1 00:00:02,520 --> 00:00:07,360 Speaker 1: Bloomberg Audio Studios, podcasts, radio News. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,520 --> 00:00:18,000 Speaker 3: Now, let's take a look at some of the stocks 5 00:00:18,000 --> 00:00:20,000 Speaker 3: on the move today here in Europe. I'm Caroline Hepkat 6 00:00:20,000 --> 00:00:23,320 Speaker 3: and I'm joined by Breaking news editor Louise Moon. Hi, Louise, 7 00:00:23,320 --> 00:00:27,400 Speaker 3: Happy Friday. Let's look at Delivery Hero, which at the 8 00:00:27,440 --> 00:00:32,760 Speaker 3: moment is the biggest riser, isn't it on the European 9 00:00:32,840 --> 00:00:37,879 Speaker 3: stock market? Delivery Hero up significantly today? Why it is? 10 00:00:37,960 --> 00:00:41,080 Speaker 1: Yeah, the stock is really rallying this morning essentially. So 11 00:00:41,200 --> 00:00:44,000 Speaker 1: we had a report of Bloomberg Reports saying that they're 12 00:00:44,000 --> 00:00:47,600 Speaker 1: facing pressure from some of their large shareholders for a 13 00:00:47,880 --> 00:00:50,400 Speaker 1: strategic review. So one of them, for example, Hong Kong 14 00:00:50,400 --> 00:00:54,280 Speaker 1: Hedge Fund, their second largest shareholder. They're pushing for management 15 00:00:54,320 --> 00:00:57,600 Speaker 1: to consider either selling the whole business or part of 16 00:00:57,680 --> 00:01:00,720 Speaker 1: that business, and others have also kind of breast frustration 17 00:01:00,880 --> 00:01:05,920 Speaker 1: with Delivery Heroes lack of progress that there's been, you know, 18 00:01:06,000 --> 00:01:08,919 Speaker 1: calls for them to streamline further to boost shareholder value. 19 00:01:08,959 --> 00:01:12,639 Speaker 1: So they're facing this pressure to launch a statutic review 20 00:01:12,640 --> 00:01:16,560 Speaker 1: that could potentially if this goes ahead, you know, lead 21 00:01:16,600 --> 00:01:19,800 Speaker 1: to a sale it comes. So Delivery hero is it's 22 00:01:19,840 --> 00:01:23,680 Speaker 1: been performing very weekly, so their stock is down over 23 00:01:23,720 --> 00:01:26,440 Speaker 1: fifty percent in the past year and nearly ninety percent 24 00:01:26,480 --> 00:01:28,520 Speaker 1: off their peak that was back in twenty twenty one. 25 00:01:29,560 --> 00:01:32,240 Speaker 1: That there's been kind of a rise in competition in 26 00:01:32,280 --> 00:01:36,399 Speaker 1: the sector predominantly, so that's really hit them. And as 27 00:01:36,440 --> 00:01:38,880 Speaker 1: part of that, there's also been a kind of increasing 28 00:01:38,959 --> 00:01:41,880 Speaker 1: consolidation within the industry as well, within the food delivery industry. 29 00:01:41,920 --> 00:01:45,200 Speaker 1: So all of this is kind of ties towards that 30 00:01:45,400 --> 00:01:48,440 Speaker 1: shareholder pressure. We've been reporting that there could be some 31 00:01:48,520 --> 00:01:51,400 Speaker 1: interest from competitors like may t One in China and 32 00:01:51,440 --> 00:01:53,920 Speaker 1: Grab in Singapore, but that's kind of to be seen, 33 00:01:54,000 --> 00:01:56,480 Speaker 1: so we'll be keeping an eye and seeing if anything 34 00:01:56,760 --> 00:01:58,640 Speaker 1: comes from this pressure from shareholders. 35 00:01:59,280 --> 00:02:02,480 Speaker 3: Okay, delivery here, Now we have a food theme today 36 00:02:03,080 --> 00:02:06,080 Speaker 3: because we're also going to talk about Domino's Pizza. Why 37 00:02:06,080 --> 00:02:07,360 Speaker 3: are they going through a tough time? 38 00:02:08,400 --> 00:02:11,519 Speaker 1: So Domo's Pizza Group, Yeah, shares are dropping this morning 39 00:02:11,600 --> 00:02:15,320 Speaker 1: in London. They've been downgraded by analysts at UBS, so 40 00:02:15,720 --> 00:02:19,800 Speaker 1: from a bye to a neutral and UBS also cut 41 00:02:19,800 --> 00:02:22,640 Speaker 1: their price target. They're saying that's on a lack of 42 00:02:22,960 --> 00:02:27,360 Speaker 1: what they're calling near term catalysts. So Domino's Pizza Group, 43 00:02:27,639 --> 00:02:31,680 Speaker 1: this is the London kind of subsidiary of the wider group. 44 00:02:32,480 --> 00:02:35,720 Speaker 1: Their growth has really been hit more recently by by 45 00:02:35,760 --> 00:02:40,280 Speaker 1: macro headwinds, so you know, consumer spending that's really hitting 46 00:02:41,440 --> 00:02:45,600 Speaker 1: or slowing their openings of news stores. The CEO also 47 00:02:45,720 --> 00:02:48,840 Speaker 1: recently left a few days ago, no kind of strong 48 00:02:48,880 --> 00:02:51,480 Speaker 1: reason given for that, and their CFO also recently left, 49 00:02:51,480 --> 00:02:53,920 Speaker 1: so there's kind of a lot of uncertainty with the 50 00:02:53,919 --> 00:02:57,240 Speaker 1: business as well. So UBS has said that you know, 51 00:02:57,440 --> 00:02:59,960 Speaker 1: they're seeing some weakness, their lack of note and castile 52 00:03:00,320 --> 00:03:03,320 Speaker 1: and they would really need something strong to turn constructive 53 00:03:03,360 --> 00:03:05,400 Speaker 1: again on the stock, So something like a strategy update, 54 00:03:05,680 --> 00:03:08,440 Speaker 1: a successful new CEO appointment, that kind of thing. 55 00:03:08,919 --> 00:03:12,880 Speaker 3: Okay, that's interesting. So on Domino's Pizza Group in terms 56 00:03:13,080 --> 00:03:19,200 Speaker 3: of Mitchells and Butler's on earnings, big gains there, and 57 00:03:19,320 --> 00:03:22,440 Speaker 3: also they've made some comments again this is in the 58 00:03:22,440 --> 00:03:25,560 Speaker 3: hospitality sector, right, They've made some comment on the budget 59 00:03:25,560 --> 00:03:26,080 Speaker 3: in the UK. 60 00:03:27,200 --> 00:03:29,280 Speaker 1: Yeah, So they had their full year results today, so 61 00:03:29,400 --> 00:03:32,440 Speaker 1: pretty strong for full year, and then they've noted their 62 00:03:32,480 --> 00:03:34,760 Speaker 1: trading into the start of the next year. So four 63 00:03:34,800 --> 00:03:38,360 Speaker 1: year twenty six, it's also coming in quite solid, so 64 00:03:38,840 --> 00:03:41,880 Speaker 1: good performance. Unless are saying, you know, they're outperforming. They 65 00:03:41,880 --> 00:03:46,880 Speaker 1: think they're well placed again market share within that hospitality 66 00:03:47,040 --> 00:03:50,480 Speaker 1: and pub sector in the UK. They did, as you say, 67 00:03:50,520 --> 00:03:52,400 Speaker 1: worn about some cost headwinds, so they said they're going 68 00:03:52,440 --> 00:03:54,600 Speaker 1: to face cost headwinds of one hundred and thirty million 69 00:03:54,600 --> 00:03:58,520 Speaker 1: pounds next year, so they noted the budget as being 70 00:03:58,600 --> 00:04:01,840 Speaker 1: part of that. They also spoke about wage increases, greater 71 00:04:01,880 --> 00:04:06,400 Speaker 1: food inflation all hitting them. And then there's also a 72 00:04:06,440 --> 00:04:09,600 Speaker 1: bit of concern more broadly with the sector that consumer 73 00:04:09,920 --> 00:04:12,360 Speaker 1: behavior consumer spending could be dampened in the short term 74 00:04:12,400 --> 00:04:15,080 Speaker 1: also as a result of the budget. But shares climbing 75 00:04:15,240 --> 00:04:17,839 Speaker 1: the most since May last years. They were up over 76 00:04:17,920 --> 00:04:21,640 Speaker 1: twenty over eight percent this morning, so we're a real 77 00:04:21,680 --> 00:04:25,159 Speaker 1: focus there on their strong four year results and quite 78 00:04:25,200 --> 00:04:28,720 Speaker 1: a positive outlook aside from those headwinks. 79 00:04:29,760 --> 00:04:33,800 Speaker 2: The Stock Movers Report from Bloomberg Radio. Check back with 80 00:04:33,880 --> 00:04:36,440 Speaker 2: us throughout the day for the latest roundup of companies 81 00:04:36,520 --> 00:04:39,599 Speaker 2: making news on Wall Street and for the latest market 82 00:04:39,640 --> 00:04:43,640 Speaker 2: moving headlines. Listen to Bloomberg Radio Live. Catch us on 83 00:04:43,680 --> 00:04:47,599 Speaker 2: YouTube Bloomberg dot com and on Applecarplay and Android Auto 84 00:04:47,640 --> 00:04:49,279 Speaker 2: with the Bloomberg Business App.