All of that real estate…
Coming Everywhere
Warby Parker sees the future, and it’s physical.
In early August, the omnichannel brand reported some decent results. The Gross Margin was lower than the prior quarter, similar to the previous year’s trend, so there may be some seasonality there; however, compared to last year, it had 16.2% growth.
While Warby Parker doesn’t report margin by channel, management sees the potential in the national footprint of 900 brick-and-mortar stores at some point. We can guess using simple math, removing the current 256 stores and then dividing by the open rate achieved in Q2 2024 (11 stores), and then dividing by 4, we have ~15 years or mid-2039 of national domination unless something changes. (Something always changes.) Currently, the stores are approximately 30% street, 45% outdoor center, and 25% indoor center.
The actual site specifications are not posted on the website, but I am sure you can find out.
Wheeler Real Estate Investment Trust is keeping all the balls in the air.
Guggenheim believes in Wheeler REIT, giving it a loan of $25.5 million in July for ten years backed by five properties and interest only. Cross-collateralization is inking out every dollar for the portfolio. The densest part of the financial results is the capital markets section. Under Cautionary Note on Forward-Looking Statements is this little note:
“ the Company’s ability to regain compliance with the listing standards of the Nasdaq Capital Market ("Nasdaq") and maintain its listing thereon; the effects on the trading market of our Common Stock of the one-for-10 reverse stock split effected on August 17, 2023 (the "August 2023 Reverse Stock Split"), the one-for-24 reverse stock split effected on May 16, 2024 (the "May 2024 Reverse Stock Split"), the one-for-five reverse stock split effected on June 27, 2024 (the "June 2024 Reverse Stock Split", and collectively with the May 2024 Reverse Stock Split, the “2024 Reverse Stock Splits”) and any reverse stock split the Company may effect in the future;.”
Management spends more time financing the portfolio than managing tenants or properties.
All Brands C-Suite
There aren’t enough suits to go around.
Mila Spanos, who recently left his role as Chief Operating Officer (COO) at Delta Air Lines after just over a year, will be the CEO of Bloomin’ Brands, the parent company of several restaurant brands. He is replacing David Deno, who is retiring. It’s reported Spanos is the one who threw his name out for the position. It may seem odd for an airline executive to move to the owner of Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, Fleming's Prime Steakhouse & Wine Bar, and Aussie Grill by Outback. Still, Spanos joined Delta in May 2023, coming from executive roles at PepsiCo and Six Flags. The $500k signing bonus is good, too; it goes well with his severance package from Delta.
His departure comes at an infamous moment for the airline, including thousands of flights canceled due to a cybersecurity firm CrowdStrike's untested software update. While this affected other airlines, Delta’s extensive delays in getting back on track have caused Delta to face a class-action lawsuit from passengers affected by these cancellations. Delta has not announced a direct replacement for Spanos, choosing to restructure its leadership by having the Chief of Operations and the Chief Customer Experience Officer report directly to the CEO.
Beyond Shirts and Pants
Ace Hardware, a personal favorite, will open 200 stores before the end of 2024. While Q2 revenue was up year over year, net income fell due to higher marketing and store expenses. Interest Paid on debt so far in 2024 was $22.7 million compared to $14.6 million in the first half of 2023
New Franchise
Fifties Grill and Dairy is partnering with Franchise Marketing Systems to expand in New York state and regionally. The 50’s diner concept boasts an extensive menu and reasonable prices.
Chris Conner of FMS has worked with and helped establish franchises with corporations such as Anytime Fitness, Baxter Healthcare, Blimpie, Hungry Howie’s Pizza, Restoration 1, Smash My Trash, and Two Men and a Truck. ( as reported by C. Blakeslee The Post- Journal)
Looking forward to this:
UK Shop prices fall, US next? Hot-Pot Boy bands and McDonald’s in China