A couple of weeks ago we conducted a thought experiment in which the government became a nonprofit, and this week we propose another thought experiment in which the government becomes a public corporation. We suggest that this could provide very useful input into the debt ceiling debate.
Beyond Meat Struggles to Keep Its Head Above Water
Customers are left with a level of ambiguity regarding the health benefits & value of Beyond Meat’s products, and management did not think it did enough to stand out in an increasingly crowded market.
Walmart Posts Strong 1Q24 Results Despite Consumer Struggles
On a 2-year stack basis, food inflation remains over +20% and continues to pressure discretionary wallets. If a customer is living paycheck to paycheck, they now have a 2-year stack that’s a problem which eventually becomes a 3-year stack problem.
Tyson Foods Fiscal 2Q23 Adjusted EBITDA -37% Y/Y
Tyson’s management reported a highly unusual situation in which all 3 of its core protein categories (beef, pork & chicken) were simultaneously experiencing market challenges.
Dollar Tree Reports Lower Government Benefits Affecting Consumers
Low-income consumers are pressured by lower SNAP benefits & tax refunds, higher inflation & the elimination of covid stimulus from the system. The consumer is now more focused on needs vs. wants.
The Importance of the Balance Sheet in Financial Analysis
While most investors are focused on sales growth & margins, they would be well served to further consider the strength of a company’s balance sheet. We look at BlackRock’s financial condition as an illustrative point.
The Importance of Free Cash Flow in Financial Analysis
Cash represents the lifeblood of all business enterprises which is why it is important to analyze free cash flow which we define as operating cash flow minus capex, dividends, and stock buybacks. We illustrate DoorDash as an example of why cash flow analysis is so important.
Lessons From Tucker Carlson
There are many theories about why Fox booted Tucker Carlson, but it may be a very simple reason which can instruct everyone involved in the consumer retail segment.
It is Imperative that Climate Change Regs Incorporate Economic Reality
This week we spotlight efforts by international agencies to lower the earth’s temperature by imposing onerous regulations on energy producers. We suggest it will be better to: begin a process of implementing continuous improvements designed to support both economic & climate progress; and use international organizations to share tech & best practices as opposed to providing them with regulatory powers best left to individual nation-states.
AutoZone Fiscal 3Q23 Reveals Consumers are Holding on to Cars Longer
Both the new & used car markets are posing significant challenges for its customers & AutoZone expects these markets to remain challenged for a longer period of time than originally assumed, providing a tailwind for its DIY business.