Stocks to Watch: Starbucks, Chipotle, Southwest Airlines, Flutter Entertainment, Ouster

By Connor Hart

Starbucks appointed current Chipotle Mexican Grill chief Brian Niccol as its next leader amid the coffee chain's push to turn around its business and quell activist investors. Investors cheered the move, sending shares up 25% on Tuesday, the largest single-day percentage increase since the company's market debut in 1992. Shares hold steady, at $95.49, in after-hours trading.

Chipotle's top executive was poached, leaving the chain facing uncertainty in the near term. The company should be able to attract a strong candidate to fill the CEO role, whether from inside its ranks or elsewhere, thanks to the attractive opportunity to lead a chain with growth potential, analysts say. Shares end Tuesday's regular session down 7.5%, at $51.68, and hold steady in post-market trading.

Southwest Airlines will face a proxy fight from activist investor Elliott Investment Management. Elliott plans to nominate as many as 10 director candidates to Southwest's 15-person board, The Wall Street Journal reported. The activist is preparing to call a special meeting that would allow shareholders to vote on the candidates. Shares are flat, at $25.64, in after-hours trading.

Flutter Entertainment raised its outlook for the year after revenue surged in its latest quarter. The parent company of FanDuel and other gaming and gambling brands posted revenue of $3.61 billion in the second quarter, up from about $3 billion last year. It now expects revenue to come in between $6.05 billion and $6.35 billion in 2024, up from its prior guidance for revenue between $5.8 billion and $6.2 billion. Shares rise 8.7%, to $208, in post-market trading.

Ouster expects third-quarter revenue to miss analysts' expectations. The San Francisco-based company, which makes light detection and ranging sensors, expects revenue of $27 million to $29 million, compared to analysts' estimate of $30.2 million. Chief Executive Angus Pacala said macroeconomic pressures are causing customers to delay projects, hurting near-term sales. Shares fall 17%, to $9.00, in after-hours trading.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

August 13, 2024 20:14 ET (00:14 GMT)

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