WEBVTT - Dollar Tree Falls; Meta Settlement; Wendy's Plunges

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<v Speaker 1>Bloomberg Audio Studios. Podcasts. Radio. News. The Stock Movers Report.

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<v Speaker 1>Your roundup of companies making moves in the stock market.

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<v Speaker 1>Harnessing the power of Bloomberg data. Let's take a look

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<v Speaker 1>at some of the stocks on the move today.

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<v Speaker 2>We can do that with Bloomberg's John Tucker. John, what

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<v Speaker 2>are you looking at today? Let's start with the dollar

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<v Speaker 2>storage chains. And both of them are providing kind of

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<v Speaker 2>a different takeaway on the state of the retail sector today. That,

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<v Speaker 2>of course, is facing some economic challenges, we'll say. At

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<v Speaker 2>Dollar Tree, the company mostly meeting Wall Street expectations. They

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<v Speaker 2>left the sales growth outlook for the year unchanged. Dollar

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<v Speaker 2>General lifting its view on revenue for this year after

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<v Speaker 2>a quarterly sales beat. Here's a Dollar Tree. They were

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<v Speaker 2>falling in pre-market trading. Dollar General's gain, they hit a high.

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<v Speaker 2>They were up almost 11%. Now, the earnings of these

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<v Speaker 2>chains are offering an important view into shopping habits. They

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<v Speaker 2>often benefit when consumers are cutting back and seeking out

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<v Speaker 2>lower prices. But you know what? Dollar General and Dollar

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<v Speaker 2>Tree have both had pretty good success expanding beyond lower-income shoppers.

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<v Speaker 2>Some of the stores have actually gotten a little fancy.

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<v Speaker 2>Of course, the one by me. I mean, guys, invest

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<v Speaker 2>in a broom, would you? Meta platforms. I was doing

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<v Speaker 2>the affiliate reports yesterday. Everybody had the same question. Why

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<v Speaker 2>is the stock up if they're going to pay $ 16. 7

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<v Speaker 2>billion or close to $ 18 billion? Meta ended Wednesday's session

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<v Speaker 2>up over 1%. investors are kind of relieved that the

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<v Speaker 2>company's only going to pay as much as $ 18 billion.

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<v Speaker 2>If they had lost at trial in this landmark case,

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<v Speaker 2>they would have faced over a trillion, with a T,

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<v Speaker 2>dollars in penalties. And now, of course, we're learning that

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<v Speaker 2>the changes to Instagram and Facebook will apply only to U.S.

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<v Speaker 2>users for now. Did you see who's really going to

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<v Speaker 2>make out here? We were talking about it yesterday, John.

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<v Speaker 1>The lawyers. They set aside $ 10 billion in the.

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<v Speaker 2>Third quarter for legal expenses, charges. And you know what?

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<v Speaker 2>Every kid I know has or is working on a workaround.

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<v Speaker 1>Yes. The minute these things came out, these guardrails came out,

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<v Speaker 1>they went, how can I get out of it? Yeah,

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<v Speaker 1>I'm sure all the little chat groups are all figuring

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<v Speaker 1>out ways. All the little chat groups.

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<v Speaker 2>Oh, geez. But the U.S. settlement does represent something of

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<v Speaker 2>a bellwether for the rest of the world because the U.K.,

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<v Speaker 2>they've announced plans to ban kids under the age of

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<v Speaker 2>16 from using these apps.

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<v Speaker 1>Australia, too, has very tough restrictions.

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<v Speaker 2>Already in place, and it's been in place for a

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<v Speaker 2>little while, but the results of that are kind of mixed,

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<v Speaker 2>so we'll see. Yeah, and finally... I've got to do Wendy's.

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<v Speaker 2>They're getting a frosty. They have been on the turnaround path. Now,

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<v Speaker 2>this morning, we're hearing that Tryon Fund Management and Nelson Peltz,

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<v Speaker 2>they have no plans to make a bid at this

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<v Speaker 2>time to take Wendy's private. This is according to Reuters.

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<v Speaker 2>Remember earlier in August, those shares got a pop on

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<v Speaker 2>a report that Tryon was preparing an offer with other investors.

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<v Speaker 2>The burger chain did withdraw its 2026 outlook earlier this month.

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<v Speaker 2>They cut its dividend. The new CEO there, Bob Wright,

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<v Speaker 2>is drawing up turnaround plans for the company. Wendy's has

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<v Speaker 2>reported six straight quarters of declining comparable sales. An analyst

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<v Speaker 2>polled by Bloomberg expects the trend to continue. In the

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<v Speaker 2>recent earnings call, Wright said the company's quality had slipped.

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<v Speaker 2>Its value offerings weren't resonating, and service has become inconsistent.

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<v Speaker 1>And you know what? Burger King is capitalizing on that

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<v Speaker 1>because we were just talking about recently how now they're

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<v Speaker 1>the number two burger chain. So they're making a comeback.

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<v Speaker 2>And just because as a public service, I did look

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<v Speaker 2>this up on Google AI. You can make a copycat

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<v Speaker 2>Wendy's Frosty at home using just three simple ingredients, chocolate milk,

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<v Speaker 2>sweetened condensed milk, and whipped topping.

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<v Speaker 1>And we spell sugar? Yes.

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<v Speaker 2>I don't know. Anyway.

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<v Speaker 1>The Stock Movers Report from Bloomberg Radio. Check back with

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<v Speaker 1>us throughout the day for the latest roundup of companies

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