—— Ford EVs to Lose $5.5bn This Year; US Consumer Sentiment Drops to 7-month Low; Cava Restaurants are Worth $33mn Each; Ardian to Buy Heathrow Airport Shares; Pork Producers Benefit from Beef Inflation; Sotheby’s to Host Biggest Champagne Auction; 37 People Hospitalized amid E.coli Outbreak
1. Ford EVs to Lose $5.5bn This Year
Ford Motor Co. will sell its lineup of electric vehicles through all 2,800 of its US dealers in an effort to boost sales of battery-powered models, which are currently being overlooked by mainstream buyers.
The automaker is abandoning a previous plan that required dealers to invest up to $1.2 million in their stores to qualify for selling models like the electric Mustang Mach-E and the F-150 Lightning plug-in pickup. Approximately half of Ford’s dealers had committed to that program.
“The growth has slowed down and we’re getting into the tough innings,” said Marin Gjaja, chief operating officer of Ford’s EV unit, Model e, during a call with reporters on Thursday.
By stocking EVs in all dealerships, “we expect it’s going to help us grow our sales,” Gjaja said. “We think that it will give us greater geographic coverage and create more convenient locations for customers to buy and get their vehicle serviced.”
This decision marks the latest adjustment in Ford’s EV strategy, which has included reducing spending on battery-powered models by $12 billion, cutting EV factory capacity, delaying new models, and lowering prices.
______
2. US Consumer Sentiment Drops to 7-month Low
US consumer sentiment unexpectedly fell to a seven-month low in early June as high prices continued to impact views on personal finances.
The sentiment index dropped to 65.6 in June from 69.1, according to the preliminary reading from the University of Michigan. Economists surveyed by Bloomberg had a median estimate that the measure would rise to 72.
Consumers expect prices to increase at an annual rate of 3.1% over the next five to ten years, up slightly from the 3% expected in May, according to data released on Friday. They anticipate costs rising 3.3% over the next year, consistent with the previous month’s expectations.
A gauge of consumers’ current assessments of their personal finances fell by 12 points to 79, the lowest level since October, indicating growing concerns about incomes. Additionally, views on economic conditions dropped to their weakest point since the end of 2022.
______
3. Cava Restaurants are Worth $33mn Each
Among the numerous hot IPOs over the past year, including AI firms and biotech startups, none has made a splash on Wall Street quite like Cava Group Inc.
The restaurant chain, often referred to by its financial backers as the “Mediterranean Chipotle,” has soared over 300% since its initial public offering in June 2023, reaching a market valuation exceeding $10 billion. This equates to roughly $33 million per each of its 323 restaurants, a staggering figure even for a rapidly expanding chain.
In comparison, when Chipotle Mexican Grill, the benchmark in the US fast-casual restaurant industry, reached its one-year public market anniversary, investors valued it at approximately $3 million per restaurant. On a price-to-earnings ratio basis, Cava is also considered expensive, clocking in at 185.
However, the rally has been so extreme that it is starting to concern some Cava bulls. Within just four days, two of the 15 Wall Street analysts covering the company — JPMorgan Chase’s John Ivankoe and Piper Sandler’s Brian Mullan — downgraded the stock to neutral from overweight.
This surge underscores how the global IPO market is reviving after a couple of sluggish years. When the right kinds of new stocks, such as a trendy fast-casual chain, are brought to market, investors are eager to bid them up.
______
4. Ardian to Buy Heathrow Airport Shares
Private equity firm Ardian and Saudi Arabia’s wealth fund have offered to buy a 37.6% stake in Heathrow Airport for £3.26 billion ($4.26 billion), in a revised deal that increases their commitment to the London hub after other shareholders joined Ferrovial SE in selling.
Spain’s Ferrovial, the largest current shareholder in Heathrow, has accepted the revised deal, according to a statement released on Friday. Paris-based Ardian will acquire a 22.6% stake, while the Saudi Public Investment Fund (PIF) will own 15%. Ferrovial will retain a 5.25% shareholding in Heathrow.
The new agreement addresses “tag along rights,” which allowed other shareholders to join Ferrovial in selling their shares after the original deal was announced in November. Initially, Ferrovial planned to sell its 25% stake to Ardian and PIF, with the Saudi fund set to buy 10% of Heathrow’s parent company and Ardian to take a 15% stake.
Following the original deal, other shareholders exercised their rights to sell a portion of their shares, leading to the revised agreement.
______
5. Pork Producers Benefit from Beef Inflation
American hog farmers are betting that cash-strapped consumers will turn to grilling more pork and eating more pepperoni as beef prices surge, marking a potential turnaround for an industry that has struggled for over a year.
The smallest US cattle herd since the 1950s has driven beef prices to levels that many shoppers find prohibitive, especially as they have mostly exhausted their pandemic savings. With an abundant supply of pork, producers are counting on consumers to opt for more sausage and pepperoni pizzas and anticipate a boost in demand during the grilling season, particularly with the upcoming July 4th holiday.
Pork producers have been under pressure due to a supply-demand imbalance and higher crop prices, which have increased the cost of feeding their herds. However, attendees at the World Pork Expo in Des Moines, Iowa, last week expressed optimism that the industry’s fortunes will start to improve with rising demand, which could help enhance their profit margins.
“I would ask that every American go out and buy as many pork chops as they can and share with their neighbors,” said Bryan Humphreys, chief executive officer of the National Pork Producers Council, a trade group representing hog farmers.
______
6. Sotheby’s to Host Biggest Champagne Auction
Sotheby’s will host the largest-ever champagne-only fine wine auction next week in Paris, a sale that will gauge sentiment among collectors as vintage champagne prices have dropped by a quarter since peaking in 2022.
The auction house, owned by French-Israeli financier Patrick Drahi, will auction around 1,500 bottles of the finest vintage champagnes from the collection of Taiwanese electronics billionaire Pierre Chen.
This auction is the second in a series of five international auctions featuring 25,000 bottles from Chen’s extensive wine collection. The first auction, held in November last year at Hong Kong’s Mandarin Oriental hotel, raised $16.8 million over two days.
Rarities on offer this time include a five-bottle lot of 1971 Salon Le Mesnil, Blanc de Blancs, estimated at up to €18,000. Additionally, the auction will feature vintages from top champagne houses such as Krug, Dom Pérignon, Salon, and Roederer, with some bottles dating back to the 1950s.
______
7. 37 People Hospitalized amid E.coli Outbreak
UK supermarkets have begun removing certain products potentially linked to the E.coli outbreak that has recently resulted in hospitalizations.
The UK’s Food Standards Agency (FSA) announced that Greencore Group, the nation’s largest sandwich maker, had recalled sandwiches, wraps, and salads as a precautionary measure.
While it was not clear on Friday afternoon which specific items were being removed or if they were definitively contaminated, some retailers were taking “swift action” to prevent the products from being sold, according to the British Retail Consortium (BRC), which represents the sector.
Andrew Opie of the BRC stated that following investigations by the FSA and the UK Health Security Agency, several food manufacturers in the supply chain were taking precautionary steps and recalling a limited number of products.
______
本文内容来自《Financial Times》、《Bloomberg》，以及《The Real Deal》等多家财经新闻媒体。