Finance & Capital Management

Popeyes Louisiana Kitchen is about to get a new owner.    Restaurant Brands International Inc., owner of Burger King and Tim Hortons, announced it would acquire Popeyes Louisiana Kitchen for $1.8 billion in cash.  

Restaurants are the current darlings of the shopping center developers. It was reported last year that Americans spent more money at bars and restaurants (a total of nearly $55 billion) than they did on groceries. In case you were wondering how big a deal that is, consider this: It was the first time in recorded history that that was the case. But that’s not the only reason that shopping center owners are mad for restaurants. They are also hubs of social activity that contribute to that all-important and often elusive experiential energy.  

The Shops at Stonehenge in Chesterfield County, Virginia, south of Richmond, will be sold in a foreclosure auction this week, according to a report in the Richmond Times-Dispatch.  

The Home Depot is closing in on the $100 billion mark in annual sales. 

The Atlanta-based retailer posted a 6.4% increase in same-store sales in the United States, and 5.8% overall, for the quarter ended Jan. 29. 

CEO Craig Menear credited merchandising mix and digital prowess for the chain’s better-than-expected fourth quarter performance, which saw sales increase to $22.2 billion in the fourth quarter, up 5.8% from 21.0 billion in the same quarter last year.

Slowing mall traffic continued to slow Dillard’s sales in the fourth quarter.   Net income for the quarter ended January 28, 2017, was $56.9 million compared to net income of $84.0 million in the year-ago period. Included in the amount is an after-tax asset impairment of $4.2 million on a cost method investment.   Net sales for the period were $1.94 billion, down from $2.07 billion last year. This missed analyst estimates of $1.999 billion.  

As retailers expand the breadth of their omnichannel operations, they need better visibility into their financial data.   This is not an easy task for retailers like Tailored Brands, whose expansive retail portfolio includes Men's Wearhouse, Jos. A. Bank, Joseph Abboud, Moores Clothing for Men and K&G Fashion Superstore. The company also operates a global corporate apparel and workwear group consisting of Twin Hill in the U.S. and Dimensions, Alexandra and Yaffy in the U.K.  

Store closures, layoffs and shifting consumer preferences weighed down Macy’s bottom line, negatively impacting its fourth quarter earnings. And the retailer doesn’t see its slump ending in the near future.    Macy's net income fell to $475 million in the quarter ended Jan. 28, compared with $544 million in the year-ago period. Adjusted earnings per share came to $2.02, better than analysts had expected. Analysts had expected $1.95 per share for the quarter, according to FactSet.  

While Lidl has made clear its plans to expand to the U.S., many grocery retailers may not have expected it to make its stateside debut quite so soon. Recent reports that the chain will open its first stores on U.S. soil this summer, ahead of schedule, mean that the pressure is on for domestic grocery chains to determine how to react to their latest challenger.  

Walmart on Tuesday reported a solid fourth quarter amid a big increase in online sales and higher store traffic. The company also announced it is raising its dividend.   Walmart earned $3.76 billion, or $1.22 per share in the quarter ended Jan. 31, compared with $4.57 billion, or $1.43 per share, in the year ago period. Walmart’s earnings were impacted by investments in its digital business as it continues to boast its defenses against Amazon and other online competitors.    

In a move that could attract more tech start-ups, New York City will be the home to one of the newest innovation labs.   The 250,000-sq.-ft. “Union Square Tech Hub,” which was announced in December, will include 58,000 sq. ft. of “fluid space” for startups, and a 36,500 sq.-ft. tech training center, reported TechCrunch.