Marriott, Twitter, Peloton: the actions that defined the week

Marriott International Inc.

MAR -2.89%

People are ready to travel like in 2019. Marriott’s first-quarter sales jumped 81% as the hospitality giant said it saw the biggest increase in global travel demand since the pandemic began, and Airbnb Inc.

gross bookings in the last quarter rose 67% to $17.2 billion, a record for the home-sharing company. The results follow equally positive readings from airlines. Marriott shares gained 4.7% on Wednesday.

Spirit Airlines Inc.


Spirit prefers flying with Frontier than JetBlue.

The carrier rejected an acquisition offer from JetBlue Airways Corp. in favor of an existing plan to merge with rival low-cost airline Frontier Group Holdings Inc.

JetBlue’s offer for Spirit came at a higher price than Frontier’s cash and stock offer, originally valued at $2.9 billion. But Spirit’s board said it thought there was too much risk of regulators banning a merger with JetBlue. Still, JetBlue said Monday it wasn’t giving up and released details of its latest bid in a bid to win over Spirit shareholders. Shares of Spirit fell 9.4% on Monday.

Chegg Inc.

CHGG -4.41%

Chegg learns a hard lesson. Inflation and rising wages have diverted more students from the education business, according to chief executive Daniel Rosensweig, who said about a million had dropped out or postponed enrollment in the higher education in the past two years. Chegg, which sells study materials and operates a learning platform for high school and college students, has thrived during the pandemic as homeschooling took off and disposable income rose due to programs government stimulus. The company reported quarterly revenue below expectations and cut its outlook for the year. Shares of Chegg fell 30% on Tuesday.

Starbucks Corp.

SBUX -1.24%

Starbucks wants to offer more benefits to its baristas. The coffee chain said on Tuesday that profits and sales have increased in the last quarter, and chief executive Howard Schultz described the increase in wages and benefits the company aims to extend to its workers. The move comes as the battle between the company and newly unionized employees escalates. Starbucks said it would invest about $200 million in stores and employees, including an app for better workplace communication, higher hourly pay, cafe equipment repairs and training increased. But Mr. Schultz said the chain’s growing number of unionized cafes would have to negotiate their own deals. Starbucks shares gained 9.8% on Wednesday.

Twitter Inc.

TWTR -1.11%

The richest person in the world gets help from his friends. Elon Musk brought together a group of investors including a Saudi prince, Oracle Corp.

co-founder Larry Ellison and a bitcoin exchange to shell out more than $7 billion to back his $44 billion deal for Twitter. The biggest contribution came from Prince al-Waleed bin Talal of Saudi Arabia, who agreed to retain a stake in the social media platform valued at $1.9 billion after Mr Musk’s takeover. The Tesla Inc.

The CEO told potential Twitter investors that he could put the company back on the public market after a few years of ownership. Twitter shares rose 2.7% on Thursday.

Kellogg Co.

K 3.56%

Further price increases could reduce Kellogg’s sales. The maker of Frosted Flakes and Eggos reported a 15% rise in first-quarter profits on Thursday, thanks to higher prices already in place and steady growth in sales of its snack brands. So far, U.S. shoppers have mostly resisted higher prices from food manufacturers, but Kellogg and other industry giants say that could change later this year. The company expects further increases amid worsening cost pressures from supply chain disruptions and the war in Ukraine, and CEO Steve Cahillane said price sensitivity is starting now to show up in frozen meals and cereals. Kellogg shares added 3.5% on Thursday.

Interactive Platoon Inc.

PTON -7.70%

Peloton is preparing to sell a significant minority stake. The once-hip bike maker is looking for buyers in a bid to shore up its business as its stock continues to fall, The Wall Street Journal reported Thursday. The fitness company is targeting potential investors, including industry players and private equity firms who could take a stake of around 15% to 20%. Peloton has also attracted interest in recent months from potential suitors like Inc.

who explored a full buy of the company as an activist investor urged him to consider a sale. Shares of Peloton lost 7.7% on Friday.

Write to Francesca Fontana at [email protected]

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