McDonald’s Makes Digital Funding Shifts

McDonald’s is trying to make more uniformity across its system, and says it’s taking a global approach to how its app and other digital systems are funded by franchisees in the U.S. and four other countries next year. U.S. franchisees will pay a percentage of their digital sales for the app and other services, while McDonald’s says it will invest in new digital products and functions, the company says in a message viewed by WSJ. Restaurants increasingly rely on digital sales, as they are more efficient and allow for targeted marketing to consumers.

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Warner Bros. Discovery Q1 2024 GAAP EPS $(0.40) Misses $(0.27) Estimate, Sales $9.958B Miss $10.231B Estimate

Warner Bros. Discovery (NASDAQ:WBD) reported quarterly losses of $(0.40) per share which missed the analyst consensus estimate of $(0.27) by 48.15 percent. The company reported quarterly sales of $9.958 billion which missed the analyst consensus estimate of $10.231 billion by 2.67 percent. This is a 6.93 percent decrease over sales of $10.700 billion the same period last year.

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CFRA Maintains Hold Opinion On Shares Of Arm Holdings Plc

We adjust our 12-month target to $120 from $140, on a lower revised peer-premium P/E of 64.8x our CY 25 EPS estimate, warranted given our view of growth prospects. We adjust our FY 25 (Mar.) EPS estimate to $1.60 from $1.76 and FY 26’s to $1.92 from $2.00. ARM posts Mar-Q EPS of $0.36, beating the $0.31 consensus. Revenue rose 47%, well ahead of expectations, led by higher royalty (+37%) and licensing sales (+60%). Jun-Q revenue/EPS guide exceeded consensus views, but full-year FY 25 was more tempered (still implies +20% Y/Y growth). The shift towards v9-architecture from v8 remains an opportunity (20% of royalties), which is supporting higher revenue within smartphones and share gain opportunities in automotive/hyperscalers. Although valuation remains a concern, the growth trajectory is extremely attractive (we see +20% annually through FY 27) given cloud share gain from next-gen AI GPUs and CPUs expected to enter the market,

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Warner Bros. Discovery First-Quarter Results Miss Views, Led by Revenue Declines in Networks, Studio Units

Warner Bros. Discovery (WBD) on Thursday posted a wider-than-expected first-quarter loss, amid revenue declines in the media and entertainment giant’s studios and networks segments. The company’s per-share net loss came in at $0.40 for the March quarter, compared with a $0.44 per-share loss the year before. The consensus on Capital IQ was for a loss of $0.21 per share. The result included a $1.88 billion pretax acquisition-related amortization charge and restructuring expenses. Revenue declined to $9.96 billion from $10.7 billion last year, missing the Street’s view for $10.22 billion. The stock fell 3.8% in recent premarket trading. Warner Bros., which operates the Max streaming service, saw direct-to-consumer revenue remain nearly flat at $2.46 billion. Global subscribers rose to 99.6 million from 98.5 million year-on-year and from 97.7 million in the previous three-month period. “We delivered meaningful growth in our streaming business with a nice acceleration in ad sales,” Chief Executive

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Intel Now Sees Q2 Revenue Below Midpoint of $12.5 Billion to $13.5 Billion Range

Intel (INTC) updated its Q2 outlook after the US Commerce Department notified the company Tuesday that it was revoking certain licenses for exports of consumer-related items to a customer in China, effective immediately. As a result, the company now expects Q2 revenue to remain in the original range of $12.5 billion to $13.5 billion but below the midpoint, according to a regulatory filing. For full-year 2024, Intel continues to expect revenue and earnings per share to grow year over year versus 2023.

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Uber CEO Says Instacart Deal Brings In High-Quality Suburban Audience

Uber’s new partnership with Instacart, which allows customers to order Uber Eats-fetched food via the Instacart app, adds a “very high-quality and highly targeted suburban audience” to the Uber Eats ecosystem and for the company’s merchants, CEO Dara Khosrowshahi says on a call with analysts. The additional demand from these new high-end consumers is going to be welcomed by the merchants and increase penetration with Dominos and other merchants in the suburbs, the CEO says. Shares slide 6% to $66.21.

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Uber Says Bookings Growth Impacted by Pricing, Currency Concerns

Uber’s gross bookings, or the value of transactions on its app, were up 20% at $37.65B in 1Q but missed analyst projections. The number of app users increased 15% during the quarter and frequency of use increased 6%, but pricing was relatively flat, CFO Prashanth Mahendra-Rajah says on a call with analysts, adding that the company expects to see similar trends in 2Q. Uber’s 2Q guidance includes a 5 percentage point headwind to gross bookings in its ride-hailing business from forex changes related to the Argentine peso, the CFO says.

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Uber Technologies’ Underlying Business ‘Healthy’ Despite Mixed Q1 Results, Wedbush Says

Uber Technologies’ (UBER) underlying business continues to be “healthy,” even as the ride-hailing company posted mixed Q1 financial results, Wedbush Securities said Wednesday. The company’s Q1 net loss widened year-over-year to $0.32 per share from $0.08 per share, while revenue grew 15% to $10.13 billion. Analysts polled by Capital IQ expected EPS of $0.22 on revenue of $10.09 billion. The company’s shares were down over 7% in recent trading. “We think investor expectations have gotten ahead of the stock following the company’s analyst day in mid-February,” Wedbush analysts, including Daniel Ives, said in a note. Markets and investors likely also overlooked recent currency headwinds, they said. Wedbush reiterated its outperform rating on the Uber stock, saying the company continues to be “the dominant global mobility and delivery platform with multiple drivers of long-term growth.”

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CFRA Maintains Buy Opinion On Shares Of Uber Technologies, Inc.

We cut our 12-month target to $81 from $93 on a P/E of 35x our 2025 EPS (18x our 2025 FCF). We cut our 2024 EPS to $1.00 from $2.22 and 2025’s to $2.32 from $3.63. Gross bookings grew 20%, led by strong growth in Mobility (+26%) and Delivery (+18%). Trips grew 21%, driven by a 15% rise in MAPC and a 6% uptick in frequency (trips/MAPC). Despite top-line strength, net loss widened to $654M (LPS of $0.31 vs. $0.08) due to a $72M unrealized loss from equity investment reevaluation. Yet, UBER demonstrated operating leverage, with 82% growth in adj-EBITDA to $1.4B and $4.2B trailing-12-month FCF generation. Key growth drivers include UberOne’s 45% penetration of delivery of gross bookings, new affordable offerings like Moto and Xshare for volume, and grocery growth. We also like Instacart’s partnership expanding consumer reach, complementing geographic expansion and multi-product portfolio. UBER’s geographic expansion, new user

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Target’s Discretionary Offerings Could Be Weighed Down by Recent Headwinds, Oppenheimer Says

Target’s (TGT) discretionary offerings could take a hit from recent headwinds, impacting its Q1 financial results, Oppenheimer said in a note Wednesday. The retailer is scheduled to report Q1 results on May 22. Oppenheimer said it is now “more conservatively” expecting a drop of 4% to 5% in comparable store sales, compared with market expectations for a 3.6% decline. “Our 12-18 month views on TGT shares remain intact driven by our continued confidence in management’s ability to drive further margin expansion and a return to sustained positive comp growth,” Oppenheimer analysts, including Rupesh Parikh, said in the note. Oppenheimer has an outperform rating on the Target stock, with a $200 price target.

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Uber Technologies(UBER.US) Q1 2024 Earnings Conference

The following is a summary of the Uber Technologies, Inc. (UBER) Q1 2024 Earnings Call Transcript: Financial Performance: Uber reported a growth of 21% YoY in trips, reflected similarly in gross bookings growth for Q1 2024. The company recorded an adjusted EBITDA of $1.4 billion, representing an 82% YoY increase. Uber generated a free cash flow of $4.2 billion in the trailing 12 months. The company projects over 20% YoY growth on a constant currency basis for Q2 2024. Uber’s new products contributed to over 20% of its new customer base, reflecting an 80% YoY growth. Delivery EBITDA margins were increased by around 20% sequentially despite robust business growth. Uber reached a $900 million run rate for advertising in Q4 of 2023. Business Progress: Uber experienced the best week in terms of gross bookings signalling strong demand for the service. Driver and courier numbers on the platform have increased to

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DoorDash Seen Retaining Market Dominance Despite Uber Eats, Instacart Collaboration, Deutsche Bank Says

DoorDash (DASH) is likely to maintain its market leadership in the face of the collaboration between Uber Technologies’ (UBER) Uber Eats and Instacart (CART), Deutsche Bank said Wednesday in a note. Uber Eats and Instacart on Tuesday announced they are integrating UberEats’ restaurant offerings into the Instacart platform. While this may pose some challenges to DoorDash’s primary operations, “we believe that the ultimate orders at risk via this partnership is at most” 4% to 7% of Wall Street’s 2024 and 2025 estimates,” Deutsche Bank said. “If we assume that DoorDash successfully holds on to some percentage of these orders, the potential share loss implications are even lower,” Deutsche Bank said. Deutsche Bank has a buy rating on DoorDash with a price target of $155. DoorDash shares fell 3.7% in recent trading Wednesday. Uber slumped 8.5% after posting a surprise Q1 loss, and Instacart dropped 1.9%.

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