'2 Guns' shoots past 'Smurfs,' 'Wolverine' to claim box office Aug 4th 2013, 17:23
LOS ANGELES/NEW YORK (Reuters) – “2 Guns,” starring Denzel Washington and Mark Wahlberg as rival federal agents, shot through its weekend competition at movie theatres, collecting $ 27.4 million (17.9 million pounds) to lead the North American box office, according to studio estimates.
“The Wolverine,” last weekend’s box office leader, finished second with $ 21.7 million in ticket sales, and has totalled $ 95 million during its two weeks in theatres.
“Smurfs 2,” the newly-released sequel to Sony’s 2011 movie “The Smurfs” starring Neil Patrick Harris and a band of small blue elf-like creatures, was third with $ 18.2 million in ticket sales.
(Reporting by Ronald Grover and Chris Michaud; Editing by Paul Simao)
Newsweek, not so long ago an iconic American news magazine and most recently, an online-only partner of The Daily Beast, is being sold to IBT Media, a digital-only media firm, the companies announced this weekend.
IBT is acquiring Newsweek from IAC/InterActive Corp, which, ran the magazine in partnership with the estate of businessman and philanthropist Sidney Harman, who bought it from the Washington Post Company in 2010. Harman died in April 2011.
Despite IAC’s successful effort to reverse Newsweek’s declining ad sales and circulation numbers, the changing economics of the media business impelled the company to kill Newsweek’s print edition in December 2012, and relaunch it as an online-only magazine in January 2013.
According to a statement from IBT Media, the deal does not include The Daily Beast. The price IBT is paying for Newsweek was not disclosed, but one can only assume it was higher than the $ 1 paid by Harman in 2010.
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A memo from Rhona Murphy, the Interim CEO of Newsweek Daily Beast Company, said the transaction was expected to close in the coming days, after which IAC would continue to run the magazine for a transition period of up to 60 days.
“We are thrilled to welcome this iconic brand and global news property into our portfolio. We believe in the Newsweek brand and look forward to growing it, fully transformed to the digital age,” IBT Media Chief Executive Etienne Uzac said in a statement.
Newsweek will be the 11th brand in IBT Media’s stable of online news properties, including International Science Times, Latin Times and Medical Daily, and its flagship International Business Times.
The complete memo sent to Newsweek/Daily Beast employees this weekend from Interim CEO Rhona Murphy reads:
Dear all,
Earlier today, a deal was signed for the sale of Newsweek and I am delighted to inform you that the new owner will be IBT Media, the publishers of the International Business Times.
IBT is a growing digital global news publication that delivers international business news to an audience of over 7 million in the U.S. and 13 million people worldwide every month through its network of digital publishing platforms. It is produced in 10 country editions in 7 different languages, offering in-depth coverage that is relevant and specific to each market.
Effective as of the closing, which we expect to occur in approximately a week, there will be a transition period of up to 60 days, during which we will continue to run the business. IBT will be talking to staff during this time about potential job opportunities at the new venture and as we learn more about this process we will of course inform you and the Guild. Please reach out to Lauren Strada if you have any questions meanwhile.
We believe IBT will serve as an excellent new home in which Newsweek has the opportunity to thrive.
Best,
Rhona.
As Capital New York notes, only a handful of employees remained who were focused full-time or primarily on the Newsweek property, and it is as yet unclear how many of them will move in the sale.
What to Watch This Week: 4 Hot Earnings Reports, 1 High-Flying Gamble Aug 4th 2013, 16:22
Filed under: Company News, Earnings, Walt Disney, Stocks
Alamy
You can never know in advance all the news that will move the market in a given week, but some things you can see coming. From a new movie with soaring expectations to an earnings report whipped up by the country’s largest stand-alone smoothie chain, here are some of the items that will help shape the week that lies ahead on Wall Street.
Monday — Blending Right In: It’s been a scorching-hot summer across much of the U.S., and that’s no doubt been good for Jamba (JMBA). The parent company of the Jamba Juice smoothie chain thrives during the warm summer months, when its fortified chilled fruit beverages are in hot demand.
Jamba reports quarterly results on Monday afternoon, and it will be the chain’s first report since executing a 1-for-5 reverse stock split. (Every five shares were exchanged for a single share at a price that’s five times higher.) The result is that a company that has been trading in the low single digits throughout most of the past few years now finds itself in the mid-teens. Analysts see healthy bottom-line growth as Jamba’s move to hand over company-owned stores to successful franchisees has been delivering healthy margin improvement.
Tuesday — That’s One Expensive Handbag: One of the indicators that the economy’s showing signs of life is that shoppers aren’t flinching at the prices of luxury handbags and accessories. We’re seeing Coach (COH) starting to bounce back, but the real powerhouse here has been Michael Kors (KORS).
It’s hard to find a hotter retailer than the Hong Kong-based seller of high-end purses. Revenue soared 57 percent in its last quarter, fueled by a 37 percent spike in comparable-store sales. Profitability more than doubled. Investors won’t see that kind of performance when Kors reports on Tuesday morning, but it should still be another strong showing out of the fast-growing retailer.
Wednesday — Deal With It: Don’t look now, but one of Wall Street’s more disappointing recent IPOs is showing signs of life. No, not Facebook (FB) (although, yes, that stock has displayed some serious resilience in recent weeks, heading back above its IPO price.) We’re talking about Groupon (GRPN).
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The company went public at $ 20 a share in late 2011. A year later, shares of the leading local-deals provider had fallen as low as $ 2.60. A slowdown in bookings and a poorly received push overseas left the busted IPO reeling. Groupon isn’t back to where it was two years ago, but the shares have more than tripled since bottoming out last November.
The question of whether offering daily deals is a business model with long-term appeal is still a being answered, but Groupon’s ability to offer its local merchant partners related services including credit card processing has helped win back investors. Groupon reports on Wednesday after the market close.
Thursday — Beam Me Up, Scotty: Why haven’t more companies tapped William Shatner to be their spokesman? Online travel portal giant priceline.com (PCLN) has been a world-beater since Shatner began doing spots for the company, and on Thursday investors will get another glimpse of its fast-moving ways.
Even though Priceline’s closest rival posted disappointing quarterly results last month, analysts foresee revenue soaring 25 percent in Thursday’s report. Earnings are expected to have climbed nearly 20 percent during the period.
It’s not just about the namesake website where travelers submit how much they’re willing to pay for a getaway. Priceline’s Booking.com is a juggernaut in Europe, and it also recently acquired the popular Kayak.com, which scours multiple sites in serving up the best lodging and transportation deals on the Web.
Well done, Captain Kirk. Invest long, and prosper.
Friday — “Planes” Aims High: Disney (DIS) was set to market its animated full-length feature about a racing crop duster as a direct-to-video release, but the movie got upgraded to the full multiplex treatment along the way. “Planes” lands on a theater screen near you on Friday.
“From the world above ‘Cars,’” claims the release’s trailer — and why not? Even though Pixar itself isn’t the studio behind this project, Disney did pay billions to acquire Cars-creator Pixar several years ago. Disney had just better hope that it’s a high performer. The last thing it wants is for “Planes” to take down “Cars” by association.
Motley Fool contributor Rick Munarriz owns shares of Walt Disney and Jamba. The Motley Fool recommends Coach, priceline.com, and Walt Disney. The Motley Fool owns shares of Coach, priceline.com, and Walt Disney. Try any of our Foolish newsletter services free for 30 days.
Franchise chains, a form of "collective entrepreneurship" that allows its members to share the risks and rewards associated with the discovery and exploitation of new business opportunities, has been a popular investment concept in Wall Street. And for a good reason: They've delivered superior returns to investors.
McDonald's, Yum Brands, Dunkin Brands (NASDAQ:DNKN), Wendy's and Burger King (NYSE:BKW) are a good case in point—they all beat the S&P 500.
But as is the case with other investments, not every franchise is successful. And even among successful franchise chains, some fare better than others. McDonald's and Yum Brands, for instance, have fared much better (in terms of equity performance) than Wendy's.
What makes the difference? Four factors:
1.The Right Business Concept—the way a chain enhances customer value vis-à-vis the competition. Franchise pioneer McDonald's, for instance, delivers a quicker, more convenient and less expensive meal, compared to traditional restaurants–Wendy's is doing something similar. KFC offers the same meal attributes, but with a different menu—focusing on chicken rather than hamburgers—though both chains broadened their menu portfolio overtime, adjusting it to the local tastes.
Dunkin' Donuts offers coffee and a variety of breakfast items (and in recent years ice-cream) to go at convenient locations.
2. Scale– Cost savings associated with a larger production scale of a standardized menu – the bigger the production scale, the lower the cost per menu. With 33,510 units around the world, for instance, McDonald's has a scale advantage over Wendy's, which has 9,792 stores; and so is Yum Brands with over 30,000 stores when KFC and Pizza Hut are combined.
Company
Rank
Worldwide Sales ($M)
Domestic Units
International Units
Total Units
McDonald's
1
85,941
14,098
19,412
33,510
KFC (Yum Brands)
3
21,300
4,780
12,621
17,401
Burger King
5
14,975
7,500
5,012
12,512
Pizza Hut (Yum Brands)
6
12,626
7,600
6,147
13,747
Wendy's
18
6,004
6,772
3,020
9,792
Panera Bread
33
3,421
1,538
3
1,541
Dunkin' Donuts (Dunkin Brands)
18
6,004
6,792
3,020
9,792
Source: 2012 Franchise Times: Top 200 Franchise Systems
The scale advantage is reflected in the operating margins of the two companies. McDonald's and Yum Brands enjoy 30.12 percent and 15.05 percent operating margins, versus 7.38 percent of Wendy's.
Company
OperatingMargins (%)
Return on Assets (%)
Qtrly Revenue Growth (yoy)
Qtrly Earnings Growth (yoy)
McDonald's
30.13
15.42
0.90
0.30
Burger King
31.95
6.17
-42.50
150.3
Wendy's
7.38
2.72
1.80
-82.7
Dunkin' Brands
39.23
5.22
6.20
-8.30
Panera Bread
8.22
15.64
12.70
16.80
Yum Brands
15.05
13.80
-8.30
-15.10
Source: Yahoo.Finance.com
3. Scope— The cost savings associated with offering different products by a single corporation rather than by different corporations. McDonald's and Panera Bread, for instance, offer a variety of products for sale (McDonald's has added Mccafe in many locations), vis-a-vis Wendy's and Dunkin' Brands. That can explain the higher return on assets.
4. Location—The benefits associated with occupying primary location sites for franchise stores. In fact, location can support and reinforce all these advantages. As an older franchise McDonald's, for instance, had the opportunity to pick best locations with favorable leases. This further explains both its hefty operating margins and the high return on assets.
The bottom line: Concept, scale, scope, and location make a big difference in the franchise world.
It's a long standing contention of mine that one of the reasons for slowing economic growth in recent decades has been the morass of regulation that deters people from doing anything new: doing something new being one of those definitions of economic growth of course. At which point we get this gobsmacking story from California:
At San Francisco International Airport, they're arresting car drivers for ride-sharing. Police officers approach the cars and start asking questions, and then, a few minutes later, airport officials arrive with the arrest papers.
The problem is that these drivers are offering rides through ride-sharing companies such as Uber and Lyft, using cars that aren't certified as taxis or limos and thus not meeting the airport's regulations for who can provide paid pickup and drop-off. So far, according to SFO spokesman Doug Yakel, eleven Uber drivers and one Lyft driver have been cited for misdemeanor unlawful trespassing. "We're certainly open to new business concepts, but not at the expense of safety," Yakel says.
The two services, Lyft and (this part of) Uber are simply electronic methods of hitching a ride. That electronic thumb replacing the one waving by the side of the road. That's it, really, that's all they are: and yet airport authorities are arresting people for doing this?
We could of course take them seriously, at their word, that this is all about safety, but why bother to do that when we can look at the larger picture? Which is that every taxi company and commission in the country has been desperately searching for a reason not to allow these services to operate. Even when they do allow it, it's only after 18 months or so of procrastination.
And it is this that I am certain is contributing to our inability to have nice things. We've simply set the rules up so that too much protection is being given to the incumbents in any area of the economy and not enough room being left for those who would disrupt by doing things in a different manner. We need to recall that there are two ways to get economic growth: the first is by doing entirely new things that expand consumption opportunities. The second is to do old things in a new manner, more efficiently, thus freeing up resources that can be used to do either new things or just more things. And it's that second method of growth that I fear is getting kyboshed by the regulatory state. Those who currently do things the old way have too much power to prevent the new methods from becoming established. It's that, as I've said many a time before, we're not allowing enough of the destruction that is part of capitalism's creative destruction.
2 Guns debuted on Friday with a rock-solid $10 million. That's pretty much right in the upper-level wheelhouse for the previous action debuts for Denzel Washington and Mark Wahlberg. Sample previous opening days for Washington include $7.9m for Unstoppable, $8.1m for Flight, $7.3 million for Man On Fire as well as upper-level openers like $13 million for Safe House, $15m for American Gangster, and $11.6m for The Book of Eli. Wahlberg's action and/or crime pic openings include $7.4m for Pain & Gain, $2.9m for Broken City, $8.6m for Contraband, $7m for Max Payne, and $4.7m for Shooter.
One could argue that the $61 million-budgeted (after rebates) action comedy might have opened higher due to the team-up factor, but I would presume that much of Washington and Wahlberg's respective audience intertwines when it comes to their pulpy genre fare. Either way, Washington and Wahlberg's respective vehicles tend to do higher multipliers due to the fact that their films play to general film fans, especially older ones who don't need to rush out on opening night to see their newest caper. As such, expect a 2.7x-3x multiplier for a debut weekend between $27 million and $30 million.
The Smurfs 2 opened on Wednesday, and it's earned $15 million since then, including $5.5 million from yesterday. The $105 million sequel should earn over/under the $25 million during its Wed-Sun debut, compared to the $35 million that The Smurfs earned on its normal Fri-Sun opening back in August 2011. It's not a disaster, as A) no one was really asking for a Smurfs sequel, B) the sequel had no new "hook" to entice audiences back into the fray, and C) the first film made 75% of its eye-popping $563 million worldwide haul. So even if it dips a bit in America and overseas, it's doubtful that Sony will care too much. The Smurfs 3 is already slated for July 24, 2015 (because summer 2015 isn't already crowded enough).
In holdover news, the jaw-dropper is once again The Conjuring, which dropped just 41% from last Friday for a $4.3 million gross. That gives the $20 million horror film (which I'm finally seeing tonight) a cume of $99 million, meaning it should cross $100 million by the time you read this. I'll go into more superlatives tomorrow, but this kind of leggy run is almost unheard of for a horror film. Pacific Rim dropped 42% on its fourth Friday, which isn't too bad when you consider it also lost 799 screens. But $1.2 million isn't anything to write home about a month out, although the film should cross $90 million today with a (very) outside shot at $100 million domestic. We'll discuss those China numbers tomorrow.
Also refusing to die is Despicable Me 2, which earned another $3.1 million on its fifth Friday. The $75 million-budgeted Universal toon is now at $319 million domestic, ensuring it will surpass the initial theatrical gross of Finding Nemo ($339 million), although its new 3D-reissue-infused total of $380 million is probably out of reach. The Way, Way Back earned another $800,000 for an $11.62 million cume. Fruitvale Station earned another $753,000 last night, bringing its cume to a rather splendid $9 million. It may not quite get to $20 million during its initial theatrical run (especially with the Weinsteins putting their marketing muscle into Lee Daniels's The Butler in two weeks), but we could easily see a successful re-release come awards season. This one's story is far from over.
Holding up less well, as somewhat expected, is The Wolverine, which dropped 69% from Fri-to-Fri for a $6.4 million gross and a $79.7 million cume. Comparatively speaking, X-Men Origins: Wolverine dropped 75% on its second Friday, X-Men: First Class dropped 64%, and X-Men: The Last Stand dropped 77% from its first Friday to its second. As I said last week, X-Men pictures have terrible legs, and this one is no exception. That's it for now, so check back tomorrow for the full weekend numbers and related analysis.
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2 Guns debuted on Friday with a rock-solid $10 million. That's pretty much right in the upper-level wheelhouse for the previous action debuts for Denzel Washington and Mark Wahlberg. Sample previous opening days for Washington include $7.9m for Unstoppable, $8.1m for Flight, $7.3 million for Man On Fire as well as upper-level openers like $13 million for Safe House, $15m for American Gangster, and $11.6m for The Book of Eli. Wahlberg's action and/or crime pic openings include $7.4m for Pain & Gain, $2.9m for Broken City, $8.6m for Contraband, $7m for Max Payne, and $4.7m for Shooter.
