Updated version 1 - PepsiCo will cut costs as weak North American business weighs on annual core profit outlook

SuperX AI Technology's stock price declined, falling more than 2.5% at one point.

Latest Update October 8 – Pacira BioSciences (PCRX.O) shares surged by 44%, hitting a more than three-year high at $36.30. If the rally holds, PCRX is poised for its largest single-day gain on record. Pharmaceutical company Viatris (VTRS.O) will acquire Pacira BioSciences in a $1.65 billion cash deal, offering $36.50 per share. The offer represents a premium of approximately 44.8% over Pacira’s recent closing price of $25.20. The transaction will add Pacira’s non-opioid pain medications Exparel and Zilretta to Viatris' product portfolio. Viatris shares fell 2.6% to $17.04. JPMorgan stated: “We believe this acquisition will not significantly alter VTRS' overall financial profile in the short or long term, and expect Exparel’s sales to gradually decline post-2030 due to generic market entry.” Both parties expect to complete the transaction by the end of 2026. Including intraday fluctuations, PCRX shares have risen 40.2% year-to-date, while VTRS has gained 36.8%. (For the convenience of non-English speakers, Reuters provides automated translations of its reports into several other languages. As automated translation may contain errors or lack the necessary context, Reuters does not guarantee the accuracy of automated translated texts and provides them for readers’ convenience only. Reuters assumes no liability for any damage or losses resulting from the use of automated translation.)

New charts have been added, providing a detailed overview of Chipotle and Starbucks’ businesses. According to Reuters on October 8, referencing the Financial Times from Thursday, Starbucks had considered acquiring Chipotle Mexican Grill. Such a move would enable CEO Brian Niccol to return to the burrito chain, where he served as chief executive before joining Starbucks two years ago. The Financial Times, citing sources familiar with the matter, reported that the coffee chain has been working with advisers in recent months to formulate an acquisition proposal for Chipotle. Both Starbucks and Chipotle did not immediately respond to Reuters’ requests for comment. Chipotle currently has a market capitalization close to $39 billions, with its stock rising about 6% on Thursday, while Starbucks’ shares fell approximately 3%. According to data from the London Stock Exchange Group (LSEG), Starbucks is valued at about $107 billions. As consumers cut back on discretionary spending, Chipotle has faced declining customer traffic, while rising food and labor costs have pressured profit margins across the sector. Its stock price has dropped about 17% so far this year. Analysts suggest that a potential deal could also accelerate Chipotle’s international expansion. “I see the appeal of this prospective transaction in that CEO Brian Niccol would have the opportunity to leverage Starbucks' European franchise partnerships to pursue Chipotle’s growth more aggressively,” commented Jim Sanderson, an analyst at Northcoast Research. As of the end of last year, Chipotle operated nearly 4,000 restaurants in the US and about 100 abroad. In comparison, Starbucks has about 40,000 stores globally, with roughly 18,000 in North America. Niccol joined Starbucks in 2024 after six years at Chipotle, where he was credited with leading the company’s turnaround following a food safety crisis and with driving several years of strong digital sales growth. He was brought to Starbucks to reverse its declining performance, and over the past two years has focused on improving the customer experience by streamlining menus and reducing wait times, resulting in four consecutive quarters of comparable sales growth. “We still have more work to do,” Niccol said in July, after the company raised its annual sales and profit forecast. “Given that Starbucks is in a period of transformation and has yet to deliver the margin improvements investors expect, the timing of this decision seems somewhat strange. At first glance, it appears to be less about accelerating transformation and more about running out of options,” said Brian Jacobsen, Chief Economist at Annex Wealth Management.