🎥 Regal and AMC’s slim pickings
Hey Snackers,
Chipotle dropped a lemonade-scented “Water” Cup Candle to troll customers who steal soft drinks, and it’s already sold out. Unfortunately it doesn’t come with “free” refills.
The Dow had its worst day since June yesterday and the Nasdaq plunged 2.5% as investors feared aggressive rate hikes could emerge from the Fed's annual Jackson Hole meeting, which starts Thursday.
Regal Cinemas considers bankruptcy as fewer blockbusters hit screens (AMC’s feeling it too)
Cue the scary music… The theater industry’s dealing with a nightmare fit for a horror flick. Regal Cinemas owner Cineworld, the world’s second-biggest theater chain, confirmed yesterday that it plans to file for bankruptcy, as first reported by WSJ. Cineworld shares plunged nearly 34%.
- The show must go on: Cineworld hopes to lighten its $5B debt load by filing for bankruptcy. For now the company says Regal Cinemas will remain open.
- Popcorn IOU: AMC, the biggest theater chain, also faces at least $5B in debt. AMC has raised billions from retail investors to stay afloat. But its stock plunged 42% yesterday after it issued new meme-inspired “APE” shares to raise cash.
Slowdown in Tinseltown… Despite rising movie attendance and a few big summer blockbusters (ahem, “Top Gun: Maverick”), industry-wide box-office sales are still 30% lower than prepandemic. The problem: Hollywood studios are churning out fewer films as supply issues and inflation cut into budgets. They’re releasing more films to streaming to save $$. Cineworld blamed emptier-than-expected theaters on the lack of fresh flicks:
- 40% fewer movies have hit theaters this year than in 2019. Experts don’t expect another blockbuster until “Black Panther: Wakanda Forever” debuts in November.
- Same screens: The overall number of theaters hasn’t changed much since prepandemic, which means theaters are still paying to keep lots of lights on.
When pickings are slim, old winners get picked… Analysts expect the US box office to close the year with $7B in ticket sales, roughly two-thirds of prepandemic levels. Now movie giants like Disney and Sony plan to rerelease hits like “Rogue One” and “Avatar” in domestic theaters to keep the popcorn popping — and to promote franchise sequels.
Amazon and CVS are reportedly courting techy platform Signify Health as retailers commit to primary care
Who’ll get the final rose?... There's a “Bachelor”-style scenario playing out in the healthcare world. Big-name suitors are vying to merge with Signify Health, a techy platform for home-health services that helps providers manage payments for in-home care. According to the WSJ sources:
- Amazon’s bidding for Signify in an auction that could value it at $8B+. Signify stock spiked 32% yesterday on news of the prime suitor. CVS and UnitedHealth are also courting.
- Season finale: Offers are due around Labor Day, but an eager suitor could seal the deal before then. Of course it's possible no one will win Signify's hand in merger.
A healthy appetite… Big retailers have been investing heavily in expanding healthcare services. They don’t just want to be your go-to for Advil and thermometers — they want to be your go-to for doc appointments and checkups too.
- Last month Amazon agreed to buy swanky clinic chain One Medical for $4B (its third-largest deal ever) in its quest to Prime-ify healthcare.
- This month CVS, which has expanded into healthcare with its HealthHub and MinuteClinic locations, said it plans to buy or invest in a primary-care company this year.
- Walgreens is opening hundreds of doctors' offices in partnership with VillageMD, and plans to have 600 primary-care clinics in the US by 2025 (so far it has 52).
- Walmart has a small but growing number of primary-care clinics.
Healthcare isn’t seasonal… Allergy season comes and goes, and consumers are fickle in their appetite for Prime-delivered air fryers and eye masks. One thing that unfortunately doesn’t come and go: chronic health conditions. Primary care is a reliable revenue and traffic driver, and major retailers can offer a convenience that traditional providers can’t.
What else we’re Snackin’
- Brake: Ford’s cutting 3K jobs to focus on costs and talent as it transitions to software-packed electric vehicles. Its CEO said its existing workforce doesn’t have the right expertise.
- Muted: Zoom shares fell after its quarterly sales growth slowed to an underwhelming 8%. The pandemic darling slashed its annual forecast as the strong US dollar weighs on international revenue.
- Check: Some Americans are apparently opting to dine out rather than eat in as grocery prices look scarier than menus. Last month the inflationary gap between groceries and restaurants was the largest since the ’70s.
- Post: Walmart influencers are coming. Last month the Mart filed a “Walmart Creator” trademark aimed at facilitating influencer promos. Meanwhile, Amazon has leveraged influencers for years to fuel sales.
- Auto: Tesla’s hiking the price of its (unfinished) Full Self-Driving software by $3K ahead of a wide rollout of the beta version, which Musk calls a "big step forward."
Tuesday
- Earnings expected from Intuit, Dick's Sporting Goods, Nordstrom, and Urban Outfitters
Authors of this Snacks own: shares of Walmart, CVS, Amazon, Ford, Disney, and Tesla
ID: 2391908