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| Here's your daily business briefing. - 🍺 Bud Light sales plummet
- 🔍 Deep Dive: Walmart vs. Amazon: marketplace war
- 🍔 McDonald's sales soar 14% on price hikes
Make sure to continue reading the Quarterly Earnings Report and the Quick Hits. Thank you!! Shriram
p/Shriram | |
| 1 | | AB InBev, the world's largest brewer, experienced a 13.5% decrease in Q3 U.S. revenue per 100 liters, mainly driven by declining Bud Light sales. The nearly 17% drop in sales to U.S. retailers was mainly due to Bud Light's declining volume, resulting in a 29% decrease in AB InBev's adjusted U.S. earnings. More: - During the summer, Modelo overtook the brand as the best-selling American beer.
- Bud Light sales continue to decline; during the four weeks that ended on Oct. 7, volumes were 30% lower YoY.
- AB InBev's research indicates that more than 40% of former Bud Light consumers are willing to consider giving the brand another go.
- Intending to refocus Bud Light on beer, AB InBev has started partnering and launching marketing efforts to increase sales.
- In addition to announcing a $1B stock repurchase, AB InBev reported a 5% increase in global revenue to approximately $15.6B.
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| 2 | | 
What the numbers say: In the U.S., Amazon leads the e-commerce business with 37% of the market share, while Walmart, the biggest retailer, trails behind with 6% of the market. Walmart emphasizes its third-party marketplace, which provides about 70% of items during sales events, helping boost online sales and outperform other major retailers, particularly in discretionary categories like home and apparel. Relevance: On their marketplace, Walmart has about 100,000 active merchants, compared to over 1 million on Amazon. Targeting Amazon, Walmart is trying to draw more independent vendors to its marketplace by providing advertising and fulfillment services. More data: Walmart has shifted its emphasis to selling at dollar stores and other bargain retailers to satisfy customers' needs for quality and affordability. More than half of all online orders are completed by Walmart, which uses its more than 4,600 stores as miniature warehouses. As customers search for cheaper solutions, Walmart's third-party marketplace may help the corporation profit from inflation. | | | |
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| 3 | | McDonald's reported Q3 earnings, with an adjusted EPS of $3.19, surpassing the expected $3, and a quarterly revenue of $6.69B, beating the expected $6.58B. From $1.98B or $2.68 per share a year earlier, McDonald's Q3 net income increased to $2.32B or $3.17 per share. More: - The quarter's global same-store sales increased by 8.8%, above StreetAccount's forecast of 7.8%.
- Strategic pricing hikes contributed to an 8.1% gain in same-store sales in the U.S.
- The American multinational fast food chain anticipates a 10% price increase in 2023 despite a slight drop in menu prices in the third quarter.
- The company's U.S. traffic decreased, mostly from customers earning under $45,000 annually.
- Nonetheless, it increased its market share among consumers with middle-class and upper-class incomes.
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| 4 | | Ford fell short of Q3 earnings expectations as it navigates operational restructuring and recovers from a costly UAW strike, with losses of about $1.3B. Before the strike, the company was on track to meet its earnings guidance, but the strike resulted in approximately $100M in losses during the third quarter and a significant dent in its overall performance. More: - Ford reported Q3 earnings of $0.39 for adjusted earnings per share, which was less than the $0.45 expected, and $41.18B for automotive revenue, which was less than the $41.22B predicted.
- Ford reported Q3 net income of $1.2B, compared to an $827M loss in the same period last year, with total revenue of $43.8B, marking an 11% YoY increase.
- The Model E electric vehicle division reported a $1.33B loss, while Ford's regular business operations, Ford Blue, made $1.72B and its Ford Pro commercial company, $1.65B.
- The business is proceeding with a new EV plant and campus in West Tennessee called Blue Oval City, but it is delaying nearly $12B in previously announced electric vehicle investments.
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| 6 | | Chipotle Mexican Grill reported Q3 earnings, with an adjusted EPS of $11.36, exceeding the expected $10.55, and a quarterly revenue of $2.47B, in line with expectations. With the support of increased menu prices for its burritos and bowls, Chipotle's Q3 net income of $313.2M, or $11.32 per share, increased from $257.1M, or $9.20 per share, a year earlier. More: - This month, the restaurant chain increased menu pricing for the first time in more than a year, claiming inflation.
- In the quarter, same-store sales increased by 5%, exceeding StreetAccount's forecast of 4.6% growth.
- Chipotle intends to pass along the increased labor expenses in California due to the fast-food industry's minimum wage increase to $20 per hour in April 2023.
- Throughout the quarter, Chipotle added 62 new locations, most of which had a "Chipotlane," or drive-thru lane for online orders.
- In 2024, the business intends to open 285-315 new eateries.
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- Logitech International has appointed Hanneke Faber, former group president of Unilever's nutrition business, as its next CEO.
- During a live-streamed event, Apple unveiled its latest processors —the M3, M3 Pro, and M3 Pro Max — as well as new iterations of the MacBook Pro and colorful iMac computers.
- Nvidia is facing uncertainty regarding its $5B worth of orders from China following the imposition of new U.S. restrictions, affecting chip shipments for next year.
- In an effort to cut expenses after the pandemic, Natura & Co. is in ongoing talks to sell The Body Shop to Aurelius Investment Advisory Ltd.
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INSIDE BUSINESS LEADERBOARD (7 DAYS) |
 | Freelance Writer | | Shriram is pursuing Master’s in Business with Marketing at Warwick Business School. He worked as a Senior Consultant in Tech and Political Consultancies before his Masters. He is passionate about Tech, Marketing, Strategy, Anthropology and Politics. He is also the Postgraduate Ambassador for Warwick Business School. | | This newsletter was edited by Aaron Crutchfield | |
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