Story of the Week
Roark Capital signs $1 billion deal for Dave’s Hot Chicken, sources say
Private equity firm Roark Capital has signed a deal to acquire Dave’s Hot Chicken for roughly $1 billion, according to sources familiar with the matter, in a deal that will reinforce its foothold in the restaurant industry. Drawn by their steady royalty revenue and relatively low operating costs, private equity firms have long favored restaurant franchise operators. Atlanta-based Roark, with $38 billion in assets under management, already owns a portfolio of major restaurant brands such as Arby’s, Culver’s and Subway, which it bought last year. The deal comes as restaurant operators such as Dave’s grapple with rising labor costs and seek to offset inflation by raising menu prices. Known for its Nashville-style hot chicken, Dave’s has capitalized on the growing consumer demand for chicken in recent years. Dave’s currently operates over 250 locations globally and generates roughly $1 billion in annual sales.
Apparel & Footwear
Solo Brands CEO exits after just a year in the role
On Feb 25th, Solo Brands, Inc. announced that its CEO and president, Chris Metz, is stepping down after 13 months of leading the outdoor gear and apparel company, per a news release. He has also resigned his seat on the board of directors. Metz has been succeeded on an interim basis by John Larson, a member of the company’s board of directors. Larson joined Solo Brand’s board in December after serving as CEO of Bestop, a manufacturer of soft tops and accessories for Jeep vehicles. Metz intends to stay at Solo Brands through March 7 in order to assist with the transition. Solo Brands said it will conduct a search for a permanent CEO.
Arc’teryx Fuels Growth at Parent Amer Sports in Q4, Year
Driven by the strength of its Arc’teryx brand, Amer Sports reported a strong end to its fiscal year with sales up in the double digits and a return to profitability. But the company warned that exchange rates are expected to impact business this year, prompting it to reduce its revenue growth outlook to 13 to 15 percent, weaker than analyst expectations, and below the 18 percent gain it posted in 2024. In the fourth quarter, Amer Sports reported net income of $15 million, or 3 cents a share, reversing a loss of $93 million in the fourth quarter of the prior year, on a 23 percent gain in sales to $1.64 million. Adjusted net income was $236 million, or 47 cents a share.
Kontoor brands sees steady revenue of $2.61 bn in FY24
Clothing company Kontoor Brands has generated revenue of $2.61 billion in the full fiscal 2024, ended December 28, remaining consistent with the prior year. The company reported a gross margin of 44.5 percent and an adjusted gross margin of 45.1 percent, an increase of 260 basis points (bps) compared to a year prior on an adjusted basis, excluding the out-of-period duty charge in that period. The company reported an operating income of $342 million, with an adjusted operating income of $381 million, an increase of 9 percent year-over-year (YoY). Earnings per share (EPS) was $4.36; adjusted EPS was $4.89, which increased 10 percent compared to the prior year on an adjusted basis, excluding the out-of-period duty charge in that period, Kontoor said in a press release.
Multiply Group acquires 67% stake in Spanish fashion conglomerate Tendam
The Spanish fashion conglomerate Tendam has a new majority owner. Nine months after canceling its plans for an IPO in Spain, the investment vehicle of the Abu Dhabi royal family, Multiply Group, has acquired a 67% stake in the company from private equity firms CVC Capital Partners and PAI Partners. The deal values the company at over €1 billion, according to reports from the business daily Expansión. The acquisition follows unsuccessful attempts to take Tendam public, as the market conditions failed to meet the expectations of CVC and PAI Partners. Both firms had been part of Tendam’s ownership since 2006, following a complex bidding war that also involved private equity firm Permira. In 2017, CVC and PAI Partners acquired Permira’s 33% stake, becoming the sole owners.
Athletic & Sporting Goods
Perfect Game Acquires Triangle Top Gun Sports
Perfect Game has acquired Triangle Top Gun Sports LLC, a youth organization in the Carolinas, while also announcing a partnership with Cincy Flames, a high school-age baseball tournament organization which will now fall under the Perfect Game banner. Triangle Top Gun Sports runs approximately 4,000 youth teams annually in AA (D3) and AAA (D2) baseball across North and South Carolina. The Cincy Flames organization works with over 750 teams annually across the United States.
TKO Completes Acquisition of Sports Assets From Endeavor
TKO Group Holdings, Inc., a premium sports and entertainment company, announced the close of its acquisition of IMG, On Location, and Professional Bull Riders from Endeavor Group Holdings, Inc. IMG is a leading global sports marketing agency servicing more than 200 rightsholders – including The R&A (The British Open), the All England Lawn Tennis Club (Wimbledon), and Major League Soccer (MLS) – across media rights, production, brand partnerships, digital content, and event management. On Location is a leading provider of premium hospitality and live experiences for more than 1,200 sporting events, including all premier NFL events, FIFA World Cup 26™, and the Milano Cortina 2026 and Los Angeles 2028 Olympic Games. PBR is the world’s premier bull riding organization, promoting more than 200 global events annually. TKO’s acquisition of IMG does not include businesses associated with the IMG brand in licensing, models, and tennis and golf representation, nor IMG’s full events portfolio, which remain part of Endeavor.
Cosmetics & Pharmacy
Walgreens Boots buyout could lead to three-way breakup
A potential buyout of Walgreens Boots Alliance by Sycamore Partners is expected to pave the way for a three-way split of the struggling US pharmacy giant. Executive chair Stefano Pessina would likely retain a significant shareholding as part of the deal, according to sources familiar with the matter. While initial plans involve taking Walgreens private as a whole, Sycamore intends to separate its three core businesses into independent units with distinct capital structures. This restructuring would divide the company into US pharmacy chain Walgreens, UK-based retailer Boots, and specialty pharma business Shields Health Solutions. Walgreens, which once had a market value exceeding $100bn in 2015, has struggled as competitors have eroded its market share. In October, the company announced plans to close 1,200 stores after reporting a nearly $9bn net loss for its 2024 fiscal year.
Shiseido Shares Spike Following Independent Franchise Partners’ Stake
Shiseido’s stock soared by up to 12%—its biggest jump since May 2018—after London-based investor Independent Franchise Partners (IFP) disclosed a 5.2% stake in the Japanese beauty giant. The market reacted despite Shiseido shares lagging behind the broader Topix index so far this year. Shiseido remains a leading name in cosmetics, yet its share performance suggests it’s grappling with operational and strategic challenges. IFP’s stake signals potential changes that could reshape the company’s global standing in beauty and personal care.
Prai Beauty Is Acquired by Luxury Brands in Partnership With The Dodo Group
Prai Beauty has been acquired by Luxury Brands LLC in partnership with The Dodo Group. Financial terms of the deal, which is meant to help broaden the geographic reach of the “pro-aging” skin care brand, were not disclosed. In 1999, Cathy Kangas started Prai Beauty focused on the 50-plus crowd, then later began targeting the neck and décolletage region, which age at a faster rate than a woman’s face due to a variety of factors. Kangas will continue to lead the brand as chief executive officer. “Prai Beauty has built an impressive reputation as a leader in targeted skin care solutions,” Michael Dodo, cofounder and chairman of Luxury Brands LLC, said in a statement. “We see tremendous potential for expansion across direct-to-consumer, R&D and marketing initiatives to elevate the brand’s presence globally.”
Discounters & Department Stores
Target, Warby Parker team up on eyewear shop-in-shops
Target is partnering with Warby Parker to open five shop-in-shops during the second half of this year, the retailers said in a Thursday announcement. The arrangement with Warby Parker adds to Target’s growing roster of in-store partnerships with brands like Ulta, Apple and Starbucks. Target said its latest partnership will complement its own optical business, which is offered at more than 500 of the big-box retailer’s nearly 2,000 stores. Target has sought to maintain its focus on newness with a multitude of partnerships in recent years. Target announced a strategic partnership with Champion that will see the apparel and sporting goods brand return to the retailer’s stores and website after a five-year hiatus.
Target strikes deal with sportswear brand Champion, as it tries to rev up apparel sales
Target will soon have another brand to dangle as the discounter tries to convince more shoppers to buy clothing and other discretionary merchandise — Champion. On Feb 26th, the cheap chic retailer announced that it had struck a multiyear deal with the sportswear brand long associated with hoodies and sweatpants. Authentic Brands Group bought Champion from Hanes Brands last year. Starting in August, Target will carry an exclusive line of more than 500 items from Champion in most stores and online, including apparel for adults and kids, sporting goods, accessories, and bags. It will also have a limited-time collection of varsity-inspired apparel for women and men from Champion in September. Most items will cost less than $40, the company said.
Dillard’s holiday margins shrink despite expense controls
Thanks to its strong merchandising, good customer service and rational footprint, Dillard’s is considered by many analysts to be a standout among department stores. Last year activist investors went so far as to urge Macy’s to be more like its Southern regional rival. Over the holidays, earnings were better than expected thanks in part to expense controls, according to CFRA analyst Zachary Warring. Foot traffic last year at Macy’s, Belk and J.C. Penney declined to varying degrees, but at Dillard’s was up 2.3%, according to Placer.ai. Recent declines in sales and margins prove that Dillard’s is not immune to the downturn in the space, however, analysts said.
Ollie’s purchases a further 40 former Big Lots store leases in US
Ollie’s Bargain Outlet Holdings has agreed to acquire an additional 40 former Big Lots store leases in the US from Gordon Brothers. The company has now acquired 63 former Big Lots store leases. Ollie’s, a US-based retailer known for selling close-out merchandise and excess inventory, offers a diverse range of products. Its inventory spans housewares, food, books and stationery, bed and bath, floor coverings, toys, and health and beauty aids. The company currently operates 568 stores in 31 US states.
Emerging Consumer Companies
Makeup Artist Brand Fara Homidi Beauty Secures Funding
Fara Homidi Beauty, the high-profile makeup artist brand founded by celebrity makeup artist Fara Homidi, has secured investment from Sandbridge Capital, marking a significant milestone for the two-year-old brand. Known for its “cool-girl” appeal, Fara Homidi Beauty joins Sandbridge’s portfolio of notable beauty and fashion names, which includes U Beauty, DedCool, Ariana Grande’s R.e.m. Beauty, and Rossignol, with successful exits such as Thom Browne and Ilia Beauty. The exact financial terms of the deal were not disclosed, but Homidi described the funding as “considerable,” making Sandbridge Capital a significant minority partner.
Pet healthcare startup Tandem raises $10 million
Tandem, a pet healthcare startup on a mission to deliver unrivaled, affordable healthcare to every pet, has secured $10 million in pre-seed funding to redefine veterinary care. Building on its mobile clinics and telemedicine services, Tandem will launch a 5,000 sq ft AI-powered health hub this summer. Since launching its pilot services in the fall of 2024, Tandem has partnered with over 100 residential complexes in the greater Boston area to create “Neighborhood Clinics,” bringing convenient and accessible veterinary care to more than 500 pet families.
Actual Veggies raises $7 million
Actual Veggies, known for its chef-crafted veggie burgers and vegetable-forward products, announced its $7 million Series A round of funding led by Relentless Consumer Partners with participation from New Fare Partners and industry leaders Todd Lachman, Sovos Brands founder and Sauer Brands Chairman, and Ben Rawitz. The funding follows 125% year-over-year revenue growth and reflects accelerating consumer demand for clean-label, whole-food alternatives. The company has doubled its retail presence to over 6,500 locations through partnerships with major retailers including Albertsons, Kroger, Whole Foods Market, and Sprouts. Their flagship product, the Actual Veggies Black Bean Burger, leads its category and will launch in all 82 Costco locations across the Southeast region this March.
Food & Beverage
Unilever abruptly ousts CEO to accelerate turnaround
Unilever unexpectedly announced it is ousting CEO Hein Schumacher as the Ben & Jerry’s and Hellmann’s mayonnaise manufacturer aims to accelerate its turnaround efforts. Schumacher will step down on March 1 after less than two years in the top role. He will be replaced by Fernando Fernandez, Unilever’s CFO. The change comes a year after Unilever announced it would cut about 7,500 jobs as part of a restructuring effort to increase sales, cut costs and boost productivity. The company also is planning to spin off its ice cream business, which includes Good Humor, Talenti, Breyers, Popsicle, Klondike and Ben & Jerry’s.
Boyne Capital Announces New Platform Investment in Blue Monkey Beverages
Boyne Capital is pleased to announce that one of its affiliates has invested in Blue Monkey Beverages. This strategic partnership marks an exciting step forward in Blue Monkey’s growth journey, leveraging Boyne Capital’s extensive resources and experience in scaling consumer-focused businesses. Founded in 2009, Blue Monkey has built a strong reputation for its high-quality, innovative product lineup, including a variety of sparkling tropical fruit juice and coconut water products. Boyne Capital’s investment is aimed at accelerating Blue Monkey’s expansion with new and existing customers and fostering product innovation to meet the growing demand for natural and functional beverages. Boyne partnered on the transaction with Fifth Ocean Capital, whose principal, Steve Beck, a tenured beverage executive, joins the Company as CEO.
Prosus to acquire Just Eat Takeaway.com for €4.1bn
Prosus, the global technology company, announced it has reached a conditional agreement to acquire Just Eat Takeaway.com, to create the fourth-largest food delivery group globally. Prosus intends to acquire Just Eat Takeaway.com’s entire issued share capital for €20.30 per share via a recommended all-cash public offer on the Amsterdam exchange. This represents a 49% premium to the 3-month VWAP as of 21 February 2025, and a 22% premium to Just Eat Takeaway.com’s highest share price over the last three months.
Grocery & Restaurants
Papa Johns reports Q4 4% same-store sales drop
Papa Johns is confident in its turnaround plan — which includes a focus on menu innovation, local advertising, and improving its value proposition — despite a 4% same-store sales decline for the fourth quarter ended Dec. 29. This is the fourth quarter in a row of same-store sales declines for Papa Johns as the pizza company tries to regain footing with other competitors in the category by focusing on value and quality differentiation. “We’re really trying to get back to our roots and amplify why we’re ‘better ingredients, better pizza,’” Papa Johns CEO Todd Penegor told Nation’s Restaurant News. “People know that slogan and we’re seeing that we are getting back into position on value perception scores. We’re really excited about our ‘Meet the Makers’ ad campaign that we just put out, which really focuses on the craftsmanship of the pizzas, whether they’re on the premium or the value side.” Much of Papa Johns’ opportunity for improvement in the pizza category comes down to brand messaging and reminding customers why the brand has “better pizza, better ingredients,” but it’s also about improving the content of that message.
Red Robin plans to close dozens of underperforming restaurants
Red Robin’s turnaround plan continued to gain traction during the fourth quarter, with the company reporting 3.4% same-store sales growth Wednesday after market. The company also reported sequential improvement in traffic through 2024, to the tune of 600 basis points. “While our improvement has been substantial, we have not yet reached the potential of our iconic brand and expect to drive further traffic improvements in 2025,” chief executive officer G.J. Hart said during the company’s earnings call. Red Robin has been focusing to get its sales back on track, mapped out on a five-point plan put into place in early 2023 when Hart came on board. That plan includes everything from operations to improving the entire menu. While 2024’s results showed some progress against the company’s goals, Red Robin is focused on several initiatives to keep its momentum going in 2025. Perhaps the biggest impact will come from the closure of dozens of underperforming restaurants. Hart said the company is evaluating approximately 70 locations (out of about 500 total) that generated a total restaurant-level operating loss of about $6 million last year.
Home & Road
Beyond’s Lemonis Sees Path To Profit After Q4 Falls Short of Expectations
Beyond, Inc. Executive Chairman Marcus Lemonis, in a conference after Beyond reported fourth-quarter results short of Wall Street estimates, said he believes the company has left its worst days behind and is on the road to profitability. Net loss for Beyond was $81.3 million, or $1.66 per diluted share, versus a net loss of $161 million, or $3.55 per diluted share, in the year-before quarter. Adjusted for one-time events, net loss was $44.5 million, or 91 cents per diluted share, versus an adjusted net loss of $55.4 million, or $1.22 per diluted share, in the year-previous period, the company reported. Beyond, the former Overstock.com business, owns and operates e-commerce platforms for such retail brands as Bed Bath & Beyond, Buy Buy Baby, Overstock and Zulily. Beyond recently invested $25 million in home decor retailer Kirkland’s in a move that sets the stage for a possible brick-and-mortar return for Bed Bath & Beyond. Lemonis said Beyond’s performance on key metrics, such as gross marketing are positioning the company to become profitable possibly by the end of the year.
In ‘serious financial difficulty,’ Dorel enters sale-leaseback deal for Indiana plant
Soon after it announced a major restructuring effort and layoffs, RTA furniture specialist Dorel Inds. entered into a sale-leaseback transaction for its plant and warehouse in Columbus, Ind. The company says it’s in “serious financial difficulty” and that this transaction will help it reduce debt, finance the growth of its Juvenile segment and turn around its furniture segment, which has seen steady quarterly losses for more than two years. Gross proceeds from the sale will be $30 million, of which $8 million will be used to pay down debt. As of last quarter, the company’s debt amounts to around $400 million. The company’s owners and directors – Martin Schwartz, Jeffrey Schwartz, Jeff Segel and Alan Schwartz – are named in the release as purchasers/lessors of the facility.
Havertys hits on some goals in ’24 in face of soft sales conditions
While 2024 had its challenges for Top 100 retailer Havertys, the retailer reached a few notable benchmarks in the fiscal year. The Atlanta-based retailer hit its goal of five store openings and re-established itself in a major market, while delivering another dividend to shareholders and positioning itself to capitalize when the economic winds shift. For the three months ended Dec. 31, Havertys recorded sales of $184.4 million, down 12.52% compared with $210.7 million over the same quarter in 2023. Its net income for the quarter was $8.2 million, or 47 cents per diluted share, down 45.4% against net income of $15 million, or 89 cents per diluted share a year ago.
LFL posts revenue gain in ’24 despite Q4 slip
Canadian retailer Leon’s Furniture Limited, which owns and operates Leon’s and The Brick, bested its year-ago revenues in 2024, even as shipping delays caused its fourth quarter sales figures to slip. For the year, the retailer, which reports figures in Canadian dollars reported revenues of C$2.499 billion, up 1.8% from C$2.455 billion in its Feb. 25 earnings report. Net income for the year totaled C$153.7 million, or C$2.20 per adjusted diluted share, a 10.7% increase compared with net income of C$138.9 million, or C$2.06 per adjusted diluted share. For the three months ended Dec. 31, 2024, LFL reported revenues of C$666.7 million, a 2.9% decline vs. C$686.9 million over the same period in 2023. The company attributed the drop in revenue to reduced furniture inventory due to industrywide overseas shipping delays.
Home Depot Q4 earnings, sales top estimates; to open 13 stores
The Home Depot reported a strong quarter that included its first same-store increase in eight quarters, but issued soft guidance as consumers continue to hold back on large remodeling projects. The home improvement giant reported net income of $3.03 billion, or $3.02 a share, for the quarter ended Feb. 2, up from $2.8 billion, or $2.82 a share, in the year-earlier period. Adjusted earnings per share were $3.13, ahead of the $3.04 analysts had expected. Sales rose 14.1% to $39.7 billion, ahead of analysts’ estimates of $39.15 billion. Same-store sales rose 0.8%. Transactions rose 7.6% in the quarter. The average ticket was $89.11, compared to $88.87 in the prior-year quarter. For the full year, sales increased 4.5% to $159.5 billion. Comparable sales decreased 1.8%.
Jewelry & Luxury
Giuseppe Zanotti Buys Back Minority Stake From L Catterton
Giuseppe Zanotti has bought back the minority stake in his namesake brand from investment fund L Catterton. The acquisition takes place in a brisk M&A footwear scenario, as earlier this month, Caleres signed a deal to acquire Stuart Weitzman for $105 million from Tapestry, and Steve Madden is acquiring British company Kurt Geiger from Cinven Group in a $360 million deal. Capri Holdings has reportedly put Jimmy Choo up for sale, and Tamara Mellon is said to be interested in the brand she cofounded. In 2014, L Catterton — at the time L Capital Management and L Capital Asia — took a 30 percent stake in the Zanotti brand. The majority stake remained in the hands of its founder.
Blackstone paying $5.6 billion to buy Safe Harbor Marinas
Private equity giant Blackstone has agreed to acquire Safe Harbor Marinas, a Dallas-based marina and superyacht servicing company, for $5.65 billion from Sun Communities. This is a reminder that the pandemic-era boating boom didn’t sink. SHM operates 138 marinas, compared to the 101 it operated in 2020 when acquired by Sun Communities for $1.1 billion. Expect that Blackstone will try to consolidate more of the fragmented marina industry.
De Beers and Botswana Sign 10-Year Sales Pact
De Beers Group and the government of the Republic of Botswana signed new contracts on February 25th in Gaborone, the capital of Botswana. In addition to their new 10-year sales agreement, which may be extended another five years, De Beers and Botswana formalized a 25-year extension of the mining licenses (from 2029 through 2054) for Debswana, their 50/50 joint venture that operates the Jwaneng and Orapa diamond mines in Botswana. “We are delighted that this extraordinary diamond partnership is secured for decades to come, affirming De Beers’ leadership position and providing reassurance across the entire diamond value chain,” Duncan Wanblad, chief executive of De Beers parent Anglo American, said in a statement announcing the deals.
Office & Leisure
BC Partners eyes Pets at Home in potential takeover as shares surge
Pets at Home shares soared 14 percent on February 26 following speculation that private equity firm BC Partners is preparing a takeover bid. Investor discussions intensified after multiple bid vehicles, including Pug Bidco Limited, were registered on February 24. These entities share an address with BC Partners’ London office, and their listed director matches the name of Michael Chang, the firm’s New York-based co-head of healthcare. Chang is also linked to BC Partners’ investment in US pet retailer PetSmart, fueling further speculation about a potential deal. The stock has faced pressure due to an ongoing investigation by the UK’s Competition and Markets Authority into the veterinary sector. The probe, launched after receiving over 56,000 responses from pet owners and industry professionals, focuses on rising medicine costs and reduced competition due to industry consolidation.
YouTube star MrBeast is raising money at a $5 billion valuation
YouTube star MrBeast is looking to raise a couple hundred million dollars to expand his business in a funding round that would value his company at about $5 billion, according to people familiar with the matter. The most popular creator on YouTube has spoken with several financial firms and wealthy individuals about investing, said the people, who declined to be identified because the talks are confidential. Talks are still in their early stages, and it’s not yet clear who will invest or if they will do so at the target price. The online star, whose real name is Jimmy Donaldson, is raising money to fund a holding company that owns all or part of several businesses, including the chocolate brand Feastables, the snack company Lunchly, and his video production company. The business is profitable and generated more than $400 million in sales last year, said two of the people. He is looking to expand both his packaged goods and media businesses.
Egg prices are threatening a classic holiday tradition: Easter dye kits
The egg aisle is anything but cheaper by the dozen these days — and that’s becoming a big problem ahead of the Easter holiday. The makers of Easter egg dye kits are bracing for the potential fallout if the egg shortage doesn’t begin to clear up before the April 20 holiday. For many companies that specialize in these activity sets, egg dye kits and related products make up a significant share of annual revenue. Diminished sales could have a major impact on their bottom lines. “I think sales will be down,” said Ashley Phelps, founder and CEO of Color Kitchen, a plant-based baking decoration company. “That remains to be seen, but I think it probably will be.”
Technology & Internet
Amazon eyes global expansion for its Temu, Shein competitor
Amazon is looking to expand its competitor to Temu and Shein beyond the U.S. The company intends to launch its discount storefront, called Haul, in Europe later this year, according to two people familiar with the matter who asked not to be named because the plans are confidential. The expansion comes months after Haul’s debut. Amazon unveiled the online store in November, describing it as an “engaging shopping experience that brings lower-priced products into one convenient destination.” Haul is only accessible through Amazon’s mobile app, and most items are priced at $20 or less. With Amazon Haul, the company is responding to the rise of Temu, Shein and TikTok Shop, which all have ties to China, the world’s second-largest economy. The platforms have rapidly gained popularity in the U.S. over the past few years by hooking deal-hungry shoppers with their low prices on clothing, makeup, home goods and other items. Haul remains in beta for U.S. users, but Amazon has continued to build out the service, suggesting the company sees it becoming a more permanent fixture of its online store.
PayPal strategy for Venmo to reach $2 billion in revenue in 2027
At PayPal’s first investor day in four years, CEO Alex Chriss will deliver a clear message to shareholders: Venmo isn’t just an easy way to split the dinner tab. Chriss, who took the helm in September 2023, is trying to spur a turnaround at the payments company, and Venmo is a key part of his effort. The company told investors in New York on Tuesday that Venmo can top $2 billion in revenue by 2027. The last time PayPal provided an annual revenue figure for Venmo was 2021, when it was about $900 million. For Chriss, Venmo expansion is all part of a broader push to restore consistent, profitable growth after years of turbulence that saw the company’s market cap dwindle by more than 80% from mid-2021 through late 2023. With 90 million U.S. users, Venmo has been a cultural staple for years and has become a verb that’s synonymous with sending money to a friend or family member. But monetization has remained a challenge because those transactions generate little revenue. On Tuesday, PayPal is outlining its strategy to deepen user engagement and position Venmo as the default app not just for peer-to-peer transactions, but for spending, saving and becoming what the company is calling the “go-to money movement app.”
Finance & Economy
Mortgage rates hit 2025 low as economic jitters mount
Mortgage rates dropped this week after consumer confidence turned sharply negative, raising new fears about an economic slowdown. The average 30-year mortgage rate fell to 6.76%, for the week through Feb 26th, from 6.85% a week earlier. 15-year mortgage rates dropped to 5.94%, from 6.04%. “The drop in mortgage rates, combined with modestly improving inventory, is an encouraging sign for consumers in the market to buy a home,” Sam Khater, Freddie Mac’s chief economist, said in a statement. The moves follow a sharp decline in Treasury yields on Feb 25th after consumer confidence data showed the biggest drop in nearly four years, spurring investor concerns about the health of the economy.
US economy grows at 2.3% annualized pace in fourth quarter, matching estimates
The US economy grew at an unrevised 2.3% annualized pace last quarter, on par with consensus estimates. The Bureau of Economic Analysis’s (BEA) second estimate of fourth-quarter US gross domestic product (GDP) was unchanged from the advanced estimate, which had shown 2.3% annualized growth. The second estimate, based on more complete source data than the advanced estimate, suggests that economic growth in the fourth quarter was slower than the 3.1% annualized growth seen in the third quarter. The increase in real GDP in the fourth quarter primarily reflected increases in consumer spending and government spending that were partly offset by a decrease in investment, according to the BEA.
