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Yahoo
06-07-2025
- Business
- Yahoo
Ikea Is Cutting Its Restaurant Prices. Here's Why Retailers Want You to Eat Up.
Ikea recently said it would slash the price of its U.S. in-store menu by half from Monday through Friday. A reputation for serving food worth eating can be good for retailers, industry experts say, making a shopping trip feel more like an experience. And when it's done right, they say, it can be a you go to Ikea for the food? Then the company has good news for you. The home-furnishings retailer recently said it would slash the price of its U.S. in-store menu by half from Monday through Friday, with kids eating for free during the week, starting in August. That will mean lower prices on things like Swedish meatballs, pancakes and salmon fillets at more than 50 stores across the country. 'We believe everyone should have access to delicious, nutritious meals without straining their budget,' said Lisa Ford, Ikea's U.S. food commercial manager, in a statement to Investopedia. Big retail chains that sell everything from bulk packs of shampoo, toilet paper and diapers to sofa sets, lamps, clothing and jewelry are looking to up their game when it comes to ready-to-eat meals—and managing prices in a bid to keep shoppers happy and fed. A reputation for serving food worth eating can be good for business, industry experts say, making a shopping trip feel more like an experience. And when it's done right, it can be a draw. 'Retailers are looking to drive more traffic into their locations,' said R.J. Hottovy, head of analytical research with which analyzes shopper foot-traffic patterns. 'They want shoppers to stay longer in the stores and malls and potentially buy more products.' Some retailers' forays into food have scored them runaway hits. Costco's $1.50 hot-dog-and-soda combo, which debuted in the 1980s, has become a staple for its devoted shoppers. It's not just bargain outlets that offer sustenance. You can enjoy breakfast—or lunch or afternoon tea—at Tiffany's flagship Fifth Avenue store in New York City. One of the oldest examples of a retailer embracing in-store dining is the Walnut Room, which dates back to 1907 and is found on the 7th floor of Macy's on Chicago's State Street. Department stores historically aspired to become one-stop shopping destinations for urban populations, said Huseyn Abdulla, assistant professor with the department of supply chain management at the University of Tennessee's Haslam College of Business. 'But it was also a way to keep customers in the department store as long as possible with the intent of converting this traffic into more sales,' he said. Ikea has served its meatballs to shoppers for about 40 years. It sells more than a billion of them worldwide a year, and the company says about a fifth of its shoppers go to its stores just to dine. The draw, the company says, is the affordable menu, with an average meal—it sells breakfast, lunch and kids' meals—costing an average of about $11 before the upcoming discounts, Ikea said. 'One of the pain points for a lot of consumers over the last couple of years has been food inflation and overall food prices,' said Hottovy. 'Ikea probably is not going to be making a lot of profit on food but if it gets more people into stores and encourages them to buy something else from its stores, then it's a smart move.' Read the original article on Investopedia Sign in to access your portfolio
Yahoo
26-06-2025
- Business
- Yahoo
Dollar General analyst reworks stock price target after strong recovery
Dollar General analyst reworks stock price target after strong recovery originally appeared on TheStreet. If you're anywhere near Weedsport, N.Y., this weekend, you might want to stop by 8881 South Seneca Street. That's where Dollar General () is holding a grand opening on June 28 for its relocated store. The Cayuga County village, half an hour west of Syracuse, is the birthplace of the silent-film actor Justus D. Barnes, who played a major role in "The Great Train Robbery." 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰 The first 50 adult customers will receive $10 gift cards, and the first 100 shoppers will get Dollar General tote bags. 'We are excited to reopen our relocated store in Weedsport and celebrate with the local community,' Matthew Simonsen, the chain's senior vice president of real estate and store development, said in a and dollar stores are seeing renewed growth in 2025, outperforming other nondiscretionary retail sectors, as economic uncertainty drives consumers to prioritize value, according to Dollar Tree () and Five Below () were outperforming the category based on year-over-year growth, while Dollar General was leading in visitor loyalty. Dollar General and Dollar Tree have seen an increase in loyal visitors, defined as people who visit three or more times a month, compared with last year, said. Dollar General's level of loyal visitors, 36% shopping three times per month, is considered very high. "Dollar chains are primed to be an asset to consumers as economic and financial uncertainty continues, but consumers may also continue to be more discerning overall," the analytics platform said. These stores "must continue to innovate and expand assortments, particularly in grocery, to stay competitive as warehouse clubs and superstores also vie for attention."While consumer sentiment improved in June — the first increase in six months — it remains historically low and significantly below the level of a year ago, according to the University of Michigan's survey. 'Consumers' fears about the potential impact of tariffs on future inflation have softened somewhat in June,' said Joanne Hsu, the survey's director. "Still, inflation expectations remain above readings seen throughout the second half of 2024, reflecting widespread beliefs that trade policy may still contribute to an increase in inflation in the year ahead." Dollar General shares have had a good 2025, surging 46%. The shares are down about 16% from this time in 2024. Earlier this month, the Goodlettsville, Tenn., company beat Wall Street's fiscal-first-quarter expectations for earnings and revenue. "We believe our efforts are resonating with a wide range of customers as they continue to seek value in our more than 20,000 store locations around the country,' Chief Executive Todd Vasos told analysts during the company's earnings call. After the company posted its quarterly results, Evercore ISI raised its price target on Dollar General to $117 from $100, while affirming an in-line rating on the shares. Dollar General's back-to-basics approach is gaining traction with solid fiscal-Q1 sales and profit up 5% year over year, and the company is benefiting from higher ticket sales in discretionary categories and a wider gross margin, Evercore said. Risk from the Trump administration's tariff policy remain a potential 5%-8% headwind for earnings per share, but Dollar General's turnaround is showing "promising" signs, the firm Advisory analyst Joseph Feldman raised his price target on DG to $120 from $100 and kept a market-perform rating on the shares. While the company remains pleased with its May comparison and expects momentum to stay solid this year, Feldman said, he sees tariffs as a wild card. Overall, the analyst said, he remains constructive on the stock. And on June 24 Goldman Sachs downgraded DG shares to neutral from buy with a price target of $116, up from $115. The investment firm cited valuation for the downgrade after the stock recovered sharply. Goldman said the company still has room to widen margins long term, but the stock is now pricing in its better fundamentals. Goldman said that upside to the stock will get harder, given "still-intense" competition, which could hurt DG's same-store-sales, and given the company's need to invest in its stores and supply General analyst reworks stock price target after strong recovery first appeared on TheStreet on Jun 24, 2025 This story was originally reported by TheStreet on Jun 24, 2025, where it first appeared.
Daily Mail
17-05-2025
- Business
- Daily Mail
Cava's sales soar after growing in middle-class suburban areas
Cava is bucking the trend by continuing to attract customers as other food chains struggle. The Mediterranean fast casual restaurant has seen footfall soar thanks in part to its decision to grow in middle-class suburban areas. Research firm predicted Cava will have a more successful first quarter of 2025 compared to other restaurant chains. So far this year, all major chains, including McDonald's, Burger King and Pizza Hut have seen sales drop. Even Cava rival Sweetgreen has struggled. Cava's customer numbers increased by nearly 20 percent in the first three months of this year, while rival chains overall saw visits fall 0.1 percent, Restaurant Business reported. Analysts say the key is Cava's push into America's middle-class suburbs, where it's found new fans without alienating its core base. 'Between 2022 and 2025, Cava steadily broadened its reach among working and middle-class "blue collar suburbs" and "suburban boomers" consumer segments,' the report said. It comes as Cava, known as the Mediterranean Chipotle, confirmed it would open between 62 and 66 new US locations. The chain finished 2024 with $954.3 million in revenue, representing a 35.1 percent increase compared to 2023. The chain is expecting to keep growing, and has projected its same-store sales will grow between 6 and 8 percent this year. If results go according to plan, Cava will finish its first quarter of 2025 with $1.19 billion in revenue. revealed that Cava's competitor Sweetgreen is also showing promise by drawing 'suburban style' visitors. Sweetgreen's customer numbers increased by more than 11 percent in the first quarter of this year, despite a 3.1 percent decline in same-store sales. But other restaurant chains weren't so lucky. Wingstop took a massive hit due to factors such as growing inflation and the LA wildfires . Chipotle also reported a downturn in revenue last month for the first time in five years. The Mexican-inspired fast food chain had been on a sales tear since 2020, steadily increasing its profits. But in April the company reported that sales fell a surprising 0.4 percent in the first quarter of 2025 when investors were expecting around 1.4 percent growth. Chipotle reported 5.4 percent growth in the previous quarter. 'The first quarter wasn't a good one for Chipotle with sales coming in below expectations and same-restaurant sales falling for the first time in many years,' Neil Saunders, a retail expert at GlobalData, told But these numbers are nothing compared to the decline in sit-down restaurants like Hooters and TGI Fridays, both of which have filed for Chapter 11 bankruptcy protection and are in the process of closing restaurants . Cava is scheduled to release its first quarter earnings report later today.
Daily Mail
15-05-2025
- Business
- Daily Mail
Surprising fast food chain that is bucking the trend to gain customers this year
Cava is bucking the trend by continuing to attract customers as other food chains struggle. The Mediterranean fast casual restaurant has seen footfall soar thanks in part to its decision to grow in middle-class suburban areas. Research firm predicted Cava will have a more successful first quarter of 2025 compared to other restaurant chains. Cava's customer numbers increased by nearly 20 percent in the first three months of this year, while fast-casual chains overall saw visits fall 0.1 percent, Restaurant Business reported. The secret to the chain's success is how it has broadened its audience over the last few years. 'Between Q1 2022 and Q1 2025, Cava steadily broadened its reach among working and middle-class "blue collar suburbs" and "suburban boomers" consumer segments,' the report said. During this time, the chain also gained customers who fall into the 'upper suburban diverse families' segment, while holding onto its share of wealthy suburban families. These factors indicate that Cava is continuing to reach its core audience, but it's also working to gain new customers. It comes as Cava, known as the Mediterranean Chipotle, confirmed it would open between 62 and 66 new US locations. What began as a full-service restaurant named Cava Mezze has turned into one of the nation's top-growing fast-food chains. It serves Mediterranean food to guests, with the goal of bringing 'heart, health, and humanity to food.' The chain made its stock market debut in 2023. It opened at $42 a share, giving it a value over $4.6 billion. The chain finished 2024 with $954.3 million in revenue, representing a 35.1 percent increase compared to 2023. The chain is expecting to keep growing, and has projected its same-store sales will grow between 6 and 8 percent this year. If results go according to plan, Cava will finish its first quarter of 2025 with $1.19 billion in revenue. revealed that Cava's competitor Sweetgreen is also showing promise by drawing 'suburban style' visitors. Sweetgreen's customer numbers increased by more than 11 percent in the first quarter of this year, despite a 3.1 percent decline in same-store sales. But other restaurant chains weren't so lucky. Wingstop took a massive hit due to factors such as growing inflation and the LA wildfires. Chipotle also reported a downturn in revenue last month for the first time in five years. The Mexican-inspired fast food chain had been on a sales tear since 2020, steadily increasing its profits. But in April the company reported that sales fell a surprising 0.4 percent in the first quarter of 2025 when investors were expecting around 1.4 percent growth. Chipotle reported 5.4 percent growth in the previous quarter. 'The first quarter wasn't a good one for Chipotle with sales coming in below expectations and same-restaurant sales falling for the first time in many years,' Neil Saunders, a retail expert at GlobalData, told But these numbers are nothing compared to the decline in sit-down restaurants like Hooters and TGI Fridays, both of which have filed for Chapter 11 bankruptcy protection and are in the process of closing restaurants.
