Check out the companies making headlines in midday trading. Brinker International – Shares plunged more than 10% after the parent company of Chili’s issued weaker-than-expected full-year earnings guidance and reported disappointing fourth-quarter results. The company reported adjusted earnings of $1.61 per share, below StreetAccount’s consensus estimate of $1.72 per share. Brinker also expects fiscal 2025 earnings per share to be between $4.35 and $4.75, below the consensus estimate of $4.78. Victoria’s Secret – Shares rose more than 16% after the retailer announced the appointment of former Savage X Fenty CEO Hillary Super as the company’s CEO, effective Sept. 9. The company also reported preliminary second-quarter results, with adjusted operating income and adjusted diluted earnings per share coming in above previous guidance. Flutter – The stock rose more than 10% after FanDuel’s parent company reported better-than-expected second-quarter revenue. Flutter posted $3.61 billion for the period, above StreetAccount’s consensus forecast of $3.4 billion. The sports betting company also raised its full-year guidance. Kellanova – Kellanova rose more than 7% after it agreed to be acquired by snack maker Mars in a deal valued at about $36 billion, or $83.50 per share in cash. The deal, which comes after Kellogg split into two publicly traded companies, Kellanova and WK Kellogg, late last year, is expected to close in the first half of 2025. Alphabet – The stock fell about 2.3% after Bloomberg News, citing people familiar with the talks, reported that the Justice Department is considering breaking up the megacap technology company. If the Justice Department follows through with the plan, the company’s Android operating system and Chrome browser could be affected by a divestiture. Arm Holdings – The British chip designer’s U.S.-listed shares rose about 1.7% after Intel sold its stake valued at $1.18 million. The move comes amid restructuring and cost-cutting at Intel, whose shares fell 2.2% in midday trading. Cardinal Health – The stock rose more than 3% after the healthcare company’s fourth-quarter results beat Wall Street expectations. Cardinal earned $1.84 per share (excluding special items) on revenue of $59.87 billion. The company was expected to earn $1.73 per share on revenue of $58.64 billion, according to a survey of analysts by StreetAccount. Cardinal also raised its full-year earnings forecast. Starbucks – The coffee chain’s shares fell about 2%, a day after rising 24.5% following its announcement that it would replace its current CEO with Chipotle CEO Brian Niccol. The stock also received upgrades from several firms on the news, including Deutsche Bank and Stifel. Illumina – The biotech stock gained more than 2% after being upgraded to buy from hold at TD Cowen. The company said Illumina’s recent guidance re-evaluation and management changes could help drive its share price higher. Nu Holdings – Shares of the Brazilian digital banking platform rose more than 5% after Nu reported second-quarter results that beat expectations. Adjusted net income of $563 million beat FactSet’s consensus estimate of $460.3 million. Revenue of $2.85 billion also came in above the $2.57 billion expected. — CNBC’s Alex Harring, Sarah Min, Pia Singh and Michelle Fox contributed reporting.
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