Wall Street Breakfast Podcast: Topgolf, Callaway To Go Solo

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CatLane

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Golf spinoff: Topgolf and Callaway (MODG) to trade as separate businesses. (00:22) Beyond Meat (BYND) to roll out new steak alternative to revive demand – report. (01:14) Jeep (STLA) to cut production of Wranglers and Grand Cherokees – report. (02:03)

This is an abridged transcript of the podcast.

Topgolf Callaway Brands Corp. (NYSE:MODG) announced late on Wednesday that its board approved a plan to split the company into two independent entities.

Callaway will be a golf equipment and active lifestyle business, while Topgolf will trade as a high-growth, pure-play venue-based golf entertainment business.

The company plans a spin-off of the Topgolf business to Topgolf Callaway Brands’ (MODG) shareholders in a transaction that is intended to be tax-free to both the company and its shareholders for U.S. federal income tax purposes.

“While the Company expects that a spin-off of Topgolf into a stand-alone public company is the most likely separation path, the Company will continue to evaluate other options for separation to maximize shareholder value.”

Premarket Topgolf Callaway (MODG) is up nearly 6%.

Beyond Meat (NASDAQ:BYND) will launch a whole muscle steak alternative that will mimic the taste and texture of a filet.

CEO Ethan Brown told CNBC that the new launch is expected to include a partnership with a healthier restaurant chain, as opposed to Beyond Meat’s (BYND) earlier strategy for partnering with fast-food chains like McDonald’s (MCD).

Although he did not mention when the new product, which will be priced at a premium, will be launched.

Beyond Meat (BYND) is also rolling out reformulated versions of Beyond Burger and Beyond Chicken with fewer ingredients, aiming to allay fears of plant-based meat alternatives being too processed.

Brown’s statements come at a time when Beyond Meat (BYND) has been facing weakening demand, prompting a major cost-cutting drive that helped narrow its Q2 loss.

Jeep’s parent company Stellantis (NYSE:STLA) has temporarily stopped producing the top-selling models Jeep Wrangler and Grand Cherokee sport-utility vehicles, people familiar with the matter told Wall Street Journal.

In a statement to the publication, Stellantis confirmed “production adjustments” at two Detroit assembly plants that make the Grand Cherokee, and another factory in Toledo, Ohio, where the Wrangler is produced.

The production cuts come as the company struggles with some of the industry’s highest levels of inventories and dipping sales.

WSJ added that dealers and Wall Street analysts have blamed Stellantis’ inventories levels on higher prices and fewer promotions compared to rivals.