Quaestor Consulting Group

Google Search, Android, Chrome, and advertising all work together seamlessly, creating a business empire that's been almost impossible for competitors to breach for decades. But what happens for the company, its competitors and many people who get information online if that ecosystem is broken apart? The U.S. Justice Department is considering breaking up Google following the landmark antitrust ruling against Google and includes divestment of the search giant’s Android OS and browser Chrome among possible measures. Such a move would be the largest antitrust action undertaken by the U.S. government in two decades and could reshape the tech landscape as we know it. Several “less severe” penalties are also under consideration, including compelling Google to share data with rival search companies, and imposing restrictions on its AI products to prevent it from gaining an unfair advantage. Officials are also considering a forced sale of AdWords, the platform the company uses to sell text advertising. About two-thirds of Google’s total revenue comes from search ads, amounting to more than $100 billion in 2020. The government successfully argued that Google performs roughly 90% of the world's searches, and that its multibillion-dollar payments to Apple and Mozilla — which make Google the default on their devices and browsers — help it suppress competition. Its previous attempt at a breaking up Microsoft failed on appeal. If it succeeds with Google, we can expect smaller players to get a chance to eat into Google's market share of search and advertising, especially if the DOJ mandates data-sharing. If Google's ad revenue takes a severe hit, it might be the beginning of a long-term shakeup. #Restructuring #Google #alphabet #AI #TechIndustry #BusinessStrategy #SearchEngine #Innovation #Antitrust Disclosure: This article is for informational purposes only and should not be construed as legal, regulatory, tax, accounting, or investment advice. It expresses the views of the author as of the date indicated and such views are subject to change without notice. Quaestor Consulting Group ("QCG") has no duty or obligation to update the information contained herein. Certain information contained herein is based on or derived from information provided by independent third-party sources. QCG believes that the sources from which such information has been obtained are reliable; however, it has not independently verified the accuracy or completeness of such information or the assumptions on which such information is based. QCG makes no representation, and it should not be assumed that past investment performance is an indication of future results. Moreover, wherever there is the potential for profit there is also the possibility of loss.

Intel’s CEO, Pat Gelsinger, is attempting to pull off a much-needed turnaround and seeks to “quiet critics” by delivering results and executing better. This comes as Qualcomm Inc. has offered to acquire the company after a turbulent stretch this summer that saw a 15% workforce reduction and a stock price that hit an 11-year low in what the company has called the most difficult period in its 56-year history. Gelsinger took the helm in 2021 and promised to restore the company’s technological edge after the chip pioneer lost market share and its reputation for innovation. But his comeback plan proved overly ambitious, and the tech giant now unveiled several moves in September to restructure its operations, reduce capital spending, and expand its production capacity in the United States and abroad. The company announced it will spin its foundry business into a subsidiary to raise outside funding and will pause plans to build factories in Germany and Poland for two years as it shifts to create a custom AI chip for Amazon Web Services. The company reaffirmed plans for investments in the United States, including a closely watched expansion in Ohio, its first major new production site in four decades. Amazon would use its nascent chip production service, or foundry, to build at least two chips for its Amazon Web Services unit. The companies will coinvest in a custom semiconductor for artificial intelligence computing – what’s known as a fabric chip – in a multiyear, multibillion-dollar framework covering product and wafers. This collaboration will help customers power virtually any workload and help accelerate the performance of AI applications. Intel is also looking to speed up efforts to execute $10 billion in cost savings, focus its products on AI computing, and pare its real estate globally by about two-thirds by the end of the year. #capitalexpenditure #capex #marketdemand #foundry #semiconductors #semiconductormanufacturing #intel #restructuring #transformation Disclosure: This article is for informational purposes only and should not be construed as legal, regulatory, tax, accounting, or investment advice. It expresses the views of the author as of the date indicated and such views are subject to change without notice. Quaestor Consulting Group ("QCG") has no duty or obligation to update the information contained herein. Certain information contained herein is based on or derived from information provided by independent third-party sources. QCG believes that the sources from which such information has been obtained are reliable; however, it has not independently verified the accuracy or completeness of such information or the assumptions on which such information is based. QCG makes no representation, and it should not be assumed that past investment performance is an indication of future results. Moreover, wherever there is the potential for profit there is also the possibility of loss.

Verizon has made a bold move that will ripple across the market and change the competitive landscape. The global communications technology company that offers voice, data, and video services has reached a $20 billion all-cash deal to buy Frontier Communications, America's biggest pure-play fiber internet provider. Projected to generate at least $500 million in annual run-rate cost synergies, the move will significantly expand Verizon's fiber footprint across the U.S. and expand Verizon's intelligent edge network for digital innovations like AI and IoT. Both of these expansions allow the company to compete with larger rivals such as AT&T Telecom companies are currently racing to build out their fiber networks and bring faster internet service to underserved areas of the country. One year ago, Verizon began a journey to build a best-in-class digital infrastructure and deliver reliable, high-speed broadband to millions of customers. Frontier provides broadband service in 25 states and has been upgrading its network to cutting-edge fiber-optic cable since emerging from bankruptcy in 2021. Frontier’s 2.2 million fiber subscribers across 25 states will join Verizon’s 7.4 million Fiber Optic Service connections in nine states and Washington, D.C.. Verizon, which already has 7.2 million fiber locations, plans to build out an additional 2.8 million fiber locations by the end of 2026. #Verizon #Frontier #Telecom #BusinessStrategy Disclosure: This article is for informational purposes only and should not be construed as legal, regulatory, tax, accounting, or investment advice. It expresses the views of the author as of the date indicated and such views are subject to change without notice. Quaestor Consulting Group ("QCG") has no duty or obligation to update the information contained herein. Certain information contained herein is based on or derived from information provided by independent third-party sources. QCG believes that the sources from which such information has been obtained are reliable; however, it has not independently verified the accuracy or completeness of such information or the assumptions on which such information is based. QCG makes no representation, and it should not be assumed that past investment performance is an indication of future results. Moreover, wherever there is the potential for profit there is also the possibility of loss.

Red Lobster recently tapped Damola Adamolekun, former CEO of P.F. Chang's, to lead the company as it looks to right itself filing for bankruptcy. The restaurant chain filed for chapter 11 bankruptcy in May this year after incurring around $2 billion in annual sales across 44 states before deciding to file and close 23 additional units. Adamolekun was P.F. Chang’s CEO through the Covid-19 pandemic, when sit-down restaurants largely had to shut their doors for stretches of time. P.F. Chang’s said at the time of his exit that Adamolekun helped the chain embrace to-go service during the crisis, helping to stabilize its business. The company said Adamolekun’s leadership ultimately helped P.F. Chang’s resume expansion, with an estimated 225 U.S. locations as of last year. Red Lobster is among the biggest food-service bankruptcies by assets and liabilities in decades and one of a string of restaurant chains that have filed for bankruptcy protection or sought buyers in the past year. One of the first U.S. casual-dining chains and once an innovator in the sector, Red Lobster suffered from strategic challenges along with a shaky consumer backdrop for restaurants as inflation-pressured consumers have tightened up spending. Under eventual owner Thai Union, Red Lobster was CEO-less for some time and the sponsor company and partnership team had limited casual dining experience. Financial strain from the pandemic, coupled with inflation and changing consumer habits, has created a perfect storm for casual dinning restaurant businesses. After struggling to stay afloat through lockdowns, restaurant operators endured surging food costs and supply chain shortages. Adamolekun’s understanding of these trends will be crucial for the company’s recovery. #Restaurants #Franchise #Franchising #Turnaround #Transformation #Bankruptcy Disclosure: This article is for informational purposes only and should not be construed as legal, regulatory, tax, accounting, or investment advice. It expresses the views of the author as of the date indicated and such views are subject to change without notice. Quaestor Consulting Group ("QCG") has no duty or obligation to update the information contained herein. Certain information contained herein is based on or derived from information provided by independent third-party sources. QCG believes that the sources from which such information has been obtained are reliable; however, it has not independently verified the accuracy or completeness of such information or the assumptions on which such information is based. QCG makes no representation, and it should not be assumed that past investment performance is an indication of future results. Moreover, wherever there is the potential for profit there is also the possibility of loss.

Shares of #Starbucks surged to over $20B when the company announced Brian Niccol’s appointment as the new #CEO in September. Niccol earned praise as chief at #Chipotle by focusing on three things: crafting a compelling vision, building the right organizational structure around it, and holding everyone accountable to executing it. Those are key ingredients in a successful #turnaround and Niccol’s knack for turning struggling companies into powerhouses is exactly what Starbucks needs. His track record of overseeing great brands in transition with innovation has led to significant value creation. Niccol’s appointment was the culmination of months of internal angst over Starbucks’s direction. Investors grew increasingly skeptical about the company’s ability to pull off lofty financial targets set before Narasimhan joined the company. Narasimhan inherited an ambitious road map largely set by Starbucks executives that targeted annual earnings, same-store sales and unit growth above previous estimates. He set out to simplify a sprawling supply chain and operations, seeing a direct link between inefficient drink-making and the long lines that frustrated patrons. At headquarters, he streamlined corporate functions, eliminating roles and reassigning responsibilities to geographic divisions. He recruited to improve Starbucks’s supply chain and elevated leaders to oversee North American and international businesses. These restructurings were significant but not enough to boost sales after consecutive quarters. Niccol brings restaurant chops that his predecessor didn’t have and industry adoration for turning around Chipotle. He sees similarities between the turnaround at Chipotle and Starbucks, including in marketing, product innovation, and operations. Plenty of Starbucks’s challenges are unique, but some like rising prices that pull back discretionary spending are beyond his control. Given the scale of the challenges, it would be unreasonable to expect a change of leadership to yield swift results. Disclosure: This article is for informational purposes only and should not be construed as legal, regulatory, tax, accounting, or investment advice. It expresses the views of the author as of the date indicated and such views are subject to change without notice. Quaestor Consulting Group ("QCG") has no duty or obligation to update the information contained herein. Certain information contained herein is based on or derived from information provided by independent third-party sources. QCG believes that the sources from which such information has been obtained are reliable; however, it has not independently verified the accuracy or completeness of such information or the assumptions on which such information is based. QCG makes no representation, and it should not be assumed that past investment performance is an indication of future results. Moreover, wherever there is the potential for profit there is also the possibility of loss.