Five interesting things that Hodges Capital research analysts discovered this week...

#1 PARIS 2024: The Olympic Torch was lit on April 16th, 2024, and the opening ceremony of the Paris Olympics is 100 days away. According to the Associated Press, the torch was lit at the birthplace of the sporting competition in Ancient Olympia, Greece. A relay of torchbearers will carry the flame along a 5,000-kilometer (3,100-mile) route through Greece until handing it over to the Paris Games organizers in Athens on April 26th. The French capital will officially open the games on July 26th.

#2 THE MIGRATION CONTINUES: The US Census Bureau released the 2023 population numbers and Dallas-Fort Worth reported the strongest growth among the 10 largest metro areas at 1.9% or 152,600 new residents. Houston and Atlanta were number two and three. New York lost 65,500 residents, while Los Angeles lost 71,000.    

#3 ALL CASH BUYERS: In January 2024, all cash buyers accounted for 32% of home sales. The last time the share of all cash buyers was this high was in June 2014. Data collected from the National Association of Realtors shows that all-cash buyers only represent 19% of homes purchased for primary residence but 56% for vacation homes.

#4 EAT MOR CHIKIN: According to an article in the Franchise Times, Chick-fil-A reported 2023 systemwide revenues of $21.6 billion, up 14.9% y/y. Revenue at Chick-fil-A has grown by $10 billion in five years. The sales per restaurant averaged $9.37 million in 2023, up 8%. The highest-performing store generated $19 million, while the lowest was $2.7 million.

#5 DEALER PROFITS: According to a report by Haig Partners, profits per auto dealership declined by 23% in 2023. Gross margin per new vehicle retailed fell 27.1% to $3,354. Despite the decline, the average dealership’s net pretax profit last year is still more than 2.5X what it was in 2018.

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