Bloomberg Intelligence FedEx Warns of Pain Ahead With Tariffs Weighing on Demand
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Jun 25, 2025 
Michael Halen, a Senior Restaurant and Foodservice Analyst at Bloomberg Intelligence, shares insights on the evolving restaurant industry. He discusses how valuations are diverging between market leaders and laggards, with casual dining brands like Cracker Barrel showing promise. Halen highlights operational improvements and marketing strategies aimed at engaging younger consumers. He also explores the cautious optimism surrounding the industry, driven by potential economic shifts in the latter half of the year.
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FedEx's Shift to E-commerce Challenges
- FedEx is transitioning from a B2B to a predominantly B2C, e-commerce-driven business.
- This shift increases delivery costs and requires long-term network efficiency improvements.
Tariff Uncertainty Disrupts Supply Chains
- The stop-and-go nature of tariffs disrupts supply chains and undermines business and consumer confidence.
- Businesses need stable tariff rules to operate effectively and restore volume growth.
FedEx's Exposure to China and Industrial Weakness
- FedEx's exposure to China mainly comes from its express business flying goods from Asia to the U.S.
- Its less-than-truckload segment, linked to industrial markets, struggles amid ongoing economic contraction.