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.

Crude oil is trading below $50 per barrel, one of its lowest recent prices, and it is expected to take some time before it recovers, given the huge oversupply.

Visitor arrivals increase In May 2017, visitor arrivals rose 3.7% YoY (year-over-year) to 2.6 million visitors. However, month-over-month, visitor arrivals fell 6.3%. Visitor arrivals have been improving since September 2016, except in February 2017, when they fell 5.6% to 2.5 million visitors. In the first five months of the year, visitor arrivals in Macao rose 6.3% […]

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.

Inflation rate Inflation is an overall rise in the price of goods and services in an economy, leading to the fall in purchasing power of money. Macao’s annual inflation, as measured by the composite consumer price index, rose 0.95% YoY (year-over-year) in May 2017, higher than the 0.8% increase seen in April. Macao’s inflation has […]

For 1Q16, analysts estimate American Airlines’ revenues to decline by 4% to $9.4 billion and then to slow to 2% and 0.5% in 2Q16 and 3Q16, respectively.

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

VIP revenue driving short-term growth The recent growth in Macao casino revenue has been driven by the VIP segment. In the first quarter of 2017, VIP gross gaming revenue grew 16.8% YoY (year-over-year) to 35.6 billion Macao patacas. The VIP segment is also showing good signs. The repayment cycle has been maintained at a healthy 20 […]

Analyst recommendations Analysts favor MGM Resorts (MGM) stock over other major casinos’. All 20 analysts tracking the stock recommend “buy.” Seven (35%) of these analysts have “strong buy” recommendations, while the remaining 75% have “buy” recommendations. For Melco Resorts & Entertainment (MLCO), 15 (68.2%) of the 22 analysts tracking the stock recommend “buy,” and 31.8% […]

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.

China: The key market The Macao region relies heavily on the Chinese mainland, as it garners a huge majority (about 67%) of its visitors and VIP gamers, from China and its neighboring countries. The weakness in the Chinese economy will adversely affect the spending capacity of people in the country, which could lead to a […]

Hilton expanded its operations in segments that require less capital investment. These include the Management and Franchise segment and the Timeshare segment.

UAL’s consensus 12-month target price is $77.38, which indicates a 65.6% return potential.

United Continental saw $912 million in 4Q15 savings as its fuel bill fell by 36% compared to a year ago.

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.

In August, the Restaurant Performance Index stood at 101.9, an increase of 1% from July, which was its first gain in three months.

Scientific Games agreed to buy WMS Industries for $1.5 billion, emerging as a global supplier of lottery equipment and slot machines to casinos.

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%.

Ctrip.com International (CTRP) posted strong third-quarter results yesterday.

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.

April’s JOLTS data indicate that there were only 0.9 job seekers for every job available.

The ADP February jobs report was published on March 7, 2018. It offered a deeper insight into the employment trends across different US sectors.

The Conference Board uses the average weekly unemployment claims as a key constituent of its LEI (Leading Economic Index).

The ADP January jobs report, which offers insight into employment trends, was published on January 31.

American Airlines (AAL) announced its 4Q17 earnings on January 25, 2018. It reported adjusted EPS (earnings per share) of $0.95, an increase of 3.3% YoY.

American Airlines Group’s (AAL) operating revenue fell 2% in 2016 before gaining 4% in 9M17.

American Airlines’ (AAL) revenue for 4Q17 is expected to be $10.54 billion—an increase of 7.80% on a year-over-year basis.

Second breach in two years On October 12, 2017, Hyatt revealed that its payment system had been breached. There was unauthorized access detected in 41 hotels in 11 countries, exposing customer credit card information at these locations. About 50% of these hotels were located in China. *Other affected countries and territories include Brazil, Colombia, Guam, Indonesia, […]

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.

For 3Q17, American Airlines’ (AAL) earnings are expected to fall 14.8% YoY to $1.50 per share due to an 18.4% YoY decline in net profits.

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.

Load factor improves In August 2017, United Continental’s (UAL) utilization (load factor) fell 0.2 percent points. This fall was expected, as capacity growth for the month was higher than traffic growth. The load factor, the most commonly used measure of an airline’s capacity utilization, is calculated by multiplying capacity by traffic. A higher load factor […]

Utilization rising Delta Air Lines’ (DAL) traffic has outpaced its capacity growth for some time now. As a result, its utilization has improved over the past seven months. In August 2017, is utilization improved by 3.5% to 87.9%. As of August 2017, utilization had improved by 1.5% to 85.9% YTD (year-to-date). Outlook reduced Delta Air Lines’ unit revenue […]

Analysts seem to be favoring MGM Resorts (MGM) stock over the other major casinos. Of the 17 analysts tracking the stock, 16 of them recommend a “buy.”

A weakness in the Chinese economy could adversely affect the spending capacity of the Chinese people, which could lead to fewer visitors at Macao.

Capacity growth for the seven major airlines grew 6.9% year-over-year or YoY—higher than the average 4.6% YoY growth recorded in the first half of 2017.

Macao’s annual inflation as measured by the composite consumer price index rose 1.03% YoY (year-over-year) in July 2017.

For July 2017, visitor arrivals increased 4.4% YoY to 2.9 million visitors. However, on a month-over-month basis, visitor arrivals increased 22.7%.

For the first quarter of 2017, VIP gross gaming revenues rose 16.8% YoY (year-over-year) to MOP 35.6 billion.

Currently, both Alaska Air (ALK) and Southwest Airlines (LUV) are trading at industry-leading valuations of 6.8x their forward EV/EBITDA multiples.

Unit revenue or passenger revenue per available seat mile are the airline industry’s most-watched metric. It measures the efficiency of an airline’s operations.

US GDP growth bounced back in the second quarter of 2017, recording 2.6% year-over-year or YoY growth—slightly lower than the 2.7% YoY growth analysts had estimated.

Marriott’s RevPAR for 2Q17 rose 2.2% YoY in constant dollars across its worldwide properties. Its North America RevPAR rose 0.9% YoY in constant dollars.

For 2Q17, Marriott’s total fee revenues are expected to increase to $820 million–$835 million.

Analyst views According to Reuters, of the 22 analysts tracking Hyatt (H), three analysts (13.6%) have a “strong buy” rating on the stock, two analysts (9.1%) have a “buy” rating, 16 analysts (72.7%) have a “hold” rating, and one analyst (4.5%) has a “sell” rating. There are no “strong sell” ratings on the stock. Analyst […]

Analyst estimates In 2Q17, analysts expect Hyatt’s revenue to grow by 3.9% YoY (year-over-year) to $1.2 billion. Sales growth is expected to increase for the rest of the year. Sales are expected to grow 5.4% YoY to $1.1 billion in 3Q17, and 5.5% YoY to $1.2 billion in 4Q17. Hyatt is expected to see revenue […]

Out of the 15 analysts tracking JBLU, 13.3% have a “strong buy” rating on the stock.

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.

Delta (DAL) saw average traffic of about 57.6 million passenger miles for the quarter, a 2.1% year-over-year (or YoY) improvement.

For 2Q17, analysts expect American Airlines’ (AAL) revenue to record a rise of 5.8% year-over-year (or YoY) to $10.9 billion.

Delta Air Lines’ (DAL) 2Q17 EBITDA margin is expected to improve slightly to 22.8% as compared to 21.8% in 2Q16.

Delta Air Lines (DAL) plans to announce its second quarter earnings for 2017 on July 13.

Airfares in 2016 Due to heavy price discounts by airlines, airfares fell ~5% YoY (year-over-year) in 2015. According to the latest data from the U.S. Department of Transportation, average domestic airfares continued to fall in 2016. According to the report, 4Q16 airfares fell 6.1% YoY to $347, compared with $369 in 4Q15. Airfares fell 8.8% […]

Analyzing airline load factors May continued to be a mixed bag for airlines, with volatile capacity utilization. Delta Air Lines (DAL), American Airlines (AAL), Alaska Airlines (ALK), and JetBlue Airways (JBLU) managed to grow their traffic at a higher pace than their capacity growth. As a result, their capacity utilization improved. Delta’s utilization improved by […]

Consumer spending Consumer spending accounts for almost two-thirds of the US economy. In 1Q17, consumer spending rose 0.3% YoY (year-over-year), the slowest pace seen since the fourth quarter of 2009. It is also significantly lower than the 3.5% YoY growth seen in 4Q16. The slow growth in consumer spending is due to low demand for […]

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

Delta Air Lines’ (DAL) total traffic grew at a significantly higher pace than its capacity. Capacity growth is a major driver for airlines.

Out of the 31 analysts tracking Priceline (PCLN), seven analysts have a “strong buy” recommendation on the stock, and 18 analysts have a “buy” recommendation on the stock.

For 1Q17, analysts are estimating Priceline’s (PCLN) revenues to grow 13.8% year-over-year to $2.4 billion, lower than the 16.7% YoY growth seen in 1Q16.

Out of the 17 analysts tracking Southwest Airlines (LUV), 35.3% of analysts have a “strong buy” rating on the stock.

Southwest Airlines (LUV) has been paying dividends consistently since 1980.

Southwest Airlines (LUV) reported a significant earnings decline for the first quarter of 2017, though it continued to maintain its position as one of America’s most profitable airlines.

The hotel sector is capital intensive, and companies in the industry normally carry high debt.

Margins are expected to be volatile in 2017. For the first quarter of the year, Delta Air Lines’ (DAL) margin is expected to fall 16.7% as compared to 23.6% in 1Q16.

Delta Air Lines (DAL) is expected to announce its 1Q17 earnings on April 12, 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%.

Priceline’s (PCLN) rental car business continues to grow. For the first nine months, rental car days grew by 17% year-over-year, and rental car days accounted for ~12% of the total bookings.

McDonald’s PE multiple was flat at 22.07x after the announcement of its earnings on January 25. Over the next two days, it rose to touch 22.4x on January 27.

Southwest Airlines is the only airline to have paid dividends consistently since 1980. And it has been raising its dividend payouts for the past four years.

Southwest saw a record $992 million in operating income. This led to the expansion of operating margins to 19.9%—its best fourth-quarter margin since 1978.

In 4Q15, Southwest Airlines’s revenues grew by 7.5% YoY to $5 billion. Of that, a whopping and record-breaking $4.6 billion came from passenger revenues.

In 4Q15, Southwest Airlines saw a handsome 11.1% YoY growth in traffic. The airline gained by 8.9% in revenue and saw 8.8% YoY growth in traffic numbers.

United Continental Holdings made pretax earnings of $4.5 billion in 2015, the highest ever in United’s history. The airline achieved a return on invested capital of 21%, another record for United.

If American Airlines (AAL) does manage to reduce its leverage significantly, it would put AAL in a much better position to weather the next industrial downturn, whenever that happens.

A study by IATA found that growth in disposable income, which closely follows GDP growth, is the key demand driver of airline travel.

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.

Alaska Air Group highlighted some of its key steps that have resulted in a strong financial performance in 2015. The airline expects this growth to continue in 2016.

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.

Delta has a vast fleet of about 817 planes in current use and 23 in line with an average age of 17.1 years. A majority of the fleet comes from Boeing.

Carnival identified China as its biggest potential area of expansion. It announced that Carnival Cruise Line will enter the Chinese market in 2017.

John H. Schnatter is the founder of Papa John’s and currently serves as the company’s chair and CEO. Steve M. Ritchie is the company’s President and COO.

Papa John’s recorded its lowest forward PE ratio on September 12, 2014, at 19.6x, and its highest on June 25, 2015, at 34.7x, with its current at 25.6x.

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

Papa John’s distinguishes itself from others in its industry by utilizing natural ingredients and by focusing on strong brand loyalty and quality products.