Today, 10:27 AM
- A harsh view on the restaurant sector from Stifel Nicolaus is based in part on its view that a U.S. recession could occur within nine months. The note from the firm also warns on a loss of pricing power by restaurant operators.
- Early Q2 reporters Starbucks, McDonald's (MCD -3.9%), and Chipotle (CMG -1.8%) already set a negative tone for the sector by missing estimates, but Stifel's downgrade on 11 different restaurant chains is taking the gloom to a new level.
- 50 of the 55 publicly-traded restaurant stocks with a market cap of over $50M are in negative territory today. Leading decliners are Noodles (NDLS -17.7%), Chuy's Holdings (CHUY -9.3%), BJ's Restaurants (BJRI -6.2%), Sonic (SONC -3.8%), Bojangles (BOJA -3%), Dave & Buster's Entertainment (PLAY -3.6%), and Red Robin Gourmet Burgers (RRGB -7%).
- Investors are betting that pizza delivery chains won't be impacted by the general trend of sluggish traffic. Both Domino's Pizza (DPZ -0.6%) and Papa John's International (PZZA -1.7%) are up over 10% over the last few weeks.
- Previously: Restaurant stocks on watch after McDonald's miss and Stifel cuts (July 26)
- Previously: U.S. restaurant traffic down 3.5% in June (July 15)
- Related ETF: BITE.
Today, 8:08 AM
- McDonald's (NYSE:MCD) reports global comparable store sales increased 3.1% in Q2 to miss the consensus mark of analysts calling for a 3.6% gain.
- Comparable store sales were 1.8% higher in the U.S. vs. +3.2% expected. The McPick 2 and the All Day Breakfast initiatives continue to resonate.
- Comparable-store sales growth of 5.2% was recorded in the International Lead segment. The High Growth segment recorded a +1.6% comp and the Foundational segment comp was +7.7%.
- EPS fell 1% Y/Y during the quarter which included a $0.20 strategic charge.
- The company spent $4.1B in share repurchases and dividends.
- Previously: McDonald's misses by $0.13, revenue in-line (July 26)
- MCD -2.86% premarket to $123.75.
Today, 7:59 AM
Today, 6:23 AM
- McDonald's (NYSE:MCD) is seeking franchise partners for its restaurants in Malaysia and Singapore as part of its move to away from direct ownership and operation in Asia.
- The company is negotiating with "suitable candidates," but did not provide any details or a timeline.
- According to Bloomberg, a sale of McDonald's franchise rights in the two Southeast Asian markets could collectively fetch at least $400M.
Yesterday, 5:30 PM
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Fri, Jul. 22, 2:33 AM
- Pokemon GO has finally launched in Japan, the birthplace of the little virtual monsters.
- Besides Nintendo (OTCPK:NTDOY), which owns stakes in both The Pokemon Company and game developer Niantic, shares of McDonald's Holdings Japan are getting a big boost from the news.
- Its fast food restaurants across the country are set to become "gyms," where players can train their Pokemon for virtual fights.
Tue, Jul. 19, 1:59 PM
- McDonald's Holdings Japan is set to announce a Pokémon Go initiative in Japan, according to TechCrunch. Sources say McDonald's restaurants in Japan will be integrated within the game.
- Pokémon Go is due to launch in Japan tomorrow to what's expected to be huge demand.
- McDonald's (NYSE:MCD) owns 50% of the Japan joint venture and is believed to have some Pokémon plans of its own for the U.S.
- Previously: What's McDonald's doing inside the Pokémon code? (July 14)
- Related Pokémon news: Betting on augmented reality beyond Pokémon Go (July 18)
Fri, Jul. 15, 2:24 PM
- Same-store sales growth in the restaurant sector fell 1.1% in June, according to Black Box Intelligence.
- Same-store traffic was down 3.5% Y/Y during the month and 3.0% for all of Q2. The worst numbers were posted in the Southwest part of the U.S. That data point, along with the recent issues at Taco Bell (weak Q2 U.S. sales) and Chipotle (survey results), raises questions on how Chuy's Holdings (NASDAQ:CHUY), Qdoba (NASDAQ:JACK), and Del Taco (NASDAQ:TACO) fared during the quarter.
- The weak month of same-store sales growth also puts a spotlight on McDonald's (NYSE:MCD) and Starbucks (NASDAQ:SBUX) to see if they matched their recent performances in the U.S.
- Earlier sector news: Restaurants see some relief on commodity costs (July 15)
- Related stocks: EAT, WEN, SONC, QSR, CMG, NDLS, PLKI, BOBE, BLMN, RT, TXRH, RRGB, ZOES.
- Related ETF: BITE.
Thu, Jul. 14, 3:47 PM
- Shake Shack (SHAK +0.9%) is on an upswing this week with some ungrounded rumors still circulating on McDonald's (MCD +1%) having an interest in acquiring the high-growth burger chain.
- Shares of SHAK are up 4% on the week and are making a bid to reach $40 for the first time since March.
- Industry watcher Restaurant News summarizes the case for McDonald's to add the Shake Shack business, but also calls a deal "highly unlikely."
Thu, Jul. 14, 9:34 AM
- Niantic Labs appears set to allow businesses to officially sponsor locations for in-game activities for Nintendo's (OTCPK:NTDOY, OTCPK:NTDOF) Pokémon, according to media reports.
- That's not news to followers of Reddit posts which dug deep into the Pokémon code to discover bits with "McDonald's" already in it (see code here)
- Though the monetization of the Pokémon phenomenon was widely expected, it also has deeper implications for retailers even beyond trying to scrap for foot traffic through establishing Lure modules, PokeStops, and Pokemon Gyms. Pokémon may come and go. The intersection of real-world shopping and augmented reality games is probably here to stay.
- Companies with an eye on augmented reality and location-based entertainment as it relates to increasing traffic run far and wide. Restaurants (QSR, SBUX, MCD, CMG, WEN, NDLS, PNRA, DNKN), store chains (GPS, AEO, ANF, TGT, ROST, DG, DLTR), and movie theaters (AMC, CKEC, IMAX, CNK, RGC) come to mind.
- Google (GOOGL, GOOG) is also keeping track of all the Pokémon developments as it served as an incubator for Niantic Labs up until the Alphabet creation. Recode says it's unclear what stake that Google still has in the software developer.
- Pokémon news on Seeking Alpha
Wed, Jul. 13, 1:58 AM
- McDonald's (NYSE:MCD) is struggling to attract the caliber of bidders it envisioned in the sale of its China and Hong Kong franchise, FT reports.
- Pressure from investors for better quality control in Asia has been reflected in the terms of the deal, according to sources, who said some of the conditions, such as keeping management intact for two years and a restriction on taking the franchise public, are onerous.
- Previously: McDonald's gets bids for China, Hong Kong stores (Jun. 22 2016)
Tue, Jul. 12, 9:03 AM
- Barnes & Noble (NYSE:BKS) is showing its pop-up flair with a promotion tied to the Pokémon phenomenon just days after it launched.
- The company is printing a special bonus code on customer receipts of the purchase of Pokémon trading card products that will unlock two "rare" online Pokémon.
- Other retailers are also trying to attract Pokémon game players by using "lures" in the game to entice traffic or by gaming the system by creating user-submitted PokeStops and Pokémon Gyms. For a very low cost (see Pokemon math explained here), restaurants or other stores can purchase the Pokemon GO Lure Module which in the early stage of the game's roll-out has proven to increase traffic.
- The clock is ticking on McDonald's (NYSE:MCD) (which has done Pokémon promotions in the past) and the other large chains to jump into the game before the initial frenzy of action on the streets wears off..
- Add it all up and it's nothing but good news for Nintendo (OTCPK:NTDOY) in the short term. Nintendo ADRs are up 56% since the launch.
- Related ETF: BITE.
Mon, Jul. 11, 11:11 AM
- Family-owned Chick-fil-A continues to improve sales at existing stores even as it adds units in the U.S. at a rapid pace.
- Sales are up 18% this year to rank 5th in growth out of Nation's Restaurant News top 100 list. The chain achieved the mark despite being closed on Sundays.
- Sales per unit improved 11.7% last year to over $3.5M to easily outpace the flattish growth seen across the restaurant sector.
- Companies which compete with Chick-fil-A include Burger King (NYSE:QSR), McDonald's (NYSE:MCD), KFC (NYSE:YUM), Bojangles (NASDAQ:BOJA), and Popeyes Louisiana Kitchen (NASDAQ:PLKI).
- Related ETF: BITE.
Fri, Jul. 8, 8:52 AM
- Canaccord Genuity warns on a sluggish environment in the restaurant industry during June.
- Channel checks show a decline in sales and traffic which is believed to be due in part to a heightened sense caution from consumers and uptick in gas prices.
- Canaccord estimates that U.S. restaurant same-store sales fell 2.0% to 2.5% in June.
- Restaurant stocks: CAKE, CBRL, DNKN, DPZ, DRI, EAT, JACK, MCD, RRGB, RT, SONC, WEN, BWLD, BDL, QSR, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, HABT, NDLS, BOJA, PBPB, PLKI, FRSH, RAVE, LOCO, TACO, PZZA, KONA, BGR, BJRI, CHUY, FRS, CBRL, GTIM, TAST,WING, BOJA, ZOES, PLAY, FOGO, ARCO.
- Related ETF: BITE.
Thu, Jul. 7, 5:07 PM
- McDonald's (NYSE:MCD) discloses that it expects to take a $235M pretax charge in Q2 related to strategic changes that were previously announced. The company estimates the charge will equate to roughly $0.20 per share.
- The major changes at the company include a relocation of the corporate HQ, refranchising efforts, and G&A initiatives.
- SEC Form 8-K
Wed, Jul. 6, 11:36 AM
- McDonald's (MCD -0.3%) announces it will expand the All-Day Breakfast menu at all U.S. locations to include McMuffin, McGriddle, and biscuit sandwiches.
- The All-Day Breakfast menu has helped spark traffic at the restaurant chain and was cited by peers on several Q1 conference calls as a drag on their sales.
McDonalds Corp. engages in the provision of food service retail. Its activities include franchise and operation of McDonalds restaurants globally. The restaurants offer a range of food menu including hamburgers and cheeseburgers, fillet, french fries, salads, sundaes, pies as well as drinks... More
Country: United States
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