PowerShares Dynamic Leisure & Entmnt ETF

Delta Air Lines (DAL) expects to generate more than $7 billion–$8 billion of operating cash flow and ~$4 billion–$5 billion of free cash flow. It plans to reduce its adjusted net debt to $4 billion by 2020.

According to a study by Expedia, airfares fell by about 5% in 2015. Despite this decline, passenger complaints are on the rise. Many consumer leaders also lobbied for airfare reductions.

McDonald’s, the world’s largest fast food chain, has over 38,000 restaurants across 120 countries. In 2018, it had approximately $21.0 billion in sales.

McDonald’s (MCD) competition includes large international and national food chains as well as regional and local retailers of food products.

Contrary to fast food restaurants, casual dining restaurants have a relaxed and casual ambiance with a lot of seating. They offer full table service and may also have a wine menu or full bar service.

Royal Caribbean International is a global brand offered by Royal Caribbean (RCL). It’s one of the world’s three largest contemporary brands.

McDonald’s performance is sensitive to any changes in price levels—be it food, labor, or rent. So how much does it cost for McDonald’s to generate revenue?

With the Starwood-Marriott merger, the companies expect to generate at least $200 million in annual cost savings beginning in the second year after the deal closes.

Royal Caribbean (RCL) offers all cruise company services, including pre- and post-hotel stay arrangements and air transportation.

Analysts are estimating an ~4.5% decline in Delta Air Lines’s (DAL) revenue to $10.6 billion for 3Q16.

With over 38,000 restaurants, McDonald’s doesn’t make any of its products. Instead, it contracts with suppliers to meet its massive requirements.

On December 22, 2014, CZR and Caesars Acquisition Company (CACQ) entered into a definitive agreement to merge in an all-stock transaction.

The executive management team of SGMS includes President and CEO Gavin Isaacs and Executive Vice President and CFO Scott Schweinfurth.

Noodles & Company (or NDLS) has a few initiatives and tactics to drive short-term traffic. It also drives longer-term brand and customer loyalty building.

Noodles & Company (or NDLS) was founded in 1995. It’s a fast-casual restaurant chain that serves classic noodle and pasta dishes.

Now let’s look at certain key operating metrics used in the cruising industry to evaluate operational performance.

Despite health-related controversies, fast food companies such as McDonald’s maintain that they provide consumers with choice and convenience.

For 2018, analysts expect TripAdvisor to report non-hotel revenues of $449 million—YoY (year-over-year) growth of ~25%.

Delta Air Lines’ higher debt means a higher interest expense and a higher DE (debt-to-equity) ratio. Delta Air Lines’ current DE ratio is 0.69x.

As per the latest JOLTS report, about 2.1 million Americans quit their jobs voluntarily in August, which was a decrease of 70,000 from the previous reading.

As per the latest JOLTS report, about 3.2 million Americans quit their jobs voluntarily last month. This is an increase of 0.1 million from the previous month.

Carnival is among the most profitable and financially strong leisure travel companies in the world. It provides leisure travel to all major cruise destinations across the globe.

Only one analyst has upgraded Delta Air Lines (DAL) since it released its traffic data on Friday, June 2, 2017.

Frontier Airlines earned 42% of its revenue from ancillary fees or non-ticket revenue in 2016—a significant rise compared to 25% in 2015.

The airline industry is cyclical, which means that its business depends on the country’s economic growth. Most analysts have revised their GDP estimates downward, resulting in a consensus estimate of 2.9% YoY growth.

American Airlines’ (AAL) capacity growth is one of the slowest in the industry. However, it has the highest capacity among its peers.

In this part of the series, we’ll look at the main services and categories that add to American Airlines’ (AAL) revenues. The major component of revenues still comes from airfares.

In February 2016, the airline capacity of the eight major airlines exceeded their traffic growth by an average of 2%.

For 1Q16, Delta Air Lines (DAL) expects to see its operating margins improve to 18%–20%, backed by solid cost savings and lower fuel prices.

Marriott now focuses on capital-light segments like franchised properties. Its fee incomes rose from $1.2 billion to $1.7 billion between 2006–2014.

In 2014, Papa John’s net profits as a percentage of total sales decreased by 0.2% due to increases in interest levels.

To maintain the quality and consistency of products, Papa John’s has QC (quality control) centers that supply ingredients to its restaurants.

In 1998, Papa John’s decided to venture outside the US by opening outlets in Mexico and Puerto Rico. In 1999, it acquired the UK’s Perfect Pizza Holdings.

Among the three major competitors in the cruise industry, Royal Caribbean (RCL) had the highest operating margin in 2013.

Costs directly related to operating a cruise ship comprise ~74% of Royal Caribbean’s (RCL) total operating costs.

Apart from operating the largest contemporary global brand, Royal Caribbean offers five additional brands targeting specific markets.

Royal Caribbean (RCL) derives revenue from two sources: passenger ticket revenue and onboard and other revenue.

Royal Caribbean Cruises, founded in 1968 and headquartered in Miami, Florida, is the world’s second largest cruise company.

Carnival has a stronger financial position than its peers. It maintained a very low debt-to-capital ratio of 28% in 2013 and just 27% in 2014.

Carnival’s operating profit increased to $1,792 million in 2014, from $1,352 million in 2013. Its operating margin increased to 11.3%, from 8.7% in 2013.

The growth of demand was the key driver of Carnival Corporation’s revenue growth in 2014. The number of passengers increased by 5% in 2014.

Cruise categories Cruise liners have been successfully providing a wide range of products and services at various price points to suit preferences of passengers from different age groups. Service levels and pricing differ by brand, category of the ship, cabins, season, duration, and itinerary. We can categorize cruise brands into these three categories: contemporary, premium, […]

Two of Carnival Corporation’s (CCL) operating segments comprise almost 98% of the company’s revenue. Carnival also reports a Cruise Support segment and a Tour segment.

Carnival Corporation (CCL) derives revenue from the following three sources: passenger tickets, onboard or other activities, and tours.

The number of Carnival’s cruise passengers has increased at a six-year CAGR of 4.6%. It has the largest market share of cruise passengers at ~47%.

Carnival Corporation (CCL), the largest cruise company in the world, operates 101 cruise ships and has a global market share of ~47%.

Hilton has operating expenses related to its owned and leased hotels and timeshare properties. This is separate from depreciation and amortization expenses.

RevPAR is calculated by dividing hotel room revenue by the total available room nights. It’s used in the hotel industry to measure the company’s ability to generate greater revenue from each room.

McDonald’s reported flat global comparable sales and negative comparable guest count for 2Q14, which is concerning from a long-term income growth perspective.

Mainstream channels of marketing—like radio, TV, and print ads—are still common. But many restaurant chains have also used social media to increase their brand presence.