Core Insights - Peregrine Hospitality has appointed Heather Stege as the new Chief Operating Officer to enhance portfolio performance and operational excellence [1][3] - Stege has a strong background in the restaurant industry, previously serving as brand president at KBP Inspired, overseeing Arby's across 120 locations [2] - The company has also appointed three senior vice presidents to strengthen its leadership team and drive innovation [4] Leadership Appointments - Heather Stege will collaborate with executive leadership across Peregrine's diverse hotel portfolio [1] - Anthony Gaeta will lead technology and IT operations, Christina Gregg will oversee HR operations, and Jeff Gross will manage asset management initiatives [3][4] - The new executives bring extensive hospitality industry experience, with Gaeta previously at Benchmark Hospitality International and Gross at Choice Hotels International [4] Company Strategy - The recent appointments are part of Peregrine's strategy to expand its platform and grow across all asset classes in the hospitality sector [5] - The leadership changes aim to empower employees and enhance overall portfolio performance [4]

Group 1 - President Trump has proposed multiple ways to provide cash to Americans, including direct payments and tax code adjustments, although many proposals are not finalized and require further legislative action [1][3] - One of the key proposals is a $2,000 "tariff rebate" aimed at low and middle-income households, contingent on congressional approval [3][4] - The rebate would be funded by revenue from new tariffs, with an income cutoff discussed at around $100,000 [3] Group 2 - Another proposal includes eliminating federal income tax on tips for workers in the restaurant, hospitality, and service industries, which would lead to larger tax refunds or smaller tax bills [4][5] - This change would not result in a separate check but would reduce taxable income, benefiting workers when they file their federal tax returns for the 2025 tax year [5][6] - Additionally, Trump has suggested that overtime pay should also be exempt from federal income tax, with similar income caps and phaseouts affecting eligibility [7]

Core Viewpoint - FAT Brands is facing significant financial challenges, with a complicated debt structure of $1.26 billion that is not guaranteed by the parent company, allowing for potential bankruptcy of individual brands without affecting the entire company [2][5]. Debt Structure - The company's debt is distributed across five securitization trusts and involves multiple layers of investors, which is intended to isolate financial risk [2]. - The debt restructuring process has been complicated by the involvement of approximately 25 different investors or note holders who have not reached a consensus on a solution [5]. Debt Restructuring Efforts - The CEO has been in discussions with note holders for 18 months to two years regarding debt restructuring, but negotiations have not been constructive [3]. - The company is exploring various avenues to lower its debt and make it more manageable, although the process may take several rounds to resolve [3]. Financial Performance - Despite the substantial debt, FAT Brands reported $60 million in free cash flow, indicating that the company is still in a relatively stable position [5]. - The CEO believes that restructuring the debt stack is essential for the company's financial health and urges note holders to reach a conclusion soon [5]. Impact of Legal Issues - A three-year federal criminal investigation into the CEO for fraud and money laundering, which concluded in his favor, has strained the company's financial resources and complicated the debt restructuring process [4].

Upgrades - UBS upgraded Brinker (EAT) to Buy from Neutral with a price target of $175, up from $144, citing the company's strong same-store sales momentum [2] - Raymond James upgraded Stryker (SYK) to Outperform from Market Perform with a price target of $418, indicating that the current valuation presents an attractive entry point [2] - BofA upgraded Allegiant Travel (ALGT) to Neutral from Underperform with a price target of $95, up from $55, noting that potential economic stimulus could benefit low-cost carriers and that Allegiant is maintaining flat capacity growth in 2026 [3] - Stephens upgraded Saia (SAIA) to Overweight from Equal Weight with a price target of $414, up from $308, believing that the bulk of new terminal noise is now resolved [4] - William Blair upgraded Medtronic (MDT) to Outperform from Market Perform, highlighting several new and ramping product launches this year [4] Downgrades - Wolfe Research downgraded Shopify (SHOP) to Peer Perform from Outperform, removing the previous price target of $185, due to elevated expectations and full valuation [5] - Freedom Capital downgraded Chevron (CVX) and Exxon Mobil (XOM) to Sell from Hold with price targets of $165 and $123, respectively, arguing that the current optimism in the U.S. oil and gas sector is unjustified [5] - UBS downgraded Lennar (LEN) to Neutral from Buy with a price target of $122, down from $137, suggesting that a return to 20%-plus gross margins may be delayed without a stronger industry recovery [5] - Wells Fargo downgraded D.R. Horton (DHI) to Equal Weight from Overweight with a price target of $155, down from $180, following recent analysis [5] - Baird downgraded Wells Fargo (WFC) to Underperform from Neutral, maintaining a price target of $90, citing limited upside for bank stocks in 2026 [5]

Core Viewpoint - Both SoundHound AI and GitLab are expected to rebound in 2026 after experiencing significant declines in 2025, with SoundHound down over 40% and GitLab down over 30% [1] SoundHound AI - SoundHound's stock decline in 2025 is attributed to Nvidia exiting its position in the company rather than poor operational performance, as revenue has more than doubled in the first nine months of the year [3][4] - The company is a leader in voice AI technology, with capabilities that allow for natural interaction, gaining traction in the automotive and restaurant industries [4] - SoundHound's major opportunity lies in voice-powered AI agents, bolstered by the acquisition of Amelia, which has a strong customer base across various sectors including retail, financial services, and healthcare [6][7] - The rollout of the Amelia 7 platform aims to enhance margins by integrating technologies from both companies [7] GitLab - GitLab's stock performance in 2025 does not reflect its strong operational results, with revenue growth between 25% to 35% over the last nine quarters [8] - The company faces a narrative suggesting it may be negatively impacted by AI, as some believe AI agents could replace coders, potentially harming its subscription model [9] - Despite this narrative, GitLab has maintained strong customer growth, evidenced by a 119% dollar-based net retention rate over the past year [11] - The company has introduced a hybrid seat-plus-usage-based model to mitigate potential risks and enhance growth, while its AI tools like Duo Agent add value to its platform [13] - GitLab is attractively valued at a price-to-sales multiple of 5.7 times fiscal year 2027 estimates, with high gross margins and strong revenue growth [14] Conclusion - Both companies are positioned for a rebound in 2026, but GitLab is viewed as having a better opportunity to outperform due to its sticky platform and new pricing model, which could drive growth [15][16]

"No Tax on Tips" Bill Overview - The "No Tax on Tips" provision in the "One Big Beautiful Bill" allows tipped employees to deduct up to $25,000 from their federal tax filing each year, starting in 2025 and lasting through 2028 [1][6] - Individuals earning $150,000 or joint filers earning $300,000 are disqualified from this deduction [6] - The IRS has provided penalty relief for the tax year 2025 as taxpayers adjust to the new policy [9] Potential Benefits - The provision is projected to increase average take-home pay for tipped workers by $1,300 per year [2] - Small businesses may benefit from improved employee retention, as replacing a tipped employee is estimated to cost around $8,000 [14][15][16] - Nevada, with approximately 25% of its workforce in tipped jobs, stands to benefit significantly [11][12][13] Criticisms and Concerns - 37% of tipped workers may not benefit as they already face zero federal income tax burden [4] - Low-income households may not benefit and could be negatively impacted by Medicaid and other social services cuts associated with the bill [5] - The policy exacerbates the existing tipping system, which is viewed negatively by nearly 90% of Americans who believe tipping has gotten out of control [3][4] - Experts argue that the bill creates unequal tax treatment compared to other professions [17] - The policy excludes auto gratuities and service charges, which could be shared with the entire staff, not just customer-facing employees [26][27] Alternative Solutions - Some suggest increasing the minimum wage to provide more stable earnings for low-income workers [20] - Eliminating the subminimum wage is proposed as a way to address wage inequality [22] - Innovative pay models, including auto gratuities and service charges, are being explored to ensure fair wages while allowing businesses to thrive [25][26]

Industry Overview - The restaurant business and food industry experienced a volatile year due to weak consumer sentiment and tariffs [1] - Value deals and discount campaigns have shown some success in revitalizing brands, but many still face challenges [1] Key Factors to Watch - Commodity inflation, particularly beef prices, will be a significant factor, especially for company-operated fast-casual chains like Chipotle and steak players like Texas Roadhouse [2] - Demand destruction in supermarkets could positively impact companies like Texas Roadhouse and Darden, which spend significantly on beef [3] - The net effect on middle-income consumers will be crucial, with potential consumer engagement expected by the second quarter of 2026 [3] Investment Opportunities - The dining space looks promising, even considering headwinds from GLP1s; casual dining is less affected by negative factors and benefits from early tax relief [4] - Brinker, with its strong execution and value offerings, is a favored name, along with Darden [5] - Value players within the fast-food sector may perform well; McDonald's is mentioned as a GARP (Growth at a Reasonable Price) name [5]

The restaurant staff at First Watch in Naples, Florida, knows how to boogie down, especially at their holiday party. But this year was a little different. >> Something more important came up.So, everybody knows about Norman's journey trying to adopt a baby. >> Norman, we all decided that while these guys decided that it was more important for us to donate all of that money to you and your wife, The soon to be dad left speechless. >> Norman, come back.>> I just broke down. I didn't know what to think or what ...

Sweetgreen co-founder Nathaniel Ru is leaving the struggling salad chain following a string of disappointing results and a precipitous decline in the company’s stock price https://t.co/IlBAdyCTk9 ...

Joining us right now for a check on the consumer and spending is Cameron Mitchell. He's the founder and CEO of Cameron Mitchell Restaurants. That firm operates 50 restaurant locations under 20 concepts, plus an events company, a food hall, and a virtual kitchen.And Cameron, correct me if I'm wrong. I think you're operating in 21 29 states at this point. >> Uh about actually half that about 15 states.29 different markets. Yes. >> 29 different markets.Okay. Thank you. Um Cameron, first of all, welcome.It's gr ...