Buffett’s Buy and the Future of Restaurants

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.3 • 3.1K Ratings

🗓️ 10 July 2020

⏱️ 39 minutes

🔗️ Recording | iTunes | RSS

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Summary

Retailers continue to struggle as Bed Bath & Beyond announces plans to close more than 20% of its stores over the next two years. Levi’s sales fall more than 60% for the second quarter. Berkshire Hathaway buys Dominion Energy’s natural gas assets. SiriusXM buys Stitcher. And Kraft Heinz makes mayonnaise ice cream a reality! Motley Fool analysts Ron Gross and Jason Moser discuss those stories and share two stocks on their radar: Zoom Video Communications and Rollins. Plus, food and beverage industry analyst David Henkes discusses the current state of the restaurant industry, Uber's acquisition of Postmates, and what restaurants will look like post-pandemic. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Everybody needs money. That's why they call it money.
0:07.0	From full global headquarters, this is Motley Fool Money. It's the Motley Fool Money
0:20.1	radio show. I'm Chris Hill joining me this week. Jason Moser and Ron Gross. Good to
0:24.2	see you too. Hey, Chris. We've got the latest headlines from Wall Street,
0:29.2	restaurant industry expert David Henkis is our guest and as always we've got
0:33.3	a couple of stocks on our radar. But we begin with the retail industry. In 2018
0:38.0	there were 5,700 store closings in America. This week we got even more evidence
0:43.7	that 2020 will be much worse. Bed Bath and Beyond announced they'll be closing
0:48.7	more than 20% of their namesake stores in the next two years. A scene of
0:53.4	retail, the parent company of Antaylor and other fashion brands, is likely to
0:57.9	close 1200 locations as it prepares to file for bankruptcy. This will only add
1:04.2	to the already 8,700 store closings announced so far this year. And Ron Gross
1:10.6	will start with you. We keep seeing e-commerce sales rise, but in some cases it's
1:16.4	just not enough to offset the loss of those in-store purchases. No, if you're not
1:22.2	filing bankruptcy like JC Penny, you're lucky. As we said Brooks Brothers, Jay
1:26.8	Crew, Neiman Marcus, you're closing stores and you're trying to stave off a
1:33.0	bankruptcy. And so you're your bases and you're Nordstroms and your children's
1:36.8	place and your Tuesday morning. Just a tremendous amount of closings in this
1:41.8	industry. I think we had too much retail in the first place and sometimes it takes
1:46.4	a shock to the system to recognize that there has been an excess. I'm sorry to say
1:51.1	obviously because there are folks employed at all these places and a lot of
1:54.4	investment dollars went into building up these establishments. But I just think
	...

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