Wingstop Rises, Starbucks Rises, Palo Alto Rises After CyberArk Deal

On this episode of Stock Movers:
- Wingstop (WING) shares rise after the restaurant operator reported adjusted earnings per share and revenue that beat the average analyst estimates. Wingstop also forecast total domestic stores comp sales growth for the full year of about +1%, above expectations.
- Starbucks (SBUX) shares rise. Shares rallied in New York trading Wednesday as investors focused on green shoots in the earnings release, including the first sales gain in China since the end of 2023. The stock has risen about 3% so far this year, lagging the S&P 500 Index.
- Palo Alto Networks (PANW) shares fell. Today, Palo Alto Networks Inc. agreed to buy CyberArk Software Ltd. in a cash-and-stock deal valuing the Israeli cybersecurity company at about $25 billion.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio News. The Stock Movers Report,
your roundup of companies making moves in the stock market,
harnessing the power of Bloomberg Data.

Speaker 2 (00:16):
Let's take a look at some of the stocks on
the move today. I'm Paul Sweeney alongside John Tucker, and
we're joining today by Bloomberg. Carmen ryani Ky Carmon. What
are you looking at in the markets?

Speaker 3 (00:24):
Yeah, So one of the first stops, first stocks I'm
looking at this morning is Wings stop ticker wi N
Chicken Wings Chicken Wings. Yeah, and this, I mean, you
wouldn't think it would be such a big move. The
stock is up twenty three percent. It's the best intra
day jump since twenty twenty two, so best in three
years for the stock. It reported earnings, adjusted earnings for

(00:45):
shar and revenue beat Wall Street estimates. It also had
a forecast for domestic sales growth for the full year
that's up one percent more than expected. So analysts were
really cheering that outlook as setting the company up for
an attractive path forward. They all called out something so
the company is rapidly opening stores. The CEO mentioned that,

(01:06):
and they're.

Speaker 2 (01:07):
Hopefully they happen around here. Okay, keep going.

Speaker 3 (01:10):
So there Also, the stores should also benefit from improving
operational efficiencies, including the smart kitchen that they've been rolling out.
It's expected to be system wide by the end of
the year. And it's you know, helps them make chicken
a I meets chicken, you know cut it cuts down
taking time and makes their kitchen.

Speaker 2 (01:31):
Wasn't there a chicken shortage at some point? What happened
to that whole thing? They were sick and flu So
it is egg sor right here we go Wingstop in
New York eighth Avenue and fifty fifth Street, John after
the show, Okay, go check it out?

Speaker 3 (01:43):
All right?

Speaker 1 (01:43):
What else you got for Charlie's free?

Speaker 3 (01:46):
So I'm also looking at shairs of Starbucks. So this
is ticker s b u X. This is I actually
had a huge so to fall off this morning. So
it was up as much as six point four percent
and then reversed. It's now down about three percent. So
it also reported that things last night, sales and profit
film more than anticipated. And it seems like this is
potentially sparking worry that the companies turn around is going

(02:07):
slower than expected. I think investors have really been trying
to digest you know, the new CEO, Brian Nicol, He's
been there since September. There's a lot of optimism around him,
sort of versus you know, the guy.

Speaker 2 (02:17):
Who's like working remotely as CEO.

Speaker 3 (02:20):
Yes, because he came from Chipotle and so he's not
in Seattle. So anyway, he's made a lot of changes.
It seems like it hasn't won one hundred percent quite
come through into the financials yet, so analysts and investors
are really watching that.

Speaker 2 (02:33):
They are writing on your cups again, at least of mind,
which I think is kind of a throwback to the
early days and as opposed to just the sticker that
I get maybe my name, a little smiley face, so
you get back to the kind.

Speaker 3 (02:44):
Of the that's all the reason to go there, little
chest message.

Speaker 2 (02:47):
Yeah. Well, I mean, here's my Starbucks thing. The drive
through is like twenty cars deep. I walk in store,
there's like three people in here. I get my coffee
in like thirty seconds. You know, people have just totally
gone to the drive through route. So I don't know,
all right, what else we have one more?

Speaker 3 (03:03):
All right? So the other one I'm looking at is
Palo Alto Networks and cyber Arcs. So those are tickers
PA and W and C why b R So Palo
Alto Networks shares are down about eight percent right now.
The company agreed to buy cyber Arcs Software Limited in
a cash and stock deal values the company at about

(03:23):
twenty five billion. The transaction is expected to close in
the second half of Palo Alto's fiscal year twenty twenty six.
It gives the company sort of a big suite of
new identity security tools and especially ones that can be
used with artificial intelligence. So obviously that's a buzzword there.
And I wanted to point out cyber arc shares are
down a little bit today, they're down about two percent.

(03:44):
But yesterday after we sort of heard the first rumblings
of this deal, the stock closed at a record high
and was uplt.

Speaker 2 (03:51):
And the most important aspect of this transaction is who's
advising And got JP Morgan advising the buyer. We've got
Frank Quatron and Catalyst Partners advising the seller as he
always does. Frank question always get paid. Whin there's money
moving in Silicon Valley.

Speaker 1 (04:05):
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