Tag Archives: Weber Inc

Horizon Therapeutics, Coupa Software, Weber and more

Check out the companies making headlines in midday trading.

Horizon Therapeutics – Shares of the drugmaker jumped 15% after the company announced it has agreed to be acquired by Amgen in a deal valued at approximately $26.4 billion, or $116.50 per share, in cash. The deal will give Amgen a chance to build its portfolio of rare-disease treatments. Amgen shares fell more than 1%.

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Weber – Shares of the grill manufacturer jumped 23% after the company announced a deal to be taken private by BDT Capital Partners. BDT will purchase Weber for $8.05 per share, according to the announcement.

Coupa Software – The maker of business spending management software jumped 26% after the private-equity firm Thoma Bravo agreed to buy the company in an all-cash deal worth $8 billion, or $81 per share.

Under Armour – The athletics apparel stock jumped 10% following an upgrade to buy from hold by Stifel. The firm cited Under Armour’s “better margin certainty” and management of inventory among its reasons for the upgrade.

Boeing – Shares of the aircraft maker jumped 2.8% after the Economic Times reported over the weekend that Air India is close to signing an order to acquire up to 150 737 Max jets.

Rivian – The electric vehicle stock shed more than 4% on news that it’s pausing plans to make electric vans in Europe in conjunction with Mercedes-Benz. Rivian CEO RJ Scaringe said the company is pursuing “the best risk-adjusted returns” on its capital investments, which includes focusing on its consumer and existing businesses. News of the agreement with the automobile maker was first announced in September.

Monday – Shares of software publisher Monday jumped 6% after JPMorgan upgraded the stock to overweight from neutral and boosted its price target.

Cheesecake Factory, Brinker International – The two restaurant stocks fell following downgrades to sell from neutral by Goldman Sachs. The firm said inflation will continue hurting the companies into 2023. Cheesecake Factory shed 1.6%, while Brinker, the parent of Chili’s and Maggiano’s Little Italy, dropped 2.9%.

Box – The software-as-a-service company gained 6.5% after JPMorgan upgraded the stock to overweight from neutral, arguing it is outperforming other technology names and can continue doing so going forward.

Tesla – Shares of Tesla fell more than 4% after a YouGov survey showed that negative views of the electric vehicle maker have overtaken positive ones just slightly. Tesla’s brand has deteriorated after CEO Elon Musk took over Twitter.

— CNBC’s Tanaya Macheel, Yun Li, Alex Harring, Samantha Subin and Jesse Pound contributed reporting.

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Horizon Therapeutics, Coupa Software, Rivian and more

Take a look at some of the biggest movers in the premarket:

Horizon Therapeutics (HZNP) – The drugmaker’s shares surged 14.7% in the premarket after it agreed to be bought by Amgen (AMGN) for $116.50 per share in cash, with the deal valued at $27.8 billion. Amgen shares fell 2.6%.

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Coupa Software (COUP) – Private-equity firm Thoma Bravo agreed to buy Coupa, a specialist in business spending management software. The deal is worth $8 billion, or $81 per share in cash. Coupa shares soared 21.6% in premarket trading.

Rivian (RIVN) – The electric vehicle maker has paused talks with Mercedes-Benz on a planned joint venture to build electric vans in Europe. The move is part of Rivian’s effort to be more conservative with its cash outlays in the face of higher interest rates and economic concerns. Rivian fell 2.5% in premarket action.

Weber (WEBR) – The maker of grills and other outdoor cooking products agreed to be taken private by BDT Capital Partners for $2.32 billion in cash, or $8.05 per share. Weber shares closed Friday at $6.50.

Accenture (ACN) – Accenture fell 1.7% in the premarket after Piper Sandler downgraded the consulting firm’s stock to “underweight” from “neutral.” The firm expects Accenture to be negatively impacted by more cautious 2023 spending in the tech sector.

Under Armour (UAA) – Under Armour jumped 2.8% in premarket trading following a Stifel upgrade to “buy” from “hold.” Stifel praised the athletic apparel maker’s inventory management, which it said gives the company better profit margin certainty.

Best Buy (BBY) – The electronics retailer’s stock added 1.6% in the premarket after Goldman Sachs upgraded it to “neutral” from “sell.” It’s among retail stocks that Goldman feels has the ability to maintain prices as inflation moderates and to gain market share.

Gap (GPS), Tapestry (TPR), Levi Strauss (LEVI) – Goldman Sachs upgraded Gap and Tapestry to “buy” from “neutral” while downgraded Levi Strauss to “neutral” from “buy.” Goldman said its moves were based on which companies can thrive in an atmosphere that will see consumers become more discerning with their apparel spending. Gap added 2.7% in the premarket, with Tapestry up 2% and Levi Strauss losing 1.2%.

Brinker International (EAT) – The restaurant operator’s stock slid 3.7% after Goldman downgraded it to “sell” from “neutral.” Goldman said it was cautiously optimistic about the long-term results of the company’s effort to turn around its Chili’s chain, but thinks 2023 will be choppy in terms of sales and profit margins.

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Weber shares tank as grill maker announces CEO departure amid disappointing sales

Weber Grill accessories are offered for sale at a home improvement store on July 23, 2021 in Palatine, Ill.

Scott Olson | Getty Images News | Getty Images

Weber shares tumbled 17% in morning trading Monday after the grill maker abruptly said CEO Chris Scherzinger is departing amid waning demand for its products in stores and online.

The Palatine, Illinois-based company also suspended its quarterly cash dividend and said it is committed to working with lending partners to remain in compliance with its credit facilities.

Weber named Chief Technology Officer Alan Matula its interim CEO, effective immediately, as it searches for a permanent replacement.

“We are taking decisive action to better position Weber to navigate historic macroeconomic challenges, including inflationary and supply chain pressures that are impacting consumer confidence, spending patterns, and margins,” said Kelly Rainko, non-executive chair of Weber’s board.

The company also announced preliminary results for the three-month period ended June 30, pegging net sales between $525 million and $530 million. Weber said its performance was hurt by slower retail traffic as rising inflation and other pressures weighed on consumers. It was also hit by continued foreign currency devaluations.

Weber said the headwinds are expected to persist into its fiscal fourth quarter and withdrew its fiscal 2022 forecast due to the market uncertainty.

The company said it is considering layoffs and other ways to reduce expenses, including by tightening its inventories. It said it will provide additional details when it reports its fiscal third-quarter results on Aug. 15.

Weber, which makes smokers, barbecue grills and other accessories for outdoor cooking enthusiasts, went public last year as families spent more time cooking and entertaining at home during the pandemic. More recently, though, demand for its cooking products has cooled as consumers rethink spending amid inflation and the looming possibility of a recession.

In the quarter ended March 31, Weber’s net sales fell 7% and its net loss came in at $51 million, compared with net income in the year-ago period.

Scherzinger joins a growing list of CEOs that have departed retail companies in recent months, from Gap to Game Stop, as boards grow displeased with sluggish performance, and supply chain disruptions and other challenges persist.

Weber shares are down about 42% year to date, as of Friday’s market close.

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I still believe in Cleveland-Cliffs

Schrodinger: “I don’t know. It seems low enough. I know the Bill and Melinda Gates Foundation own it, but the problem is Cathie Wood owns it [for] ARK. When things are good, that’s fantastic. When things are bad, it’s real bad. Right now, maybe go slightly. Take a small position if you want to.”

Digital Turbine: “It’s another one of those creative video situations. I got like 70 of them. At least it makes money. But there’s just too many of them. This is my big theme that I’ve had to say since November and gotten a little more, let’s say, boisterous about it. There’s just too many of these, and no one can keep track of them anymore, so they sell them.”

AGNC Investment Corp.: “Mortgage-backed security company that has a big yield that does nothing. That’s what it’s had since I started the show. That’s what it continues to be, and I don’t want you in it. I think you should sell, sell, sell.”

Weber: “I recommended this. And Traeger, I mean there’s like five barbecue companies now. I don’t know. I am shocked that it’s this low. It’s a really, really good company, and it makes a lot of money, and it’s very inexpensive, but it has no catalyst.”

Cleveland-Cliffs: “I was going over this company with Matt Horween, my writing partner, and we were both shocked it could be this low. Obviously, the estimates are too high. Obviously, there are people who are goin to say it has a high multiple because the numbers are too high. I still believe in the company.”

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Why your smartphone will be the next must-have grill accessory

Weber Grill accessories are offered for sale at a home improvement store on July 23, 2021 in Palatine, Ill.

Scott Olson | Getty Images News | Getty Images

Forget a spatula or tongs: the most-needed accessory for your next barbecue grill could be your phone.

Some of the biggest manufacturers of grills and outdoor cooking appliances like Weber and Traeger are making large investments into technology, emphasizing connected devices that try to make grilling easier and more enjoyable to cooks of all skill levels.

The digital push aims to take advantage of multiple trendlines hitting the grilling industry at the same time.

At-home barbecuing and grilling saw a massive uptick amid the pandemic as more people stayed home and cooked as opposed to dining out. More than $1.8 billion worth of grills, smokers, grill accessories, fuel, and stoves and accessories were sold between March and May in the U.S., a 5% increase compared to 2020, according to NPD.

Grilling more is leading some consumers to look beyond basic charcoal or propane grills towards more advanced products, such as smokers, pizza ovens, and flat-top griddles. There has also been an influx of new at-home grillers as people have looked to spend more time outside or moved away from cities where grilling space may have been limited.

Companies like Weber and Traeger have subsequently looked to push grill innovations to hit both the top and bottom of the market.

One of Weber’s most recent technological developments has been its Weber Connect Grilling Hub, which was selected as the best connected-home product at the 2020 Consumer Electronics Show. The wireless hub has temperature probes that you push into whatever you’re cooking on the grill, connecting that data to an app on your phone that provides step-by-step directions and notifications for things like when meat needs to be flipped or is done.

“Think of it as Waze for navigating your grill cook,” Weber CEO Chris Scherzinger said on CNBC’s “Squawk on the Street” earlier this month. “It’s a cloud-based technology platform with cooking algorithms built on Weber’s 70 years of grilling experience — it goes down to your phone, guides your cook on your grill, controls your grill, gets you perfect results every time. It’s basically a transformed, game-changing type of grill experience.”

Scherzinger also hinted at other ways technology could be integrated into Weber’s grills, such as monitoring the propane tank. A new line of grills expected to be unveiled later this year will actively gauge how much fuel is left in the tank, sending an alert when it is getting low and even potentially ordering a refill automatically.

“You can have a whole new business model now for Weber driving subscriptions, consumer engagement in between grilling experiences, all kinds of new ways that we can take this category,” he said.

The Weber Connect hub retails at $130 and is also included in the company’s line of smart grills, which retail between $849 and $1,349. Weber said it plans to add Connect capabilities to its charcoal grills and smokers in the future.

Introducing new grilling tools will also help Weber further diversify its revenue streams. The company reported $963.3 million in revenue for the six months ending March 31, a 62% year-over-year growth. However, sales of its grills, which range from $40 to over $1,000 and include gas, charcoal, electric, pellet, and smokers, made up 74% of its revenue in 2020.

Acquisitions fueling technology expansion

Weber’s technology push saw a boost with its Jan. 2021 acquisition of smart appliance and technology company June, after previously leading the start-up’s Series C funding round and partnering on products. Weber had also acquired iGrill in 2016, a company that made connected thermometers.

“We believe that the connected capabilities offered by our technology-enabled products will enable a closer relationship with our consumers and usher in a new generation of enthusiasts who will join our global community of Weber loyalists,” the company wrote in its S-1 filing.

While Traeger cites the “2-million-year-old connection to fire” as inspiration for the creation of its wood pellet grill, the company is leaning heavily into new technology.

“Our investment in innovation around the digital experience and content is as great, if not greater, than our investment in innovation in the durable market,” said Traeger chief executive officer Jeremy Andrus. “The grill is the vehicle, but the real difference is the digital experience – the digital experience is what inspires someone to cook.”

Traeger has a proprietary technology it calls WiFIRE that lets grillers control and monitor their grill through the company’s app, an Apple Watch, or with voice control via Amazon Alexa or Google Home. You can also choose recipes through the Traeger app and use the “Make Now” feature, which will run the recipe’s cook cycle on the connected grill.

“This semi-automated cooking experience takes the uncertainty out of making a new dish and delights Traeger owners,” the company said in its S-1 filing.

Driving deeper into its audience has been key for Traeger, as Andrus said data suggests 80% of Traeger owners have recommended the brand on average to six other people. In 2020, Traeger reported revenue of $545.8 million, up from $363.3 million in 2019. Over the first three months of 2021, it had revenue of $235.6 million, up 107% year-over-year. In total, the company says it sold 2 million grills in the U.S. between 2016 and 2020.

Traeger has also made acquisitions to further its tech push. In July, the company acquired Apption Labs for $100 million, which designs and manufacturers hardware and software for small kitchen appliances, such as wireless smart thermometer MEATER, which lets users both monitor the temperature of whatever they are cooking as well as guide them through the cook cycle via an app.

“Cooking is a hobby that the more you create, the more positive feedback you get, the more you’re motivated to cook more,” Andrus said. “We’ve always had cookbooks, but we’re making it digital.”

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Weber CEO describes new smart grill lineup as stock pops in market debut

Weber Grills has plans to launch a new line this year that redefines propane grilling, CEO Chris Scherzinger told CNBC on Thursday ahead of the company’s public listing. 

On “Squawk on the Street,” Scherzinger said the internet-connected line will be able to measure propane levels, alert users when the tank is running low and “get you a refill.”

“You can have a whole new business model now for Weber driving subscriptions, consumer engagement in between grilling experiences, all kinds of new ways that we can take this category,” Scherzinger said, adding that the company plans to unveil the new “game-changer” line in about three months.

Weber shares, which trade under the ticker symbol “WEBR” on the New York Stock Exchange, were up more than 16% as of Thursday morning. Weber’s debut comes about a week after rival grill maker Traeger raised $424 million in its IPO.

Weber raised about $250 million in its initial public offering on Thursday, selling about 17.9 million shares at $14 apiece, according to a company statement. That’s less than half the amount it had intended to raise as of last month, when it announced plans to sell 46.88 million shares at between $15 and $17 each, raising up to $797 million at a valuation of about $5 billion.

“We don’t really focus on the day to day or the bumps and the noise. We’re focused on the long term,” Scherzinger said, when asked about the downsized IPO. “What we’re doing is investing in growth, and the investors we’ve talked to are super excited about our runway going forward.”

Weber sells gas, electric and charcoal grills. Based in Illinois, it operates in 78 countries around the world and has 4,710 global retail partners. In the six months ending March 31, Weber recorded revenues of $963.3 million, up 62% from the same window a year earlier. Net income jumped 213% year over year to $73.8 million in that six-month period, as well.

Scherzinger said the company’s direct-to-consumer and e-commerce initiatives now comprise over 20% of the company’s business and generated more than 65 million visitors to its website last year. Since 2018, Weber’s direct-to-consumer business has had a compounded annual revenue growth rate of 47%, according to its filings with the SEC.

“By a wide margin, we have an average three times lead over the No. 2 player in every country, and in every country, it’s a different No. 2,” Scherzinger said. “It’s driven 70 years of double-digit sales growth, and we’re looking forward to a really long runway for a market of $49 billion in front of us.”

— Reuters contributed to this report.

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