WEBVTT - Cracker Barrel and Chewy Guidance; Freight Selloff

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News, The.

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 2>the stock market. Harnessing the power of Bloomberg Data. Let's

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<v Speaker 2>take a look at some stocks on the move today.

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<v Speaker 1>I'm Tom Keen with Paul Sweeney and Bloomberg's Alexis Gastaffers.

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<v Speaker 3>I thought it would be appropriate to start with Cracker

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<v Speaker 3>Barrel since they're known for their big country breakfasts. We're

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<v Speaker 3>sort of still in the breakfast time, right, Yep, it's

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<v Speaker 3>almost nine am, all right, So Cracker Barrel in the

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<v Speaker 3>news here ticker simple CBRL. It is up fifteen and

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<v Speaker 3>a half percent, guys this morning. It is up forty

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<v Speaker 3>three percent year to date. And really, what this story

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<v Speaker 3>tells us, it's the recovery there at Cracker Barrel continues.

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<v Speaker 3>Remember that customer backlash changed its logo, redesigned its restaurants,

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<v Speaker 3>thought it was going modern, and consumers went, wait a minute,

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<v Speaker 3>we love you because you're nostalgic and old timy. So

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<v Speaker 3>they went back, and we're seeing things pick up now.

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<v Speaker 3>Store traffic it is still falling, but declines have gotten

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<v Speaker 3>less steep, So I guess that's good. News for the stock,

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<v Speaker 3>and the chain did raise its full year revenue guidance.

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<v Speaker 3>The company has since been focusing on improving its food,

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<v Speaker 3>its service, and it's also I don't know if you've

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<v Speaker 3>gone in one recently. I saw pictures of this online.

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<v Speaker 3>They have this American heritage line for the country's two

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<v Speaker 3>hundred and fifty your birthday. So I mean everything from

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<v Speaker 3>you know, T shirts to the salt and pepper shakers,

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<v Speaker 3>Route sixty six signs or selling like hotcakes.

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<v Speaker 1>I haven't looked at a restaurant financial statement in a while. Oh,

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<v Speaker 1>can we remind ourselves this is a tough business. It's

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<v Speaker 1>a tough business. You're bringing in a dollar and you're

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<v Speaker 1>hoping to make three or four cents, yep. And so

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<v Speaker 1>it's all about volume. And so you've got your core

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<v Speaker 1>customers make up the backbone of your of your restaurant,

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<v Speaker 1>and for Crackerbow, the core goers are just okay, that's deep.

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<v Speaker 2>We're addicted to Nvidia.

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<v Speaker 1>No, I'm addicted to the biscuits and gravy there.

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<v Speaker 2>To die for.

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<v Speaker 3>But the margins are those restaurants for sure. All right,

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<v Speaker 3>let's move on to a retailer now, and that would

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<v Speaker 3>be Chewy the pet supply company, Tom, I think you

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<v Speaker 3>are a big consumer there for your pets of the Chewy.

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<v Speaker 3>The stock is down one and a half percent here

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<v Speaker 3>pre market, and it has been a tough year for

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<v Speaker 3>Chewy because the stock is down thirty eight percent year

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<v Speaker 3>to date. Mixed quarterly results from the company, adjusted earnings

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<v Speaker 3>coming in in line with estimates. Nets sales rose about

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<v Speaker 3>eight percent, narrowly beating the street. The company did cut

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<v Speaker 3>its full year sales outlook maintained its profit outlook. Some

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<v Speaker 3>are saying that look, the stock could be down even

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<v Speaker 3>more because Chewy avoided the worst case scenario. A couple

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<v Speaker 3>of weeks ago, the CEO came out and said, you know,

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<v Speaker 3>consumers are more stretched than ever entering the new year.

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<v Speaker 3>So maybe it's a case of it's not great, but

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<v Speaker 3>it could have been worse.

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<v Speaker 1>And the income statement, I got five cents six cents

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<v Speaker 1>on the dot. What's a tough living? Yeah, I just

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<v Speaker 1>you know, you do your Chewy probably you know the food,

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<v Speaker 1>the pads, the Chewy.

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<v Speaker 3>Bones out it. Oh yeah, these items yeah.

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<v Speaker 1>I mean the Chewy bones are the best.

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<v Speaker 3>We's how you know that?

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<v Speaker 1>The dollar?

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<v Speaker 3>Yeah, that's rough stuff.

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<v Speaker 1>Do you have another one I do.

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<v Speaker 3>I do so several large trucking companies. I actually have

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<v Speaker 3>two for one for you here. So I've got FedEx

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<v Speaker 3>Freight and Old Dominion. They are coming under pressure. Amazon

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<v Speaker 3>announced an expansion of its shipping service. It is called

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<v Speaker 3>less than truckload services. That's when you carry shipments that

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<v Speaker 3>are larger than parcels but smaller than full truckloads. And

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<v Speaker 3>they're going to expand that business to any kind of

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<v Speaker 3>destination across the country, from third party warehouses to retail partners.

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<v Speaker 3>And that has the transportation industry all in a tizzy.

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<v Speaker 3>This they first announced this, uh, like a couple of

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<v Speaker 3>weeks ago. UPS was hurt because of it, third party

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<v Speaker 3>logistics firms like C. H. Robinson, and now we're seeing

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<v Speaker 3>FedEx Freight and Old Dominion sell off. By the way,

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<v Speaker 3>FedEx Freight was spun off from FedEx just a few

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<v Speaker 3>weeks ago.

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<v Speaker 1>I worked on the IPO of Old Dominion Freightlines and

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<v Speaker 1>nineteen ninety one as a senior banker. How about that.

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<v Speaker 1>I still may have the model for it, if I

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<v Speaker 1>can take it down on a floppy disk.

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