What's going on?

Shares of the world�s oldest travel company, Britain�s Thomas Cook, nosedived 23% on Tuesday after it drifted below investors� profit expectations yet again � and canceled its dividend.

What does this mean?

Back in September, Thomas Cook�s stock hit turbulence when it warned investors that its annual profit would be lower than expected, thanks to a record-hot summer in Europe putting off would-be holidaymakers from going abroad.


But the company had bulked up its jet fleet and pre-booked hotel rooms ahead of time, forcing it (and rivals like TUI) to slash prices in order to tempt customers to book trips. As a result, profit for the year was around 20% lower than the last � and the company had told investors to expect only a 15% fall. Now, analysts are taking the company�s stated aim to �deliver progress� to mean that profit for the year to come will also be lower than predicted.

Why should I care?

For markets: Mayday at Thomas Cook.

Thomas Cook�s selloff�s likely due in part to the company announcing it�ll cancel its dividend � a regular share of profit paid to shareholders � this year. With the company�s debt rising to almost $500 million, it probably needs that cash to help steer the company back to sunnier climes. �Income investors” who rather like these payouts (including, perhaps, those looking after your pension) might have sold their stakes, seeing as there�s no cash light at the end of the annual tunnel.

The bigger picture: Greggs is feeling hot hot hot.

Shares of British baking chain Greggs (which has more branches in the UK than McDonald’s!) rose 12% on Tuesday as it told investors it�s expecting the golden donut of higher sales and profit for the year. A warm summer and mild fall may have benefited the company: since more Brits were home enjoying the weather, they may have used some of the vacation money they saved on Greggs� occasionally controversial snacks, giving the company a boost.