Barbecue Sales.....Hot or Not?

[Babekyu]

https://finance.yahoo.com/news/sizzling-peak-barbecue-season-begins-180042850.html

[michaelmilitello]

Not a surprise.  Grills are almost 100% discretionary spending assuming most of us have working kitchens.   $1000+ for gassers, griddles, or pellet grills is a tough sell in this economy.  I would not expect Webers fortunes to improve rapidly.  I wouldn't be surprised if they push their higher value, more modestly priced products. 

I recently saw that John Deere is moving much of their production to Mexico.   Obviously, that's a cost control and operating margin booster.   Different industry, yes. I fear that Weber will ultimately move what remains of their production to maintain profitability.   There's less pressure, perhaps, on Weber to do this since they're private again and Wall Street can't scrutinize them from an investor perspective. 






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[cdp8]

In this economy? You mean the economy where the unemployment rate is 4% and inflation continues to drop from its Covid craziness?

Isn't it a more likely scenario that the multitudes of people that bought grills 4 years ago at the height of the pandemic aren't ready to replace them yet? Of course sales were going to plummet after that kind of boom. People don't buy grills every year.


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[michaelmilitello]

Total inflation is down, yes.  However, the Fed's target is 2% and we are still over 3%.   Before the pandemic, inflation was less than 2%.  Prices for goods and services remain astonishingly high, which erodes buying power and disposable income.  The grill buying boom during the pandemic was a bubble that wasn't sustainable.   


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[bamakettles]

This illustrates it well IMO....


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[michaelmilitello]

This illustrates it well IMO....


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Yes, it does.   Thanks for keeping the mood appropriately light. 


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[bamakettles]

This illustrates it well IMO....


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Yes, it does.   Thanks for keeping the mood appropriately light. 


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Happy to assist!


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[Big Dawg]

Yes, in this economy where mortgage rates can top 7%, credit cards can run up to 30%, and (at least locally) beef is up over 30% from 2020.





BD

[Shoestringshop]

This illustrates it well IMO....


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It's perfect. I'm not working now as I am on hospice. Until 14 days ago I was working two jobs one to pay for bills the other for a tiny bit of fun money and groceries. Let's hope it gets better for everyone. I may not be around for this but my friends and family will be.