BUSINESS

TheStreet aims to feature only the best products and services. If you buy something via one of our links, we may earn a commission.Why we love this dealWhen you’re someone who is used to hosting people, you know the struggle of not having enough space for the folks who stay over. Even if you have a huge home, sleep space can be limited, and although many would be okay with a well-made up floor bed, when you can find solutions that keep your guests comfortable, why wouldn’t you take advantage? Sleeper chairs and sofas are always a great solution when you need to find sleep space for your friends and family, and they’re perfect because they don’t have to be stored away when they aren’t in use, and they don’t take up extra space when they’re out and assembled. Sleeper furniture simply converts into beds when needed, but operate as a chair or sofa that you’d use in any living room or family room on a day to day basis, and although that convenience is certainly worth more money than we’d like to admit, you don’t have to fork out a fortune to score a good one to add to your home. Wayfair is selling the Dreamsmith Sleeper Sofa for $34% off right now. The convertible futon sofa bed, which comes in two sizes, usually retails for $250, but you can get the smaller of the two sizes for just $165 — and have a place for one or two of your guests to rest their heads when they stop by for a visit. Dreamsmith Sleeper Sofa, $165 (was $250) at Wayfair

Courtesy of Wayfair

Shop at WayfairWhy do shoppers love it?Made with fiber-wrapped foam, solid and manufactured wood, and upholstered in corduroy fabric, this convertible sofa bed offers versatility and comfort. Built with a robust wooden frame and six solid wood legs, the sleeper sofa offers great stability, whether it’s positioned as a sofa or fully reclined, and can support up to 600 pounds of weight at once. Thick, 7.1-inch cushions made with foam provide support and padding for a comfortable sitting and sleeping experience, and the textured, corduroy upholstery makes the furniture even softer while also adding a stylish look to the piece. Measuring 66.1 inches long, 32.3 inches wide, and 30.7 inches high, the sleeper sofa is large enough to accommodate one to two people but it’s not oversized to the point where it will dominate or look out of touch in a room. Perfect for apartments, offices, guest rooms, dorm rooms, and family/living rooms, the easy-to-assemble sleeper chair is easy to switch between sofa, recliner, and sleeper bed. The sofa has three adjustable backrest levels measuring 105 degrees, 160 degrees, and 180 degrees, so you can sit upright, recline, or lie down entirely, and five-level armrests for personalized comfort and a customized fit. When fully reclined, the sleeper sofa measures 66.1 inches long, 39.4 inches wide, and 18.9 inches high.The bigger size measures just as height and width, but is 74.8 inches long instead of 66.1 inches. Related: Wayfair is selling a ‘very sturdy’ freestanding adjustable cabinet for $65Available in three colors, this tufted loveseat is perfect for folks who want a piece of furniture that functions in more ways than one. After all, what better way to get the most out of your money than purchasing a piece that offers a variety of functions? Details to knowMaterial: Corduroy upholstery, solid and manufactured wood, fiber-wrapped foam.Dimensions: The particular size measures 66.1 inches long, 32.3 inches wide, and 30.7 inches high when positioned as a sofa. When fully converted to a bed, it measures 66.1 inches long, 39.4 inches wide, and 18.9 inches high. Sizes: The sleeper sofa comes in two sizes. This model is the smaller of the two, measuring 66.1 inches long, 32.3 inches wide, and 30.7 inches high in sofa form. The larger size measures 74.8 inches long, 32.3 inches wide, and 30.7 inches high. Colors: Three.Although assembly is required, shoppers say it’s quick and easy, and once built, the sleeper sofa is extremely durable and sturdy. It’s easy to switch between sitting, reclining, and laying thanks to the manual reclining switch. The corduroy fabric and foam cushions give the sofa a cozy, warm feel while the wooden framework acts as the perfect internal support to keep from bending or any structural damage. “Great for when we have guests come to visit,” one shopper said. Shop more deals Ebern Designs Brooklington Upholstered Sofa, $420 (was $700) at WayfairLatitude Run Sectional Couch, $410 (was $630) at WayfairMercer41 Upholstered Tufted Loveseat Sofa, $257 (was $600) at WayfairSay goodbye to stressing out about space issues when you have friends and family coming to visit. Come the holidays, you’ll be happier than ever that you invested in the Dreamsmith Sleeper Sofa and can give everyone a place to rest their heads at night.

Disney (DIS) stock has quietly fallen out of favor, with shares down 14% so far this year and more than 50% from all-time highs.Streaming is now generating real profit, but that progress is being tested by weak near-term cash flow and fresh pressure in Sports as ESPN moves toward its direct-to-consumer transition.That is why Wells Fargo’s latest call on the stock is worth paying attention to.Disney valuation snapshotDisney makes money through a mix of subscription revenue, advertising, box office sales, and park spending, with a growing focus on improving streaming profitability and monetizing its content library more efficiently.Market cap: $170.7 billionEnterprise value: $217.2 billionShare price: $97Analysts’ avg target price: $129 (33% implied upside)2-Year expected annual EPS growth: 11.3%Forward P/E ratio: 13.8x
Source: TIKR.com
Wells Fargo trims target but keeps bullish stanceWells Fargo lowered its price target on Disney from $150 to $148 while maintaining an overweight rating. This price target still implies about 53% upside from the stock’s current share price.At the same time, analyst sentiment remains largely bullish. The stock carries a Moderate Buy rating, with 17 Buy ratings, six Holds, and one Sell, and an average price target near $134.Disney’s new CEO puts execution in focusDisney officially namedJosh D’Amaro as CEO, replacing Bob Iger at the company’s annual shareholder meeting.Newly appointed CEO Josh D’Amaro struck an optimistic tone in his first remarks to shareholders: “Simply put, while others in our industry are consolidating just to compete, or struggling to be relevant in a fragmented and disrupted world, Disney is in a category of one, poised to accelerate into our next era of innovation and growth.”More Trending Stocks:Morgan Stanley sets jaw-dropping Micron price target after eventBank of America updates Palantir stock forecast after private meetingMorgan Stanley drops eye-popping Broadcom price targetD’Amaro comes from Disney’s Experiences division and reinforced that streaming would remain a core part of the business, alongside continued investment in parks and international expansion.Streaming profits now drive Disney’s earnings caseIn the latest quarter, subscription video-on-demand operating income rose to $450 million from $261 million a year earlier, driven by better monetization at Disney+ and Hulu and stronger operating leverage across direct-to-consumer, according to Disney’s Q1 earnings release.Media companies have moved away from chasing subscribers at any cost and toward monetization and margin.Netflix (NFLX) set that standard by proving that scaled streaming can generate durable earnings, while Warner Bros. Discovery (WBD) has also pushed investors to focus on direct-to-consumer profitability over raw subscriber growth.Management also guided to roughly a 10% SVOD (subscription video-on-demand)operating marginin fiscal 2026, giving investors a clear benchmark for how much profit streaming can contribute if pricing, ad sales, and subscriber mix continue to improve, per Bloomberg’s coverage.Direct-to-consumer had long been the biggest reason some investors questioned Disney’s earnings quality. A streaming business generating $450 million in operating income is now serving as a buffer against linear TV’s decline rather than a drag on margins.

Disney’s streaming progress benefits from an industry shift toward profitability, but its ESPN transition raises both upside and execution risk.Garry Hershorn Corbis News/Getty Images

The next test is whether that profit keeps building. Management has pointed to monetization gains, not just cost cuts or layoffs, as the driver.ESPN transition keeps pressure on segment profitsThe biggest structural risk remains Sports. ESPN is heading toward a flagship direct-to-consumer launch planned for fall 2026, just as segment profits are weakening.In the latest quarter, Sports operating income fell 23% to $191 million, and management guided that Q2 Sports operating income would decline by about $100 million year over year, according to Disney’s investor relations update.Disney is trying to replace a historically high-margin distribution model with one that will likely have lower margins at first and greater sensitivity to pricing, churn, and customer acquisition costs.If ESPN’s flagship service accelerates cord-cutting before direct revenue is large enough to compensate, Disney risks losing some of its most profitable affiliate revenue while still carrying a heavy rights-cost base.That pressure is starting to show up in cash flow. Free cash flow fell from positive $739 million in Q1 of last year to -$2.278 billion this quarter.That makes ESPN the main swing factor in Disney’s earnings story. Streaming entertainment is improving, but investors still need evidence that ESPN’s economics can work at scale without damaging the legacy profit pool that continues to fund much of the company’s earnings power.What could drive Disney shares higherDisney+ and Hulu monetization improves further, lifting direct-to-consumer margins and making streaming a more reliable offset to linear TV declinesSVOD profitability scales toward management’s fiscal 2026 target, increasing confidence that margin gains are structuralAdvertising gains across streaming increase revenue per user and support profit expansionA rebound in operating cash flow validates that Q1 weakness was timing-relatedA well-priced ESPN direct launch preserves affiliate economics during the transition and limits margin disruption in SportsWhat could pressure the Disney outlookFree cash flow stays weak, undermining confidence that reported earnings are converting into usable cashSports rights inflation outpaces ESPN revenue growth, compressing segment profitability before the DTC model scalesESPN’s flagship launch accelerates cord-cutting, eroding high-margin affiliate revenue faster than digital sales replace itStreaming profit gains stall if subscriber mix weakens or churn risesMissing the full-year operating cash flow target would raise doubts about Disney’s earnings qualityFurther deterioration in Sports operating income could outweigh DTC progressKey takeaways for investorsDisney is showing real progress in streaming profitability, but the stock now depends on whether that improvement can offset pressure from ESPN’s transition and weaker near-term cash flow.The upside is clear if execution holds, but the path forward still depends on proving that earnings growth can translate into durable cash generation.Related: Wall Street resets Amazon stock price targets on AWS AI trends

RH (RH) gave investors two very different stories in the same earnings release.The first was a company that improved through fiscal 2025. The second was a company warning that the next quarter is likely to worsen before it improves. The market cared much more about the second one. The stock closed April 1 at $112.85, down 19.29%, per Yahoo Finance.RH’s fourth-quarter revenue rose 3.7% to $842.6 million, while GAAP net income more than doubled to $28.8 million. For the full year, revenue climbed 8.1% to $3.44 billion, GAAP net income rose 72% to $124.8 million, and free cash flow reached $252.4 million.Those are not terrible numbers. They look even better next to RH’s balance-sheet progress. Inventory fell to $818.6 million from $1.02 billion a year earlier, and cash and cash equivalents rose to $41.2 million from $30.4 million. Operating cash flow for the year came in at $452.2 million.The market sold the outlook, not the quarterThe problem was the guidance.RH told investors to expect first-quarter fiscal 2026 revenue growth of negative 2% to negative 4%, along with an adjusted EBITDA margin of 5.5% to 6.5%. For the full year, the company guided to revenue growth of 4% to 8% and an adjusted EBITDA margin of 14% to 16%.More RetailShoe brand once worth $4B closes all stores, avoids bankruptcy39-year-old grocery chain closing 17 stores in 2026T-Mobile quietly makes abrupt move as customer losses mountThat full-year outlook still points to growth, but it was not enough to offset the weak first-quarter setup. The company also said the full-year view includes a 270-basis-point margin hit from pre-opening and startup costs tied to international expansion, with a steeper 420-basis-point impact in the first quarter.Wall Street had been looking for more. Investopedia said RH’s adjusted EPS of $1.53 missed estimates near $2.22, while revenue of $842.6 million came in below expectations around $873.5 million.

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RH gave investors a reason for the missRH said fourth-quarter and full-year 2025 revenue were negatively affected by about $30 million from tariff-related resourcing that pushed backorders and special-order balances higher. The company also said adverse weather late in the quarter cost another $10 million.Those details matter because they show the miss was not driven by one clean demand collapse. Tariffs, weather, and supply timing all played a role. Investors still chose to focus on the weaker near-term guide, which suggests the market is not ready to dismiss the slowdown as temporary noise.RH by the numbersFourth-quarter GAAP revenue: $842.6 million, up 3.7%Fourth-quarter GAAP net income: $28.8 million, up 107%Full-year GAAP revenue: $3.44 billion, up 8.1%Full-year GAAP net income: $124.8 million, up 72%Full-year free cash flow: $252.4 millionFiscal 2026 revenue outlook: 4% to 8% growthFirst-quarter fiscal 2026 revenue outlook: negative 2% to negative 4%
Source: RH
RH is still asking investors to look beyond the next quarterThe company said its two-year revenue growth of 15% has outpaced peers, including Arhaus, Wayfair, La-Z-Boy, West Elm, Pottery Barn, and Ethan Allen. Management is also still pointing to international expansion and a larger long-term revenue opportunity, including plans that target $5 billion to $6 billion in North America and $20 billion to $25 billion globally.RH is still selling a long-term luxury platform story. Investors, at least for now, are stuck on a weaker first quarter, tariff friction, and a housing market that still is not giving premium home-furnishing names much help. Barron’s said Gary Friedman continues to describe the current environment as the worst housing market in almost 50 years.That is why the stock got hit so hard. The bigger vision is still there, but the next few months are what investors are pricing.Related: Massive KitKat heist sparks big Easter candy question

Food prices are on the rise. The consumer price index for all food rose 3.1% from February 2025 to February 2026, according to the USDA.This jump has put a major strain on Americans’ food budgets. Some 52% of people told Lending Tree they’re spending more on food this year than they were last year, and 84% of people said they are cutting back on dining out to save.For those who are still eating at restaurants, choosing cheaper eateries and paying attention to menu prices are the top ways they’re keeping spending in check while still enjoying the odd meal out.Luckily for the price-conscious diners, IHOP’s new menu changes and additions are making it a lot easier to eat out without feeling the financial strain.IHOP is expanding its value lineupIn September 2025, IHOP announced it would be launching a value menu, with the intention of offering guests breakfast classics at a wallet-friendly price point.Initially, the menu was available only on weekdays, but during Dine Brand’s Q4 FY2025 earnings call, CEO John Peyton told investors the restaurant would be moving to a seven-day schedule and expanding the number of items offered.“The IHOP Value Menu, an expanded and rebranded version of House Faves, now available seven days a week,” Peyton said. “This gives guests greater confidence that they can access meaningful value any day of the week while preserving a balanced menu mix.”The restaurant introduced the value menu in response to customer feedback.“The way I would characterize the consumer broadly for 2025 is that they were looking for both the value and the vibe,” Peyton told investors. “By value, we mean obviously the price of the item, but also the taste, the quality, an abundant serving, and most importantly, the vibe, which is, you know, really good service, and we see that trend continuing to 2026.”Thus far, the value menu has proven highly successful for the breakfast chain. Some 20% of all IHOP’s tickets from Q4 2025 included items from the menu, Peyton said.“The value menu is drawing guests into the restaurant, and once they’re here, guests are also choosing premium offerings such as our breakfast, combos, and LTOs, like our Pumpkin Spice Pancakes and Coffee Cake Pancakes,” he told investors. As a result, the restaurant saw a 4.5% increase in sales as compared to the same quarter the year before.IHOP’s Value MenuIHOP’s value menu is available seven days a week, from 7 a.m. to 10 p.m. All entrees are priced at $6, and offerings include:BLT served with french fries or hash brownsBreakfast Faves ComboFrench Toast Faves ComboHam & Cheese OmeletteHouse Scramble
Source: IHOP

IHOP is expanding its value menu, adding a BLT and a new proprietary coffee blend to the $6 tier. Getty Images

IHOP is adding new items to the menuThe value menu updates aren’t the only changes coming to IHOP. During the earnings call, Peyton said the restaurant would be updating its coffee program for the first time in 20 years and filling out its omelette lineup.“Coming into 2026, we’re going to complement our IHOP Value Menu with, for example, a new proprietary coffee, because, you know, you got to have the best coffee in the world together with the best pancakes in the world,” the CEO told investors.The restaurant will now be brewing the IHOP Coffee Blend at its 1,800 locations. The blend features 100% sustainably sourced Arabica beans from Brazil, according to Global Coffee Report. More restaurants:Olive Garden is making big menu changes diners will loveNoodles & Company eyes a dedicated ramen section on its menuPapa Johns debuts bold menu changes to win back customersDiners who prefer iced coffee also will now have the option of adding flavors like Dulce de Leche, vanilla, and chocolate to their drinks, the outlet says. If eggs are more your morning style, there’s good news on that front as well.“We’re gonna be innovating around our omelet platform,” Peyton said in February. “This March, we’re also going to introduce a new BBQ Pulled Pork Omelet, which we’re excited about because it’s something our guests have been asking for. Then, of course, as you go further into the year, we have a whole lineup of innovation to balance that.”The pulled pork omelet is priced at just $14.99, significantly less than the nine other omelet options, which range from $19.39 to $21.59, making it a budget-friendly option.Related: Chili’s makes a bold menu change fans will love

Intel (INTC) reported April 1 that it will repurchase Apollo Global Management’s 49% stake in the joint venture tied to Fab 34 in Leixlip, Ireland, for $14.2 billion. The company plans to fund the deal with existing cash and about $6.5 billion of new debt, and it said the transaction should support profitability and its credit profile beginning in 2027.The move reverses a financing deal Intel struck in June 2024, when Apollo agreed to invest about $11 billion for that same 49% stake as part of Intel’s Smart Capital strategy. Intel kept a 51% controlling interest and operational control of the site, which gave the company more flexibility while it continued spending heavily on manufacturing.Why Fab 34 mattersFab 34 is one of Intel’s most important manufacturing assets in Europe. Intel has said the facility supports Intel 4 and Intel 3 process technologies, while reporting on the new buyback noted that the site produces chips including Core Ultra and Xeon products. Intel also described Fab 34 as its first high-volume manufacturing site in Europe using EUV for Intel 4.That gives the transaction more weight than a routine capital-structure move. Intel is not buying back a side asset. It is taking back full ownership of a leading-edge fab that sits close to the center of its manufacturing strategy.

Intel stock moves higher after buying back stake in fabShutterstock/TheStreet

Why Intel’s stock movedThe market reaction was easy to understand. Intel is bringing a strategic fab fully back in-house at a time when investors have been looking for signs that the company is getting more comfortable carrying its manufacturing recovery on its own balance sheet. Shares rose sharply on the announcement, with intraday gains pushing higher than 9%.The timing also fits the broader shift under CEO Lip-Bu Tan. A year ago, Intel was leaning on outside capital to help support this fab. Now it is paying more to unwind that arrangement, which gives investors a read on how management sees the value of tighter control.The investor debateIntel is buying back the stake at a meaningfully higher price than Apollo originally paid, and it is using both cash and new debt to do it. Investors still have to decide whether the strategic benefits are strong enough to justify the added cost and financing burden.The bullish case is straightforward. Intel is regaining full ownership of a fab tied to some of its most important client and server products, and management says the deal should support EPS and its credit profile starting in 2027. If execution keeps improving, the move looks more like tighter strategic control than an expensive unwind.What Intel’s stock chart says nowIntel’s technical picture has improved meaningfully, and Wednesday’s rally added to that shift. The stock opened at $45.00, traded as high as $48.77, dipped to $44.98, and is trading at $48.15 as of 2 pm April 1, up 9.11% on the day.The stock remains above its exponential moving averages (EMA), a key indicator used by technical analysts. The 20-day EMA (light blue) sits at $44.99, while the 200-day EMA (dark blue) sits at $37.51. That keeps the short-term and longer-term trends pointed in the same direction.

More technicalsSurging Chevron stock has more going for it than just higher oil pricesExxon stock jumps as today’s oil rally meets a bullish chartAre stocks oversold as Dow Jones, S&P 500 flash technical signal?The support area underneath the price is still the cleaner level to watch. A zone between roughly $33 and $37 had acted as resistance before the breakout and now looks more like support. That band also lines up closely with the 200-day EMA, giving it added technical importance if the stock pulls back.The next challenge is overhead. Intel is pushing into a prior resistance area between roughly $49 and $55, which means the stock is running into a zone where sellers showed up before. If buyers can keep control above the mid-$40s, the chart leaves room for a broader test of that range. If momentum cools, traders will likely look first to the 20-day EMA near $45, then to the broader $33 to $37 support zone.Related: Bank of America resets Intel stock forecast