melissa, back over to you. >> kate, thank you kate rogers. be concerned about this >> no. kate checked every box i would have brought up, which is that, first of all, they've already guided down on china she pointed where the fiscal q3 wasn't that great. long-term china strategy very much intact. this is a north america story. this is 72% of the stop line this is a growing asp or, you know, ultimately their margins and their loyalty program and the multiple the company is trading at is a function that they're pushing higher prices on to their consumer. i don't love this news but i'm not worried on china's news and how it's impuded on starbucks especially when the company has already guided you that it wasn't a great quarter last quarter and that this was going to be potentially a headwind. >> when was their guidance do you remember roughly when it was, if it was the end of august or the beginning -- i don't remember >> july 28th i think it was july 28th. >> okay. the question is we did see the peak of delta in china when they guided peak of d

led by starbucks employees in three stores in buffalo, new york, is becoming a citywide issues kate rogers its implications for starbucks kate >> reporter: workers at three starbucks stores in buffalo, new york, petitioned for a vote on whether to unionize late last month and has told the labor relations board all 450 of its workers in the city should be allowed to vote according to a memo starbucks sent to employees obtained by cnbc this would take that vote from three stores to 20 the letter to the buffalo workers also said the company was taking action to bring store operations back up to its standards including bringing in help with staffing and repairing store issues ask us anything, we're all here to help. you have the right to work directly with starbucks. in response to this starbucks workers united sate starbucks is trying to delatey the vote we are trying to organize even one store and win the right to organize at this company we've also learned that starbucks executive howard schultz, the company's former ceo and the executive vice president of starbucks north america have both

shares of beyond meat up nearly 3% as the company is set to launch chicken in grocery stores kate rogers meatless chick tennessee ders are going to be available in select grocery stores in october. the tenders use fava beans as a protein source and the company says they have half the amount of saturated fats as a traditional chicken tender the ceo told me the company is working on building out plant based options. both ends of beyond's business have been impacted by the pandemic as restaurants shuttered and consumers loaded pantries with groceries last quarter. its products do continue to do well in retail supply chain issues haven't impacted the company or this product, he added. this is the continuation of the chicken roll out, which launched nuggets and strips in restaurants over the summer ask. impossible foods launched its chicken product made from soy bean in select restaurants beyond meats is higher 3% today but down about 9% year to date. >> didn't they have a setback? was it dunkin with the breakfast product? >> yeah. last quarter this came up. brown said they are still working

kate rogers has the story. hat they can charge restaurants for food delivery. 5% for listing on the app and 3% cap on credit card processings the sue claims the law harms the industry as a whole and is unconstitutional, it interferesh contracts that the platforms and restaurants have already negotiated for its park, the new york city hospitality alliance balked at the lawsuit saying this last ditch lawsuit demonstrates that these billion dollar corporations will use every weapon in their war chest to overturn widely supported legislation and continue preying on new york city rauntds. these big third-party delivery companies use their money and market domination to increase fees on small businesses guys, back over itto you. >> hard to figure out who to side with here, kate, because the big companies like the doordashs and grubhubs say that the law only will hurt the very restaurants it seeks to support. is that true or are they just posturing >> you can argue it either way i know the delivery companies certainly

. >> that would totally change the equation for people who might look to you be institute kate rogers with the latest on the alt meat front that's it for the "the exchange," punch starts right now. >>> let us all trait meatless chicken tenders. i thought they already were. welcome to "power lunch," everybody. here's what's ahead. yields pop the ten-year breaks a key level, is the bond market about to drive a great market rotation? what could it all mean for you and your money the race to regulate crypto. do stable coins pose a systemic threat. >> that's the question regulators are grappling an expert will tell us why he thinks stable coins need to be banned out of here and will investors be punched by the energy crisis in china the cio of -- those how you can protect your portfolio. >> nuggets have gotten better over the years, more chickeny. >>> the dow is the only average in the green, up 152 points, about 100 points off session highs. financials and energy are outperforming. the s&p is about flat. tech overall underperforming that's why the nasdaq is down behalf a percent crude at

. >> how about starbucks getting hit today following a profit warning from yum china kate rogers, prettyhina warning its adjusted profit would take a 50% to 60% hit in q3 as the delta variant impacted its stores. more than 500 of its restaurants in 17 provinces were either closed or offered only takeaway and delivery this led to same-store sales declines the company saying the recovery will take time there the news, of course, seems to be weighing on starbucks stock today down around 3.5% and set for its worst day in eight months china is starbucks's second home market with more than 5,100 stores there >> kate rogers, thank you. sylvia, one place you to want to buy the dip if you think it's sinking globally >> i do want to buy the dip on starbucks because i think it's such a solid company i think it's falling in sympathy for yum brands but once the variant gets under control and stores reopen you'll have the situation where the price is likely to pop back up and starbucksdoes all sorts of home deliveries and 88 different countries, too so this definitely impacts the bottom line in terms

some restaurants are cashing in for sure here's cnbc's kate rogers. >> reporter: the lunch hour was a of freedom on a long, busy day at the office but since the pandemic, lunch has lost its luster. after 18 months of working from home, workers around the country are reclaiming that midday break. >> there would be opportunities, you know, to meet up with co-workers and go out for lunch, where at home it's just me and my cat. >> i normally go out to some places like this where i can get a quick meal and head on back. >> reporter: data show lunch traffic has been gaining over 2020 levels this summer but it well below pre-pandemic levels it's also making up the largest segment of dining out, with 40% of traffic during the day over the last few months. consumers also say they're most likely to dine out for lunch while locations in dense office centers may be slowing down, those outside of cities are faring better. for companies like cava, the focus on on suburban expansion to capture a new consumer, a strategy that's paid off as workers have yet to return to office. >> we knew from day one

our own kate rogers and michael santoli. chipotle getting two new street high price targets in the past week just days after cowan hiked theirs to $22.50 it has just one analyst celebrating. it's pricey. its p/e ratio among the highest among peers. it may be high but nowhere near its own all-time highs its full-year pardon p/e was down to 32 went back above 116 by last may. since come in to settle in around $74 michael, what are your thoughts beyond the stock's performance >> it shows you that analysts do have to stretch to find a rational to justify much further upside from here because it's been such a well-embraced investment thesis. the company has been performing so well. i'd throw away the huge multiple on super depressed earnings and say it's rich. and one of the things that struck me was that piper suggests that getting up to 47 times cash flow, enterprise value to cash flow, it's never really traded up there you really can't find that many companies that trade there but part of the premise is they can double domesti

kate rogers has more >> reporter: hey it used to be about the beef but these planet-based meat companiesossible foods today announced the launch of its meatless chicken nuggets and handful of restaurants including fat burger, dog house, red rooster the product is also coming to grocery stores by the end of the month. walmart, kroger, albertsons, will carry the nuggets impossible plans to have them in 10,000 stores by the end of the year it's a significant ramp up the suggested retail price is $7.99 for about 20 nuggets it comes ahead of the reported ipo which reuters said in april could come sometime in the next 12 momts beyond meat is leaning into expanding its chicken products launching new tenders in 400 restaurants in july. mostly independent chains. it's an improved product after an initial launch of chicken several years ago. the company has not revealed plans yet to offer in grocery stores but' than brown wants to focus more on protein diversity. the main difference in the two products is the ingredients. impossible's nuggets made from soy protein and beyond a mix of pea proteins.

each year mcdonald's sells more than a billion happy meal toys in more than 100 countries cnbc's kate rogerst should kids expect to see in the boxes now or once they have done this >> sure, shep. so the happy meal is getting a bit greener. the toys in the meals will be made from more sustainable materials by 2025 from plant-derived or recycled materials while others will have more changes in their appearance action figures and movie characters will be 3-d cutouts rather than this minion made out of paper and here you can see batman playing cards made out of paper. the new toys will appear in the u.s. in january. the company says it's slashed its used of fossil fuel-based plastic since 2018 in markets in france, uk and ireland and made changes to the food in the happy meals reflecting a healthier shift in food with less sodium, calories and sugar. >> what's brought this about now, just public pressure or what >> can be around the clone are facing increased pressure from both customers and investors seeking greener investors. mcdonald's is a market leader and has made changes to its menu to be

kate rogers with here with that story for us hi. >> hey beyond announcing today the meatless chickenr including walmart, giant foods and shoprite they use fava beans and the company says they have about half the amount of saturated fat of a traditional chicken tender. ceo brown told me that the company is continuing to work on building out plant-based options so that if they seek an animal protein product there's a beyond option to choose from. restaurants shuttered and then consumers loaded up with grocery and there's a less clear landscape and the productings continue to do well and expects that the rollout is well received this is the continue waegs for beyond with nuggets and strips in restaurants over the summer and impossible launched earlier this summer. back over to you guys. >> thank you so much. >>> up next, if you can't beat them join them hedge funds are sick and tired of private equity and making a swift change it's made investors a lot of money. we'll explain coming up next. >>> powell and yellen set to testify motorrow what we'll be listening for when we return. buried

kate rogers has the details for us. >> well today it is 24 million more reward customers can access itwo years and tested this year chief marketing officer told me that chipotle stage gate testing determines the items to work well. >> we'll get consumer feedback along the path and getting finance feedback and operations feedback because a great idea that can't be executed well at the restaurant is a really bad idea. >> the item is a limited supply offer that he says should last through november or december and the company uses meat without antibiotics or hormones and making the supply khan more challenging. back over to you. >> kate, thank you so much look forward to that item. very much so. >>> up next, a look at a group of stocks oswhe valuation hitting extreme levels despite the market pullback. re you wante that all behind? yeah. stay restless with the rx. crafted by lexus. experience amazing at your lexus dealer. [squeaky shopping cart] [sniffing] is the salmon wild-caught? she only eats wild caught. [cash register beeps] uh, i need a price check on honey. don't get mad. get e*tra

small business supply chain issues continue to worsen ahead of the holiday shopping season kate rogersational federation of business is out with the latest covid-19 survey and the supply chain is disrupting operations on main street half of small business owners reported supply chain disruptions had a significant impact on business two months ago the number was at 32%. more than half of owners impacted reported the disruption is worse than three months ago and 86% anticipate these issues will continue for at least the next five months or more a quarter also reported that tariffs on chinese products have had a somewhat negative impact on business with 10% saying that they had a significant negative impact on operations beyond supply chain issues the other major hurdle for operators are continued staffing challenges, 27% said they are experiencing a significant shortage and about half of small business owners say they're receiving fewer job applications than they were just a month ago. unfilled job openings per the nfib are at a 48-year record high the challenges are weighing on main str

and they're moving in opposite directions kate rogers has a look and courtney reagan is following akang today after pricing at $40 a share, raising 870 million in the ipo the stock gaining more than 60% today looking to close higher today by more than 50% the restaurant technology sells both hardware and software and is used in 48,000 locations in the country after adding 20,000 new locations in the past two years and seeing its valuation more than double in the past few months the ceo told me today that the company and the industry have learned from the pandemic. take a listen. >> we look at the delta variant, and covid in general, we feel like the industry has been battle-tested with the covid pandemic and the industry and toast are amazingly resilient. so we feel like, while delta maybe dampened things, this industry is in recovery and we couldn't be more excited to lead the charge ahead as the industry recovers and restaurants start to thrive again. >> it's the second restaurant tech company to go public this year sara, back over to you >> we'll send it now over to courtney reagan

kate: in sports this morning, the a's will try to avoid being swept in toronto. the first pitch against the blue jays is at the rogerss and giants play for the final time of the regular season with winner claiming the nl west lead. first pitch is at 4:05 p.m. last night, the dodgers evened the series and division standings by beating the giants. here's chris alvarez with the details on this morning's sports. chris: within 11 ending win winn over the dodgers, the giants took a lead on saturday. a massive dodgers fans fighting for first place. trea three in the first inning. buster posey. kris bryant, and it is 3-1. many happy giants fans. giants still struggling in the fourth. nine left on base. giants lose 6-1, so we are all tied up seasoning series finale later today. the a's are trying to get back on track after a tough loss in toronto. bottom seven, tasker hernandez. -- teoscar hernandez. three run shot to left. sean murphy,,,,,,,, oakland is down two with no outs. the rally, it would fall short. oakland loses, the the the avoid a sweep later today. damidamidamidamidamidamidamidami 7-0 golden bears. the quarterbac

kate: next, the battle for first place. the giants tried to stay ahead of will try to avoid being swept in toronto. the first pitch against the blue jays is at 10:07 at the rogersg to the game, you can watch on our sister station. first pitch is at 4:05 p.m.. last night, the dodgers series beat the giants. here is chris alvarez with the details. chris: good morning. with an epic 11 inning win over the dodgers, friday night, the giants took a lead. it was a bullpen game for san francisco. a mass of dodges -- dodgers fan walking into oracle park. the dodgers scored three in the first inning. but, the giants battled back. buster posey doubles in kris bryant. it is three/one. many happy giants fans. two out base hits, two off, tommy la stella pops all -- pops out. bottom seven, on four yes. two. he strikes out. corey seager as the dodgers lead with a homerun. the giants at 61. we are tied up going into the season and series finale later today. the a's. trying to get back on track after tough loss in trento. -- in toronto. mark can scores down one. bottom 7, 2 on four oscar hernandez. jake declan of ocean -- oakland pitching. seven/three blue jays. mark can the left

kate, great to see you thank you. appreciate it. >>> coming up, china's crackdown on crypto currency we'll take you live to beijing for the latest but next, are you ready, folks rogerfor tennis waiting on the baseline to serve up some answers to our questions. stay tuned "squawk box" retnsft ts.ur aerhi ♪♪ in boxing or any other business, one day, you're gonna take a hit you didn't see coming. do you stay down? or do you get up? [announcer] and this fight is a long way from over, leonard is coming back. ♪♪ ♪♪ don't like surprises? [ watch vibrates ] proactive notifications from fidelity keep you tuned in all day long. so when something happens that could affect your portfolio, you can act quickly. that's decision tech, only from fidelity. >>> the international tennis tournament the laver cup kicks off today. top three tennis players and a more impressive legacy a soldout event that has to be staged with covid concerns in mind joining us to talk about all of this is roger federer co-founder of the laver cup which is one we all know about one of the greatest tennis players of all time with 20 grand slam singles titles. tony godsick fellow co-founder and chairman of t