FanDuel leans into promotions, CVS plans a split, JetBlue raises bag fees again: Corporate America reworks costs and growth

The latest round of corporate updates shows U.S. consumer, healthcare, airline and media giants facing slower growth and rising costs at the same time. Some are using promotions and loyalty benefits to win users, while others are repairing their income statements through divestitures, splits and price increases. The signals from earnings season are mixed, but they point in a common direction: another round of adjustments to business portfolios and pricing strategies.

Gaming and airlines: promotions, surcharges and cost pressure

Five weeks into the job, Flutter CEO Dan Taylor delivered his first quarterly report. Third-quarter revenue rose 2% year over year to $3.87 billion, below LSEG's roughly $4 billion market expectation; adjusted EBITDA fell about 25% to $360 million; adjusted loss per share was 18 cents, better than analysts' expected 28-cent loss. The company reported a net loss of $1.15 billion, including an $873 million noncash impairment primarily tied to Brazil, where sports betting and online gaming were banned in September. The stock is down more than 60% year to date. Taylor said the company has made product changes and launched a nationwide rewards program, hoping to turn FanDuel's improving engagement into stronger profits. On operating metrics, FanDuel's U.S. sportsbook average monthly players rose 9%, and bet counts rose 15%; Flutter's total U.S. average monthly players rose 12%, including 24% growth in iGaming; sportsbook handle rose 13%, but sportsbook revenue rose only 4% because of higher promotional spending. FanDuel Predicts added 140,000 customers in October, and FanDuel trading volume has risen 271% since July. The company expects cost of sales at 58% of revenue for full-year 2026 and 2027. Taylor also said about half of Americans still lack access to regulated sports betting and 90% lack regulated online gaming, which the company sees as a long-term opportunity. ^[1]

Airlines are using surcharges to offset fuel pressure. JetBlue raised checked-bag fees for the third time in less than a year: a first checked bag for economy travelers costs $50, up from $45, if purchased more than 24 hours before departure during a nonpeak period; within 24 hours of departure, the fee is $60. During peak periods, the fee is $55, up from $49, if purchased more than 24 hours before departure, and $70 within 24 hours. Customers with a co-branded JetBlue credit card or elite frequent flyer status are exempt. JetBlue said the adjustment is meant to help offset rising fuel and operating costs while keeping base fares competitive. Jet fuel prices have roughly doubled since the Iran war began in February; U.S. Gulf Coast jet fuel was $4.44 a gallon on Tuesday. Major U.S. airlines followed earlier this year after JetBlue raised bag fees. ^[5]

Food and restaurants: divestitures and repairing traffic

Kraft Heinz said Wednesday it will sell its North American coffee business to One Rock Capital Partners in a deal that values the unit at $650 million on an enterprise basis, including brands such as Maxwell House and Gevalia. The deal is expected to close in mid-2027, and Kraft Heinz will retain a 30% noncontrolling equity stake. The company plans to use $500 million in post-tax cash proceeds to pay down debt as it concentrates resources on core brands that can accelerate growth. CEO Steve Cahillane said the transaction is a meaningful step in unlocking value from the portfolio; after joining in January, he paused a plan to split the company in two and pushed turnaround measures including a $700 million reinvestment. ^[2]

Kraft Heinz also reported better-than-expected third-quarter results and raised its 2026 outlook. It now expects organic net sales to fall 0.5% to 1.25%, an improvement from its second-quarter report, which projected a decline of up to 2%. Cahillane said the plan to turn around the U.S. business and accelerate international growth remains on track, with market share, sales and volume trends improving in every region. The stock rose about 5% Wednesday morning. ^[2]

McDonald's reported a 0.2% decline in U.S. same-store sales, better than the 0.5% drop Wall Street expected. Overall same-store sales rose 1.5%, above the 1.3% estimate. Net income was $2.49 billion, or $3.51 per share, up from $2.28 billion, or $3.18 per share, a year earlier; adjusted earnings per share were $3.57; revenue rose 1% to $7.16 billion. Same-store sales in international developmental licensed markets rose 4.2%, above the 2.1% estimate; international operated markets rose 1.4%, below the 2.1% estimate. The stock closed up more than 6% on Wednesday. ^[3]

McDonald's CEO Chris Kempczinski said the U.S. business improved sequentially after the company intervened on value, with same-store sales returning to growth in September after declines in July and August. The company is testing two new value menus, one with mix-and-match bundles and another with fixed meal deals; the option most popular with customers and franchisees will launch nationwide in early 2027. For the fast-food giant, repairing U.S. traffic remains key to turning around same-store sales. ^[3]

Healthcare and media: split logic and audience shifts

CVS Health said Wednesday it plans to split into two public companies in the first half of 2028, separating a pharmacy business of about 9,000 retail locations from its insurance business and pharmacy benefit manager Caremark. The move comes after the company considered and then abandoned a breakup more than two years ago. CVS shares fell about 12% after the announcement, suggesting Wall Street still has doubts about execution and valuation. ^[6]

CVS management stressed that this split is different from the one considered two years ago, with the pharmacy business generating more stable profits and Aetna improving amid high medical costs. The company has beaten Wall Street expectations for eight consecutive quarters and raised guidance multiple times over the past two years; it expects operating cash flow of at least $15.5 billion in 2026, up about 70% from $9.1 billion in 2024, and said it has reached its leverage target early. Since taking over in 2024, CEO David Joyner has pushed $2 billion in cost cuts, store closures, leadership changes and efforts to control Medicare Advantage costs. ^[6]

In media, Trump said Tuesday night on Truth Social that Fox News was responsible for Republican losses in the midterms, citing the network's 27% ratings decline. Democrats won the Senate and House and flipped seats in Texas, South Carolina and Kansas, states that usually favor Republicans. Fox News said its average October audience was 1.1 million, down about 27% from a year earlier; Fox Corp. CEO Lachlan Murdoch called it 'viewer fatigue' on the company's earnings call and said viewers have not turned to competitors. ^[4]

Competition for viewers continues. Versant-owned MS NOW had a total-day average audience of 588,000 in October, while CNN had 402,000; both posted double-digit primetime ratings growth year over year, but their total-day averages remained smaller than Fox News. Despite the ratings decline, Fox Corp. reported revenue of $4.57 billion for its fiscal first quarter, up 22% year over year, with advertising revenue up 47%, helped by political advertising and FIFA Men's World Cup broadcast rights. ^[4]

Takeaway: common choices under cost constraints

Taken together, the updates show U.S. companies answering the same question in different ways: how to protect profits and sustain growth when costs are rising and demand is diverging. FanDuel and McDonald's are leaning on promotions and loyalty benefits; JetBlue is using surcharges to pass through fuel costs; Kraft Heinz and CVS are redrawing business boundaries through divestitures, splits and debt reduction; Fox is relying on political advertising and sports to support revenue. What to watch next is whether promotional spending translates into profit, whether splits and divestitures deliver value on schedule, and whether fuel prices and consumer traffic change pricing strategies again. ^{[1][2][3][4][5][6]}