J&J's $9 Billion Offer Inflames Talc Suit Claimant Rift
Johnson & Johnson 's $9 billion settlement offer for its allegedly tainted talc products has triggered a battle between courtroom heavyweights in Houston.
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Yahoo
9 hours ago
- Yahoo
Hulk Hogan's death could be bad news for Hooters
Hulk Hogan's Real American Beer was bidding to buy Hooters before his death. It's now unclear if that offer will continue. Hogan died Thursday, reportedly of cardiac arrest. The death of Hulk Hogan (real name Terry Bollea) Thursday marked the end of an era in the wrestling world, but it could put the future of a national restaurant chain at risk as well. Bollea's Real American Beer brand had launched a bid to acquire Hooters just last month. After initially bidding only for the company's intellectual property, it expanded that bid to acquire all of Hooters of America, including the over 400 locations across the world. Hooters filed for bankruptcy in June, abruptly closing dozens of locations. Management at the time said the company wasn't 'going anywhere' and that 'by optimizing our business in support of our long-term goals, Hooters will be well-positioned to continue our iconic legacy under a pure franchise business model.' That didn't stop bidders from emerging. Real American Beer found itself in competition with a proposal led by Hooters Inc., which oversees some franchised Hooters locations. The company's cofounder was a part of that group. 'Real American's bid is different,' the company said at the time of its bid. 'It's about rebuilding Hooters from the ground up, with a fresh operational model, new revenue streams (merchandise, partnerships, experience-first locations), and a cultural strategy designed to reengage diners in their 20s and 30s. This isn't about preserving nostalgia. It's about unlocking Hooters' next chapter, with real investment, real leadership, and a real plan to win.' Terri Francis, CEO of Real American, told Fortune the company plans to continue pursuing Hooters. 'Hulk was a passionate entrepreneur who believed in the power of American-made brands and products, and the power of bringing communities across America together,' Francis said. 'Real American Beer will carry forward his vision and mission with the same passion and purpose — and that includes his desire to bring Hooters into the Real American family.' If the bid is approved, Real American Beer would need to launch a separate entity to own Hooters, since liquor laws in the U.S. prohibit alcohol brands from owning restaurants. Hooters and Hogan's beer have a history, however. The chain was one of the first to agree to serve the lager last June. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
a day ago
- Business Insider
How Johnson & Johnson Stock (JNJ) Discovered a New Lease of Life
Biopharma giant Johnson & Johnson's (JNJ) stock hit new highs this year after reporting its Q2 results on July 16th, giving the market a clear signal that it's reigniting growth with practically flawless numbers—a potential turning point for the second half of the year. The upwardly revised guidance and expectations for strong margin expansion, despite lingering litigation concerns, have brought fresh optimism to the stock and appeased shareholders clamoring for added value. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. While the stock isn't as discounted as it was earlier this year, valuations still look reasonable. Given JNJ's strong compounding potential and this renewed bullish momentum, I see it as a Buy. How J&J's Strong Quarter Sets the Stage for Growth Johnson & Johnson stock has been rangebound for years, weighed down by a mix of factors, including a massive wave of lawsuits claiming its talc-based baby powder caused cancer due to asbestos contamination, as well as expiring drug patents, such as its blockbuster Stelara losing exclusivity. Last but not least is sluggish growth and an eroded safe-haven reputation, since legacy consumer brands like Tylenol, Listerine, and Band-Aid have low growth and face margin pressure from cheap competition. According to TipRanks data, JNJ has underperformed the S&P quite considerably since 2024. Johnson & Johnson's latest Q2 earnings may mark a true inflection point toward more consistent alpha generation. The company delivered exactly what it needed— beating both earnings and revenue expectations —while issuing a notable upward revision to guidance: an additional $2 billion in forecasted sales and $0.25 more in projected EPS. For a pharma giant like J&J, that's a clear signal of renewed momentum following a prolonged period of litigation-related overhang. Management also reaffirmed its full-year outlook for a 300-basis-point improvement in operating margin, raising it from approximately 25.4% to 28.4%. Notably, the quarter wasn't just about numbers. J&J reported compelling 5-year trial results for its multiple myeloma immunotherapy—an encouraging sign in the fight against a challenging cancer. The company also set an ambitious goal: to become the global leader in oncology by 2030, with a target of over $50 billion in cancer drug sales. With a potential $5 billion peak opportunity in bladder cancer and a strong pipeline aimed at offsetting losses from aging blockbusters, J&J is signaling that real innovation is back at the forefront. Breaking Free from the Margin Squeeze While markets often reward margin expansion, Johnson & Johnson looks especially well-positioned to benefit going forward. In addition to raising full-year earnings guidance, the company also delivered positive updates on cost pressures— halving its expected tariff impact from $400 million to $200 million and projecting a $1.1 billion tailwind from favorable currency shifts as the U.S. dollar weakens. The reduced tariff burden is primarily attributed to the MedTech division, which is more exposed to global supply chains and international manufacturing than the pharmaceutical segment. That's a clear tailwind for margins and future profitability. It's also important to note how strategic portfolio decisions have helped set the stage for this improvement. The 2023 spin-off of Kenvue—essentially the entire Consumer Health business—removed a lower-margin segment from the mix, sharpening J&J's focus on higher-margin areas. This move highlights the company's commitment not only to defending margins but also to actively growing them. In today's market, stability alone isn't enough—investors are looking for real margin expansion, and Johnson & Johnson seems intent on delivering. Analysts have responded by raising their EPS estimates for 2025 and 2026 by about 2% compared to before Q2 earnings. They now expect full-year EPS in 2025 to hit $10.86 —an 8.7% increase from last year—and to reach $11.34 in 2026, representing an annual growth rate of 4.4%. Reasonable Valuation with Growth on the Horizon Johnson & Johnson is a vast, stable, and diversified company, so its valuation tends to reflect relative stability rather than wild growth. Looking at its forward earnings multiple, currently around 15.5x, it's basically in line with the five-year average. This is well above the lows seen earlier this year, when it traded as low as 11x forward earnings in January. To me, this suggests the valuation isn't necessarily cheap, but it's reasonable. Comparing J&J's current earnings multiples over the last twelve months to its main peers, the 17.5x P/E ratio sits close to the sector average. Except for Merck & Co. (MRK), J&J is actually one of the more discounted names in the group. Finally, with a dividend yield of almost 3%, the stock no longer appears exuberant, and the yield isn't particularly compelling—especially when compared to the 10-year U.S. Treasury yield. However, J&J's payout ratio is typically safe, at around 50% of earnings, which helps build shareholder trust. Additionally, the market is now anticipating a more positive growth trajectory following the recent upward revisions to guidance, both last quarter and earlier this year. Is JNJ Stock a Buy, Hold, or Sell? Wall Street sentiment on Johnson & Johnson remains mixed, with more caution than conviction among analysts. Of the 19 analysts who have issued ratings over the past three months, nine are bullish, while the remaining ten are neutral. The average price target stands at $176.35, suggesting a modest upside of approximately 4.3% from the current share price. Johnson & Johnson Positioned for Consistent Alpha Generation Johnson & Johnson has, in my view, successfully restored market confidence in both its innovation pipeline and cost discipline—key pillars that could drive renewed growth and support reliable shareholder returns for decades to come. For long-term investors, initiating a position now is essentially a bet on a proven dividend combined with steady capital appreciation—an attractive formula that has historically outperformed the broader market. While the stock appears fairly valued at current levels, it offers compelling potential for compounding returns and consistent alpha generation in the years ahead.
Chicago Tribune
2 days ago
- Chicago Tribune
Mayor Brandon Johnson pledges no push for property tax hike after CFO recently called one ‘likely'
Mayor Brandon Johnson is now ruling out seeking a property tax hike in his upcoming budget proposal, an apparent shift in course for his administration after a top city official said earlier in the week that they probably would do so. On Friday, Johnson said he will instead try again to tax the city's wealthiest residents and corporations. He added that he has 'a number' of ideas for progressive revenue, but did not answer when asked to share them. 'The ultra-rich in this city and this state have an opportunity to do a better job in investing in our infrastructure, investing in community safety,' he said. Johnson told the Tribune that 'nothing has changed' when asked about the apparent abrupt switch-up during a news conference. The mayor's attempts to raise property taxes to balance this year's budget were roundly rejected by aldermen. But he said he isn't turning away from property taxes to close the 2026 budget hole because he's worried he doesn't have the votes. 'We've always made it very clear from the very beginning that we are going to invest in people and use progressive revenue to ensure that we build the safest, most affordable big city in America,' he said. Just Tuesday, Chicago's Chief Financial Officer Jill Jaworski said 'it is likely that that will be part of the package' when asked about the mayor calling for a 2026 property tax increase. But the mayor delivered a clear rejection of the idea Thursday. 'I will not be proposing a property tax increase in my budget. I'm going to continue to work hard to find progressive revenue,' he told ABC-7 Chicago. The mayor similarly did not specify Thursday to ABC-7 what new taxes and other revenue-raisers he hopes to rely on to balance the city's budget. He also said it was too early to discuss potential furloughs and layoffs, adding 'our workforce is what makes our city strong.' The 2026 budget fight will begin in earnest after Labor Day. Johnson, who campaigned promising to not raise property taxes, proposed last year that the city raise them by $300 million to help close a budget gap near $1 billion. Aldermen rejected the plan in an unprecedented 50-0 vote. The mayor's administration then tried to negotiate several smaller property tax hikes with aldermen, but was rejected each time. The City Council's decision, alongside Johnson's opposition to city service and workforce cuts, resulted in a compromise to balance the budget with a fleet of smaller taxes and fees. The largest was a roughly $130 million hike to the personal property lease tax on cloud computing services, a move that affected software services, including many that businesses rely upon. Johnson notably failed in an earlier effort to tax the rich in 2023 when the 'Bring Chicago Home' plan lost in a citywide referendum. The proposal would have hiked taxes on real estate transfers over $1 million to raise money to pay for homelessness services. Many aldermen fear the sort of kitchen-sink approach they used to land the budget last year will be harder to use this year. Several easier-to-tap options have been exhausted, and the city's fiscal challenges have only grown as federal funding cuts threaten the city's already precarious financial position. Johnson's top budget officials have long described property taxes as an effective way to bring in predictable, long-term revenue and stabilize the city's budget. But in ruling out property taxes as part of the package this fall, the mayor may very well have sensed a trial balloon had popped after several aldermen quickly criticized the idea this week.
