A roundup of some of the North American equities making moves in both directions today
On the rise
Target Corp. (TGT-N) increased 0.5 per cent on Tuesday after announcing a partnership with Tru Kids, the parent company of Toys ‘R’ Us brand, to power the toy retailer’s online business in the United States ahead of the holiday season.
Under the partnership, consumers browsing toys on the ToysRUs.com website, relaunched on Tuesday, can click on “Buy now at Target.com” to complete their purchase.
Shoppers can also take advantage of Target’s free two-day shipping, same-day curbside or store order pickup, same-day delivery with Shipt, the retailer said.
“By applying our capabilities in a new way with Toys”R”Us, we can serve even more toy shoppers, drive new growth, and build on our toy leadership,” said Nikhil Nayar, senior vice president of merchandising at Target.
See also: Higher fuel prices may steal holiday cheer from U.S. retailers
Domino’s Pizza Inc. (DPZ-N) jumped 4.9 per cent after it reported same-store sales below Wall Street estimates for the fourth straight quarter.
The company also surprised investors by resetting its long-term growth goals on Tuesday and said it would cut costs and investment this year as it battles the growing popularity of third-party delivery services and small pizzerias.
The company’s shares, which fell 6 per cent on a results release that showed growth slowing and profit below expectations, recovered to trade up when executives laid out details of the spending plans on a call with analysts.
Chief Financial Officer Jeffrey Lawrence said he now expected general and administrative expenses to be between $380 million and $385 million in 2019, down from a previous range of $390 million to $395 million.
On the decline
Aleafia Health Inc. (ALEF-T) slid 1.2 per cent following the announcement that it has terminated its supply agreement with Aphria Inc. (APHA-T). The agreement is from September 2018 and was between Aphria and Emblem Corp., a wholly-owned subsidiary of the company, for up to 175,000 kg equivalents of cannabis products over an initial five-year term, commencing May 1, 2019.
"Following Aphria’s failure to meet its supply obligations under the supply agreement, Emblem has exercised its contractual right to terminate ... in accordance with its terms," the company stated.
The company also said it doesn’t believe the termination will “materially and adversely affect the company’s business, operations or results.”
In a statement released early Tuesday Aphria said it's "disappointed" that Aleafia terminated the agreement. "The company had every intention of fulfilling its obligations under the agreement," Aphria stated. "As a large shareholder of Aleafia, Aphria made good faith efforts to ensure continuation of the agreement understanding it was in the best interest of all parties involved. However, the termination of this legacy agreement frees up significant supply allowing the company to service its brands that are in high-demand across the country."
Aphria also said the agreement is not a material part of its business and operations.
Its shares were 1.7 per cent lower.
MedMen Enterprises Inc. (MMEN-C) dropped 13.5 per cent on Tuesday after it announced the “mutual agreement” to terminate its deal announced in December to buy PharmaCann LLC in an all-stock transaction.
"In light of market developments over the past 12 months and the continued evolution of its business strategy, MedMen and its board have determined that focusing on leveraging the company’s retail brand, its leadership position in California, and its digital platform to grow the business will create greater shareholder value than the completion of the transaction," the company stated.
Industrial Alliance Securities analyst Nav Malik said: “We view the termination of the PharmaCann transaction as positive. In addition to receiving four important assets, the termination avoids dilution (MedMen would have had to issue 168.4 million shares to close the transaction) and allows MedMen to focus on its key markets. The PharmaCann assets would have required large capital investments in non-core markets such as Pennsylvania, Ohio, and Maryland. Instead, MedMen will now focus on its core business, particularly in key markets in California, Florida, Illinois, New York, Nevada, and Massachusetts. MedMen currently has 29 retail stores operational with licenses for 70 locations, providing significant growth potential. In addition to growing its retail footprint, MedMen will also enhance its omni-channel offering through delivery and loyalty platforms.”
Activision Blizzard Inc. (ATVI-Q) was down 2.4 per cent despite industry site Sensor Tower said the mobile version of its videogame franchise Call of Duty racked up 100 million downloads in its first week, dwarfing the debuts of previous smashes including Fortnite and PlayerUnknown’s Battlegrounds (PUBG).
“This is by far the largest mobile game launch in history in terms of the player base that’s been built in the first week,” said Randy Nelson, Head of Mobile Insights at Sensor Tower.
The first-person shooter hit’s publisher Activision Blizzard Inc launched Call of Duty: Mobile on Oct. 1. Sensor Tower said the numbers reflected worldwide unique downloads across Apple’s App Store and Google Play in the period since.
Beyond Meat Inc. (BYND-Q) dipped 1.5 per cent despite the Carl’s Jr. fast food chain announced it has expand its partnership to launch the Beyond BBQ Cheeseburger.
With files from Brenda Bouw, Terry Weber and wires
David Leeder