Thu, Jan. 15, 3:13 AM
- Changing their previous stance, two influential proxy firms, Institutional Shareholder Services and Glass Lewis & Co, have advised Family Dollar (NYSE:FDO) shareholders to vote for the retailer's acquisition by Dollar Tree (NASDAQ:DLTR), saying it was more likely to close as it faced fewer antitrust hurdles.
- Previously, Dollar Tree had said it would divest as many outlets as required to get antitrust approval for the deal, while Dollar General (NYSE:DG) stuck to its offer to shed up to 1,500 stores.
Mon, Jan. 12, 6:55 AM
- Family Dollar (NYSE:FDO) issues an open letter to shareholders in which it recommends they vote to approve a merger with Dollar Tree (NASDAQ:DLTR).
- The company says economic analysis by the FTC on the Dollar Tree combination leads to a count of problematic stores of 310, compared to estimated 3K-4K which would likely be needed to be divested under the Dollar General (NYSE:DG) merger proposal.
- A special meeting of Family Dollar shareholders is set for January 25 to vote on the DLTR offer.
- Full letter
Fri, Jan. 9, 8:35 AM
- The House passed a bill to redefine a full-time worker under the Affordable Care Act to 40 hours a week from 30 hours.
- The legislation could impact millions of workers as companies adjust hours and employee policies around the issue.
- The measure was passed by a vote total of 252-172.
- Senate Majority Leader Mitch McConnell has indicated the bill will see a vote in his chamber.
- The White House has threatened to veto the bill on its view it will reduce the number of workers covered by healthcare.
- Most industry groups within the restaurant and food industry have issued support for the legislation.
- Related stocks: CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, BDL, NATH, LUB, QSR, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, CASY, IMKTA, SFS, KR, WMK, SVU, WFM, SWY, VLGEA, TFM,NGVC, BIG, ZU, TUES, WMT, PSMT, COST, TGT, DLTR, BURL, FDO, DG, FRED, WBA, RAD, CVS, HABT, NDLS, PBPB.
Thu, Jan. 8, 8:18 PM
- Holiday retail sales rose 4.6% vs. expectations for a 3.8% lift, according to a read from ShopperTrak. The growth rate is the highest since 2005 for the period.
- The rush of positive reports from retailers on holiday sales comes off of some beaten-down expectations, notes Chain Store Age.
- Concerns on mall traffic, a West Coast port slowdown, and a frenzied level of promotions drove consensus estimates lower before some macroeconomic factors improved and $2 gas entered the scene.
- A cross-section of retailers that surprised on the upside includes Barnes & Noble, Pier 1 Imports, Walgreens, Urban Outfitters, and Sonic.
- What to watch: Costco (NASDAQ:COST) put up a 5% comp for December, putting some pressure on Wal-Mart (NYSE:WMT) and Target (NYSE:TGT) to show signs of late-quarter strength. Signs of weakness at dollar stores (DG, DLTR, FDO, FIVE) and electronics chains (HGG, CONN, BBY) are a concern. Retailers seen as on-trend for the holiday season include Foot Locker (NYSE:FL), Lululemon (NASDAQ:LULU), and Williams-Sonoma (NYSE:WSM).
- Related ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, IYC, FDIS, SCC, UCC, PMR, UGE, RCD, SZK
Dec. 23, 2014, 10:31 AM
- The Family Dollar (FDO +0.2%) shareholder meeting has been adjourned to January 22, according to the Charlotte Observer.
- The delay was expected with the FTC yet to finalize its ruling on the amount of store closings it requires in a Dollar General (DG +1%) acquisition of Family Dollar.
- Recap: Dollar General is in with a $9.1B offer for FDO to top the $8.5B Dollar Tree (DLTR +0.9%) bid which is preferred by the target's board
Dec. 19, 2014, 9:57 AM
- Dollar General (DG -1.1%) announces it remains "actively engaged" with the FTC on the amount of store divestitures needed to see the regulator clear a Family Dollar (FDO -0.4%) acquisition.
- The company says its brief statement will be the last update on the issue prior to the scheduled Family Dollar shareholder meeting on December 23.
- What to watch: Dollar General is one of the retail names picked by some analysts to see a sales boost tied to lower gas prices in the U.S. The company is already running up against a soft storm-impacted comp from last winter.
Dec. 5, 2014, 9:44 AM
- Dollar General (NYSE:DG) responds to an update from Dollar Tree (NASDAQ:DLTR) on the chase for Family Dollar (NYSE:FDO) within hours.
- The company holds its position that prices at Wal-Mart are what determine its own pricing decisions.
- The working theory is that a DG-FDO combination wouldn't lead to widespread price increases for consumers.
- Good progress on talks with the FTC on store divestitures is reported by Dollar General.
- An update (higher offer?) to Family Dollar shareholders is also promised.
Dec. 5, 2014, 7:20 AM
- Dollar Tree (NASDAQ:DLTR) says it expects a deal to acquire Family Dollar (NYSE:FDO) will close by early February.
- The discounter thinks it will only have to divest a small number of stores.
- Talks with the FTC over the matter are still progressing.
- Dollar Tree couldn't resist taking a shot at Dollar General (NYSE:DG) over its chase of Family Dollar, noting the FTC is likely to ask for divestitures far in excess of the 1,500 stores offered up to DG.
- Family Dollar shareholders are schedule to vote on the Dollar Tree offer on December 23.
Dec. 4, 2014, 8:26 AM
- Dollar General (NYSE:DG) says it remains committed to its acquisition bid for Family Dollar (NYSE:FDO).
- The company plans to give an update on its offer before the Family Dollar shareholder meeting scheduled for December 23.
- Some retail analysts are taking that as an indication a higher offer is coming down the pike.
- Dollar Tree (NASDAQ:DLTR) will be dialed into the developments.
- Family Dollar closed yesterday at $79.48, just below the $80 Dollar General offer price.
Dec. 4, 2014, 7:18 AM
- Dollar General (NYSE:DG) reports same-store sales rose 2.8% in Q3 as both traffic and average transaction price improved over the period.
- The discounter continues to see sales on consumables outpace non-consumables sales, led by tobacco and candy products.
- Gross profit rate -18 bps to 30.1%.
- SG&A expense rate +40 bps to 21.8%.
- Inventory +7.7% to $2.79B.
- Guidance: Full-year revenue growth of +8% expected vs. 8.0%-9.0% prior outlook. Sames-store sales expected to grow below previous guidance of 3.0%-3.5%. EPS forecast to land in middle part of $3.45-$3.55 range vs. $3.50 consensus.
- DG +0.4% premarket.
Dec. 4, 2014, 7:01 AM
Dec. 3, 2014, 5:30 PM
Nov. 29, 2014, 10:29 AM
- Analysts with Gasbuddy.com predict some gas stations in the U.S. will offer $2 per gallon gas by Christmas.
- The last time the average price of gas in the U.S. was below $2 was in March of 2009.
- Forecasts from economists vary widely on the overall gas benefit to consumers for Q4. The high end from the group is an outlook of $300 per household, while the low end is closer to $100.
- Most analysts see an immediate lift for retail chains with large distribution channels. Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Costco (NASDAQ:COST), Dollar General (NYSE:DG), Family Dollar (NYSE:FDO), Dollar Tree (NASDAQ:DLTR), Big Lots (NYSE:BIG), and Five Below (NASDAQ:FIVE) come to mind.
- Airline stocks (JBLU, DAL, UAL, LUV, AAL, RJET, ALK, HA, ALGT, VA) have already ripped strong gains off the OPEC news, although some see even more long-term upside as forward fuel hedges get reworked.
- A sustained period of low gas prices should lift restaurant stocks (CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, LUB, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN) say some analysts.
- The gaming sector is (CZR, PNK, BYD, ISLE, CNTY, MCRI, MGM, NYNY) also an off-the-radar pick to bounce.
Nov. 19, 2014, 3:28 PM
- Dollar General (DG) says it remains committed to a plan to acquire Family Dollar Stores.
- The company say discussions with the FTC over the amount of stores that would need to be divested to push a deal through are still ongoing.
- Previously: FTC may require Dollar General to divest 4K+ stores, Decision time in dollar store space
Nov. 19, 2014, 12:38 PM
- Family Dollar (FDO -1.1%) pushes back the date that shareholders will vote on the proposed merger with Dollar Tree (DLTR +0.2%) to December 23.
- The company expects to have an update by the end of the first week in December on a FTC review of the combination.
- The development doesn't give Dollar General (DG -3.5%) much time to decide if it will raise its offer for Family Dollar amid reports more stores than anticipated will need to be divested to clear regulatory hurdles.
- Previously: FTC may require Dollar General to divest 4K+ stores
Nov. 19, 2014, 5:13 AM
- Dollar General (NYSE:DG) may have to divest more than 4,000 stores, more than double the 1,500 stores it said it was willing to sell, if it wants to gain regulatory approval to buy Family Dollar (NYSE:FDO), reports The New York Post.
- Getting the FTC to change its mind could take months, but rival Dollar Tree (NASDAQ:DLTR) wants a vote on its proposed Family Dollar merger by Dec. 31.
- Without the time to explain its case to the FTC, Dollar General could be forced to either raise its bid or live with the added number of divestitures.
- DG -1.8% premarket
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