Press

Press

Recent Citations of Quo Vadis Research in the Financial News

Luckin Coffee Rises Again, Opening Stores Faster Than Starbucks
Sep 8, 2022

Luckin Coffee Rises Again, Opening Stores Faster Than Starbucks

Quo Vadis Capital President Zolidis was among the few equity analysts, who sounded the alarm on Luckin Coffee's accounting problems early on, and he remained bearish while the company was under bankruptcy. But he turned bullish after the company emerged from bankruptcy in April of 2022 and continues to be. Most notably, Zolidis thinks that the new company that emerged from bankruptcy early this year is a different company in many respects. First, it is almost free of debt, after redeeming $110M of 9% debt securities. "It's a rare situation for a company that emerged for bankruptcy recently," he told International Business Times in an email. "In addition, it's a good indication that management feels confident about the company's financials in the future."

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Former Ulta chief Mary Dillon’s arrival as Foot Locker CEO a ‘narrative changer’
Aug 19, 2022

Former Ulta chief Mary Dillon’s arrival as Foot Locker CEO a ‘narrative changer’

“Ms. Dillon is a leader with a strong voice and will represent a meaningful change in tone for Foot Locker. We think the ripples within the organization could be very positive,” John Zolidis, president and founder of Quo Vadis Capital, said in emailed comments. “We also believe communication to investors will be upgraded based on the significant credibility she will bring to crafting a strategy and establishing an outlook. In short, this is very good news.”

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Costco, Home Depot, and 3 Other Retail Stocks to Scoop Up Now—and 1 to Avoid
Jun 12, 2022

Costco, Home Depot, and 3 Other Retail Stocks to Scoop Up Now—and 1 to Avoid

Yet, retailers such as Academy Sports and Outdoors (ASO) have painted a brighter picture. Even Walmart hasn’t warned that inventory will further hurt results. “Target’s problems definitely look to be company-specific,” says John Zolidis, president of Quo Vadis Capital.

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If you thought the tech rout was bad, spare a dime for retailers: Consumers are ‘trading down in lunch meats due to inflation’
Jun 12, 2022

If you thought the tech rout was bad, spare a dime for retailers: Consumers are ‘trading down in lunch meats due to inflation’

“We’ve only really had one quarter of negative surprises,” said John Zolidis, founder of Quo Vadis Capital. “Normally in a recessionary cycle there will be several rounds of cuts before the outlook and stocks bottom. Unless we see a reversal of inflation data and a less hawkish approach from the Federal Reserve, our guess would be that we’re closer to the beginning of the pain than the end of it.”

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Retailers Are Having a Tough Year. Focus on What’s Ahead.
May 2, 2022

Retailers Are Having a Tough Year. Focus on What’s Ahead.

“Professional investors don’t believe that inflation can be tamed without destroying economic demand; that’s why you’re seeing discretionary stocks under so much pressure,” says Quo Vadis Capital President John Zolidis.

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China plans audit concession in face of US delisting threat
Mar 16, 2022

China plans audit concession in face of US delisting threat

John Zolidis, president of the New York-based equity research firm Quo Vadis Capital said greater transparency for US auditors would “improve investor confidence in US-listed Chinese companies” after a bruising year when the valuations of large internet giants including Alibaba and Tencent have slashed over 40 per cent following Beijing’s regulatory moves to break up their monopoly power.

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Why Alibaba and Other Chinese Stocks Could Face More Delisting Threats
Mar 11, 2022

Why Alibaba and Other Chinese Stocks Could Face More Delisting Threats

“The value of a company is based on its future earnings and cash flows, adjusted for its assets and liabilities (the balance sheet), and discounted for each business’ risk profile and the time horizon to produce expected earnings and cash flow,” Zolidis said in a note on Friday. “The location of the exchange where the shares trade does not figure into this calculation (provided liquidity and investor safeguards are roughly equivalent).” “In our view, there is enough common ground and shared interest here to support a compromise resolution,” Zolidis said. “Accordingly, we see a compromise being reached that serves regulators in both markets and maintains existing U.S. listings for the vast majority of Chinese companies.”

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Foot Locker Feels the Sting of Nike’s DTC Push
Feb 25, 2022

Foot Locker Feels the Sting of Nike’s DTC Push

“FL needs to demonstrate that it can still comp and grow earnings even in the face of lower Nike allocations,” Zolidis wrote, adding that he believes the retailer can see success in the long term, given its “valuation, sentiment, cash flow, and the potential for news flow to improve incrementally from here.”

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Luckin Coffee: can China’s Starbucks win back investors?
Feb 9, 2022

Luckin Coffee: can China’s Starbucks win back investors?

The question is “whether the fraud was hiding a permanently flawed business, or if it was lying on top of something legitimate that had long-term viability,” says John Zolidis, president of the New York-based equity research firm Quo Vadis Capital. Zolidis says Luckin’s shares are “attractively valued given the overhang of fraud”.

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Starbucks: Reduced hours are ‘costing the company,’ Quo Vadis Capital president says
Feb 1, 2022

Starbucks: Reduced hours are ‘costing the company,’ Quo Vadis Capital president says

Please click the link below to view our interview with Yahoo Finance TV on Starbucks earnings.

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Luckin Coffee, Waylaid by Fraud, Tries to Perk Back Up
Jan 28, 2022

Luckin Coffee, Waylaid by Fraud, Tries to Perk Back Up

Luckin “is conducting what is probably the most remarkable turnaround we have ever seen,” said John Zolidis, an independent retail analyst at Quo Vadis Capital in New York who predicted in the summer of 2020 that there would be no value left in the company following its accounting scandal.

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Investors Shouldn’t Sell Google Shares Because Interest Rates Are Rising
Jan 10, 2022

Investors Shouldn’t Sell Google Shares Because Interest Rates Are Rising

Alphabet's (aka Google's) shares have been selling off recently, together with other technology shares, in response to rising interest rates. But that isn't a reason to sell the company's shares, according to Quo Vadis President John Zolidis. "It is not low interest rates that make technology companies attractive. They are attractive because they are changing the world," Zolidis said. "Of course, it is not sufficient to drive change. A technology company becomes an attractive investment if its innovation is attached to a highly profitable and durable business model.

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Target shares tank despite soaring sales as inflation squeezes profits
Nov 17, 2021

Target shares tank despite soaring sales as inflation squeezes profits

“Target is outperforming its competition, bringing in huge numbers of new customers,” said analyst John Zolidis, president of Quo Vadis Capital in a research note. “Target did not drive traffic with discounts, traffic growth is organic and therefore should be sticky.”

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Would you eat a mac ‘n’ cheese sandwich? Panera Bread wants you to try one
Oct 12, 2021

Would you eat a mac ‘n’ cheese sandwich? Panera Bread wants you to try one

Another factor likely driving the sandwich’s creation, says restaurant-industry analyst John Zolidis: the constant need for innovation among fast-food and fast-casual chains. “Novelty is super-important with customers,” he says, noting how Starbucks SBUX, -0.22% has practically built its entire business upon new and seasonal menu items (think the Pumpkin Spice Latte and this year’s new addition to the fall lineup, the apple crisp macchiato).

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Foot Locker Earnings Were Out of This World. Its Stock Is Soaring.
Aug 20, 2021

Foot Locker Earnings Were Out of This World. Its Stock Is Soaring.

“These results reflect FL’s position at the intersection of consumer secular interest in health, the strength of this branded offering (notably Nike and Brand Jordan), and its customers’ increased purchasing ability due to higher wages and numerous economic policies,” writes Quo Vadis Capital’s John Zolidis. “We believe the effects of this heady cocktail will continue and the market is underestimating the company’s resulting changed earnings profile.”

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Shake Shack’s problem could be that the excitement fades after a couple of burgers
Aug 6, 2021

Shake Shack’s problem could be that the excitement fades after a couple of burgers

"There is a mismatch between the strength of the Shake Shack brand and thecompany's results," wrote John Zolidis, president of Quo Vadis Capital, who notes that stores often lose customers after a period. "Our hypothesis is that the brand has fad-like characteristics, and it loses novelty after a few trials or when outside of very high-profile locations (waiting in line at a shopping mall in Columbus, Ohio is not like being in Times Square)," Zolidis said.

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Lululemon and Broadcom upbeat revenue forecast, Universal Music nearing record SPAC deal
Jun 4, 2021

Lululemon and Broadcom upbeat revenue forecast, Universal Music nearing record SPAC deal

"I was also intrigued by some commentary from John Zolidis, who's an analyst at Quo Vadis Capital, who covers it, who talks about the Mirror deal that they did. Remember they own that Mirror app and hardware, I guess, that's an at-home workout system. He said, 'maybe it's a super smart deal that will be ultimately great for profitability and shareholders. But we can't help thinking this stock would be higher today without this drag'."

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Grocery Outlet’s inability to grow online is a ‘competitive disadvantage’ that will be hard to overcome
May 12, 2021

Grocery Outlet’s inability to grow online is a ‘competitive disadvantage’ that will be hard to overcome

Quo Vadis says the company’s model is “maladapted,” and rate the stock sell. “Bulls want Grocery Outlet to be a long-term high-ROIC compounder with an enormous total addressable market. This is simply not the case,” wrote John Zolidis, president of Quo Vadis. “There is no ‘white space’ where consumers do not already have options to buy discounted food. Grocery Outlet will have to enter new markets where its brand is unknown, consumer preferences are different, and entrenched competitors are in place with superior real estate. It’s not going to be easy.”

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Fiscal Stimulus Could Turn From a Tailwind to a Headwind for Wall Street
May 4, 2021

Fiscal Stimulus Could Turn From a Tailwind to a Headwind for Wall Street

Meanwhile, rising corporate taxes are bad for Wall Street because they reduce the cash flow to stockholders and, therefore, shave off every profitable listed company's intrinsic value. "Higher tax rates mean lower earnings," Quo Vadis President John Zolidis said. "Higher tax rates also reduce a company's economic return. A business' economic return (how much value it creates for shareholders) determines in part what multiple it should trade relative to earnings. A lower return equals a lower multiple. Thus, higher tax rates for corporations will result in lower earnings (the 'E') and also justify a lower earnings multiple (how you get to the 'P' in the price to earnings ratio (PE)."

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Onetime High-Flyer Luckin Coffee Raises Funds Amid Auditor Swap
Apr 15, 2021

Onetime High-Flyer Luckin Coffee Raises Funds Amid Auditor Swap

“Luckin was already one of the most unusual situations we’d ever seen,” Quo Vadis Capital analyst John Zolidis said in a note. “This continued today as the company announced a change in auditor, with the previous auditor apparently unable or unwilling to complete the job.”

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Walmart Diversification Goes Into Overdrive With Goldman Hires
Mar 1, 2021

Walmart Diversification Goes Into Overdrive With Goldman Hires

Already Walmart has something of a competitor to digital “neobank” startups in the form of MoneyCard, which can take direct deposits and describes itself as “the only card for all your banking needs.” Reaching the unbanked is key, though also risky. John Zolidis, president of Quo Vadis Capital, estimates that around one-quarter of Walmart customers don’t have a bank account and that half don’t have access to credit.

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Lower-Income Covid-19 Aid Recipients Seen Boosting Consumer Spending
Feb 14, 2021

Lower-Income Covid-19 Aid Recipients Seen Boosting Consumer Spending

Containing the virus will make the impact of future stimulus payments much more powerful, according to analysts. Even so, retailers continue to face challenges “because the demand environment is pretty uncertain, particularly on a near-term basis,” said John Zolidis, a retail analyst and president of New York-based Quo Vadis Capital.

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Luckin Coffee Is Filing for Bankruptcy. The Stock Could Go to Zero.
Feb 5, 2021

Luckin Coffee Is Filing for Bankruptcy. The Stock Could Go to Zero.

There is almost no way for any typical U.S. investor to know what is going on. That’s not a recipe for investment success. Quo Vadis Capital, an independent registered investment advisor, said in a Friday report that the stock is likely going to zero.

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Jet.com founder Marc Lore is leaving Walmart
Jan 15, 2021

Jet.com founder Marc Lore is leaving Walmart

“Under Mr. Lore’s leadership, Walmart pursued an aggressive and ultimately successful e-commerce strategy,” wrote retail analyst John Zolidis of Quo Vadis Capital. “We view Mr. Lore’s departure as an incremental negative in that it removes a visionary and entrepreneurial executive from the company.”

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Walmart head of e-commerce Marc Lore leaving amid the retailer’s showdown with Amazon
Jan 15, 2021

Walmart head of e-commerce Marc Lore leaving amid the retailer’s showdown with Amazon

“We view Mr. Lore’s departure as an incremental negative in that it removes a visionary and entrepreneurial executive from the company,” Quo Vadis analyst John Zolidis wrote in a research note. His planned exit could also “suggest that further transformational moves within the digital and e-commerce channels are becoming more difficult to achieve.”

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Academy Sports CEO says hobbies acquired during COVID will continue to drive sales in 2021
Dec 15, 2020

Academy Sports CEO says hobbies acquired during COVID will continue to drive sales in 2021

John Zolidis, president of Quo Vadis Capital, is bullish about Academy as well, basing what the company can accomplish on Hicks’ history with Foot Locker Inc. “We followed Foot Locker through this period and feel confident that Mr. Hicks and his team will find operational and merchandising improvements to maintain positive sales and margin momentum for Academy,” wrote Quo Vadis, which is long on the stock.

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Walmart’s Sales Gains Slow as Pandemic Drags On
Nov 17, 2020

Walmart’s Sales Gains Slow as Pandemic Drags On

“Within Walmart’s results are some mixed trends,” said John Zolidis, president and retail analyst at Quo Vadis Capital. “Clearly ecommerce has accelerated, but we can also see traffic was down 14% for the second consecutive quarter and that’s a big number.” Mr. Zolidis gave Walmart a “sell” rating last month, saying that it will be hard for the retailer to upstage its current results next year.

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Ulta Beauty Will Place In-Store Shops At Target Locations. Is The Move A Good Idea?
Nov 11, 2020

Ulta Beauty Will Place In-Store Shops At Target Locations. Is The Move A Good Idea?

“The bottom-line is that this deal is not material to Ulta in FY21 but does give it another growth channel. A bigger question is why do this? Clearly, it reflects the lack of store opportunity for Ulta in the U.S.,” writes Zolidis in note on Target’s deal with Ulta.

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Lululemon Stock Falls, But Company Says It’s ‘Cautiously Optimistic’ After Earnings Beat
Sep 9, 2020

Lululemon Stock Falls, But Company Says It’s ‘Cautiously Optimistic’ After Earnings Beat

Even as Lululemon stock eases from record highs, John Zolidis, president of Quo Vadis Capital, said in a research note before the earnings that he believed Wall Street "does not appreciate the material structural benefit from revenues shifting to the digital channel."

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Sprouts Farmers Market Stock Up Late After Earnings Crush Views
Jul 29, 2020

Sprouts Farmers Market Stock Up Late After Earnings Crush Views

John Zolidis, analyst at Quo Vadis capital, said other analysts were overlooking the positives of the management change and saw other benefits for Sprouts Farmers Market stock. "Analysts appear (in our opinion) to be ignoring a complete turnover in the executive suite and accelerated investments in digital engagement and the rollout of delivery and pickup," he said in a research note on Tuesday. "We believe the near-term benefit of these efforts is not reflected in forecasts, setting up very substantial upward revisions to earnings."

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High unemployment rates will continue to drive budget-conscious consumers to Dollar General, Dollar Tree & Family Dollar
May 29, 2020

High unemployment rates will continue to drive budget-conscious consumers to Dollar General, Dollar Tree & Family Dollar

“These businesses do very well when times are tough,” said Quo Vadis’ Zolidis. “Accordingly, we would expect these companies to continue to see a traffic and (possibly) profit boost for the foreseeable future. We would be buyers of both Dollar Tree and Dollar General today.”

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Behind the Fall of China’s Luckin Coffee: a Network of Fake Buyers and a Fictitious Employee
May 28, 2020

Behind the Fall of China’s Luckin Coffee: a Network of Fake Buyers and a Fictitious Employee

“It was just explosive, humongous growth, and those numbers were very seductive to a lot of investors,” said John Zolidis, a restaurant-industry analyst and president of Quo Vadis Capital, which said it has never bought or sold Luckin stock.

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Tractor Supply benefiting from consumer trends like gardening and the move to rural communities, analysts say
May 27, 2020

Tractor Supply benefiting from consumer trends like gardening and the move to rural communities, analysts say

“Tractor Supply was already a strong company with excellent fundamentals prior to the corona-crisis,” wrote Quo Vadis president John Zolidis. Quo Vadis rates Tractor Supply long. “We believe it is reasonable to believe that secular shifts (less competition, more people moving to rural locations, superior economies in rural locations) together with new strategic initiatives (accelerated investment in digital) potentially reset Tractor Supply’s earnings power in a way not yet appreciated in consensus forecasts or the equity’s valuation.”

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Luckin Coffee stock sinks 35% after trading resumes and one analyst says investors will be ‘wiped out’
May 21, 2020

Luckin Coffee stock sinks 35% after trading resumes and one analyst says investors will be ‘wiped out’

“Leaving aside the fraud, the figures that are available suggest that Luckin Coffee never had a viable business model,” Zolidis said, forecasting that the store closures will come as a result of losing access to capital. “The company grew too fast and acquired customers via promotional offers, without ever proving the economics.” In an April note, Zolidis said Luckin’s stores were “generating significant losses” and “do not appear to produce positive same-store sales.” He raised questions about whether the company could ever produce a profit. Quo Vadis rates Luckin stock sell.

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Luckin Coffee shares plummet 75% after financial misconduct investigation launched
Apr 2, 2020

Luckin Coffee shares plummet 75% after financial misconduct investigation launched

Quo Vadis called the expectations for Luckin’s performance “unrealistic.” Analysts there rate Luckin stock sell. “The company has indicated that it ultimately expects to achieve unit level margins of 30% and to break-even at the corporate level by 3Q20,” wrote Quo Vadis in a note. “A $9 billion market capitalization for this unproven concept with an uncertain path to profitability is unjustified in our opinion.”

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Retailers Confront Coronavirus Uncertainty
Mar 3, 2020

Retailers Confront Coronavirus Uncertainty

Target’s muted statement on potential supply-chain delays “suggests that the ripples of disruption across all of retail are probably lower than some are expecting at the moment,” said John Zolidis, an analyst at Quo Vadis Capital.

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Target CIO Helped Retailer Find Its Tech Groove
Jan 22, 2020

Target CIO Helped Retailer Find Its Tech Groove

In 2015, the prevailing sentiment on Wall Street was that Target was behind the curve in responding to the e-commerce threat and there was little it could do to fend off its loss of market share to Amazon, said John Zolidis, president and founder of investment advisory firm Quo Vadis Capital Inc.

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How an army of robots — and humans — help your holiday gifts arrive by Christmas
Dec 23, 2019

How an army of robots — and humans — help your holiday gifts arrive by Christmas

While both Walmart and Target declined to provide details of their Miami operations, equity analyst and e-commerce expert John Zolidis said those two companies have found a way around building new distribution centers; instead, they rely on existing area stores where customers can quickly pick up their own packages at curbside.

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Apple Could Reach $2 Trillion
Dec 20, 2019

Apple Could Reach $2 Trillion

“Our view is that if the company continues to innovate and create fantastic products it will maintain its dominance or grow share in existing or adjacent global categories” he says. “It will continue to produce excess free cash flows and these will either be returned to shareholders or reinvested in technology or growth. If all these things can happen, then $2 trillion is possible. Some day. So far it has been a smart to bet on AAPL’s continued success. “

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Walmart earnings preview: Battle with Amazon for grocery delivery dominance heats up
Nov 13, 2019

Walmart earnings preview: Battle with Amazon for grocery delivery dominance heats up

“The investment case for Walmart shares is aided by the favorable consumer environment,” wrote John Zolidis, president of Quo Vadis Capital. “However, the core reason to be involved, in our opinion, is based on the company’s ability to create separation versus competitors via the combination of enhancements to physical stores and aggressive investment in digital assets and order fulfillment.”

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Dave & Buster’s stock sinks as competition drives downward guidance revision
Sep 12, 2019

Dave & Buster’s stock sinks as competition drives downward guidance revision

“The bottom line is that the company has not found a solution for its share losses due to competition intrusion and challenging industry trends (negative traffic, increased use of delivery),” wrote John Zolidis, president of Quo Vadis Capital. “This is leading to the ongoing erosion of Dave & Buster’s otherwise-attractive economic model. There is no end in sight to this pressure.”

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You’ve Heard of the Drop. Target Had It First.
Aug 28, 2019

You’ve Heard of the Drop. Target Had It First.

Street wear, for its part, has stepped up the pace, its drops occurring weekly, not annually or seasonally, and focused on goods with a shelf life of no more than a day, and prices that could strain the most lavish budget. To compare Target’s program with contemporary drops may seem a stretch. “But the fact that we are talking about it in the context of Supreme shows that Target is doing something right,” Mr. Zolidis said. “If you’re a big box store selling groceries and diapers, and you can bring people in for designer goods at low prices in a limited-edition environment, that’s a coup.”

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Can Victoria’s Secret Get Its Sexy Back? The Jury Is Still Out
Aug 21, 2019

Can Victoria’s Secret Get Its Sexy Back? The Jury Is Still Out

Investors are waiting for more details to emerge as the Columbus, Ohio-based company plans to host a meeting on September 10. L Brands stock has lost 80% of its value since peaking in 2016. “Victoria's Secret is at a very critical juncture in its existence,” John Zolidis, president of independent investor advisor Quo Vadis Capital, said in a note, adding that he plans to travel to the meeting. “[I] want to see first-hand if the company has the wherewithal and courage to transform its brand image from an elitist-aspirational positioning to the body-positive approach working with women today.” He won't be the only one watching for that.

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Walmart earnings: Amazon Prime Day was a good thing for Walmart
Aug 13, 2019

Walmart earnings: Amazon Prime Day was a good thing for Walmart

John Zolidis, president of Quo Vadis, says his perspective on Walmart hasn’t changed in two years. “Walmart is well into the process of transforming a traditional, terrestrial retail model into a transactional-model optimized for a digitally-equipped consumer,” he wrote. “This new model leverages Walmart’s historical advantages including scale, supply-chain, low-price positioning, and store locations with digital capabilities highlighted by grocery pickup, a vast selection, a portfolio of new owned brands, and delivery.”

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Shake Shack Beats McDonald’s
Aug 10, 2019

Shake Shack Beats McDonald’s

Shake Shack’s big gains on Wall Street have surprised some analysts who follow the fast food service sector. John Zolidis is one of them, as he isn’t impressed with the company’s most recent earnings report and guidance. “Shake Shack (SHAK) reported figures that were generally in-line with our expectations for upside on the top-line but weakness in margins,” he says. “The company reduced its full-year restaurant level margin target to ‘approximately 23%’ from ‘near the low end of 23%-24%’. The company didn't justify this change, which was made concurrent with lifting the outlook for total sales. However, we believe a factor is the ongoing sequential weakening of new units, which missed our assumption for the quarter.”

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McDonald’s And Starbucks’ Two Most Important Advantages At Home And Abroad
Aug 3, 2019

McDonald’s And Starbucks’ Two Most Important Advantages At Home And Abroad

“Revenue, and EPS upside and a guide-up all serve to support the stock's 13-year high valuation,” said John Zolidis, following the release of strong financial results last week for Starbucks. “We continue to like the shares long, for the reasons we have reiterated (global growth, ROIC profile, FCF, return of capital, innovation in product and technology) although the name is not for the valuation sensitive and we do expect a period of consolidation at some point.”

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Chipotle earnings: Stock hits all-time high but questions arise about how long growth will last
Jul 22, 2019

Chipotle earnings: Stock hits all-time high but questions arise about how long growth will last

“The way we see the shares here is that the debate about whether the brand can recover from food safety issues in an environment of increased competition is over, and the stock performance now turns on the whether the rate of recovery can exceed expectations currently factored into estimates and valuation,” wrote John Zolidis, president of Quo Vadis Capital.

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Target handily tops estimates as online, in-store traffic grows
May 22, 2019

Target handily tops estimates as online, in-store traffic grows

"Target has every reason to be failing right now," wrote John Zolidis of Quo Vadis Capital in New York. "Its largest competitors are spending aggressively to take share. The weather is always bad." But the retailer keeps outperforming, he continued, because it has a strategy "designed for this environment." (It doesn't hurt that a lot of other retailers are doing so poorly, he adds.)

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Free Coffee And An App Won’t Help Luckin Beat Starbucks
May 9, 2019

Free Coffee And An App Won’t Help Luckin Beat Starbucks

Meanwhile, equity analysts are already concerned with Luckin’s valuation. John Zolidis is one of them. “We had a chance to go through the company's F-1 filing (equivalent of an S-1), says Zolidis. “If we are doing the math right, the company is seeking a $3.5-$3.9B valuation with last year's revenues of only $125M and a full-year EBIT loss of $238M,” he said. “We get that LK has super-fast unit growth and it using promos to drive trial, get downloads for its app, and sign-ups for the loyalty program.” That would certainly help the company burn a great deal of cash, but it won’t make it profitable. “Our initial conclusion is that it will difficult for this company to turn the current operating model into a profitable and cash generating business,” adds Zolidis.

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Forget one-day shipping: same-day is the ‘real battleground’ where Amazon, Walmart, and Target, are sparring
Apr 26, 2019

Forget one-day shipping: same-day is the ‘real battleground’ where Amazon, Walmart, and Target, are sparring

"Everyone that follows Amazon is jumping up and down about how exciting this is," Zolidis told Business Insider. "But this was expected." Same-day shipping, not one-day shipping, is the "real battleground" for retailers, and Walmart and Target are well positioned to win that war, he said. In conversations last October with Walmart CEO Doug McMillon, McMillon characterized same-day shipping as the "final frontier" that "everyone is racing to develop," Zolidis said. Walmart did not immediately respond to a request for comment on this story.

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Target, Walmart Shares Take Hit After Amazon’s Move to One-Day Shipping
Apr 25, 2019

Target, Walmart Shares Take Hit After Amazon’s Move to One-Day Shipping

ome analysts said large retailers won’t have much difficulty competing. In a research note on Friday, John Zolidis, president of Quo Vadis Capital, said it would be a mistake for investors to sell shares of large retailers such as Target and Walmart on Amazon’s announcement. “They have anticipated this for some time and are already rolling-out corresponding services,” he said. “The losers here are going to be retailers that are already behind the curve and don’t have the financial strength to make the investments to develop these capabilities.”

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RED ROBIN’S LESSON: CUT LABOR AT YOUR OWN RISK
Apr 5, 2019

RED ROBIN’S LESSON: CUT LABOR AT YOUR OWN RISK

John Zolidis, president of Quovadis Capital, in a note Thursday blamed the deterioration on those cuts to labor. “We attribute the weakness to the competitive environment but also the company’s decision, starting in the first quarter last year, to significantly reduce labor hours in the stores, which we believe directly impacted service and, subsequently, traffic,” he wrote.

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Apple’s Cash Could Crush Netflix
Mar 30, 2019

Apple’s Cash Could Crush Netflix

“We believe a Disney streaming offer could easily become a must-have subscription, perhaps even more successful than Netflix (which currently has access to much Disney content),” says equity analyst John Zolidis.

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Dollar Tree says it will test charging more and shutter hundreds of Family Dollar stores
Mar 8, 2019

Dollar Tree says it will test charging more and shutter hundreds of Family Dollar stores

John Zolidis, president of Quo Vadis Capital, said that because of its Family Dollar acquisition, Dollar Tree believes it now has the expertise to try to boost prices at its namesake stores. But it's a risky proposition. "The $1-only proposition is what makes people love Dollar Tree so much,” Zolidis said. “Moving away from that brand equity does present a pretty significant risk to the concept on a long-term basis if it becomes just another store. Right now, it’s unique.”

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Apple Rattled Markets With Warning About China. Who’s Next?
Jan 17, 2019

Apple Rattled Markets With Warning About China. Who’s Next?

One likely factor: Nike's shoes, while still priced at a premium, are still cheaper than iPhones, and appear to be faring better against the kind of domestic competition that Starbucks faces said John Zolidis, a consumer-sector analyst with Quo Vadis Capital.

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From delivery to eco-friendly packaging and tons of recalls: A look at 2018’s food trends
Dec 28, 2018

From delivery to eco-friendly packaging and tons of recalls: A look at 2018’s food trends

John Zolidis, president of Quo Vadis Capital, credited all the improvement in restaurant sales in 2018 versus 2017 to delivery, with delivery growing by 9 percent this past year as compared to 4 percent in 2017 and 2016. "The reason why people are gaga for delivery is it's a channel that’s growing," he said. "The reason for that is it feeds into the e-commerce-enabled customer's desire for convenience and customization. With your mobile app, now you can get whatever you want much more easily ... That’s not going away. That trend will accelerate."

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Netflix’s Biggest Problem Isn’t Disney
Dec 18, 2018

Netflix’s Biggest Problem Isn’t Disney

“Disney is developing a direct-to-consumer capability via ESPN+ which will permit subscribers to consume sports content on demand via an app,” says equity analyst John Zolidis. “Separately, DIS is developing a streaming service for the substantial pantheon of Disney TV and movie properties. We think both of these efforts have the potential to be extremely successful and in particular, we believe a Disney streaming offer could easily become a must-have subscription, perhaps even more successful than Netflix (which currently has access to much Disney content).”

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Carl Icahn has taken a stake in Dollar Tree
Oct 16, 2018

Carl Icahn has taken a stake in Dollar Tree

The market, however, assigns almost no value to the Family Dollar chain, John Zolidis of Quo Vadis Capital said earlier this month in a presentation at the Cyprus Value Investor Conference. If Dollar Tree splits off or sells Family Dollar, which represents about half of its stores, the Dollar Tree chain would still retain 96 percent of the company’s current market value, he argued. Accordingly, the argument can be made that the market is valuing Family Dollar at nearly zero. If spun off, however, Family Dollar on its own would be worth between $5 billion and $6.2 billion, according to Zolidis.

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3 Things That Could Burst Amazon’s Trillion Dollar Bubble
Sep 5, 2018

3 Things That Could Burst Amazon’s Trillion Dollar Bubble

“We see Walmart's recent results including ongoing traffic growth, accelerating e-commerce growth, sales growth and share capture as a function of its strategy to offer value, invest in technology that is integrated into store assets (online grocery pickup lanes and in-store pickup towers are examples), leverage scale, and focus on strong execution,” observes equity analyst John Zolidis. “We believe the market may be starting to anticipate and reward retailers that make investments to take share and reposition for long-term success.”

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Walmart Should Send Thank You Notes To Washington And The ‘Fight For $15’ Minimum Wage Movement
Sep 1, 2018

Walmart Should Send Thank You Notes To Washington And The ‘Fight For $15’ Minimum Wage Movement

“Over the longer-term, WMT is making substantive changes to its portfolio by de-emphasizing terrestrial store assets in international markets and reallocating capital and investments towards the e-commerce channel and technology. We think this is the right strategy to reposition the business with the long-term objective to serve customers, capture share, and generate the greatest return on investment on both existing assets and incremental capital WMT is deploying into the business.”

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