sales and 6.8% store week growth [16][6] - Diluted earnings per share decreased by 0.8% to $1.25, while restaurant margin dollars increased by 1.1% to $204 million [16][12] - Comparable sales increased by 6.1%, supported by a 4.3% traffic growth and a 1.8% increase in average check [16][12] Business Line Data and Key Metrics Changes - Texas Roadhouse averaged nearly $162,000 in weekly sales, Bubba's 33 averaged $119,000, and Jaggers averaged over $75,000 [12] - The company opened seven company-owned locations in the third quarter, including two Bubba's 33 and one Jaggers, and plans to open approximately 30 restaurants across three brands in 2025 [7][8] Market Data and Key Metrics Changes - The company has seen a positive consumer response to its beverage offerings, including mocktails and regional beverage menu items [8][9] - The to-go business continues to show solid momentum, with operators focusing on speed and order accuracy [9] Company Strategy and Development Direction - The company aims to maintain its focus on driving top-line growth through guest traffic and restaurant expansion, while also investing in employee development to remain an employer of choice [10][11] - The company plans to acquire its remaining California franchise locations at the beginning of 2026 and expects franchise partners to open 10 new restaurants [8][15] Management's Comments on Operating Environment and Future Outlook - Management noted that inflation in the third quarter was higher than expected due to beef prices, updating the full-year 2025 commodity inflation guidance to approximately 6% [12][13] - The company remains optimistic about its long-term success, emphasizing its people-first focus and operational excellence [6][11] Other Important Information - The company ended the third quarter with a cash balance of $108 million and cash flow from operations of $144 million, offset by $214 million in capital expenditures, dividend payments, and share repurchases [14][15] - The company is establishing its initial 2026 capital expenditure guidance at approximately $400 million, excluding the cost of acquiring California franchise restaurants [15] Q&A Session Summary Question: Clarification on beef inflation outlook - Management indicated that they expect mid-teens beef inflation if the commodity basket is up high single digits, with a focus on managing pricing strategies [23][25] Question: Confidence in beef pricing being transitory - Management believes the current beef pricing situation is cyclical and transitory, based on industry insights and cattle cycles [33][34] Question: Consumer behavior by income cohort - Management noted no significant differences in consumer behavior by income or age cohort, emphasizing the value offered across the menu [37][39] Question: Pricing philosophy and managing partner compensation - Management discussed their conservative pricing approach to protect top-line growth and ensure fair compensation for managing partners [44][46] Question: Unit growth and market expansion for Bubba's - Management confirmed that most growth for Bubba's will occur in existing markets, with a focus on maintaining strong partnerships [86][88] Question: Cash uses and franchise acquisitions - Management stated that approximately 30 franchises remain for potential acquisition after completing the California acquisition [75][76] Question: Labor and operating expenses outlook - Management expects continued leverage on labor and operating expenses if top-line trends remain strong [81][82] Question: Impact of grocery store beef prices on customer behavior - Management acknowledged that high grocery store beef prices are likely driving customers to dine out more, recognizing the value of their steak offerings [84][85]

Financial Data and Key Metrics Changes - CME Group generated revenue of $1.5 billion in Q3 2025, down 3% from Q3 2024, with an average rate per contract of $0.702, resulting in clearing and transaction fees of $1.2 billion [9][10] - Market data revenue reached a record $203 million, up 14% year-over-year [9] - Adjusted net income was $978 million, with adjusted diluted earnings per share at $2.68, both slightly above the previous year's figures [10][11] - Adjusted operating income was $1.1 billion, reflecting a 68.4% operating margin for the quarter [9] Business Line Data and Key Metrics Changes - The average daily volume for the quarter was 25.3 million contracts, the second highest in CME Group's history for Q3 [5] - The crypto complex traded a record 340,000 contracts per day, up over 225% compared to the previous year, driven by the success of Solana and XRP futures [6] - FX Spot+ set new volume records every month in Q3, indicating strong demand for new trading opportunities [7] Market Data and Key Metrics Changes - CME Group saw significant growth in open interest, reaching 126 million contracts at the end of September, the highest in five years [5] - WTI futures market share increased to 76% in Q3, up from 74% in the previous quarter, while WTI options maintained a 91% market share [61] Company Strategy and Development Direction - CME Group is focused on innovation and expanding product offerings, including the introduction of 24/7 trading for cryptocurrency futures and options starting early next year [8] - The partnership with FanDuel aims to enhance retail strategy, potentially reaching 13 million accounts [14][16] - The company is extending its FTSE Russell Index derivatives license through 2037, ensuring continuity and value for clients [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth despite a general pullback in volatility across asset classes [5] - The company remains focused on driving earnings growth by expanding its customer base and innovating products [11] - Management acknowledged the importance of credibility in markets and emphasized the potential for growth in the retail sector without necessarily pursuing acquisitions [17] Other Important Information - CME Group's adjusted effective tax rate was 22.6% for the quarter [9] - The company paid dividends of $455 million in Q3 and approximately $3.5 billion over the first nine months of the year [10] Q&A Session Summary Question: Long-term retail strategy and potential M&A - Management highlighted the evolving strategy in retail, emphasizing distribution efficiencies and the importance of the partnership with FanDuel to access a large customer base [14][16] Question: Growth in event contracts, particularly sports-related - Management clarified that while there is interest in sports event contracts, the decision to list them depends on regulatory approval and the readiness of partners [24][25] Question: Energy market outlook and share shifts - Management noted a slight decrease in energy volumes but highlighted growth in crude and natural gas markets, particularly in Europe and Asia [61] Question: Market data revenue growth and pricing opportunities - Management reported a 14% increase in market data revenue, driven by international demand, and announced a 3.5% price increase for data products effective January 1, 2026 [114]

Financial Data and Key Metrics Changes - Revenue for 2024 was $25.2 million, a 29% increase from $19.5 million in 2023, driven by increased unit sales and higher average selling prices [30] - Gross profit for 2024 increased by 30% to $5.9 million compared to $4.5 million in the previous year, with a gross profit margin of 23.4% [30][32] - The net loss for 2024 was $10.8 million, or $0.32 per diluted share, compared to a loss of $1.2 million, or $0.05 per diluted share, in 2023 [32] Business Line Data and Key Metrics Changes - The company reported a fourth-quarter revenue of $5.3 million, up from $4.8 million in the prior year, attributed to increased sales volume and higher customization [24][25] - The average selling price per vehicle increased by $25,000, contributing to the overall revenue growth [30] Market Data and Key Metrics Changes - The company has begun to establish a retail presence, with the first retail location opened in West Palm Beach, Florida, and a second in Nantucket, which are expected to enhance customer engagement and sales [19][20] - Currently, retail locations contribute about 20% of leads and sales, shifting from a previous 100% reliance on digital channels [48] Company Strategy and Development Direction - The company aims to expand its retail strategy to enhance customer engagement and reduce marketing costs associated with mobile outreach [17][19] - ECD Auto Design is focusing on building a luxury brand akin to LVMH in the classic car space, leveraging licensing agreements to consolidate the custom defender market [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about reaching a crossover point for cash flow positive operations at approximately 10 units sold per month, with current sales at about 8.5 units [39] - The company is actively monitoring tariffs and has implemented internal controls to mitigate potential impacts on pricing and margins [50][51] Other Important Information - The company has undergone a re-audit of its financials due to the shutdown of its prior auditor, which has delayed filings but is now up to date [7][12] - The company has a cash balance of $1.5 million as of December 31, 2024, down from $8.1 million the previous year, with plans to maintain production and sales at current cash levels [32][33] Q&A Session Summary Question: Regarding non-recurring charges and growth potential - The analyst inquired about the impact of non-recurring charges on future income from operations, suggesting that reasonable growth could lead to positive cash flow [38] Response: Cash flow crossover point - Management indicated that the crossover point for cash flow positive operations is around 10 units per month, with expectations to reach this soon due to backlog and retail site launches [39][40] Question: Split between web-based sales and retail locations - The analyst asked about the sales mix between digital channels and retail locations [44] Response: Current sales mix - Management noted that currently, 80% of sales come from digital channels and 20% from retail, indicating a significant shift in marketing strategy [48] Question: Mitigation of tariff impacts - The analyst requested insights on how the company plans to mitigate tariff impacts [49] Response: Internal controls and pricing strategy - Management explained that they have committed to not increasing base contract prices and have adjusted upgrade pricing to offset tariff impacts [50][51]

Financial Data and Key Metrics Changes - Revenue for 2024 was $25.2 million, a 29% increase from $19.5 million in 2023, driven by increased unit sales and higher average selling prices [30] - Gross profit for 2024 increased by 30% to $5.9 million compared to $4.5 million in the previous year, with a gross profit margin of 23.4% [30][32] - The net loss for 2024 was $10.8 million, or $0.32 per diluted share, compared to a loss of $1.2 million, or $0.05 per diluted share, in 2023 [32] Business Line Data and Key Metrics Changes - The company reported a fourth-quarter revenue of $5.3 million, up from $4.8 million in the prior year, attributed to increased sales volume and average sales price [24][25] - The average selling price per vehicle increased by $25,000, contributing to higher revenue [30] Market Data and Key Metrics Changes - The company has begun to establish retail locations, with the first store opening in West Palm Beach, Florida, and a second in Nantucket, which are expected to enhance customer engagement and sales [19][20] - Retail sales currently contribute about 20% of leads and sales, shifting from a previous 100% reliance on digital channels [48] Company Strategy and Development Direction - The company aims to expand its retail presence, planning to open four locations in affluent areas, which is seen as a key growth strategy [23][22] - ECD Auto Design is focusing on enhancing the customer journey and customization options, which has led to an increase in orders for vehicles priced over $500,000 [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by tariffs but emphasized their strategy to mitigate impacts without raising base contract prices for clients [50][51] - The company expects to reach a cash flow positive position by increasing production to about 10 units per month, aided by a backlog of orders [39][40] Other Important Information - The company underwent a re-audit of financial statements due to the shutdown of its prior auditor, which has impacted its reporting timeline [7] - A non-cash write-down of $1.1 million in labor overhead allocation affected gross profit for the fourth quarter [26] Q&A Session Summary Question: Regarding non-recurring charges and growth potential - Analyst inquired about the impact of non-recurring charges on future income from operations, suggesting that reasonable growth could lead to positive results in 2025 [38] Question: Vehicle backlog and its impact - Analyst noted that the 12 vehicles pushed from Q4 to Q1 would provide a cushion for the first half of the year [42] Question: Split between web-based sales and retail locations - Management discussed the shift in sales strategy, noting that retail locations currently contribute 20% of leads and sales, allowing for reduced traditional marketing spending [44][48] Question: Mitigation of tariff impacts - Management explained their strategy to avoid increasing base contract prices while adjusting upgrade pricing to offset tariff impacts [50][51]