Why Aurora Cannabis, EverQuote, and Shake Shack Jumped Today

Aurora Cannabis (NYSE: ACB), EverQuote (NASDAQ: EVER), and Shake Shack (NYSE: SHAK) were among the top performers. Here’s why they did …

Tuesday was a breath of fresh air for investors, as major benchmarks rebounded from their sharp losses on Monday. Despite moves from China to devalue the yuan against the U.S. dollar, the currency market stabilized, giving market participants some comfort that things might not get out of hand too quickly. Good news from some key individual stocks also helped restore favorable sentiment among investors. Aurora Cannabis (NYSE: ACB), EverQuote (NASDAQ: EVER), and Shake Shack (NYSE: SHAK) were among the top performers. Here’s why they did so well.

Aurora has high hopes

Shares of Aurora Cannabis climbed more than 10% after the Canadian marijuana specialist gave a corporate update for its fiscal fourth quarter. The cannabis producer said that it expects to see revenue soar to more than 100 million Canadian dollars, up from just CA$19.1 million in last year’s fiscal fourth quarter. Aurora expects growth in medical and consumer markets both within Canada and internationally, and the company sees production toward the upper end of a range between 25,000 and 30,000 kilos. Those results would put full-year fiscal 2019 revenue at around CA$250 million, and CEO Terry Booth believes that Aurora’s vision to be “best-in-class cultivators” is “driving exceptional results today.” At least for now, investors like what they’re seeing.

Marijuana leaf on top of a pile of other leaves.Marijuana leaf on top of a pile of other leaves.
Marijuana leaf on top of a pile of other leaves.

Image source: Getty Images.

EverQuote gets a lot of Wall Street love

EverQuote’s stock soared 49% following a number of positive comments from analyst companies on Wall Street. The online insurance provider reported its second-quarter financial results late Monday, posting strong revenue gains and increasing guidance for full-year sales. In addition to favorable commentary from a half-dozen different analysts, Raymond James boosted its rating on the stock from market perform to outperform, expressing confidence that EverQuote was building positive momentum. CEO Seth Birnbaum is still trying to woo more customers to its marketplace, but shareholders appreciate the success that EverQuote has already seen.

Shake Shack gets tastier

Finally, shares of Shake Shack jumped 18%. The burger specialist said that its revenue rose 31% on a 3.6% increase in same-restaurant sales, and bottom-line performance was better than many had expected. The company also sees itself scoring better revenue and opening more new stores this year than it previously anticipated. CEO Randy Garutti also reported that Shake Shack had entered into a partnership with Grubhub to deliver the company’s food. The rollout might take until early next year to complete, but the restaurant chain is optimistic that it could open up entirely new markets in 2020 and beyond.

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool recommends GRUB. The Motley Fool has a disclosure policy.

This article was originally published on Fool.com

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Shake Shack, Grubhub announce new partnership

McDonald’s recently struck a deal with DoorDash, saying its delivery business will reach $4 billion this year. Chipotle Mexican grill is also partnering …

Here’s the latest business and technology headlines from Cheddar.

Shake Shack has announced a new partnership with Grubhub to roll out delivery across the country. The burger chain will integrate its ordering technology, allowing the service to better time deliveries. This comes as major restaurant chains are seeing big boosts in sales from delivery. McDonald’s recently struck a deal with DoorDash, saying its delivery business will reach $4 billion this year. Chipotle Mexican grill is also partnering with DoorDash, saying delivery is the fastest-growing part of its business.

American Airlines is pushing its perks for business travelers in a move to take in more money from the lucrative passengers. The airline is offering free preferred seats and priority access in security and boarding lines. Passengers traveling under corporate contracts will also have priority during weather or operational disruptions. This comes as airlines have been facing flight cancellations due to factors like summer storms, the grounding of the Boeing 737 Max and workers on strike.

Singer Khalid has announced plans to perform a concert later this month to benefit victims of the mass shooting in El Paso. The proceeds of the concert will go to the families of the 22 people who were killed, and more than two dozen injured in the attack.

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Global Online On-Demand Food Delivery Services Market 2019 – , Deliveroo, Delivery Hero …

The primary objective of the report is to provide proficiencies in Online On-Demand Food Delivery Services Market with a complete analysis of market …

The primary objective of the report is to provide proficiencies inOnline On-Demand Food Delivery Services Market with a complete analysis of market in a thorough way. As per the client requirements, Online On-Demand Food Delivery Services market report consists of complete information in it in order to help client to evaluate the factors and make a decision based on it. Company’s research team has put all the dedicated efforts to analyze the market trends. This enabled them to know each and every aspect of the market along with factors responsible for the growth of this market.

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Delivery Hero



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Online On-Demand Food Delivery Services Market Report comprises all study material concerning summary, industrial analysis, demand and forecast analysis report altogether across the globe. Online On-Demand Food Delivery Services market is projected to grow at a gradual rate during the forecast period. Additionally, the report includes a brief on marketing research methodology as well as opportunities offered by the market.


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Logistics-focused food delivery services

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The Online On-Demand Food Delivery Services report serves a through estimation of the market. primary and secondary drivers. Further, key players, significant cooperation, merger & procurement along with ongoing innovation and Online On-Demand Food Delivery Services business policies are reviewed in the report. The evaluations featured in the Online On-Demand Food Delivery Services report have been derived using approve research methodologies and inference. Moreover, it surrounds basic, secondary and advanced information belonging to the product market. Report embraces production process as well as consumption and manufacturing volume and revenue.

Mersiha Gadzo

Mersiha Gadzo

I partially work as an editorial intern for Industry Module, I am journalist and online producer for Al Jazeera English. Prior to joining Al Jazeera I worked as a freelancer in Bosnia & Herzegovina and the occupied Palestinian territories. I also covered health care policy, business, and strategy for FORBES. My work has appeared at Vox, Kaiser Health News and other publications. Full bio

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Loyalty360 Reads: August 6, 2019

DoorDash is moving into high-end dining by purchasing Caviar, a service “which first launched in San Francisco in 2013, aimed to offer a more …


Costco Goes Digital

Costco memberships are no longer bound to a plastic card. “Instead of flashing a plastic membership card when entering the wholesale club and at checkout, members can now pull up a digital membership card on the Costco app. The retailer known for selling super-sized products like giant lobster claws and 27-pound tubs of macaroni and cheese has updated its Apple and Android apps to allow members a digital version of the card.”

Customer Experience

Amazon Is Disabling Its Dash Buttons

Dash Buttons, which enabled Prime members to reorder items with the push of a button, will soon be disabled. “Amazon had announced in February it was ceasing sales of the gadgets, but had since then continued to support those already in use.”

DoorDash Buys Food Delivery App Caviar from Square

DoorDash is moving into high-end dining by purchasing Caviar, a service “which first launched in San Francisco in 2013, aimed to offer a more premium experience than other food delivery platforms at the time, such as Grubhub and Seamless. Instead of typical delivery fare such as fast food, pizza, or Chinese, Caviar targeted upscale restaurants that didn’t normally offer delivery.”

Hyatt Relaunches Mobile App for Loyalty Members

The brand has relaunched its app to enhance its customer experience for members. “The new and expanded features allow loyalty members to request items to be sent to guest rooms, to access the schedule of meetings and events happening at the hotel during a member’s stay, to access and stream personal content directly to an in-room TV through Chromecast without the need to enter additional credentials, to unlock guest rooms and public spaces via Hyatt Mobile Entry, and to make requests directly to the hotel and receive feedback in real time via a new chat option.”

Chick-fil-A Named America’s Favorite Fast Food Restaurant

For the first time, the chicken-focused QSR has been recognized as the one American’s are most loyal to. “A recent report by Market Force, published by Food & Wine, polled 7,600 consumers about their satisfaction level with various chains, and Chick-fil-A ranked the highest, with a 79 percent ‘loyalty rating.’”

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Why Square Just Sold Caviar to DoorDash

Fast forward to Square’s recent second-quarter earnings report, and the company just announced that it would sell Caviar to DoorDash for $410 …

Five years ago Square (NYSE: SQ) bought food delivery service Caviar for $44.3 million. At the time, Square CEO Jack Dorsey declared that “Caviar’s curated, seamless delivery experience is exactly the kind of service we want to provide buyers and sellers.”

Fast forward to Square’s recent second-quarter earnings report, and the company just announced that it would sell Caviar to DoorDash for $410 million. The sale nets Square a nice profit, but why is it divesting this once-promising business?

A courier delivers food.A courier delivers food.
A courier delivers food.

Caviar was destined to disappear

Square initially bought Caviar to expand its ecosystem beyond digital payments. That ecosystem — which now includes the e-commerce services platform Weebly, its Square Capital lending arm, Instant Deposit services for sellers, its Cash App, and more — locks in merchants and consumers.

But Caviar never gained much ground in the crowded food delivery market. Four services — DoorDash, Grubhub (NYSE: GRUB), Uber (NYSE: UBER) Eats, and Postmates — controlled 94% of the U.S. food delivery market in June, according to Second Measure.

Everyone else, including Caviar and Amazon‘s (NASDAQ: AMZN) recently shuttered meal delivery platform, clashed over the remaining sliver. If even Amazon failed to gain ground with the support of Whole Foods and its e-commerce ecosystem, it seemed unlikely that Caviar could succeed. Selling Caviar could also help Square sidestep the recent PR debacles regarding tips, hidden fees, and misbehaving couriers which have plagued the market leaders.

But what about Zesty and Square for Restaurants?

Square’s retreat from the meal delivery market is reasonable, but the company has sent investors mixed signals over the past few years. In 2016 Bloomberg claimed that Square was in talks to sell Caviar to Grubhub, Uber, or Yelp. But in 2018 the company seemed to double down on Caviar by acquiring corporate catering start-up Zesty and launching Square for Restaurants.

Prepared meals on a table.Prepared meals on a table.
Prepared meals on a table.

Square integrated Zesty’s assets into Caviar for Teams, which expanded the service into the corporate catering market. Square for Restaurants, which bundled Caviar with its other payment and analytics services, targeted similar all-in-one platforms like Grubhub.

It’s unclear if Square will retain Zesty’s services or transfer them over to DoorDash. However, Square plans to keep running Square for Restaurants, which is already integrated with Caviar, DoorDash, and Postmates. During the conference call, Dorsey noted that Square for Restaurants and Square for Retail were both attracting “a number of larger sellers.”

Square is selling Caviar to DoorDash for a mix of cash and preferred DoorDash shares. So as an investor, Square can still profit from DoorDash’s growth, while eliminating its exposure to the low-margin food delivery market. Caviar and DoorDash are already integrated into the Cash App, so DoorDash’s expansion could also support Cash’s market growth.

Is this good news for Square’s investors?

During the conference call, CFO Amrita Ahuja noted that Caviar had a “lower gross margin profile” than its other subscription and services, with courier fees and revenue-sharing deals with restaurants accounting for the “largest component” of the unit’s costs.

Ahuja noted that Caviar was the second largest component of its subscription and services revenue, which rose 87% annually to $251 million during the second quarter. The Cash App generated the most revenue, and Square Capital ranked third. Ahuja stated that Square would update its guidance after closing the deal.

Removing Caviar from that mix will temporarily throttle Square’s subscription and services revenue growth, but improve the unit’s profitability. Dorsey noted that the sale would enable Square to make additional investments and strengthen its core payments business, which could widen its moat against rivals like PayPal.

All things considered, Square’s decision to sell Caviar was a smart move. The company reaped a handsome profit from the deal, divested a lower-margin business, gained a stake in a high-growth start-up, and freed up more cash for investments in its core payment services.

More From The Motley Fool

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Leo Sun owns shares of Amazon, Grubhub, and Square. The Motley Fool owns shares of and recommends Amazon, PayPal Holdings, and Square. The Motley Fool has the following options: short October 2019 $97 calls on PayPal Holdings and short September 2019 $70 puts on Square. The Motley Fool recommends Grubhub, Uber Technologies, and Yelp. The Motley Fool has a disclosure policy.

This article was originally published on Fool.com

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