Good Evening! During a speech in Washington, D.C., Federal Reserve Chair Jerome Powell accepted the existence of disinflation in the economy. As a result, the U.S. stock market concluded Tuesday’s turbulent session significantly higher.
The S&P 500 rose 1.29%, while the Dow Jones increased by 0.78%. The Nasdaq Composite climbed the most by 1.90%.
AFTER HOUR DECLINE
Chipotle Mexican Grill (CMG) revealed quarterly earnings that fell short of forecasts, causing shares to decline by more than 5% in after-hours trade.
- Revenue: $2.2 Billion vs. $2.23 Expected
- Earnings Per Share: $8.29 vs. $8.91 Expected
- Same Store Sales: 5.06% vs. 7.04% Expected
Any reason for the decline in same-store sales? Chipotle’s fourth-quarter same-store sales fell short of forecasts as the firm negotiated a “challenging and fluid macro environment,” according to CEO Brian Niccol’s statement.
Let’s Reflect on 2022… Chipotle opened 236 locations, 202 of them including a Chipotlane, which is a drive-thru format. The business said in its earnings report that these layouts often “improve new restaurant revenues, profits, and returns.“
Going forward… The business expects to launch between 255 and 285 additional sites in 2023, including 10 to 15 re-locations to add a Chipotlane, given that “utility, construction, permit, and material supply delays do not worsen.” This is a step toward the company’s long-term objective of reaching 7,000 stores throughout North America.
ALL BOOKED UP
According to the head of ad sales at Fox Sports, every Super Bowl LVII commercial slot has been sold at an average price of $6 million per 30 seconds, and many of these expensive spots went to alcohol firms.
What is special about that? Anheuser-Busch, the parent firm of Budweiser, and Stella Artois ended the exclusive Super Bowl alcohol advertising rights it has owned since 1989, and now other companies are eager to reach the Super Bowl’s 100 million viewers. Like who?
- The worldwide vice president of marketing for the Miller brands at Molson Coors told Bloomberg, “It took us less than 30 seconds to decide to buy an ad“
- Heineken, Rémy Martin, and Crown Royal also have a place reserved.
Who else will we see this Sunday? Anheuser-Busch will continue to offer advertisements in the game and will be joined by Doritos, Pepsi, and Netflix & General Motors.