Vera Bradley acquires majority stake in online accessories company

Vera Bradley Inc. VRA, -3.81% said Thursday that it has taken a 75% interest in Creative Genius Inc., a digitally-native jewelry and accessories company that also operates under the name Pura Vida Bracelets. The deal is for a $75 million consideration, subject to certain price adjustments, and up to $22.5 million in incremental earnout based on 2019 performance. The deal isn’t subject to financing conditions. For the year ending Dec. 31, 2018, Pura Vida had revenue of $68.3 million and net income of $3.8 million. For the fiscal year ending Feb. 2, 2019, Vera Bradley had revenue of $416.1 million and no outstanding debt. Vera Bradley has the right to acquire the remaining 25% stake after five years. Pura Vida will operate as a subsidiary of Vera Bradley from its La Jolla, Calif. headquarters, and is expected to be accretive to earnings in fiscal 2020. Vera Bradley stock has rallied 38.6% for the year to date while the S&P 500 index SPX, +0.30% is up 16.7% for the period.

Del Taco to add two new Beyond Meat plant-based burritos to its menu

Del Taco Restaurants Inc. TACO, +0.26% said Thursday it is expanding its partnership with Beyond Meat Inc. BYND, -0.36% and will offer two new burritos containing that company’s plant-based protein. The Mexican fast-food chain said it has sold almost two million Beyond Tacos and Beyond Avocado Tacos since adding those options to its menu in April. "The enthusiasm shown by our fans during the first weeks of our Beyond Meat offerings was undeniable," Del Taco Chief Executive John Cappasola said in a statement. The company is now adding the Beyond 8 Layer Burrrito and the Epic Beyond Cali Burrito to its menu at more than 580 locations across the U.S. Beyond Meat shares rose 2.5% premarket on the news. Del Taco shares were up 1.8% premarket and have gained 14.8% in the last 12 months, while the S&P 500 SPX, +0.30% has gained 16.7%.

Fatburger parent acquires Elevation Burger for $10 million

Fat Brands Inc. FAT, +0.00% has completed its acquisition of Elevation Burger for $10 million, the company said Thursday. Fat Brands portfolio of chains includes Fatburger, Buffalo’s Cafe and Ponderosa. Fat Brands has more than 400 franchised restaurants with annual system-wide sales of more than $400 million. Elevation Burger was founded in 2002 and sells organic, grass-fed product at 44 franchised locations across the U.S. and abroad. Fat Brands stock has slipped 4% for the year to date while the S&P 500 index SPX, +0.30% has gained 16.7% for the period.

Kroger Q1 Profit Matches Estimates; Affirms Guidance – Quick Facts

The Kroger Co. (KR) reported first-quarter earnings that matched analysts’ estimates. Total sales, excluding fuel and the effect of selling the convenience store business unit, increased 2.0% year-on-year. Looking forward, Kroger Co. confirmed identical sales, operating profit and EPS guidance for 2019.

For the first-quarter, adjusted net earnings were $0.72 per share, compared to $0.73 per share, last year. On average, 23 analysts polled by Thomson Reuters expected the company to report profit per share of $0.72 for the quarter. Analysts’ estimates typically exclude special items.

First-quarter total company sales were $37.3 billion, compared to $37.7 billion for the same period last year. Analysts expected revenue of $37.21 billion for the quarter. Identical sales excluding fuel increased 1.5%, for the quarter.

For 2019, the company continues to expect adjusted earnings per share in a range of $2.15 – $2.25. Analysts expect the company to report profit per share of $2.19, for the fiscal year.

Shares of Kroger Co. were up more than 5% in pre-market trade on Thursday.

Tesla shares slide premarket as Goldman Sachs slashes price target to $158 from $200

Tesla Inc. shares TSLA, +0.75% fell 1.5% in premarket trade Thursday, after Goldman Sachs slashed its stock price target to $158 from $200 on concerns the company can meet estimates for the second half and beyond. Analysts led by David Tamberrino said they expect the second quarter to be fine and come close to FactSet consensus for volumes, estimates for the second half look high, "considering there are fewer levers to pull to stoke demand going forward (i.e., company released lower priced variants of the Model 3, a leasing option was introduced, and right-hand drive orders have begun)." With the Federal tax credit due to step down again on July 1, second-quarter demand is likely not sustainable, the analysts wrote in a note to clients. Investors should be asking what are the sustainable levels for Model S, Model X and Model 3, they wrote, and how will that change with the introduction of the Model Y, which will likely cannabalize part of the customer base for other models. "We maintain our Sell rating on shares, but lower our 12-month price target to $158 (from $200) as we see a lower probability of the company achieving our upside volume scenarios; we believe a downward path for shares will resume as it becomes more clear that sustainable demand for the company’s current products are below expectations," said the note. Tesla shares have fallen 32% in 2019 to date, while the S&P 500 SPX, +0.30% has gained 16.7%.

US picks new ambassador to the United Nations

Kelly Craft named as Trump’s pick as ambassador to United Nations

US President Donald Trump has named Kelly Craft as the nominee for the ambassador to the United Nations.

That post has been vacant for six months since Nikki Haley resigned.

But if confirmed, Craft would face multiple challenges from a divided administration giving mixed messages.

Al Jazeera’s Mike Hanna reports from Washington, DC.