During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high dividend payout.
Below are the ratings of the most accurate analysts for three high-yielding stocks in the energy sector.
Conagra Brands Inc (NYSE:CAG)
Dividend Yield: 10.98%
UBS analyst Bryan Adams maintained a Neutral rating on the stock, while lowering the price target from $16 to $13 on June 2, 2026. This analyst has an accuracy rate of 65%.
Wells Fargo analyst Chris Carey reiterated an Underweight rating while cutting the price target from $14 to $13 on May 18, 2026. This analyst has an accuracy rate of 63%.
Recent News: Shares of Conagra Brands declined 1.91% to close at $12.86 Tuesday. This marked the third consecutive day of declines for the stock, which underperformed its peers and the broader market.
Benzinga Pro's real-time newsfeed alerted to latest CAG news.
General Mills Inc (NYSE:GIS)
Dividend Yield: 7.35%
UBS analyst Peter Grom maintained a Sell rating on the stock, while lowering the price target from $35 to $30 on June 2, 2026. This analyst has an accuracy rate of 60%.
Wells Fargo analyst Chris Carey reaffirmed an Underweight rating on the stock, while lowering the price target from $33 to $30 on May 18, 2026. This analyst has an accuracy rate of 63%.
Recent News: On June 1, General Mills announced that it has entered into a definitive agreement to sell its Häagen-Dazs shops in Mainland China to an investor group led by Ningji. The sale is expected to be completed in calendar 2026, subject to regulatory approvals and other customary closing conditions.
Benzinga Pro's real-time newsfeed alerted to latest GIS news.
J.M. Smucker Co (NYSE:SJM)
Dividend Yield: 4.39%
UBS analyst Peter Grom maintained a Buy rating while lowering the price target from $132 to $121 on June 2, 2026. This analyst has an accuracy rate of 60%.
Evercore ISI Group analyst David Palmer initiated the stock with an Outperform rating and price target of $117 on May 15, 2026. This analyst has an accuracy rate of 52%.
Bernstein analyst Alexia Howard reiterated an Outperform rating on the stock, while decreasing the price target from $145 to $134 on May 4, 2026. This analyst has an accuracy rate of 50%.
Recent News: Analysts expect JM Smucker to deliver higher revenue and earnings, year-on-year, when it reports its fiscal fourth quarter results on June 9. Wall Street expects the company to report an adjusted EPS of $2.65 on revenue of $2.27 billion.
Benzinga Pro’s real-time newsfeed alerted to latest SJM news.
, /PRNewswire/ -- Conagra Brands, Inc. (NYSE: CAG) will release its fiscal 2026 fourth quarter and full year results on Wednesday, July 15, 2026. A press release and supplemental materials, including pre-recorded remarks, will be issued that morning prior to a 30-minute live question-and-answer session with the investment community at 9:30 a.m. ET.
The pre-recorded remarks, transcript, press release, presentation slides, and live audio Q&A can be accessed at conagrabrands.com/investor-relations under Events & Presentations. The live audio Q&A can also be accessed by dialing 1-877-883-0383 for participants in the U.S. and 1-412-902-6506 for all other participants using passcode: 4873871. Please dial in 10 to 15 minutes prior to the call start time.
About Conagra Brands
Conagra Brands, Inc. (NYSE: CAG), is one of North America's leading branded food companies. We combine a 100-year history of making quality food with agility and a relentless focus on collaboration and innovation. The company's portfolio is continuously evolving to satisfy consumers' ever-changing food preferences. Conagra's brands include Birds Eye®, Duncan Hines®, Healthy Choice®, Marie Callender's®, Reddi-wip®, Slim Jim®, Angie's® BOOMCHICKAPOP®, and many more. As a corporate citizen, we aim to do what's right for our business, our employees, our communities and the world. Headquartered in Chicago, Conagra Brands generated fiscal 2025 net sales of nearly $12 billion. For more information, visit www.conagrabrands.com.
For more information, please contact:
MEDIA: [email protected]
INVESTORS: [email protected]
Strong Execution Delivers Sales Growth, Margin Expansion and EPS Improvement Delivered Net Sales of $1.1B , an Increase of 5% Compared to the Prior Year Delivered Operating Profit of $133M , Up 21% Compared to the Prior Year; Grew Adjusted Operating Profit to $176M , Up 8% Compared to the Prior Year Delivered Diluted EPS of $3.09 , Up 26% Compared to the Prior Year; Grew Adjusted Diluted EPS to $4.14 , Up 11% Compared to the Prior Year ATLANTA, April 02, 2026 (GLOBE NEWSWIRE) -- Acuity Inc. (NYSE: AYI), ("Acuity"), a market-leading industrial technology company, delivered net sales of $1.1 billion in the second quarter, ended February 28, 2026, an increase of $49.4 million, or 4.9 percent, compared to the prior year. "We demonstrated strong execution in our second quarter of fiscal 2026," stated Neil Ashe, Chairman, President and Chief Executive Officer of Acuity Inc. "We grew net sales, we expanded our adjusted operating profit and adjusted operating profit margin, and we increased our adjusted diluted earnings per share.
Acuity (AYI) came out with quarterly earnings of $4.14 per share, beating the Zacks Consensus Estimate of $4.01 per share. This compares to earnings of $3.73 per share a year ago.
The headline numbers for Acuity (AYI) give insight into how the company performed in the quarter ended February 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Key Takeaways Acuity posted Q2 EPS of $4.14, beating estimates, while sales of $1.06B missed expectations.AYI's AIS segment surged 44.7%, offsetting declines in its core Lighting segment sales.Acuity raised its quarterly dividend by 18% and boosted margins with improved operating performance. Acuity Inc. (AYI - Free Report) reported mixed results for the second quarter of fiscal 2026 (ended Feb. 28, 2026), with adjusted earnings topping the Zacks Consensus Estimate but net sales missing the same. However, both metrics increased year over year.
The quarter’s performance was driven by the increased contributions from its Acuity Intelligent Spaces (AIS) segment, which was somewhat pulled back by reduced sales in the Acuity Brands Lighting (ABL) segment. Besides, the integration of QSC with Atrius and Distech aided the quarter’s growth.
Acuity stock inched down 0.8% during today’s pre-market trading session.
Acuity’s Q2 Earnings & Sales PerformanceThe company reported adjusted earnings per share (EPS) of $4.14, which topped the Zacks Consensus Estimate of $4.01 by 3.4%. The metric also increased 11% from the year-ago reported EPS of $3.73.
Net sales of $1.06 billion missed the consensus mark of $1.08 billion by 1.9% but improved 4.9% from the prior-year quarter’s level.
Acuity’s Segment DetailsThe Acuity Brands Lighting segment, responsible for the majority of sales, experienced a decline in quarterly sales by 2.8% to $817.4 million. Our estimate for the metric was $856.7 million.
Net sales in the Independent Sales Network inched up 0.2% year over year to $616.7 million. Sales from the Direct Sales Network were down 27.5% from the prior-year period’s level to $70.6 million.
Retail sales of $40.3 million tumbled 1.7% from the prior-year quarter’s level. Sales in the Corporate Accounts channel increased 14.3% from the prior-year quarter to $40.7 million. The Original equipment manufacturer and other channel sales of $49.1 million were down 4.5% from the prior-year period’s level.
The adjusted operating profit in the segment inched up 0.4% from the prior year’s level to $141.8 million. The adjusted operating margin was up 50 basis points (bps) year over year to 17.3%.
Acuity Intelligent Spaces generated net sales of $248.1 million, which was significantly up 44.7% year over year. The reported figure came below our estimate of $250 million.
The adjusted operating profit was $48 million, up 50% from the year-ago period. The adjusted operating margin expanded 60 bps year over year to 19.3%.
AYI’s Operating HighlightsThe adjusted operating profit increased 8% year over year to $176 million. The adjusted operating margin of 16.7% was up 50 bps year over year.
Adjusted EBITDA rose 8% to $190.8 million from the year-ago period. The adjusted EBITDA margin expanded 60 bps from the year-ago period to 18.1%.
Acuity’s FinancialsAs of the fiscal second quarter, Acuity had cash and cash equivalents of $272.5 million compared with $422.5 million at the fiscal 2025-end. Long-term debt was $697.1 million as of Feb. 28, 2026, down from $896.8 million at the fiscal 2025-end.
During the first six months of fiscal 2026, cash provided by operating activities totaled $229.9 million, up from $191.6 million in the prior-year period. Adjusted free cash flow was up 15.4% year over year to $188.1 million in the first six months of fiscal 2026.
During the first six months of fiscal 2026, the company repurchased approximately 318,000 shares of its common stock for $106 million and paid $11.6 million through dividends. Acuity also hiked its quarterly dividend payment by 18% to 20 cents per share (80 cents per share annually).
AYI Stock’s Zacks RankAcuity currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks With the Favorable CombinationHere are some companies in the Zacks Business Services sector, which per our model, have the right combination of a positive Earnings ESP and a Zacks Rank of 1, 2 (Buy) or 3, to post an earnings beat in the respective quarters to be reported.
Remitly Global, Inc. (RELY - Free Report) has an Earnings ESP of +2.85% and a Zacks Rank of 1 at present.
Remitly reported better-than-expected earnings in three of the last four quarters and missed on the remaining occasion, the average surprise being 391.7%. Remitly’s earnings for the first quarter of 2026 are expected to grow 140% from the prior year.
Coherent Corp. (COHR - Free Report) currently has an Earnings ESP of +2.70% and a Zacks Rank of 2.
Coherent’s earnings for the third quarter of fiscal 2026 are expected to increase 53.9% year over year. Coherent reported better-than-expected earnings in each the last four quarters, the average surprise being 7.7%.
EVERTEC, Inc. (EVTC - Free Report) currently has an Earnings ESP of +1.94% and a Zacks Rank of 2.
EVERTEC reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 4.1%. EVERTEC’s earnings for the first quarter of 2026 are expected to increase year over year by 3.5%.
U.S. stocks traded lower midway through trading, with the Dow Jones index falling more than 100 points on Thursday.
The Dow traded down 0.27% to 46,441.45 while the NASDAQ fell 0.08% to 21,823.12. The S&P 500 also fell, dropping, 0.06% to 6,571.55.
Leading and Lagging Sectors
Real estate shares climbed by 0.8% on Thursday.
In trading on Thursday, consumer discretionary stocks fell by 1.1%.
Top Headline
Shares of Acuity Inc. (NYSE:AYI) fell around 5% on Thursday after the company reported mixed fiscal second-quarter 2026 results, as a revenue miss offset an earnings beat.
Quarterly net sales rose 4.9% year over year to $1.06 billion, falling short of the $1.09 billion consensus estimate. Adjusted earnings came in at $4.14 per share, ahead of expectations of $4.06.
Equities Trading UP
Equities Trading DOWN
Commodities
In commodity news, oil traded up 10.7% to $110.83 while gold traded down 2.2% at $4,705.50.
Silver traded down 4.7% to $72.485 on Thursday, while copper fell 0.6% to $5.6115.
Euro zone
European shares were mostly lower today. The eurozone's STOXX 600 fell 0.16%, while Spain's IBEX 35 Index fell 0.36%. London's FTSE 100 gained 0.85%, Germany's DAX dipped 0.73% and France's CAC 40 fell 0.12% during the session.
Asia Pacific Markets
Asian markets closed mixed on Thursday, with Japan's Nikkei 225 falling 2.38%, Hong Kong's Hang Seng index falling 0.70%, China's Shanghai Composite falling 0.74% and India's BSE Sensex gaining 0.25%.
Economics
U.S. initial jobless claims declined by 9,000 to 202,000 in the fourth week of March, compared to market estimates of 212,000. The U.S. goods trade deficit increased to $83.5 billion in February versus a revised $80.9 billion in the prior month. Photo via Shutterstock
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Acuity Inc. is upgraded from Hold to a very soft Buy after a 17% share price decline, making valuation more attractive. Despite Q2 revenue and earnings missing expectations, AYI delivered year-over-year growth in both, with notable strength in the Acuity Intelligent Spaces segment. Intelligent Spaces revenue surged 44.7% year-over-year, driven by the QSC acquisition and strong Distech product sales, offsetting weakness in the core lighting segment.
Acuity (NYSE: AYI) reported fiscal 2026 second-quarter results that executives said reflected "strong execution" despite a soft lighting market. Chairman, President and CEO Neil Ashe said the company grew net sales, expanded adjusted operating profit and margin, increased adjusted diluted earnings per share, and generated strong cash flow while continuing to invest in technology and manage
The CNN Money Fear and Greed index showed some easing in the overall fear level, while the index remained in the “Extreme Fear” zone on Thursday.
U.S. stocks settled mixed on Thursday, with the Dow Jones index falling around 0.1% during the session following recent comments from President Donald Trump. Meanwhile, Iran is reportedly drafting a monitoring protocol with Oman for the Strait of Hormuz.
Within Magnificent Seven stocks, Tesla Inc. (NASDAQ:TSLA) sank over 5% to a seven-month low after posting one of its weakest first-quarter delivery figures in recent years.
In earnings, shares of Acuity Inc. (NYSE:AYI) fell around 8% on Thursday after the company reported mixed fiscal second-quarter 2026 results, as a revenue miss offset an earnings beat.
On the economic data front, U.S. initial jobless claims declined by 9,000 to 202,000 in the fourth week of March, compared to market estimates of 212,000. The U.S. goods trade deficit increased to $83.5 billion in February versus a revised $80.9 billion in the prior month.
Most sectors on the S&P 500 closed on a positive note, with real estate, inflation technology and consumer staples stocks recording the biggest gains on Thursday. However, health care and consumer discretionary stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed lower by around 61 points to 46,504.67 on Thursday. The S&P 500 rose 0.11% to 6,582.69, while the Nasdaq Composite surged 0.18% at 21,879.18 during Thursday's session.
What Is CNN Business Fear & Greed Index?At a current reading of 15.3, the index remained in the “Extreme Fear” zone on Thursday, versus a prior reading of 13.8.
The Fear & Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.
Photo via Shutterstock
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Acuity Inc.'s NYSE: AYI stock price is under pressure due to tepid revenue and its impact on analysts' sentiment. The critical takeaway for investors is that this high-quality, cash-producing, capital-return machine trades at a low valuation relative to its growth outlook and ability to drive shareholder value. The stock price may decline in the near term; if it does, good. The value will only deepen, and the potential for rebounding will increase.
Acuity Today
$292.14 +3.54 (+1.23%)
As of 10:14 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$257.04▼
$380.17Dividend Yield0.27%
P/E Ratio21.43
Price Target$369.17
Analysts are lowering price targets following the report. However, the lowest targets, including a fresh low of $320, are still well above the early April price action, suggesting not only value, but deep value is present.
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Assuming a rebound begins soon, the stock price could rise by 20% and still have an ample upside left. As it is, the consensus of nine tracked by MarketBeat forecasts over a 40% upside from the early April support target, and even higher highs are possible. They rate the stock as a Moderate Buy, and sentiment has been steady for months.
Acuity is well-positioned for the AI age. It doesn’t reflect a boom today, but there is one coming down the pipe. The data centers, AI factories, models, and applications that drive the robust AI outlook are still in the early build-out phase; when reality catches up with the potential, the AYI business will boom alongside the Internet of Things and physical AI. Its Intelligent Spaces segment connects technology with building systems, including occupant interfaces, to enable efficient, AI-assisted operations.
AYI Capital Returns Underpin Stock Price Outlook Acuity’s capital returns are not robust but include dividends and buybacks, are sustainable, and are on track to grow. The company already exhibits a tendency and commitment to dividend increases, having issued its fourth increase in early fiscal 2026. The yield is low, about 0.3%, but incredibly safe at about 5% of earnings, suggesting the mid-single-digit compound annual growth is also sustainable.
Buybacks are slightly more substantial, having reduced the share count approximately 0.9% on a year-to-date (YTD) basis. They, too, appear to be sustainable with potential for growth, as the year-to-date (YTD) buybacks are less than 50% of free cash flow.
The balance sheet reflects the impact of its capital return, including reduced cash, current and total assets. However, YTD activity also includes strong cash flow generation and debt reduction, resulting in reduced current and total liabilities and long-term debt. The net result is an increase in equity of about 4.25%, leaving the company's leverage very low. Total liabilities are less than 1X equity; long-term debt is less than 0.25X.
Institutional and short-selling activity highlights the quality of capital returns and the potential for a rebound. Short interest is marginal; at 2%, it aligns with the average for other blue-chip-quality names. There is some short interest, but not enough to signal negative sentiment, create a headwind for the market, or cap upward movement. On the flip side, institutions, which control 98% of the stock, have been buying on balance, accumulating at a pace of $2-to-$1, and ramping activity in Q1 2026. They present a solid support base and market tailwind, likely to increase their activity as share prices decline.
Acuity Poised for Big Drop? Acuity’s stock price action isn’t bullish. The market shows resistance at a critical level, reinforced by a cluster of moving averages, suggesting another drop ahead. However, the market is oversold, so the downside may be limited. The critical target is near $271; if the market fails to reclaim this level, a deeper decline is likely; however, support may appear near $260. If this market can regain the upper $271 level, consolidation will likely ensue, and recovery will begin later this year.
Catalysts include growing its Intelligent Spaces business and margin improvement. The company is leaning into operational efficiency and strategic pricing increases and may outperform expectations. The Intelligent Spaces segment is focusing on higher-margin businesses, including automation and AI. Risks include weakness in the core lighting segment. High interest rates and macro headwinds are sapping demand and undercutting business. The offset is significant, leading to tepid expectations in 2026.
Should You Invest $1,000 in Acuity Right Now?Before you consider Acuity, you'll want to hear this.
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TORONTO, April 07, 2026 (GLOBE NEWSWIRE) -- Acuity Insights, the leading provider of admissions assessment, program management, and analytics solutions for higher education, has been named one of Canada’s Top Small & Medium Employers for 2026, marking the second consecutive year the company has earned this prestigious recognition. The award celebrates organizations across Canada that set the standard for workplace culture, employee wellness, and innovative human resources practices.
Acuity Insights has built a people-first, remote-first culture intentionally designed to help employees thrive both personally and professionally.
Employees benefit from:
Self-directed vacationCompany-wide two-week year-end shutdown$3,000 annual learning and development budget These practices reflect Acuity Insights’ commitment to sustainable work, professional development, and long-term career fulfillment. With a globally distributed team of more than 140 employees, the company prioritizes trust, flexibility, and meaningful connection through virtual rituals and collaborative co-working days.
Additional benefits include:
Equity ownership opportunitiesComprehensive health and wellness programsParental leave top-upsRetirement savings matching “Being named one of Canada’s Top Small and Medium Employers for the second year in a row is meaningful recognition for our team,” said Meegan Carlson, VP People & Administration at Acuity Insights. “Over the past year, we have continued to invest in how we support our team through flexibility, growth opportunities, and our people-first culture. We're proud of the progress and remain focused on building a workplace where our team can do their best work and grow with us.”
As competition for talent continues to grow, organizations are under increasing pressure to create workplaces that prioritize flexibility, well-being, and meaningful employee engagement. Acuity Insights believes that building a strong employee experience and culture requires intentional investment in people-first policies, environments, and continuous development opportunities that enable employees to thrive.
Acuity Insights’ mission-driven solutions support hundreds of higher education programs worldwide, helping institutions admit and develop well-rounded students, widen access, and drive program success. Its flagship Casper situational judgment test (SJT), created by McMaster University researchers, has been completed by over 1 million applicants, making it one of the most widely used open-response SJTs in higher education globally.
Interested in joining our team at Acuity Insights? Discover current opportunities.
About Canada’s Top Small & Medium Employers
Canada’s Top Small & Medium Employers recognizes outstanding SMEs across Canada that excel in workplace culture, employee benefits, and HR innovation. To qualify, organizations must have fewer than 500 employees. Employers are evaluated on work atmosphere, benefits, vacation policies, training programs, employee communications, performance management, and community involvement.
About Acuity Insights
Acuity Insights is the leading provider of admissions assessment, program management, and analytics solutions for higher education. The company’s solutions help higher education institutions deliver on their unique mission, considering the whole student, widening pathways into higher education, and ensuring both student and program success. Its Casper situational judgment test (SJT), created by researchers at McMaster University, has been taken by more than 1 million applicants since its inception. It is the most widely used open-response SJT in higher education and is backed by almost 20 years of efficacy research. Recognized as one of Canada’s Top Growing Companies by the Globe & Mail for the past six consecutive years, Acuity’s solutions are used by nearly 650 higher education programs worldwide.
Media Contact
Brianna Bell
Senior Content & Communications Manager [email protected]
Acuity (NYSE:AYI – Get Free Report) and Brand Engagement Network (NASDAQ:BNAI – Get Free Report) are both business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.
Earnings and Valuation This table compares Acuity and Brand Engagement Network”s revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Acuity $4.35 billion 2.02 $396.60 million $13.64 21.26 Brand Engagement Network $280,000.00 628.28 -$8.62 million ($6.50) -4.62 Acuity has higher revenue and earnings than Brand Engagement Network. Brand Engagement Network is trading at a lower price-to-earnings ratio than Acuity, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility Acuity has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, Brand Engagement Network has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.
Insider & Institutional Ownership 98.2% of Acuity shares are owned by institutional investors. Comparatively, 15.8% of Brand Engagement Network shares are owned by institutional investors. 2.9% of Acuity shares are owned by insiders. Comparatively, 25.6% of Brand Engagement Network shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations This is a breakdown of current ratings and price targets for Acuity and Brand Engagement Network, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Acuity 0 4 5 0 2.56 Brand Engagement Network 1 0 0 0 1.00 Acuity presently has a consensus target price of $369.17, suggesting a potential upside of 27.29%. Given Acuity’s stronger consensus rating and higher probable upside, equities analysts clearly believe Acuity is more favorable than Brand Engagement Network.
Profitability This table compares Acuity and Brand Engagement Network’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Acuity 9.37% 20.74% 12.20% Brand Engagement Network -3,137.73% -308.17% -73.77% Summary Acuity beats Brand Engagement Network on 12 of the 14 factors compared between the two stocks.
About Acuity (Get Free Report)
Acuity Brands, Inc. provides lighting, lighting controls, building management system, location-aware applications in the United States and internationally. The company operates in two segments, Acuity Brands Lighting and Lighting Controls (ABL); and the Intelligent Spaces Group (ISG). The ABL segment provides commercial, architectural, and specialty lighting solutions, as well as lighting controls and components for various indoor and outdoor applications under the A-Light, Aculux, American Electric Lighting, Cyclone, Dark to Light, eldoLED, Eureka, Gotham, Healthcare Lighting, Holophane, Hydrel, Indy, IOTA, Juno, Lithonia Lighting, Luminaire LED, Luminis, Mark Architectural Lighting, nLight, OPTOTRONIC, Peerless, RELOCWiring Solutions, and Sensor Switch. This segment serves electrical distributors, retail home improvement centers, electric utilities, national accounts, original equipment manufacturers, digital retailers, lighting showrooms, and energy service companies. The ISG segment offers building management solutions, such as products for controlling heating, ventilation, air conditioning, lighting, shades, refrigeration, and building access that deliver end-to-end optimization of those building systems; and building management software that enhances building system management and automates labor intensive tasks. This segment serves system integrators, as well as retail stores, airports, and enterprise campuses. The company offers its products and solutions under the Atrius, Distech Controls, and KE2 Therm Solutions brands. Acuity Brands, Inc. was incorporated in 2001 and is headquartered in Atlanta, Georgia.
About Brand Engagement Network (Get Free Report)
Brand Engagement Network, Inc. provides conversational AI assistants. The company offers security-focused, multimodal communication, and human-like assistants. Its AI assistants are built on proprietary natural language processing, anomaly detection, multisensory awareness, sentiment, and environmental analysis, as well as real-time individuation and personalization capabilities. It serves the automotive, healthcare, and other industries through direct sales force and channel partners. Brand Engagement Network, Inc. was formerly known as Blockchain Exchange Network Inc. and changed its name to Brand Engagement Network, Inc. in April 2023. The company was founded in 2018 and is based in Jackson, Wyoming.
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AEGON ASSET MANAGEMENT UK Plc bought a new position in shares of Acuity, Inc. (NYSE: AYI) in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 5,603 shares of the electronics maker's stock, valued at approximately $2,019,000. A number of
Growth investment strengthens Acuity's ability to combine market, event and trade intelligence with real-time market move attribution London, United Kingdom--(Newsfile Corp. - May 12, 2026) - Acuity Trading, a global provider of AI-driven market, event and trade intelligence solutions for brokers, platforms and financial institutions, today announced a growth investment in MarketReader, an AI-powered financial intelligence platform focused on explaining why markets move in real time. To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/12397/296897_acuity.jpg The investment marks a significant step in Acuity's long-term strategy to build a broader, more complete intelligence offering for financial institutions and their end users.
LONDON--(BUSINESS WIRE)-- #AIAgents--Acuity Analytics today announced the launch of its next-generation, domain-led Agentic AI platform, Agent Fleet Pro.
On May 26, 2026, Acuity Inc (AYI) shares rose 3.5% today, bringing the current price to $297.58. The stock has traded within a 52-week range of $253.03 to $380.
ATLANTA, May 28, 2026 (GLOBE NEWSWIRE) -- Acuity Inc. (NYSE: AYI) (the “Company”) will release fiscal 2026 third-quarter results on Thursday, June 25, 2026 at 6:00 a.m. ET, followed by a conference call at 8:00 a.m. ET. Neil Ashe, Chief Executive Officer of Acuity Inc., will lead the call.
The webcast, earnings release, and supplemental presentation can be accessed via the Investor Relations section of the Company's website at www.investors.acuityinc.com on Thursday, June 25, 2026. The online replay will remain available for a limited time following the call. A replay of the call will also be posted to the Investor Relations site two hours after the completion of the conference call and will be archived on the website.
To learn more about Acuity, please visit the Company's website.
About Acuity
Acuity Inc. (NYSE: AYI) is a market-leading industrial technology company. We use technology to solve problems in spaces, light and more things to come. Through our two business segments, Acuity Brands Lighting (ABL) and Acuity Intelligent Spaces (AIS), we design, manufacture, and bring to market products and services that make a valuable difference in people’s lives.
We achieve growth through the development of innovative new products and services, including lighting, lighting controls, building management solutions, and an audio, video and control platform. We focus on customer outcomes and drive growth and productivity to increase market share and deliver superior returns. We look to aggressively deploy capital to grow the business and to enter attractive new verticals.
Acuity Inc. is based in Atlanta, Georgia, with operations across North America, Europe and Asia. The Company is powered by approximately 13,000 dedicated and talented associates. Visit us at www.acuityinc.com.
Cwm LLC reduced its position in Lamar Advertising Company (NASDAQ: LAMR) by 30.3% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 26,805 shares of the real estate investment trust's stock after selling 11,667 shares during the
Warren Buffett stepped down as CEO of Berkshire Hathaway (NYSE: BRK-B | BRK-B Price Prediction) on December 31, 2025, after six decades leading the conglomerate he transformed from a struggling textile mill into a $1 trillion empire. The “Oracle of Omaha” left his successor, Greg Abel, with a very concentrated portfolio: more than 65% of Berkshire’s $381 billion portfolio is invested in just six stocks. Abel, who has served as vice chair overseeing non-insurance operations, officially took over as chief executive on January 1, 2026. At 95 years old, Buffett isn’t fully retiring—he will remain board chair and plans to continue coming to the Omaha headquarters as much as before. However, he has stated he will be “going quiet” and leaving all decision-making to Abel.
Given that the Berkshire Hathaway portfolio is the epitome of a “buy and hold” strategy, it makes sense for investors to review the stocks it holds and identify which are currently the highest yielding. One is a consumer staples giant that may eventually cut its dividend, but could be a contrarian home run if it doesn’t. Another is one of the world’s largest alcoholic beverage companies, and in an age when Gen Z has cut its alcohol intake in a big way, it could also be a contrarian winner this year.
Why do we cover Berkshire Hathaway stocks?
Few investors have the results and reputation that Buffett has garnered over the past 60 years. Though he has stepped away from the CEO chair, his impact and investment guidelines are likely to remain in place long after he is gone. While investing has evolved since Buffett took control of Berkshire Hathaway in 1965, buying good companies with products and services recognized worldwide and paying dividends will always remain a timeless approach and never go out of style.
Kraft Heinz Kraft Heinz (NYSE: KHC) is North America’s third-largest food and beverage company and fifth-largest globally. Even in difficult times, everybody needs to eat, and this company consistently benefits while paying a substantial 7.20% dividend. The company was formed via the merger of H.J. Heinz and Kraft Foods, and it manufactures and markets food and beverage products worldwide through its eight consumer-driven product platforms:
Taste Elevation Easy Ready Meals Hydration Meats Cheeses Substantial Snacking Desserts Coffee and other grocery products The company has two reportable segments defined by geographic region: North America and International Developed Markets. Its other segments, West and East Emerging Markets (WEEM) and Asia Emerging Markets (AEM), are combined and reported as Emerging Markets.
Kraft Heinz brands include:
Kraft Oscar Mayer Heinz Philadelphia Lunchables Velveeta Ore-Ida Capri Sun Maxwell House Kool-Aid Jell-O Golden Circle Wattie’s Plasmon ABC Master Quero Pudliszki The company manufactures its products from a wide variety of raw materials, and its products are sold through its sales organizations and independent brokers, agents, and distributors.
In February 2026, Kraft Heinz scrapped its planned corporate split. New CEO Steve Cahillane cited worsening conditions in the food industry, while emphasizing that the company’s challenges are “fixable and within our control.” Rather than breaking up, the company is intensifying its turnaround efforts. It is committing $600 million to marketing, sales, and research and development to drive the strategy. The decision follows a 3.5% decline in net sales in 2025, with further declines expected in 2026. By canceling the split, Kraft Heinz is now fully focused on stabilizing and rebuilding the business. Abel indicated Berkshire Hathaway is no longer planning to sell its stake in Kraft Heinz.
The swift reversal is being viewed as a reflection of Abel’s more hands-on management approach, as he reportedly expressed dissatisfaction, prompting the company to change direction quickly. For now, Berkshire appears committed to holding its position, although the registered shares could still be sold if conditions shift. If they don’t, and the transition is successful, this could be a contrarian home run.
Lamar Advertising One of the strongest companies in a very competitive industry, shareholders will gladly accept a 4.59% dividend payout. Lamar Advertising (NASDAQ: LAMR) is an outdoor advertising company with over 363,000 displays across the United States and Canada.
The company offers advertisers a variety of billboard, interstate, transit, and airport advertising formats. It offers its customers a network of digital billboards in the United States with approximately 5,100 displays. Lamar Advertising operates three types of outdoor advertising displays:
Billboards Logo signs Transit advertising displays Under Billboards, it rents most of its advertising space on two types: bulletins and posters. In addition to traditional billboards, it rents space on digital billboards located on major traffic arteries and city streets. Under Logo signs, it rents advertising space on logo signs located near highway exits. The Transit advertising displays rent advertising space on the exteriors and interiors of public vehicles, in airport terminals, and on transit shelters and benches.
Diageo Diageo (NYSE: DEO) is a British multinational alcoholic beverage company headquartered in London. This company is one of the world’s largest producers of alcoholic beverages, it markets and sells alcoholic beverages worldwide, and it pays a solid dividend of 4.07%. While alcohol consumption has dropped among younger consumers, a pivot to the products they do enjoy could help this top company regain its footing.
Diageo offers:
Scotch whiskey, gin, vodka, rum, beer, and spirits Irish cream liqueurs Wine, raki, tequila, Canadian and American whiskey Cachaça and brandy, as well as adult beverages and ready-to-drink products The company’s premium brands include Johnnie Walker, Smirnoff, Captain Morgan, Baileys, Tanqueray, and Guinness. Its reserve brands include:
Johnnie Walker Blue Label Johnnie Walker Green Label Johnnie Walker Gold Label 18-year-old Johnnie Walker Gold Label Reserve Johnnie Walker Platinum Label 18-year-old John Walker & Sons Collection Johnnie Walker The Gold Route Johnnie Walker The Royal Route The Johnnie Walker super premium brands include The Singleton, Cardhu, Talisker, and Lagavulin.
Sirius XM The satellite radio was first added to the Berkshire Hathaway portfolio in 2016, and Buffett has continued to increase his stake over the past few years, which has proven to be genius. Sirius XM (NASDAQ: SIRI) is an audio entertainment company in North America that pays shareholders a dividend yield of 3.97%.
The company has a portfolio of audio businesses, including its flagship subscription entertainment service SiriusXM; the ad-supported and premium music streaming services of Pandora; an expansive podcast network; and a suite of business and advertising solutions.
The Sirius XM segment offers a variety of content, including music, sports, entertainment, comedy, talk, news, traffic, and other channels, as well as podcasts and infotainment services, in the United States for a subscription-based fee. Sirius XM’s packages include live, curated, and specific exclusive and on-demand programming.
The Pandora and Off-platform segment operates a music, comedy, and podcast streaming discovery platform, offering a personalized experience for each listener, wherever and whenever they want to listen, across mobile devices, vehicle speakers, and connected devices.
Chevron Chevron (NYSE: CVX) is an American multinational energy company primarily focused on oil and gas, and it has been on fire as oil prices have skyrocketed. This integrated giant is a safer option for investors looking to position themselves in the energy sector, and it pays a substantial 3.70% dividend, which was raised by 5% earlier this year. Chevron operates integrated energy and chemicals businesses worldwide. Berkshire Hathaway bought a very well-timed 8 million additional shares in the fourth quarter and now owns 130,156,362 shares, which equals 6.5% of the float and 8.0% of the portfolio.
The company operates in two segments. The Upstream segment is involved in the following:
Exploration, development, production, and transportation of crude oil and natural gas Processing, liquefaction, transportation, and regasification associated with liquefied natural gas Transportation of crude oil through pipelines, and transportation, storage Marketing of natural gas, as well as operating a gas-to-liquids plant The Downstream segment engages in:
Refining crude oil into petroleum products Marketing crude oil, refined products, and lubricants Manufacturing and marketing renewable fuels Transporting crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives It also involves cash management, debt financing, insurance operations, real estate, and technology businesses.
Net revenues were $528.0 millionNet income was $101.8 millionAdjusted EBITDA was $226.3 million BATON ROUGE, La., May 07, 2026 (GLOBE NEWSWIRE) -- Lamar Advertising Company (the “Company” or “Lamar”) (Nasdaq: LAMR), a leading owner and operator of outdoor advertising and logo sign displays, announces the Company’s operating results for the first quarter ended March 31, 2026.
“Our year is shaping up quite nicely, with strong demand from local and particularly national customers," Lamar chief executive Sean Reilly said. "Our first-quarter results surpassed our internal forecasts, and our pacings have us trending at the top end of our previously provided guidance for full-year AFFO per diluted share. “
First Quarter Highlights
Net revenues increased 4.5%Net income decreased 26.9%Adjusted EBITDA increased 7.7%AFFO increased 8.0% First Quarter Results
Lamar reported net revenues of $528.0 million for the first quarter of 2026 versus $505.4 million for the first quarter of 2025, a 4.5% increase. Operating income for the first quarter of 2026 decreased $45.2 million to $146.1 million as compared to $191.2 million for the same period in 2025. Lamar recognized net income of $101.8 million for the first quarter of 2026 as compared to a net income of $139.2 million for the same period in 2025, a decrease of $37.4 million. The 26.9% decrease in net income for the first quarter of 2026 as compared to the same period in 2025 was primarily due to the $67.7 million gain, offset by the $13.1 million income tax expense, recorded in 2025 for the sale of Lamar’s equity interest in Vistar Media, Inc. (“Vistar”). Net income per diluted share was $1.00 and $1.35 for the three months ended March 31, 2026 and 2025, respectively.
Adjusted EBITDA for the first quarter of 2026 was $226.3 million versus $210.2 million for the first quarter of 2025, an increase of 7.7%.
Cash flow provided by operating activities was $147.4 million for the three months ended March 31, 2026 versus $127.7 million for the first quarter of 2025, an increase of $19.6 million. Free cash flow for the first quarter of 2026 was $152.4 million as compared to $121.1 million for the same period in 2025, a 25.8% increase.
For the first quarter of 2026, funds from operations, or FFO, was $167.8 million versus $156.1 million for the same period in 2025, an increase of 7.5%. Adjusted funds from operations, or AFFO, for the first quarter of 2026 was $177.5 million compared to $164.3 million for the same period in 2025, an increase of 8.0%. Diluted AFFO per share increased 7.5% to $1.72 for the three months ended March 31, 2026 as compared to $1.60 for the same period in 2025.
Acquisition-Adjusted Three Months Results
Acquisition-adjusted net revenue for the first quarter of 2026 increased 3.9% over acquisition-adjusted net revenue for the first quarter of 2025. Acquisition-adjusted EBITDA for the first quarter of 2026 increased 5.2% as compared to acquisition-adjusted EBITDA for the first quarter of 2025. Acquisition-adjusted net revenue and acquisition-adjusted EBITDA include adjustments to the 2025 period for acquisitions and divestitures for the same time frame as actually owned in the 2026 period. See “Reconciliation of Reported Basis to Acquisition-Adjusted Results”, which provides reconciliations to GAAP for acquisition-adjusted measures.
Liquidity
As of March 31, 2026, Lamar had $701.5 million in total liquidity that consisted of $662.2 million available for borrowing under its revolving senior credit facility and $39.3 million in cash and cash equivalents. There was $80.0 million in borrowings outstanding under the Company’s revolving credit facility and $242.1 million outstanding under the Accounts Receivable Securitization Program as of the same date.
Recent Developments
Subsequent to March 31, 2026, Lamar paid down $40.0 million of its outstanding borrowings under the Company’s revolving credit facility. Currently, there is $40.0 million in borrowings outstanding under the Company’s revolving credit facility and $250.0 million outstanding under the Accounts Receivable Securitization Program.
Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding sales trends. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. These risks and uncertainties include, among others: (1) our significant indebtedness; (2) the state of the economy and financial markets generally, and the effect of the broader economy on the demand for advertising, including economic changes that may result from new or increased tariffs, trade restrictions or geopolitical tensions, including war and armed conflicts; (3) the continued popularity of outdoor advertising as an advertising medium; (4) our need for and ability to obtain additional funding for operations, debt refinancing or acquisitions; (5) our ability to continue to qualify as a Real Estate Investment Trust (“REIT”) and maintain our status as a REIT; (6) the regulation of the outdoor advertising industry by federal, state and local governments; (7) the integration of companies and assets that we acquire and our ability to recognize cost savings or operating efficiencies as a result of these acquisitions; (8) changes in accounting principles, policies or guidelines; (9) changes in tax laws applicable to REITs or in the interpretation of those laws; (10) our ability to renew expiring contracts at favorable rates; (11) our ability to successfully implement our digital deployment strategy; and (12) the market for our Class A common stock. For additional information regarding factors that may cause actual results to differ materially from those indicated in our forward-looking statements, we refer you to the risk factors included in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, as supplemented by any risk factors contained in our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. We caution investors not to place undue reliance on the forward-looking statements contained in this document. These statements speak only as of the date of this document, and we undertake no obligation to update or revise the statements, except as may be required by law.
Use of Non-GAAP Financial Measures
The Company has presented the following measures that are not measures of performance under accounting principles generally accepted in the United States of America (“GAAP”): adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), free cash flow, funds from operations (“FFO”), adjusted funds from operations (“AFFO”), diluted AFFO per share, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense. Our management reviews our performance by focusing on these key performance indicators not prepared in conformity with GAAP. We believe these non-GAAP performance indicators are meaningful supplemental measures of our operating performance and should not be considered in isolation of, or as a substitute for their most directly comparable GAAP financial measures.
Our Non-GAAP financial measures are determined as follows:
We define adjusted EBITDA as net income before income tax expense (benefit), interest expense (income), loss (gain) on extinguishment of debt and investments, equity in (earnings) loss of investee, stock-based compensation, depreciation and amortization, loss (gain) on disposition of assets and investments, transaction expenses and investments and capitalized contract fulfillment costs, net. Adjusted EBITDA margin is defined as adjusted EBITDA divided by net revenues. Free cash flow is defined as adjusted EBITDA less interest, net of interest income and amortization of deferred financing costs, current taxes, preferred stock dividends and total capital expenditures. We use the National Association of Real Estate Investment Trusts definition of FFO, which is defined as net income before (gain) loss from the sale or disposal of real estate assets and investments, net of tax, and real estate related depreciation and amortization and including adjustments to eliminate unconsolidated affiliates and non-controlling interest. We define AFFO as FFO before (i) straight-line income and expense; (ii) capitalized contract fulfillment costs, net; (iii) stock-based compensation expense; (iv) non-cash portion of tax expense (benefit); (v) non-real estate related depreciation and amortization; (vi) amortization of deferred financing costs; (vii) loss on extinguishment of debt; (viii) transaction expenses; (ix) non-recurring infrequent or unusual losses (gains); (x) less maintenance capital expenditures; and (xi) an adjustment for unconsolidated affiliates and non-controlling interest. Diluted AFFO per share is defined as AFFO divided by adjusted weighted average diluted common shares/units outstanding. Adjusted weighted average diluted common shares/units outstanding is calculated by adjusting the Company’s weighted average diluted common shares to add the weighted average outstanding units of Lamar Advertising Limited Partnership (“Lamar LP”), the Company’s operating partnership, that are held by limited partners of Lamar LP other than the Company’s wholly owned subsidiary, Lamar Media Corp. Upon the satisfaction of certain conditions, these units of Lamar LP are redeemable for cash or, at the Company’s option, shares of the Company’s Class A common stock on a one-for-one basis. Outdoor operating income is defined as operating income before corporate expenses, stock-based compensation, capitalized contract fulfillment costs, net, transaction expenses, depreciation and amortization and loss (gain) on disposition of assets and investments. Acquisition-adjusted results adjusts our net revenue, direct and general and administrative expenses, outdoor operating income, corporate expense and EBITDA for the prior period by adding to, or subtracting from, the corresponding revenue or expense generated by the acquired or divested assets before our acquisition or divestiture of these assets for the same time frame that those assets were owned in the current period. In calculating acquisition-adjusted results, therefore, we include revenue and expenses generated by assets that we did not own in the prior period but acquired in the current period. We refer to the amount of pre-acquisition revenue and expense generated by or subtracted from the acquired assets during the prior period that corresponds with the current period in which we owned the assets (to the extent within the period to which this report relates) as “acquisition-adjusted results”. Acquisition-adjusted consolidated expense adjusts our total operating expense to remove the impact of stock-based compensation, depreciation and amortization, transaction expenses, capitalized contract fulfillment costs, net, and loss (gain) on disposition of assets and investments. The prior period is also adjusted to include the expense generated by the acquired or divested assets before our acquisition or divestiture of such assets for the same time frame that those assets were owned in the current period. Adjusted EBITDA, FFO, AFFO, diluted AFFO per share, free cash flow, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense are not intended to replace other performance measures determined in accordance with GAAP. Free cash flow, FFO and AFFO do not represent cash flows from operating activities in accordance with GAAP and, therefore, these measures should not be considered indicative of cash flows from operating activities as a measure of liquidity or of funds available to fund our cash needs, including our ability to make cash distributions. Adjusted EBITDA, free cash flow, FFO, AFFO, diluted AFFO per share, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense are presented as we believe each is a useful indicator of our current operating performance. Specifically, we believe that these metrics are useful to an investor in evaluating our operating performance because (1) each is a key measure used by our management team for purposes of decision making and for evaluating our core operating results; (2) adjusted EBITDA is widely used in the industry to measure operating performance as it excludes the impact of depreciation and amortization, which may vary significantly among companies, depending upon accounting methods and useful lives, particularly where acquisitions and non-operating factors are involved; (3) adjusted EBITDA, FFO, AFFO, diluted AFFO per share and acquisition-adjusted consolidated expense each provides investors with a meaningful measure for evaluating our period-over-period operating performance by eliminating items that are not operational in nature and reflect the impact on operations from trends in occupancy rates, operating costs, general and administrative expenses and interest costs; (4) acquisition-adjusted results is a supplement to enable investors to compare period-over-period results on a more consistent basis without the effects of acquisitions and divestitures, which reflects our core performance and organic growth (if any) during the period in which the assets were owned and managed by us; (5) free cash flow is an indicator of our ability to service debt and generate cash for acquisitions and other strategic investments; (6) outdoor operating income provides investors a measurement of our core results without the impact of fluctuations in stock-based compensation, depreciation and amortization and corporate expenses; and (7) each of our Non-GAAP measures provides investors with a measure for comparing our results of operations to those of other companies.
Our measurement of adjusted EBITDA, FFO, AFFO, diluted AFFO per share, free cash flow, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense may not, however, be fully comparable to similarly titled measures used by other companies. Reconciliations of adjusted EBITDA, FFO, AFFO, diluted AFFO per share, free cash flow, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense to the most directly comparable GAAP measures have been included herein.
Conference Call Information
A conference call will be held to discuss the Company’s operating results on Thursday, May 7, 2026 at 8:00 a.m. central time. Instructions for the conference call and Webcast are provided below:
Conference Call
All Callers:1-800-420-1271 or 1-785-424-1634Passcode:63104 Live Webcast:ir.lamar.com Webcast Replay:ir.lamar.com Available through Thursday, May 14, 2026 at 11:59 p.m. Eastern Time Company Contact:Buster Kantrow Director of Investor Relations (225) 926-1000 [email protected]
General Information
Founded in 1902, Lamar Advertising (Nasdaq: LAMR) is one of the largest outdoor advertising companies in North America, with over 359,000 displays across the United States and Canada. Lamar offers advertisers a variety of billboard, interstate logo, transit and airport advertising formats, helping both local businesses and national brands reach broad audiences every day. In addition to its more traditional out-of-home inventory, Lamar is proud to offer its customers the largest network of digital billboards in the United States with over 5,600 displays.
LAMAR ADVERTISING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
Three Months Ended
March 31, 2026 2025 Net revenues$528,004 $505,430 Operating expenses (income): Direct advertising expenses 183,590 179,622 General and administrative expenses 91,496 89,201 Corporate expenses 26,590 26,386 Stock-based compensation 11,203 10,577 Capitalized contract fulfillment costs, net (275) 375 Depreciation and amortization 81,939 77,821 Gain on disposition of assets and investments (12,602) (69,785)Total operating expense 381,941 314,197 Operating income 146,063 191,233 Other (income) expense: Interest income (371) (492)Interest expense 40,539 38,332 Equity in earnings of investee — (380) 40,168 37,460 Income before income tax expense 105,895 153,773 Income tax expense 4,050 14,544 Net income 101,845 139,229 Net income attributable to non-controlling interest 558 474 Net income attributable to controlling interest 101,287 138,755 Preferred stock dividends 91 91 Net income applicable to common stock$101,196 $138,664 Earnings per share: Basic earnings per share$1.00 $1.35 Diluted earnings per share$1.00 $1.35 Weighted average common shares outstanding: Basic 101,373,840 102,437,911 Diluted 101,451,145 102,797,307 OTHER DATA Free Cash Flow Computation: Adjusted EBITDA$226,328 $210,221 Interest, net (38,475) (36,317)Current tax expense (2,272) (22,812)Preferred stock dividends (91) (91)Total capital expenditures (33,140) (29,887)Free cash flow$152,350 $121,114 SUPPLEMENTAL SCHEDULESSELECTED BALANCE SHEET AND CASH FLOW DATA(IN THOUSANDS) March 31,
2026 December 31,
2025Selected Balance Sheet Data: Cash and cash equivalents$39,273 $64,812 Working capital deficit$(308,585) $(334,320)Total assets$6,913,348 $6,931,954 Total debt, net of deferred financing costs (including current maturities)$3,495,062 $3,418,907 Total stockholders’ equity$981,694 $1,024,779 Three Months Ended
March 31, 2026 2025Selected Cash Flow Data: Cash flows provided by operating activities$147,390 $127,745Cash flows (used in) provided by investing activities$(79,394) $65,426Cash flows used in financing activities$93,427 $206,522 SUPPLEMENTAL SCHEDULES
UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES
(IN THOUSANDS)
Three Months Ended
March 31, 2026 2025 Reconciliation of Cash Flows Provided By Operating Activities to Free Cash Flow: Cash flows provided by operating activities$147,390 $127,745 Changes in operating assets and liabilities 40,643 24,167 Total capital expenditures (33,140) (29,887)Preferred stock dividends (91) (91)Capitalized contract fulfillment costs, net (275) 375 Other (2,177) (1,195)Free cash flow$152,350 $121,114 Reconciliation of Net Income to Adjusted EBITDA: Net income$101,845 $139,229 Interest income (371) (492)Interest expense 40,539 38,332 Equity in earnings of investee — (380)Income tax expense 4,050 14,544 Operating income 146,063 191,233 Stock-based compensation 11,203 10,577 Capitalized contract fulfillment costs, net (275) 375 Depreciation and amortization 81,939 77,821 Gain on disposition of assets and investments (12,602) (69,785)Adjusted EBITDA$226,328 $210,221 Capital expenditure detail by category: Billboards - traditional$5,928 $6,046 Billboards - digital 13,131 16,076 Logo 4,441 2,606 Transit 502 588 Land and buildings 1,126 310 Operating equipment 8,012 4,261 Total capital expenditures$33,140 $29,887 SUPPLEMENTAL SCHEDULES
UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES
(IN THOUSANDS)
Three Months Ended
March 31, 2026 2025 % ChangeReconciliation of Reported Basis to Acquisition-Adjusted Results(a): Net revenue$528,004 $505,430 4.5%Acquisitions and divestitures — 2,765 Acquisition-adjusted net revenue 528,004 508,195 3.9%Reported direct advertising and G&A expenses 275,086 268,823 2.3%Acquisitions and divestitures — (2,207) Acquisition-adjusted direct advertising and G&A expenses 275,086 266,616 3.2%Outdoor operating income 252,918 236,607 6.9%Acquisition and divestitures — 4,972 Acquisition-adjusted outdoor operating income 252,918 241,579 4.7%Reported corporate expense 26,590 26,386 0.8%Acquisitions and divestitures — (49) Acquisition-adjusted corporate expenses 26,590 26,337 1.0%Adjusted EBITDA 226,328 210,221 7.7%Acquisitions and divestitures — 5,021 Acquisition-adjusted EBITDA$226,328 $215,242 5.2% (a) Acquisition-adjusted net revenue, direct advertising and general and administrative expenses, outdoor operating income, corporate expenses and EBITDA include adjustments to 2025 for acquisitions and divestitures for the same time frame as actually owned in 2026.
Three Months Ended
March 31, 2026 2025 % ChangeReconciliation of Net Income to Outdoor Operating Income: Net income$101,845 $139,229 (26.9)%Interest expense, net 40,168 37,840 Equity in earnings of investee — (380) Income tax expense 4,050 14,544 Operating income 146,063 191,233 (23.6)%Corporate expenses 26,590 26,386 Stock-based compensation 11,203 10,577 Capitalized contract fulfillment costs, net (275) 375 Depreciation and amortization 81,939 77,821 Gain on disposition of assets and investments (12,602) (69,785) Outdoor operating income$252,918 $236,607 6.9% SUPPLEMENTAL SCHEDULES
UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES
(IN THOUSANDS)
Three Months Ended
March 31, 2026 2025 % ChangeReconciliation of Total Operating Expenses to Acquisition-Adjusted Consolidated Expense: Total operating expenses$381,941 $314,197 21.6%Gain on disposition of assets and investments 12,602 69,785 Depreciation and amortization (81,939) (77,821) Capitalized contract fulfillment costs, net 275 (375) Stock-based compensation (11,203) (10,577) Acquisitions and divestitures — (2,256) Acquisition-adjusted consolidated expense$301,676 $292,953 3.0% SUPPLEMENTAL SCHEDULES
UNAUDITED REIT MEASURES
AND RECONCILIATIONS TO GAAP MEASURES
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
Three Months Ended
March 31, 2026 2025 Adjusted Funds from Operations: Net income$101,845 $139,229 Depreciation and amortization related to real estate 77,073 73,636 Gain from sale or disposal of real estate assets and investments, net of tax (10,561) (56,597)Adjustments for unconsolidated affiliates and non-controlling interest (558) (126)Funds from operations$167,799 $156,142 Straight-line expense 1,164 1,009 Capitalized contract fulfillment costs, net (275) 375 Stock-based compensation expense 11,203 10,577 Non-cash portion of tax provision (193) (244)Non-real estate related depreciation and amortization 4,866 4,185 Amortization of deferred financing costs 1,693 1,523 Capitalized expenditures-maintenance (9,297) (9,385)Adjustments for unconsolidated affiliates and non-controlling interest 558 126 Adjusted funds from operations$177,518 $164,308 Weighted average diluted common shares outstanding(1) 101,451,145 102,797,307 Adjusted weighted average diluted common shares/units outstanding(2) 103,074,560 102,797,307 Diluted AFFO per share$1.72 $1.60
(1) Utilized to calculate earnings per share in accordance with GAAP.
(2) Utilized to calculated AFFO per share. Includes the weighted average outstanding units of Lamar LP (the Company’s operating partnership) that are held by limited partners of Lamar LP other than the Company’s wholly owned subsidiary, Lamar Media Corp. Upon the satisfaction of certain conditions, these units of Lamar LP are redeemable for cash or, at the Company’s option, shares of the Company’s Class A common stock on a one-for-one basis.
Lamar Advertising (LAMR) came out with quarterly funds from operations (FFO) of $1.72 per share, beating the Zacks Consensus Estimate of $1.57 per share. This compares to FFO of $1.6 per share a year ago.
Lamar Advertising remains a "Buy," supported by resilient business fundamentals and robust Q1 results, with shares at a 52-week high. Q1 revenue grew 4% to $528 million, AFFO rose 7.5% to $1.72, and digital billboards now comprise 30% of LAMR's business. A strong balance sheet (3x leverage) enables $1.3 billion in M&A capacity, supporting ongoing bolt-on acquisitions and potential buybacks.
BATON ROUGE, La. , May 08, 2026 (GLOBE NEWSWIRE) -- Lamar Advertising Company (Nasdaq: LAMR) today announced that Sean Reilly, CEO of Lamar Advertising Company, is scheduled to participate in a question-and-answer session at the J. P. Morgan 2026 Global Technology, Media and Communications Conference on Monday, May 18, 2026 at approximately 3:30 pm EST.
Key Takeaways LAMR Q1 2026 AFFO per share hit $1.72, up 7.5% and 9.6% above consensus.Lamar net revenues rose 4.5% to $528M; national revenues 5.8% and programmatic nearly 25%.Lamar expanded EBITDA margin 130 bps to 42.9% and lifted free cash flow 25.8% to $152.4M. Lamar Advertising Company (LAMR - Free Report) posted first-quarter 2026 AFFO per share of $1.72, up 7.5% year over year and ahead of the Zacks Consensus Estimate of $1.57 by 9.6%. Quarterly net revenues of $528.0 million rose 4.5% from the prior-year period and topped the consensus mark of $525.9 million by 0.4%.
Reflecting upbeat sentiments, LAMR shares were up more than 7% during yesterday’s trading and also rose during the pre-market hours.
Results benefited from broad-based advertising demand, with management pointing to particular strength from national customers. Digital continued to play a meaningful role, accounting for almost 31% of billboard billing in the quarter.
LAMR's National Demand Fuels Top-Line BeatNet revenues increased 4.5% from the year-ago quarter, reflecting steady demand across Lamar’s formats and geographies. On an acquisition-adjusted basis, consolidated revenues advanced 3.9%, with growth across the company’s billboards, airports, transit and logos businesses.
Management highlighted a rebound on the national side. National revenues increased 5.8% versus the first quarter of 2025, with programmatic sales up nearly 25% to approximately $11 million. Excluding programmatic, national revenues still rose 4.1%. Local revenues grew 3%, extending a multiyear trend of expanding local and regional sales.
Lamar Expands Margins as EBITDA ClimbsAdjusted EBITDA increased 7.7% year over year to $226.3 million. The adjusted EBITDA margin expanded 130 basis points to 42.9%, supported by higher revenues and cost discipline. Acquisition-adjusted consolidated expenses increased 3% in the quarter, which management said came in better than expected.
Management also pointed to portfolio factors that aided margin performance, including the absence of a low-margin business exited last year and contributions from acquisitions that typically carry attractive incremental margins. Management indicated it expects to deliver full-year margin expansion versus 2025.
LAMR's Business Shows Cash GenerationThe quarter also produced stronger cash generation, with cash flow provided by operating activities rising to $147.4 million from $127.7 million a year ago. Free cash flow improved to $152.4 million, up 25.8% year over year. Total capital expenditures were $33.1 million, including $9.3 million of maintenance CapEx. For the full year, management expects total capex of approximately $186 million, with maintenance capex comprising $64 million.
Lamar Keeps Leverage Low With Ample LiquidityLamar exited the quarter with approximately $3.5 billion of total consolidated debt and a weighted average interest rate of 4.5%. The company’s weighted average debt maturity was 4.3 years, and management emphasized a well-laddered maturity schedule with no maturities until its accounts receivable securitization in October 2027 and no senior notes maturity until February 2028.
Total leverage ended the quarter at 3.0X net debt to EBITDA, with secured leverage at 0.7X. Liquidity totaled $701.5 million, consisting of $39.3 million of cash on hand and $662.2 million available under the revolver. Subsequent to quarter-end, the company repaid $40 million on the revolver and reported that the accounts receivable securitization was fully drawn at $250 million.
LAMR's Outlook Reaffirmed, Dividend Steady With UpsideIn its release, Lamar reaffirmed full-year diluted AFFO per share guidance of $8.50 to $8.70. Management noted that the first-quarter performance and forward bookings have the company pacing toward the top end, and potentially above, the previously provided range if trends continue. The Zacks Consensus Estimate presently stands at $8.62.
The dividend remained a key shareholder return lever. Lamar paid a cash dividend of $1.60 per share in the first quarter, and management said that it plans to recommend another $1.60 per share dividend for the second quarter, subject to board approval.
For the full year, the company continues to expect a regular dividend of at least $6.40 per share, with management signaling that improving performance could support an increase in the back half of 2026, depending on taxable income and board action.
LAMR’s Zacks RankLamar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other REITsOUTFRONT Media Inc. (OUT - Free Report) posted first-quarter 2026 adjusted funds from operations (AFFO) of 34 cents per share, beating the Zacks Consensus Estimate of 28 cents by 21.43%. Revenues rose 10% year over year to $429.6 million and topped expectations by 2.32%.
OUTFRONT Media’s results reflected stronger pricing and demand across the portfolio, with transit revenues rising strongly and billboard yield improving in double digits. Digital revenues also remained a meaningful contributor, with automated channels supporting revenue quality and mix of OUTFRONT Media.
Cousins Properties Incorporated (CUZ - Free Report) posted first-quarter 2026 FFO per share of $0.73, topping the Zacks Consensus Estimate of $0.71 by 2.8%. The metric slipped 1.4% year over year. Cousins Properties noted that the prior-year period benefited from a gain tied to the sale of a bankruptcy claim with SVB Financial Group.
Rental property revenues came in at $261.1 million, up 7.4% from the year-ago quarter and ahead of the consensus estimate of $253.7 million by 2.9%. Cash-basis same-property NOI of Cousins Properties increased 5.5%, reflecting healthier in-place performance.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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Key Takeaways Lamar Advertising shares jumped 20.3% in three months, far outpacing the industry's 2.8% gain.LAMR growth is driven by acquisitions, digital expansion, and a diversified advertiser base.LAMR benefits from strong OOH ad trends, high entry barriers, and consistent dividend growth. Lamar Advertising (LAMR - Free Report) shares have risen 20.3% in the past three months compared with the industry’s growth of 2.8%.
Lamar holds a significant market share in the U.S. outdoor advertising business. Its diversified tenant base, opportunistic acquisitions and efforts to upgrade its portfolio are key growth drivers.
Analysts seem optimistic about this Zacks Rank #2 (Buy) company. The Zacks Consensus Estimate for its 2026 FFO per share has moved marginally northward over the past week to $8.63. It also suggests an increase of 4.5% from year over year.
Image Source: Zacks Investment Research
Factors Behind LAMR Stock Price Rise: Will This Continue?Lamar is among the largest owners and operators of outdoor advertising structures in the United States, with a broad nationwide presence. The company holds a leading position in logo signs and benefits from a well-diversified advertiser base across services, healthcare, restaurants, retail, automotive, insurance and gaming. A significant portion of Lamar’s revenue is generated from local and regional businesses, which further diversifies its tenant mix and helps reduce revenue volatility.
The company's increased focus on bolstering its digital capabilities augurs well for long-term growth. Particularly, the growing digital platform allows Lamar to tap into expanding programmatic advertising channels. The company has added a large number of digital screens through acquisitions and internal conversions over the past several years. In the first quarter of 2026, Lamar completed multiple acquisitions for a total cash purchase price of approximately $58.6 million. It offers customers one of the largest networks of digital billboards in the United States, with more than 5,600 displays as of the end of the first quarter of 2026.
Out of Home (OOH) advertising has been growing at a rapid pace and continues to increase its market share in comparison with other forms of media. Moreover, fragmentation across other advertising media and technological advancements in the OOH segment are aiding the shift to outdoor advertising. In the upcoming years, higher technology investments are expected to provide further support to OOH advertising. Therefore, the company’s expansion activities over the recent years bode well for long-term growth.
Lamar operates in an industry that is characterized by high barriers to entry due to permitting restrictions. Moreover, as there is a control on the permits, inventory, as well as an intrusion from other market players, both local and national, are restricted. Hence, this provides the company with a solid competitive edge.
Solid dividend payouts remain the biggest attraction for REIT investors, and Lamar has been committed to the same. In the last five years, the company has raised its dividend eight times. Its five-year annualized dividend growth rate is 12.97%, which is encouraging. Management expects to generate cash flows from operations during 2026 in excess of its cash needs for operations, capital expenditures and dividends. Such efforts raise investors’ optimism about the stock.
Key Risks for Lamar AdvertisingThe uncertain macroeconomic situation and competition from other outdoor advertisers and other forms of media are major concerns for Lamar. High debt burden acts as a deterrent for the company.
Other Stocks to ConsiderSome other top-ranked stocks from the broader REIT sector are American Tower (AMT - Free Report) and Prologis Inc. (PLD - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for AMT’s 2026 FFO per share is pegged at $10.95. This implies year-over-year growth of 3.5%.
The Zacks Consensus Estimate for PLD’s 2026 FFO per share is pinned at $6.17. This calls for year-over-year growth of 6.2%.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
On May 12, 2026, Lamar Advertising Co LAMR shares fell 6.6% to a current price of $147.55. This decline comes amidst a year where the stock has seen a rise of 31.0%. The shares have fluctuated between a 52-week high of $158.69 and a low of $113.05.
GF Value™ verdict: The current price is $147.55, while the GF Value™ estimates fair value at $127.26, indicating the stock is 15.9% overvalued.GF Score™: LAMR has a GF Score™ of 86/100, which is considered strong and suggests potential for higher long-term returns.Most notable signal: Insiders sold $2.5 million worth of shares in the last three months, signaling potential caution among company leadership. Is LAMR Overvalued or Undervalued? The current price of $147.55 for Lamar Advertising Co LAMR is significantly higher than the GF Value™ estimate of $127.26. This indicates that the stock is currently overvalued by approximately 15.9%. A stock trading above its intrinsic value often carries risks, particularly if market sentiment shifts or if the company's future performance does not meet expectations. According to the GF Valuation label, LAMR is considered "Modestly Overvalued." This overvaluation suggests that investors may want to approach with caution, as the margin of safety is relatively thin.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The intrinsic value calculation takes into account various factors that can affect the company's financial health and growth trajectory. Given that LAMR is trading at a premium to its estimated fair value, potential investors need to consider the risks involved, especially if future earnings fail to meet current market expectations.
How Does LAMR's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)27.2x24.9x Forward P/E25.6x- The current P/E ratio of 27.2x is approximately 9% above its 5-year median P/E of 24.9x, indicating that the stock is trading above its historical valuation. This P/E analysis aligns with the GF Value™ verdict of being overvalued, reinforcing the notion that the stock may be priced higher than its historical performance would typically suggest.
What Does LAMR's GF Score™ Tell Us? MetricRating GF Score™86/100 Financial Strength4/10 Profitability9/10 Growth7/10 Valuation6/10 Momentum8/10 The GF Score™ of 86/100 indicates that Lamar Advertising Co LAMR is positioned favorably compared to its peers, particularly in terms of profitability, where it scores an impressive 9/10. However, the financial strength score of 4/10 suggests that there are areas of concern that may warrant further investigation. The growth and momentum rankings also reflect a solid performance, although the valuation rank of 6/10 highlights that the stock may not presently offer the best value based on its current market price.
What Are Insiders Doing with LAMR Stock? In the last three months, insiders have sold $2.5 million worth of LAMR shares, with no buying activity reported. This trend often raises red flags for potential investors, as it may indicate a lack of confidence among those who are most familiar with the company's operations. Insider selling can suggest that executives believe the stock is overvalued or that they are looking to capitalize on favorable market conditions.
The absence of insider buying could further emphasize concerns over the stock's current valuation. It is important for investors to consider these signals when evaluating the overall sentiment surrounding the company.
What This Means for Investors Based on the analysis of the GF Value™, Lamar Advertising Co LAMR is currently overvalued. The price of $147.55 exceeds the GF Value™ estimate of $127.26, which suggests that potential investors might face risks if the stock does not perform as expected in the future.
For the complete analysis, visit the Lamar Advertising Co LAMR stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is LAMR's GF Score™?
Lamar Advertising Co LAMR has a GF Score™ of 86/100, indicating strong potential for higher long-term returns based on historical performance.
Is LAMR overvalued or undervalued?
LAMR is currently overvalued, with its price of $147.55 exceeding the GF Value™ estimate of $127.26 by 15.9%.
What is LAMR's P/E ratio?
The P/E ratio for LAMR is 27.2x, which is 9% above its 5-year median of 24.9x, indicating that the stock is currently trading at a premium compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
May 14, 2026 16:15 ET | Source: Lamar Advertising Company
BATON ROUGE, La., May 14, 2026 (GLOBE NEWSWIRE) -- Lamar Advertising Company (Nasdaq: LAMR), a leading owner and operator of outdoor advertising and logo sign displays, announces that its board of directors has declared a quarterly cash dividend of $1.60 per share payable on June 30, 2026 to stockholders of record of Lamar’s Class A common stock and Class B common stock on June 16, 2026. Subject to the approval of its board of directors, Lamar expects aggregate quarterly distributions to stockholders in 2026, including the dividend payable on June 30, 2026, will total at least $6.40 per common share.
Forward-Looking Statements
This press release contains “forward-looking statements” concerning Lamar Advertising Company’s goals, beliefs, expectations, strategies, objectives, plans, future operating results and underlying assumptions and other statements that are not necessarily based on historical facts. Actual results may differ materially from those indicated in our forward-looking statements as a result of various factors, including those factors set forth in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, as supplemented by any risk factors contained in our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. We undertake no obligation to update the information contained in this press release to reflect subsequently occurring events or circumstances.
About Lamar Advertising Company
Founded in 1902, Lamar Advertising Company is one of the largest outdoor advertising companies in North America, with over 359,000 displays across the United States and Canada. Lamar offers advertisers a variety of billboard, interstate logo, transit and airport advertising formats, helping both local businesses and national brands reach broad audiences every day. In addition to its more traditional out-of-home inventory, Lamar is proud to offer its customers the largest network of digital billboards in the United States with over 5,600 displays.
Company Contact:
Buster Kantrow
Director of Investor Relations
Lamar Advertising Company
(225) 926-1000 [email protected]
I focus on HALO investing: Heavy Assets, Low Obsolescence - owning irreplaceable physical assets with durable moats against technological disruption. Top recommendations include American Tower, Brookfield Infrastructure, Prologis, Rexford Industrial, Lineage, Americold, VICI Properties, and Lamar Advertising. AMT, COLD, and VICI currently offer attractive entry points based on discounted multiples, robust dividend yields, and resilient, monopoly-like asset bases.
Key Takeaways LAMR beat expectations as local demand stayed healthy and national advertising showed clear signs of recovery.LAMR ended Q1 with 5,657 digital displays; digital was almost 31% of billboard billing.LAMR expects at least $6.40 per share distributed in 2026, supported by $701.5M liquidity. Lamar Advertising Company (LAMR - Free Report) is proving that outdoor advertising remains a strong and relevant business. The REIT opened 2026 on a positive note, beating expectations as local demand stayed healthy and national advertising showed clear signs of recovery.
Investor interest in LAMR has also improved. The stock has gained 8.2% over the past three months, while the industry has slipped 0.6%. With solid AFFO growth, an attractive dividend and encouraging booking trends, Lamar gives investors several reasons to take a closer look.
Image Source: Zacks Investment Research
Analysts also seem optimistic about this Zacks Rank #2 (Buy) company. The Zacks Consensus Estimate for its 2026 FFO per share has moved northward over the past 30 days to $8.81. It also suggests an increase of 6.66% year over year.
Image Source: Zacks Investment Research
For investors looking for a steady REIT with advertising upside, LAMR has several things working in its favor. Here are five reasons LAMR stock looks worth buying now.
Factors That Make LAMR Stock a Solid PickRevenue Growth Is Picking Up: Lamar reported first-quarter net revenues of $528 million, up 4.5% from the prior year. On an acquisition-adjusted basis, revenues rose 3.9%, showing that growth was not just coming from deals. Management also said revenues increased 4.8% in April and that bookings for the rest of the second quarter looked encouraging. This matters because outdoor advertising companies depend heavily on booking visibility, and Lamar appears to have a stronger pipeline than it had at the start of the year.
National Advertising Is Recovering: National advertising was one of the strongest parts of the quarter. National revenues increased 5.8%, with programmatic revenues rising nearly 25% to about $11 million. This is important because national advertising has been uneven in recent years. A healthier national business gives Lamar another growth lever beyond its strong local advertiser base.
Digital Billboards Remain a Growth Driver: Digital remains a key growth engine. Same-board digital revenues increased 5%, and digital represented almost 31% of billboard billing in the first quarter. Lamar ended the quarter with 5,657 digital displays, up 104 from year-end 2025. Digital boards allow the company to sell space more flexibly, improve yield and attract advertisers that want faster campaign execution.
Cash Flow and AFFO Look Strong: Adjusted EBITDA rose 7.7% to $226.3 million, while AFFO increased 8% to $177.5 million. AFFO per share climbed 7.5% to $1.72. For an REIT, AFFO is especially important because it helps support dividends and future investment. Lamar also affirmed full-year AFFO guidance of $8.50 to $8.70 per share, with management suggesting an upside revision could be possible if trends continue.
Dividend Adds Appeal: Lamar paid a first-quarter dividend of $1.60 per share and expects to distribute at least $6.40 per share for the full year. Management also said a dividend increase in the back half of 2026 is likely if performance remains strong. In the past five years, the company has raised its dividend eight times. Its five-year annualized dividend growth rate is 12.27%, which is encouraging. With a solid balance sheet, roughly $701.5 million in liquidity at quarter-end and leverage near three times net debt-to-EBITDA, Lamar looks well-positioned to keep rewarding shareholders while still pursuing acquisitions.
Other Stocks to ConsiderSome other top-ranked stocks from the broader REIT sector are Prologis, Inc. (PLD - Free Report) and W. P. Carey Inc. (WPC - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Prologis’ 2026 FFO per share suggests a 6.37% increase year over year.
The consensus mark for W. P. Carey’s 2026 FFO per share has been revised five cents upward to $5.26 over the past month.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
Key Takeaways LAMR has rallied 19.2% YTD, topping the out-of-home advertising industry's 11.2% gain.Lamar's Q1 net revenues rose 4.5% to $528M; adjusted EBITDA grew 7.7% and AFFO/share hit $1.72.LAMR was 75% booked to its full-year revenue goal by May 1; it targets 2026 dividends of at least $6.40/share. Lamar Advertising (LAMR - Free Report) has been a notable gainer in out-of-home advertising this year, with LAMR stock rallying 19.2% year to date, outperforming the industry’s growth of 11.2%. The move reflects stronger investor confidence after a solid first-quarter performance, better booking trends and signs that national advertising demand is improving.
For a stock tied closely to ad spending, the price action suggests the market is paying more attention to Lamar’s cash flow profile. It is one of North America’s largest outdoor advertising companies, operating billboards, interstate logo signs, transit displays and airport advertising assets across the United States and Canada.
Its business sits in the out-of-home advertising industry, where digital displays, programmatic buying and high-traffic locations are becoming more important. A large local customer base gives it stability, while national brands add growth when broader ad budgets improve.
Image Source: Zacks Investment Research
Factors Behind LAMR Stock Price Rise: Will This Trend Continue?The biggest reason behind Lamar’s stock strength is that first-quarter results topped expectations. Net revenues rose 4.5% year over year to $528 million, while adjusted EBITDA increased 7.7% to $226.3 million. AFFO grew 8% to $177.5 million, and AFFO per share improved to $1.72 from $1.60 a year ago. These numbers showed Lamar is not just growing sales, but also turning that growth into stronger cash flow.
Demand trends also look encouraging. Management said local and regional sales grew for the 20th straight quarter, while national revenue rose 5.8% in the first quarter. Programmatic revenues were especially strong, rising nearly 25% to about $11 million. That matters because it shows Lamar’s digital inventory is becoming more useful to advertisers who want flexible buying options.
Margins are another reason investors have warmed up to the stock. Lamar’s adjusted EBITDA margin expanded about 130 basis points to 42.9%. Management expects at least a full percentage point of margin expansion for the full year, helped by revenue growth, acquisitions and portfolio improvements. If expenses stay controlled while revenue accelerates, earnings momentum should remain healthy.
The balance sheet and dividend story also support the bullish case. Lamar ended the quarter with about $701.5 million in liquidity and leverage near 3 times net debt-to-EBITDA. It expects to distribute at least $6.40 per share in regular dividends for 2026, and management suggested a dividend increase could be considered in the second half.
View on LAMR StockThe setup looks favorable. Lamar was 75% booked to its full-year revenue goal as of May 1, the strongest booking position since COVID, and management said the next three quarters are pacing well. Political advertising, the World Cup and national brand demand could provide support.
While ad spending can slow if the economy weakens, Lamar’s local strength, digital growth and disciplined balance sheet make the 19.2% YTD gain look supported by fundamentals. Hence, our outlook remains bullish.
Currently, LAMR carries a Zacks Rank #2 (Buy).
Other Stocks to ConsiderSome other top-ranked stocks from the broader REIT sector are Prologis, Inc. (PLD - Free Report) and Stag Industrial (STAG - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Prologis’ 2026 FFO per share suggests a 6.37% increase year over year.
The consensus mark for Stag Industrial’s 2026 FFO per share calls for 3.1% growth year over year.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
CreativeOne Wealth LLC bought a new stake in Adtalem Global Education Inc. (NYSE: ATGE) in the undefined quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 5,584 shares of the company's stock, valued at approximately $862,000. Other large investors have also recently made changes
Algert Global LLC trimmed its holdings in shares of Adtalem Global Education Inc. (NYSE: ATGE) by 16.0% in the undefined quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 147,065 shares of the company's stock after selling 27,962 shares during the
(PRNewsfoto/Choice Hotels International, Inc.) Global Net Rooms Increased 1.7%, with U.S. Net Rooms Growth Improving
Q1 U.S. Hotel Openings Hit Five-Year High
Global Franchise Agreements Awarded Increased 72%
, /PRNewswire/ -- Choice Hotels International, Inc. ("Choice" or "the Company") (NYSE: CHH), a leading global lodging franchisor with a capital-light, franchise-driven model, today reported results for the first quarter ended March 31, 2026.
Highlights include:
Total revenues reached a company record $340.6 million for the first quarter. Net income was $20.3 million for the first quarter, representing diluted EPS of $0.44. Adjusted EBITDA totaled $125.7 million, while adjusted diluted EPS reached $1.07 for the first quarter. U.S. royalty rate expanded 11 basis points to 5.22% for the first quarter, compared to the same period of 2025. Global net rooms grew 1.7% compared to March 31, 2025, driven by 2.5% growth in higher revenue extended stay, midscale, and upscale brands. U.S. room openings increased 32% in the first quarter compared to the same period of 2025, reaching the highest first-quarter level since 2023, while exits declined year-over-year to the lowest quarterly level since 2023, driving sequential net rooms growth from year-end 2025. Global franchise agreements awarded increased 72% in the first quarter, compared to the same period of 2025. U.S. pipeline grew sequentially to approximately 71,500 rooms, with the conversion rooms pipeline increasing 17% compared to March 31, 2025, and 3% sequentially from December 31, 2025. Capital recycling generated $24.6 million of proceeds in the first quarter, with hotel development and lending shifting from net outflows in the prior year to net inflows in the current period. "Choice Hotels delivered first-quarter financial results in line with expectations, with key operating indicators signaling an inflection point in underlying trends," said Patrick Pacious, President and Chief Executive Officer. "We are driving sequentially improving U.S. net rooms growth, supported by our conversion-led model and more accretive pipeline, achieving faster, more capital-efficient expansion. Franchisee unit economics continue to strengthen and capital intensity is declining. This positions Choice to deliver more consistent earnings growth and enhances our ability to return capital to shareholders."
Financial Performance
($ in millions, except per-share amounts)
2026
2025
Total revenues
$341
$333
Revenue excl. revenue for reimbursable costs from
franchised and managed properties1
$217
$209
Net income
$20
$45
Adjusted net income
$50
$64
Diluted EPS
$0.44
$0.94
Adjusted diluted EPS
$1.07
$1.34
Adjusted EBITDA
$126
$130
1 Calculated as total revenues excluding reimbursable revenues. Reimbursable revenues totaled $124 million and $123 million for first quarter 2026 and 2025, respectively.
Revenue excluding reimbursable costs increased 3% to $216.7 million in the first quarter, from $209.4 million in the prior year. Adjusted EBITDA was $125.7 million for the first quarter, compared to $129.6 million in the prior year, primarily reflecting timing-related factors and in line with expectations. Adjusted diluted EPS was $1.07 for the first quarter, compared to $1.34 in the prior year, reflecting timing-related factors and a temporarily elevated effective income tax rate that is expected to be approximately 25% for the full year. RevPAR
(% change on a currency-neutral basis)
Change vs. Prior Year Period
Three months ended
March 31, 2026
U.S.
-2.3 %
International
2.6 %
Global
-0.8 %
U.S. results included a significant hurricane-related impact of approximately 410 basis points, affecting the year-over-year comparison.
U.S. RevPAR increased 1.8% in the first quarter, compared to the same period of 2025, excluding the prior-year hurricane-related impact. International RevPAR increased 2.6% on a currency-neutral basis in the first quarter, compared to the same period of 2025. System Size and Development
(Rooms)
March 31, 2026
March 31, 2025
Change
U.S.
497,881
505,601
-1.5 %
U.S. upscale, extended stay, and midscale
440,464
444,230
-0.8 %
International
160,467
141,986
13.0 %
Global
658,348
647,587
1.7 %
Global upscale, extended stay, and midscale
595,580
580,860
2.5 %
Global pipeline exceeded 77,700 rooms as of March 31, 2026, with 97% concentrated in extended stay, midscale, and upscale brands, supporting a more accretive future earnings profile. Franchise agreements awarded increased 65% in the U.S. and 113% in international markets in the first quarter of 2026, compared to the same period of 2025. International net rooms grew 13% compared to March 31, 2025, highlighted by a 59% increase in room openings, bringing the international system to approximately 160,500 rooms, with strong momentum across regions, including Canada and EMEA. Extended stay remains a core growth engine, supported by strong unit economics and continued developer demand, with U.S. extended stay net rooms growing 11.8% compared to March 31, 2025, and a pipeline of over 30,300 rooms as of March 31, 2026. U.S. midscale room openings increased 57% compared to the same period of 2025, and the pipeline grew 6% from March 31, 2025, reflecting improving owner returns and demand for cost-efficient prototypes. U.S. economy transient rooms pipeline grew 26% sequentially from December 31, 2025, supported by a 13% increase in franchise agreements awarded in the first quarter of 2026. U.S. upscale room openings increased 112% compared to March 31, 2025, and the pipeline grew 8% compared to March 31, 2025, driven by Radisson Individuals, Ascend Collection, and Radisson brand. Balance Sheet and Liquidity
As of March 31, 2026, Choice had total available liquidity of $474.0 million, including cash and cash equivalents and available borrowing capacity. The Company's net debt-to-adjusted EBITDA ratio was 3.2x for the trailing twelve months ended March 31, 2026.
During the first quarter of 2026, the Company used $23.2 million of cash in operating activities, primarily reflecting the timing of working capital items and increased franchise agreement acquisition cost payments associated with higher global room openings, which increased 37% compared to March 31, 2025.
During the three months ended March 31, 2026, Choice generated $24.6 million in proceeds from capital recycling activities, as cash flows related to hotel development and lending shifted meaningfully from net outflows of $41.3 million in the prior year to net inflows of $3.7 million.
Shareholder Returns
During the three months ended March 31, 2026, the Company returned $75.2 million to shareholders, including $13.1 million in dividends and $62.1 million in share repurchases, under its stock repurchase program and repurchases from employees in connection with tax withholding and option exercises relating to awards under the Company's equity incentive plans.
As of March 31, 2026, 2.3 million shares of common stock remained available under the Company's current share repurchase authorization.
Outlook
The Company is maintaining its full-year 2026 outlook. The following outlook includes forward-looking non-GAAP measures used by management to assess expected performance. Adjusted metrics exclude the net surplus or deficit from reimbursable revenue from franchised and managed properties, due diligence and transition costs, share repurchases completed after March 31, 2026, and other items.
Net capital outlays for hotel development-related activities are expected to decline significantly, from $103.4 million in 2025 to a range of $20 million to $45 million in 2026, reflecting the Company's transition to a more capital-efficient model.
Full-Year 2026
Net income
$265 to $275 million
Adjusted net income
$320 to $330 million
Adjusted EBITDA
$632 to $647 million
Adjusted SG&A
Mid-single digits
Diluted EPS
$5.72 to $5.94
Adjusted diluted EPS
$6.92 to $7.14
Effective tax rate
25 %
Full-Year 2026 vs. 2025
Global RevPAR growth
-2% to 1%
U.S. RevPAR growth
-2% to 1%
U.S. royalty rate growth
Mid-single digits
Global net system rooms growth
Approximately 1%
Webcast and Conference Call
Choice will host a conference call to discuss first quarter 2026 results on April 30, 2026, at 11:00 a.m. ET. A live webcast will be available on the Company's Investor Relations website at www.investor.choicehotels.com/events-and-presentations. Participants may also dial (800) 715-9871 (U.S.) or (646) 307-1963 (international) and reference conference ID 2822521. A replay and transcript will be available within 24 hours on the Company's Investor Relations website.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
Forward-Looking Statements
Information set forth herein includes "forward-looking statements." Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as "expect," "estimate," "believe," "anticipate," "should," "will," "forecast," "plan," "project," "assume," or similar words of futurity. All statements other than historical facts are forward-looking statements. These forward-looking statements are based on management's current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to management. Such statements may relate to projections of Choice's revenue, expenses, adjusted EBITDA, earnings, debt levels, ability to repay outstanding indebtedness, payment of dividends, net surplus or deficit, repurchases of common stock and other financial and operational measures, including occupancy and open hotels, RevPAR, strategic investment and acquisition performance, international expansion performance, macroeconomic backdrop and Choice's liquidity, among other matters. We caution you not to place undue reliance on any such forward-looking statements. Forward-looking statements do not guarantee future performance and involve known and unknown risks, uncertainties, and other factors.
Several factors could cause our actual results, performance or achievements to differ materially from those expressed in or contemplated by the forward-looking statements. Such risks include, but are not limited to, changes to general, U.S. and foreign economic conditions, including access to liquidity and capital; changes in consumer demand and confidence, including consumer discretionary spending and the demand for travel, transient and group business; the timing and amount of future dividends and share repurchases; future U.S. or global outbreaks of epidemics, pandemics or contagious diseases or fear of such outbreaks, and the related impact on the global hospitality industry, particularly but not exclusively the U.S. travel market; changes in law and regulation applicable to the travel, lodging or franchising industries, including with respect to the status of our relationship with employees of our franchisees; the potential impact of new laws and regulations generally, including, without limitation, those relating to taxes, wages, labor and immigration; foreign currency fluctuations; changes in global interest rates and rate differentials; variability and unpredictability in trade relations, sanctions, tariffs or other trade controls; the federal government funding lapse and related government shutdowns; impairments or declines in the value of our assets; our assumptions underlying our critical accounting estimates; operating risks common in the travel, lodging or franchising industries; changes to the desirability of our brands as viewed by hotel operators and customers; changes to the terms or termination of our contracts with franchisees and our relationships with our franchisees; our ability to keep pace with improvements in technology utilized for our marketing and reservation systems and other operating systems; our ability to grow our franchise system; exposure to risks related to our hotel development, financing, franchise agreement acquisition costs and ownership activities; exposures to risks associated with our investments in new businesses; fluctuations in the supply and demand for hotel rooms; our ability to realize anticipated benefits from acquired businesses; impairments or losses relating to acquired businesses; the level of acceptance of alternative growth strategies we may implement; the impact of inflation; cyber security and data breach risks; introduction and integration of artificial intelligence technologies; climate change; our sustainability strategy; ownership and financing activities; hotel closures or financial difficulties of our franchisees; operating risks associated with our international operations; political instability, conflicts and terrorism; labor shortages; the outcome of litigation; and our ability to effectively manage our indebtedness and secure our indebtedness.
These and other risk factors are discussed in detail in the company's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Financial Measurements and Other Definitions
The company evaluates its operations utilizing the performance metrics of adjusted EBITDA, adjusted selling, general and administrative (SG&A) expenses, adjusted net income, and adjusted diluted EPS, which are all non-GAAP financial measurements. These measures, which are reconciled to the comparable GAAP measures in Exhibits 6 and 7, should not be considered as an alternative to any measure of performance or liquidity as promulgated under or authorized by GAAP, such as SG&A, net income and EPS. The company's calculation of these measurements may be different from the calculations used by other companies and comparability may therefore be limited. We discuss management's reasons for reporting these non-GAAP measures and how each non-GAAP measure is calculated below.
In addition to the specific adjustments noted below with respect to each measure, the non-GAAP measures presented herein also exclude restructuring of the company's operations including employee severance benefit, income taxes and legal costs, acquisition related to business combination, due diligence and transition (recoveries) costs, and global ERP system implementation and related costs to allow for period-over-period comparison of ongoing core operations before the impact of these discrete and infrequent charges.
Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization: Adjusted EBITDA, presented herein, is calculated as net income excluding the impact of interest expense, interest income, provision for income taxes, depreciation and amortization, amortization of cloud computing arrangements, impairments and gains on sale of business, joint ventures and assets, other (gains) and losses, equity in net income (loss) of unconsolidated affiliates and (gain) loss on extinguishment of debt, further adjusted to exclude certain items, including, franchisee agreement acquisition cost amortization and charges, mark-to-market adjustments on non-qualified retirement plan investments, share based compensation expense (benefit) and surplus or deficits generated by reimbursable revenue from franchised and managed properties. We consider adjusted EBITDA to be an indicator of operating performance because it measures our ability to service debt, fund capital expenditures, and expand our business. We also use these measures, as do analysts, lenders, investors, and others, to evaluate companies because they exclude certain items that can vary widely across industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels, and credit ratings, and share based compensation expense (benefit) is dependent on the design of compensation plans in place and the usage of them. Accordingly, the impact of interest expense and share based compensation expense (benefit) on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provision for income taxes can vary considerably among companies. These measures also exclude depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets or amortizing franchise-agreement acquisition costs. These differences can result in considerable variability in the relative asset costs and estimated lives and, therefore, the depreciation and amortization expense among companies. Mark-to-market adjustments on non-qualified retirement-plan investments recorded in SG&A expenses are excluded from adjusted EBITDA, as the company accounts for these investments in accordance with accounting for deferred-compensation arrangements when investments are held in a rabbi trust and invested. Changes in the fair value of the investments are recognized as both compensation expense in SG&A and other gains and losses. As a result, the changes in the fair value of the investments do not have a material impact on the company's net income. Surpluses and deficits generated from reimbursable revenues from franchised and managed properties are excluded, as the company does not operate these programs to generate a profit and has the contractual rights to adjust future collections or assess additional fees to recover prior period expenditures. The company's franchise and management agreements require these revenues to be used exclusively for expenses associated with providing franchise and management services, such as central reservation systems, hotel employee and operating costs, reservation delivery and national marketing and media advertising. Franchised and managed property owners are required to reimburse the company for any deficits generated from these activities and the company is required to spend any surpluses generated in future periods. The reimbursement for franchise and management services is typically billed and collected monthly, based on the underlying hotel's sales or usage, while the associated costs are recognized as incurred by the company, creating timing differences with the net effect impacting net income in the reporting period. These timing differences are due to our discretion to spend in excess of the revenues earned or less than the revenues earned in a single period to ensure that the programs are operated in the best long-term interests of our franchised and managed properties. Since these activities will be managed to break-even over time, quarterly or annual surpluses and deficits have been excluded from the measurements utilized to assess the company's operating performance.
Adjusted Net Income and Adjusted Diluted Earnings Per Share: Adjusted net income and adjusted diluted EPS exclude the impact of surpluses or deficits generated from reimbursable revenue from franchised and managed properties, impairments, formation costs and gains on sale of business, joint ventures and assets and gains on extinguishment of debt. Surpluses and deficits generated from reimbursable revenue from franchised and managed properties are excluded, as the company does not operate these programs to generate a profit and has the contractual rights to adjust future collections or assess additional fees to recover prior period expenditures. The company's franchise agreements require these revenues to be used exclusively for expenses associated with providing franchised and managed services, such as central reservation systems, hotel employee and operating costs, reservation delivery and national marketing and media advertising. Franchised and managed property owners are required to reimburse the company for any deficits generated from activities and the company is required to spend any surpluses generated in future periods. The reimbursement for franchise and management services is typically billed and collected monthly, based on the underlying hotel's sales or usage, while the associated costs are recognized as incurred by the company, creating timing differences with the net effect impacting net income in the reporting period. These timing differences are due to our discretion to spend in excess of the revenues earned or less than the revenues earned in a single period to ensure that the programs are operated in the best long-term interests of our franchised and managed properties. Since these activities will be managed to break-even over time, quarterly or annual surpluses and deficits have been excluded from the measurements utilized to assess the company's operating performance. We consider adjusted net income and adjusted diluted EPS to be indicators of operating performance because excluding these items allows for period-over-period comparisons of our ongoing operations.
Adjusted SG&A: Adjusted SG&A reflects SG&A excluding the impact of mark-to-market adjustments on non-qualified retirement plan investments, amortization of cloud computing arrangements and share based compensation expense. We use this measure, as do analysts, lenders, investors, and others, to evaluate companies because it excludes certain items that can vary widely across industries or among companies within the same industry. For example, share based compensation expense (benefit) is dependent on the design of compensation plans in place and the usage of them. Accordingly, the impact of share-based compensation expense (benefit) on earnings can vary significantly among companies. Mark-to-market adjustments on non-qualified retirement-plan investments recorded in SG&A expenses are also excluded as the company accounts for these investments in accordance with accounting for deferred-compensation arrangements when investments are held in a rabbi trust and invested. Changes in the fair value of the investments are recognized as both compensation expense in SG&A and other gains and losses. As a result, the changes in the fair value of the investments do not have a material impact on the company's net income.
Occupancy: Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel for a given period. Occupancy measures the utilization of the hotels' available capacity. Management uses occupancy to gauge demand at a specific hotel or group of hotels in a given period. The company calculates occupancy based on information as reported by its franchisees. To accurately reflect occupancy, the company may revise its prior years' operating statistics for the most current information provided.
Average Daily Rate (ADR): ADR represents hotel room revenue divided by the total number of room nights sold for a given period. ADR measures the average room price attained by a hotel and ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ADR is a commonly used performance measure in the industry, and management uses ADR to assess pricing levels that the company is able to generate. The company calculates ADR based on information as reported by its franchisees. To accurately reflect ADR, the company may revise its prior years' operating statistics for the most current information provided.
Revenue Per Available Room (RevPAR): RevPAR is calculated by dividing hotel room revenue by the total number of room nights available to guests for a given period. Management considers RevPAR to be a meaningful indicator of hotel performance and therefore company royalty and system revenues as it provides a metric correlated to the two key drivers of operations at a hotel: occupancy and ADR. The company calculates RevPAR based on information as reported by its franchisees. To accurately reflect RevPAR, the company may revise its prior years' operating statistics for the most current information provided. RevPAR is also a useful indicator in measuring performance over comparable periods.
Pipeline: Pipeline is defined as hotels awaiting conversion, under construction or approved for development, and master development agreements committing owners to future franchise development.
Choice Hotels (CHH - Free Report) came out with quarterly earnings of $1.07 per share, missing the Zacks Consensus Estimate of $1.35 per share. This compares to earnings of $1.34 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -20.68%. A quarter ago, it was expected that this hotel franchiser would post earnings of $1.56 per share when it actually produced earnings of $1.6, delivering a surprise of +2.56%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Choice Hotels, which belongs to the Zacks Hotels and Motels industry, posted revenues of $340.58 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.95%. This compares to year-ago revenues of $332.86 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Choice Hotels shares have added about 23.2% since the beginning of the year versus the S&P 500's gain of 4.2%.
What's Next for Choice Hotels?While Choice Hotels has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Choice Hotels was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.90 on $430.94 million in revenues for the coming quarter and $7.26 on $1.62 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Hotels and Motels is currently in the bottom 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Civeo (CVEO - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 1.
This provider of remote-site workforce housing is expected to post quarterly loss of $0.61 per share in its upcoming report, which represents a year-over-year change of +15.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Civeo's revenues are expected to be $154.7 million, up 7.4% from the year-ago quarter.
Investors with an interest in Hotels and Motels stocks have likely encountered both Hilton Grand Vacations (HGV) and Choice Hotels (CHH). But which of these two companies is the best option for those looking for undervalued stocks?
The company spotlights new tools, insights and initiatives designed to drive demand, improve efficiency and support stronger franchisee returns across every segment
, /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH), one of the world's largest lodging franchisors, today opened its 70th Annual Convention, bringing together thousands of franchise owners, operators, vendors and industry collaborators for three days centered on the theme of "Making More Possible" for its owners and operators—helping them capture new demand, enhance performance and build long-term success.
With sessions and experiences spanning AI-powered technology, revenue optimization, and operational simplification, the convention underscores Choice Hotels' ongoing mission to deliver value for franchisees by harnessing intelligent, data-driven tools that streamline hotel operations, reduce friction and fuel stronger hotel-level performance. The company is also investing in the tools, programs and experiences that strengthen guest trust, personalize stays, drive loyalty and keep travelers coming back.
"This week is about one thing: Making More Possible — together," said Patrick Pacious, President and Chief Executive Officer. "At Choice Hotels, we're working relentlessly to do three things for owners: helping drive more revenue, deepening our personal connection and support for owners and operators, and harnessing AI-powered innovation to help owners run their businesses more simply and efficiently — now and in the future. At the same time, we're focused on elevating the guest experience — strengthening loyalty through Choice Privileges, and using smarter technology and personalization to make every stay easier, more rewarding and more memorable. With interest rates stabilizing, demand trends continuing to improve, limited hotel room supply and a strong calendar of events across the U.S., it's an increasingly favorable time to operate a hotel and invest in the future."
A Reimagined Revenue Engine Built to Drive Demand
A reimagined revenue engine is taking center stage at the convention, designed to help franchise owners capture higher–value demand and grow topline results across key segments. The revenue engine is anchored by the refreshed Choice Privileges loyalty program and strengthened by new commercial tools, including Choice Hotels EasyBid, an AI–powered Request For Proposal (RFP) platform designed to help owners respond faster and capture more group business. Choice Hotels Business Direct is a self–service solution launching soon for small and medium–sized businesses to book and manage stays directly on ChoiceHotels.com. Together with RAISE, a new AI–powered Rate Management Tool launching later this year, these capabilities work in tandem to help owners price more effectively, move faster on opportunities, and unlock incremental revenue with greater efficiency.
Throughout the convention, franchisees can explore these AI-powered offerings through dedicated learning sessions and an interactive AI Zone featuring live demonstrations designed to showcase how this technology simplifies operations, reduces costs and supports stronger hotel-level performance.
Driving Demand and Delivering Value for Owners Through Guest Loyalty
Choice Hotels continues to invest in strengthening demand and bringing more high–value customers to franchise owners' hotels by deepening guest trust across its brands and converting more travelers into loyal, repeat visitors. As guests become increasingly focused on getting more value for their money, Choice Hotels is meeting those expectations through trusted brands, consistent experiences and meaningful rewards. Central to this effort is the continued evolution of Choice Privileges, now with more than 75 million members worldwide. Designed with guests in mind, the program offers greater flexibility, value, and personalization while driving repeat stays and stronger hotel performance. These efforts are supported by targeted marketing capabilities that enable more personalized messaging and offers, helping to reach the right guests at the right time and drive sustained demand.
"Across every segment, guests are telling us the same thing — value matters," said Dom Dragisich, Chief Growth and Strategy Officer. "They want more for their money: the right amenities, the right location and a brand they trust to deliver a reliable experience. That ability to consistently deliver value — at every price point — plays directly to the strength of the Choice Hotels portfolio."
AI Innovation Designed to Simplify Hotel Operations
As the travel landscape continues to evolve, Choice Hotels is investing in AI–enabled innovations focused on simplifying how owners run their businesses. Convention programming highlights advancements designed to streamline workflows, reduce operational friction, and save time for owners and on–property teams. These tools are intended to make day–to–day operations more efficient — allowing owners to focus more on delivering strong guest experiences while benefiting from smarter, easier–to–use systems behind the scenes.
Global Momentum Across Extended Stay, Upscale, Core and International Markets
Across extended stay, upscale and core brands, Choice Hotels entered 2026 with performance trends that reinforce its strong development momentum across its portfolio.
Extended stay continues to be a major growth driver, building on its strongest year on record in 2025 with momentum carrying into the first quarter of 2026. The segment opened 66 U.S. extended stay hotels and awarded 93 franchise agreements last year. With U.S. extended stay agreements increasing 15% year over year and a pipeline of 30,600 rooms as of year–end, the company is well positioned to continue scaling its footprint and meet sustained demand from guests seeking value–driven, longer–stay options.
In upscale, the company opened 27 U.S. hotels across Ascend Collection, Cambria Hotels and Radisson brands in 2025, supported by early 2026 performance that underscores the strength of the company's upscale and above portfolio, including solid occupancy levels and continued rate resilience in the first quarter.
Across its core brands, Choice Hotels awarded 247 U.S. franchise agreements in 2025, reflecting continued demand and leadership in midscale and economy segments, including strong momentum for Country Inn & Suites and Quality Inn. That strength is reinforced by global midscale franchise agreements awarded growing 14% year over year — including a 50% increase in U.S. agreements for Country Inn & Suites — alongside Q1 demand trends that reflect the enduring relevance of well–positioned midscale and economy brands amid evolving travel patterns.
Internationally, Choice Hotels continues to build momentum across key markets, supported by strong development activity, improving performance and increased operational control. In the first quarter of 2026, international net rooms grew 13% year over year, reinforcing the company's expanding global footprint. This momentum builds on record international development in 2025, when the company onboarded 130 new international hotels and expanded its portfolio to nearly 160,000 rooms outside the United States.
Canada continues to stand out as a key growth market, following Choice Hotels' transition to a direct franchising model. In Q1 2026, the Canadian business delivered its strongest first–quarter growth in over a decade, including RevPAR growth of 5.2% year over year on a currency–neutral basis, revenue growth of more than 20%, and a 55% increase in pipeline rooms, reflecting strong franchisee demand and improving hotel performance.
To learn more about Choice Hotels and its family of brands, visit ChoiceHotels.com.
About Choice Hotels
Choice Hotels International, Inc. (NYSE: CHH), is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
Choice Hotels Business Direct, EasyBid, CHARLIE, RAISE, AgentCore, and AgentForce reinforce the company's leadership in hospitality technology and innovation
, /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH), one of the world's largest lodging franchisors, today announced a new set of technologies and AI-powered solutions designed to help franchise owners drive more revenue, improve operating efficiency, and prepare for the next era of travel discovery and booking. The newest innovations include Choice Hotels Business Direct, EasyBid, CHARLIE, and RAISE. In addition to relationships with Amazon Web Services (AWS) and Salesforce to utilize AgentCore and AgentForce respectively, these solutions reinforce Choice Hotels' leadership in delivering technology that helps owners capture demand and operate more efficiently.
President and CEO Patrick Pacious on the new set of technologies and AI-powered solutions designed to help franchise owners drive more revenue, improve operating efficiency, and prepare for the next era of travel discovery and booking.
Choice Hotels International (PRNewsfoto/Choice Hotels International, Inc.) For more than a decade, Choice Hotels has actively leveraged artificial intelligence and is now scaling AI across its business to help drive revenue and enhance operations for owners. These solutions support everything from generating group and business travel demand to enabling smarter pricing.
"At Choice Hotels, we believe that innovation should deliver real-world impact," said Patrick Pacious, President and CEO. "These tools are built to help our owners win more business as AI continues to reshape how travelers search, compare and book hotel stays. Throughout our history, we have been an industry leader in technology and digital transformation, and in today's dynamic world that is more important than ever. We are dedicated to deploying technology at scale to make more possible for our franchisees and guests."
Choice Hotels Business Direct
Launching next week, Choice Hotels Business Direct is a self-service digital booking platform purpose-built for small and medium-sized businesses (SMBs), enabling them to book stays directly on ChoiceHotels.com. The platform helps SMBs create travel policies, gives travel managers greater visibility into travel behavior, and provides travelers and their companies with benefits and rewards—helping hotels capture more midweek demand from this large and growing segment.
Choice Hotels EasyBid and EasyBid Plus
To help owners capture more group demand, Choice Hotels has launched EasyBid, an AI-enhanced group Request for Proposals (RFP) tool. EasyBid helps hotels manage and monitor group RFP opportunities in one place and submit faster, more effective responses. Speed matters in group sales, and EasyBid is built to help hotels respond quickly and convert more opportunities into booked revenue. For owners seeking even greater support, EasyBid Plus enables Choice Hotels to respond to RFPs directly on behalf of owners while maintaining oversight and control at no additional cost. This option is specifically designed to save time and boost win rates by targeting high-quality group leads, making it especially valuable for properties without dedicated sales teams or during periods of high RFP volume.
Turning on-demand tools into teammates with CHARLIE
Meet CHARLIE, an AI-powered virtual "teammate" designed to support hotel teams through Choice Hotels' core operating platforms. CHARLIE acts as a 24/7 digital coach that responds to hotel staff needs, surfaces insights, and bolsters Choice Hotels' brand standards, reducing the time staff spend searching for answers and enabling teams to focus more on enhancing the guest experience.
As Choice Hotels continues to evolve CHARLIE, the company expects to expand the agent's ability to help execute routine tasks, further accelerating productivity and improving consistency across hotel operations.
Making revenue management simpler with RAISE
Choice Hotels will soon launch RAISE, a next-generation rate management tool designed to streamline how owners manage pricing, rates and inventory. Built with extensive owner input, RAISE is designed to simplify complex workflows, reduce manual effort, and help owners stay competitive as market conditions shift by using AI to source the right information at the right time.
Built for enterprise scale: AgentCore and AgentForce
As AI moves from pilots to production, Choice Hotels is investing in the foundational capabilities needed to deploy AI safely and reliably across the enterprise.
AgentCore provides a secure, reusable foundation for intelligent agents, enabling Choice Hotels to scale agentic capabilities across teams while supporting governance and enterprise requirements. AgentForce supports the building and deployment of AI agents as teammates across sales, service, marketing, commerce, and internal operations that can help automate, accelerate, and scale workflows.
"Together, AgentCore and AgentForce help Choice Hotels move beyond isolated AI use cases to an integrated, enterprise-wide approach," said Anna Scozzafava, Chief Data, AI, & Technology Officer. "This positions the company to lead in the emerging world of agentic commerce, where AI agents will increasingly research, compare and book travel on behalf of consumers."
Choice Hotels' technology roadmap is focused on delivering measurable value for owners: growing revenue, simplifying operations, and keeping the company's hotels visible and competitive as AI transforms travel discovery. By combining scale, data, and proprietary tools with an owner-first approach, Choice Hotels is helping franchisees compete in today's marketplace while preparing for what's next.
For more information on Choice Hotels and its technology innovations, visit choicehotels.com.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH), is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
Forward-Looking Statements
This press release includes "forward-looking statements" about future events, including anticipated hotel openings, development pipeline growth, and brand expansion. Such statements are subject to numerous risks and uncertainties, including changes in economic conditions, travel demand, development timelines, and other factors discussed in Choice Hotels International's filings with the Securities and Exchange Commission. Actual results may differ materially from those expressed or implied in these forward-looking statements, and Choice undertakes no obligation to update them.
Addendum
This is not an offering. No offer or sale of a franchise will be made except by a Franchise Disclosure Document first filed and registered with applicable state authorities. A copy of the Franchise Disclosure Document can be obtained through contacting Choice Hotels International at 915 Meeting Street, Suite 600, North Bethesda, MD 20852, or by email at [email protected].
Highlights include new AI-driven tools and strategic investments strengthening franchisee economics, along with recognition of top-performing hotels and developers
, /PRNewswire/ -- Last week, Choice Hotels International, Inc. (NYSE: CHH) held its 70th Annual Convention. Throughout the three-day event, the company highlighted how its ongoing growth, strategic investments, and focus on innovation are shaping the future of franchise ownership. At the convention, Choice Hotels unveiled a new suite of technology and AI-driven solutions aimed at helping franchise owners increase revenue, streamline operations, and prepare for the next generation of travel experiences and bookings. The company is continuing to innovate across its segments, including its enhanced Choice Privileges program, now with more than 75 million members, which is driving more repeat stays. The all-new experience enables members to earn rewards more frequently, and reach Elite status faster, along with exclusive benefits to get the most from every stay.
President and CEO Patrick Pacious at Choice Hotels International's 70th Annual Convention.
President and CEO Patrick Pacious and Chief Development Officer David Pepper present Azim Saju and ARK Hospitality with the Premier Legacy Award at Choice Hotels International's 70th Annual Convention.
President and CEO Patrick Pacious and Chief Development Officer David Pepper present Ash Sangani and Giri Hotels with the Premier Developer Award at Choice Hotels International's 70th Annual Convention.
Choice Hotels International unveiled a new suite of technology and AI-driven solutions at its 70th Annual Convention.
Choice Hotels International (PRNewsfoto/Choice Hotels International, Inc.) Choice Hotels also reinforced its commitment to long-term brand health and performance, including continued focus on property quality, owner support resources, and a strong development engine designed to help owners grow in an increasingly favorable operating environment.
"At Choice Hotels, our focus is simple: more revenue opportunities, lower operating friction, and the tools and support to run great hotels with confidence to Make More Possible. By combining the power of our scale, loyalty, and technology with hands-on support, we're helping owners grow profitability, so they can focus on delivering superb guest experiences," said President and CEO Patrick Pacious. "Looking ahead, we're investing to continue to lead in the next era of AI-led travel discovery and booking, while strengthening guest trust and loyalty across our brands. With agentic commerce, AI agents search for, research, compare, and book hotels on behalf of consumers. Choice Hotels is poised for this transformation and will help drive growth and performance for our franchisees for years to come."
In addition to sharing milestones and the key areas Choice Hotels is investing in across its system, the company also awarded and celebrated top-performing hotels and owners.
Premier Award Winners
The Premier Legacy Award recognizes phenomenal and longstanding hotel owners who have built a true legacy with the company. It goes to owners who have demonstrated an incredible commitment to development with Choice Hotels.
Azim Saju and ARK Hospitality (Premier Legacy Award): Azim grew up in the hotel business, beginning with his family's first Econo Lodge purchase in 1981, and went on to buy his first hotel as owner of record—a Sleep Inn—in 2003. Today, he manages more than 100 hotel properties across multiple franchisors and holds ownership stakes in approximately 20, while also serving as a longtime and deeply engaged leader within Choice Hotels Owners Council, including three terms as Chairman and his current role as Director of Region 1. Ash Sangani and Giri Hotels (Premier Developer Award): Ash brings more than 25 years of experience in hotel ownership. Today, he owns 12 Choice Hotels properties and is currently leading development of the Cambria in Burlington, Vermont, the largest and most significant project ever undertaken by Giri Hotels. Best of Choice Winners
Each year, the Best of Choice Awards recognizes the best U.S. hotel from each brand and the best international properties. Each winner demonstrates a commitment to superior guest service and operational excellence, representing the very best Choice Hotels has to offer from across its wide-ranging portfolio.
Cambria Hotel Traverse City – Traverse City, Michigan Clarion Hotel Arlanda Airport Terminal – Stockholm, Sweden Clarion Inn Willow River – Sevierville, Tennessee Clarion Pointe Marshall – Marshall, Texas Comfort Inn Connellsville Riverview – Connellsville, Pennsylvania Comfort Inn & Suites – Terrace, BC, Canada Comfort Inn & Suites Caldwell – Caldwell, Ohio Comfort Suites Near Sam Houston Race Park – Houston, Texas Country Inn & Suites by Radisson, Belleville, ON – Belleville, Ontario, Canada Country Inn & Suites by Radisson, Lewisburg, PA – Lewisburg, Pennsylvania Econo Lodge Lenoir City – Knoxville Area – Lenoir, Tennessee Hotel Casa Don Luis by Faranda Boutique, a member of Radisson Individuals – Cartagena, Colombia Ingot Hotel Perth, an Ascend Collection Hotel – Perth, Australia MainStay Suites Winfield-Teays Valley – Hurricane, West Virginia Park Inn by Radisson, Calgary Airport North, AB – Calgary, AB, Canada Park Inn by Radisson Ortonville – Ortonville, Minnesota Quality Inn Ingleside – Corpus Christi – Ingleside, Texas Quality Inn & Suites - Lévis, QC, Canada Radisson Blu Belo Horizonte, Savassi – Belo Horizonte, Brazil Radisson Hotel Nashville Airport – Nashville, Tennessee Radisson Puebla Angelópolis - Puebla, México Radisson RED Campinas – Campinas, Brazil Rodeway Inn South Gate – Los Angeles South – South Gate, California Sleep Inn Winfield – Teays Valley – Hurricane, West Virginia Suburban Studios Monaca – Pittsburgh – Monaca, Pennsylvania WoodSpring Suites Columbus Urbancrest – Grove City, Ohio Subscribe to receive Choice Hotels news updates via email here.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH), is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
Forward-Looking Statements
This press release includes "forward-looking statements" about future events, including anticipated hotel openings, development pipeline growth, and brand expansion. Such statements are subject to numerous risks and uncertainties, including changes in economic conditions, travel demand, development timelines, and other factors discussed in Choice Hotels International's filings with the Securities and Exchange Commission. Actual results may differ materially from those expressed or implied in these forward-looking statements, and Choice undertakes no obligation to update them.
Addendum
This is not an offering. No offer or sale of a franchise will be made except by a Franchise Disclosure Document first filed and registered with applicable state authorities. A copy of the Franchise Disclosure Document can be obtained through contacting Choice Hotels International at 915 Meeting Street, Suite 600, North Bethesda, MD 20852, or by email at [email protected].
Choice Hotels International Concludes 70th Annual Convention, "Making More Possible" for Franchise Owners and Guests Choice Hotels International Concludes 70th Annual Convention, "Making More Possible" for Franchise Owners and Guests PR Newswire
NORTH BETHESDA, Md., May 12, 2026
Highlights include new AI-driven tools and strategic investments strengthening franchisee economics, along with recognition of top-performing hotels and developers
, /PRNewswire/ -- Last week, Choice Hotels International, Inc. (NYSE: CHH) held its 70th Annual Convention. Throughout the three-day event, the company highlighted how its ongoing growth, strategic investments, and focus on innovation are shaping the future of franchise ownership. At the convention, Choice Hotels unveiled a new suite of technology and AI-driven solutions aimed at helping franchise owners increase revenue, streamline operations, and prepare for the next generation of travel experiences and bookings. The company is continuing to innovate across its segments, including its enhanced Choice Privileges program, now with more than 75 million members, which is driving more repeat stays. The all-new experience enables members to earn rewards more frequently, and reach Elite status faster, along with exclusive benefits to get the most from every stay.
Choice Hotels also reinforced its commitment to long-term brand health and performance, including continued focus on property quality, owner support resources, and a strong development engine designed to help owners grow in an increasingly favorable operating environment.
"At Choice Hotels, our focus is simple: more revenue opportunities, lower operating friction, and the tools and support to run great hotels with confidence to Make More Possible. By combining the power of our scale, loyalty, and technology with hands-on support, we're helping owners grow profitability, so they can focus on delivering superb guest experiences," said President and CEO Patrick Pacious. "Looking ahead, we're investing to continue to lead in the next era of AI-led travel discovery and booking, while strengthening guest trust and loyalty across our brands. With agentic commerce, AI agents search for, research, compare, and book hotels on behalf of consumers. Choice Hotels is poised for this transformation and will help drive growth and performance for our franchisees for years to come."
In addition to sharing milestones and the key areas Choice Hotels is investing in across its system, the company also awarded and celebrated top-performing hotels and owners.
Premier Award Winners
The Premier Legacy Award recognizes phenomenal and longstanding hotel owners who have built a true legacy with the company. It goes to owners who have demonstrated an incredible commitment to development with Choice Hotels.
Azim Saju and ARK Hospitality (Premier Legacy Award): Azim grew up in the hotel business, beginning with his family's first Econo Lodge purchase in 1981, and went on to buy his first hotel as owner of record—a Sleep Inn—in 2003. Today, he manages more than 100 hotel properties across multiple franchisors and holds ownership stakes in approximately 20, while also serving as a longtime and deeply engaged leader within Choice Hotels Owners Council, including three terms as Chairman and his current role as Director of Region 1.Ash Sangani and Giri Hotels (Premier Developer Award): Ash brings more than 25 years of experience in hotel ownership. Today, he owns 12 Choice Hotels properties and is currently leading development of the Cambria in Burlington, Vermont, the largest and most significant project ever undertaken by Giri Hotels.Best of Choice Winners
Each year, the Best of Choice Awards recognizes the best U.S. hotel from each brand and the best international properties. Each winner demonstrates a commitment to superior guest service and operational excellence, representing the very best Choice Hotels has to offer from across its wide-ranging portfolio.
Cambria Hotel Traverse City – Traverse City, MichiganClarion Hotel Arlanda Airport Terminal – Stockholm, SwedenClarion Inn Willow River – Sevierville, TennesseeClarion Pointe Marshall – Marshall, TexasComfort Inn Connellsville Riverview – Connellsville, PennsylvaniaComfort Inn & Suites – Terrace, BC, CanadaComfort Inn & Suites Caldwell – Caldwell, OhioComfort Suites Near Sam Houston Race Park – Houston, TexasCountry Inn & Suites by Radisson, Belleville, ON – Belleville, Ontario, CanadaCountry Inn & Suites by Radisson, Lewisburg, PA – Lewisburg, PennsylvaniaEcono Lodge Lenoir City – Knoxville Area – Lenoir, TennesseeHotel Casa Don Luis by Faranda Boutique, a member of Radisson Individuals – Cartagena, ColombiaIngot Hotel Perth, an Ascend Collection Hotel – Perth, AustraliaMainStay Suites Winfield-Teays Valley – Hurricane, West VirginiaPark Inn by Radisson, Calgary Airport North, AB – Calgary, AB, CanadaPark Inn by Radisson Ortonville – Ortonville, MinnesotaQuality Inn Ingleside – Corpus Christi – Ingleside, TexasQuality Inn & Suites - Lévis, QC, CanadaRadisson Blu Belo Horizonte, Savassi – Belo Horizonte, BrazilRadisson Hotel Nashville Airport – Nashville, TennesseeRadisson Puebla Angelópolis - Puebla, MéxicoRadisson RED Campinas – Campinas, BrazilRodeway Inn South Gate – Los Angeles South – South Gate, CaliforniaSleep Inn Winfield – Teays Valley – Hurricane, West VirginiaSuburban Studios Monaca – Pittsburgh – Monaca, PennsylvaniaWoodSpring Suites Columbus Urbancrest – Grove City, OhioSubscribe to receive Choice Hotels news updates via email here.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH), is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
Forward-Looking Statements
This press release includes "forward-looking statements" about future events, including anticipated hotel openings, development pipeline growth, and brand expansion. Such statements are subject to numerous risks and uncertainties, including changes in economic conditions, travel demand, development timelines, and other factors discussed in Choice Hotels International's filings with the Securities and Exchange Commission. Actual results may differ materially from those expressed or implied in these forward-looking statements, and Choice undertakes no obligation to update them.
Addendum
This is not an offering. No offer or sale of a franchise will be made except by a Franchise Disclosure Document first filed and registered with applicable state authorities. A copy of the Franchise Disclosure Document can be obtained through contacting Choice Hotels International at 915 Meeting Street, Suite 600, North Bethesda, MD 20852, or by email at [email protected].
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(PRNewsfoto/Choice Hotels International, Inc.) Board Approves Dividend of $0.2875 Per Share on the Company's Common Stock
, /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH), a leading global lodging franchisor with a capital-light, franchise-driven model, announced that its board of directors has declared a cash dividend of $0.2875 per share on the company's common stock. The dividend is payable on July 15, 2026, to shareholders of record on July 1, 2026.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH), is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
Forward-Looking Statements
Certain matters discussed in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as "expect," "estimate," "believe," "anticipate," "should," "will," "forecast," "plan," "project," "assume," or similar words of futurity. All statements other than historical facts are forward-looking statements. These forward-looking statements are based on management's current beliefs, assumptions, and expectations regarding future events, which, in turn, are based on information currently available to management. Such statements may relate to projections of the company's revenue, expenses, EBITDA, adjusted EBITDA, earnings, debt levels, ability to repay outstanding indebtedness, payment of dividends, repurchases of common stock and other financial and operational measures, including the company's occupancy and open hotels, RevPAR, and liquidity, among other matters. We caution you not to place undue reliance on any such forward-looking statements. Forward-looking statements do not guarantee future performance and involve known and unknown risks, uncertainties, and other factors.
Several factors could cause our actual results, performance or achievements to differ materially from those expressed in or contemplated by the forward-looking statements. Such risks include, but are not limited to, changes to general, U.S. and foreign economic conditions, including access to liquidity and capital; changes in consumer demand and confidence, including consumer discretionary spending and the demand for travel, transient and group business; the timing and amount of future dividends and share repurchases; future U.S. or global outbreaks of epidemics, pandemics or contagious diseases or fear of such outbreaks, and the related impact on the global hospitality industry, particularly but not exclusively the U.S. travel market; changes in law and regulation applicable to the travel, lodging or franchising industries, including with respect to the status of our relationship with employees of our franchisees; the potential impact of new laws and regulations generally, including, without limitation, those relating to taxes, wages, labor and immigration; foreign currency fluctuations; changes in global interest rates and rate differentials; variability and unpredictability in trade relations, sanctions, tariffs or other trade controls; the federal government funding lapse and related government shutdowns; impairments or declines in the value of our assets; our assumptions underlying our critical accounting estimates; operating risks common in the travel, lodging or franchising industries; changes to the desirability of our brands as viewed by hotel operators and customers; changes to the terms or termination of our contracts with franchisees and our relationships with our franchisees; our ability to keep pace with improvements in technology utilized for our marketing and reservation systems and other operating systems; our ability to grow our franchise system; exposure to risks related to our hotel development, financing, franchise agreement acquisition costs and ownership activities; exposures to risks associated with our investments in new businesses; fluctuations in the supply and demand for hotel rooms; our ability to realize anticipated benefits from acquired businesses; impairments or losses relating to acquired businesses; the level of acceptance of alternative growth strategies we may implement; the impact of inflation; cyber security and data breach risks; introduction and integration of artificial intelligence technologies; climate change; our sustainability strategy; ownership and financing activities; hotel closures or financial difficulties of our franchisees; operating risks associated with our international operations; political instability, conflicts and terrorism; labor shortages; the outcome of litigation; and our ability to effectively manage our indebtedness and secure our indebtedness. These and other risk factors are discussed in detail in the company's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and, as applicable, our Quarter Reports on Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
Company Reaffirms Full Year 2026 Financial Guidance
, /PRNewswire/ -- Choice Hotels International, Inc. ("Choice Hotels" or "the Company") (NYSE: CHH), one of the world's largest lodging franchisors, today announced a leadership transition under which Patrick Pacious will step down as President and Chief Executive Officer. Pacious will serve as an advisor to the Company through August 31, 2026, to support the transition. The Company's Board of Directors has appointed Dominic Dragisich, Chief Growth & Strategy Officer, as Interim Chief Executive Officer, effective May 20, 2026.
The Board will conduct a comprehensive search in partnership with a leading executive search firm to identify the Company's next Chief Executive Officer and will consider all qualified internal and external candidates.
Over the course of his nearly 21-year tenure with Choice Hotels, including as President and Chief Executive Officer since 2017, Pacious has led a period of significant growth and transformation for the Company. Under his leadership, Choice Hotels expanded its portfolio from 11 to 22 brands, grew its presence in the upscale and extended-stay segments through the acquisitions of WoodSpring Suites and Radisson Hotels Americas, established a high growth direct franchising international platform, advanced franchisee-focused technology and digital initiatives, and more than doubled adjusted EBITDA.
"Leading Choice Hotels has been the greatest privilege of my career," said Pacious. "Together, we have built a higher-quality portfolio of hotels, a more accretive, diverse pipeline, and a capital-light model that enables the Company to capture significant opportunities ahead. Having laid the foundation for a customer-centric, AI-enabled business, in alignment with our long-term strategic plan, now is the right time for a new leader to guide Choice Hotels into its next phase of growth. I look forward to partnering with the Board, Dom and the entire leadership team to facilitate a smooth transition."
"Pat's leadership has helped define a new era for Choice Hotels. Through strategic acquisitions, disciplined portfolio growth, international expansion, and a relentless focus on franchisee success, Choice has become a more resilient and diversified company," said Stewart W. Bainum, Jr., Chairman of the Board of Directors for Choice Hotels International. "On behalf of the Board, the Bainum family and other shareholders, we thank Pat for his leadership, vision, and many contributions."
Bainum added, "Choice Hotels is a stronger Company today with a solid operational and financial foundation, a talented leadership team and significant long-term growth potential. The Board has full confidence in Dom's leadership and the Company's continued momentum as we conduct a comprehensive search process for Choice's next CEO."
Before becoming Chief Growth & Strategy Officer, Dragisich previously served as EVP, Operations and Chief Global Brand Officer and as the Company's Chief Financial Officer from 2017 to 2023. Dragisich has helped lead the Company's strategic evolution, overseeing transformative acquisitions and other major growth initiatives to enhance long-term value.
"I am honored to step into the role of Interim CEO and look forward to building on the Company's strong foundation. We remain focused on delivering long-term value for our franchisees and shareholders and creating great experiences for our guests and associates," said Dragisich.
Reaffirms Full-Year 2026 Outlook
In connection with today's announcement, the Company is reaffirming its full-year 2026 financial outlook provided in the Company's first quarter 2026 earnings results reported on April 30, 2026. The Company remains focused on executing its strategic priorities, driving franchisee success, and delivering long-term shareholder value.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH), is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
Forward-looking Statements
Information set forth herein includes "forward-looking statements." Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as "expect," "estimate," "believe," "anticipate," "should," "will," "forecast," "plan," "project," "assume," or similar words of futurity. All statements other than historical facts are forward-looking statements. These forward-looking statements are based on management's current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to management. Such statements may relate to Choice's financial outlook, adjusted EBITDA, leadership transition process, strategic plans, artificial intelligence technologies, value creation, growth rate and plans related thereto, among other matters. We caution you not to place undue reliance on any such forward-looking statements. Forward-looking statements do not guarantee future performance and involve known and unknown risks, uncertainties, and other factors.
Several factors could cause our actual results, performance or achievements to differ materially from those expressed in or contemplated by the forward-looking statements. Such risks include, but are not limited to, changes to general, U.S. and foreign economic conditions, including access to liquidity and capital; changes in consumer demand and confidence, including consumer discretionary spending and the demand for travel, transient and group business; the timing and amount of future dividends and share repurchases; future U.S. or global outbreaks of epidemics, pandemics or contagious diseases or fear of such outbreaks, and the related impact on the global hospitality industry, particularly but not exclusively the U.S. travel market; changes in law and regulation applicable to the travel, lodging or franchising industries, including with respect to the status of our relationship with employees of our franchisees; the potential impact of new laws and regulations generally, including, without limitation, those relating to taxes, wages, labor and immigration; foreign currency fluctuations; changes in global interest rates and rate differentials; variability and unpredictability in trade relations, sanctions, tariffs or other trade controls; the federal government funding lapse and related government shutdowns; impairments or declines in the value of our assets; our assumptions underlying our critical accounting estimates; operating risks common in the travel, lodging or franchising industries; changes to the desirability of our brands as viewed by hotel operators and customers; changes to the terms or termination of our contracts with franchisees and our relationships with our franchisees; our ability to keep pace with improvements in technology utilized for our marketing and reservation systems and other operating systems; our ability to grow our franchise system; exposure to risks related to our hotel development, financing, franchise agreement acquisition costs and ownership activities; exposures to risks associated with our investments in new businesses; fluctuations in the supply and demand for hotel rooms; our ability to realize anticipated benefits from acquired businesses; impairments or losses relating to acquired businesses; the level of acceptance of alternative growth strategies we may implement; the impact of inflation; cyber security and data breach risks; introduction and integration of artificial intelligence technologies; climate change; our sustainability strategy; ownership and financing activities; hotel closures or financial difficulties of our franchisees; operating risks associated with our international operations; political instability, conflicts and terrorism; labor shortages; the outcome of litigation; and our ability to effectively manage our indebtedness and secure our indebtedness.
These and other risk factors are discussed in detail in the company's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
