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McDonald's Corporation (MCD)

  • Yesterday, 2:56 PM
    • Restaurant chains in New York City will be required to post salt warning symbols on menus and menu boards on foods items that top 2,300 milligrams. The initiative begins tomorrow.
    • The salt warning is expected to apply to almost 10% of all menu items at chain stores.
    • Companies expect to incur some mild expenses to make the changes, but don't think sales will be impacted.
    • Restaurant stocks: PNRA, MCD, QSR, DNKN, SHAK, WEN, DIN, EAT, HABT, BWLD.
    | Yesterday, 2:56 PM | 21 Comments
  • Mon, Nov. 16, 1:48 PM
    • McDonald's (MCD +0.7%) will introduce a new value platform in January, reports Nation's Restaurant News.
    • The McPick 2 for $2 program will run for five weeks. The return to the $1 price point involves allowing customers to pick two items from a list of four (McDouble, the McChicken, small fries, and mozzarella sticks) easy- to-produce menu choices.
    | Mon, Nov. 16, 1:48 PM | 6 Comments
  • Fri, Nov. 13, 2:53 PM
    • Wendy’s (WEN -2.4%) is added to the Focus List at Citigroup, which believes same-store sales likely have been accelerated by "at least several hundred basis points” after the company introduced the 4-for-$4 promotion in October.
    • Citi analyst Gregory Badishkanian says industry buzz suggests the promotion is driving strong results for WEN, leading to a rise in transactions with little to no impact on restaurants' average check total.
    • The analyst predicts WEN will post Q4 same-store sales growth of at least 4%, above analyst consensus of 2.7% and the 3.3% growth implied by the high-end of company guidance.
    • Badishkanian predicts McDonald's (MCD -1.4%) same-store sales growth should accelerate further in Q4 but not at the expense of WEN.
    • Citi rates WEN a Buy with an $11 price target.
    | Fri, Nov. 13, 2:53 PM | 11 Comments
  • Thu, Nov. 12, 10:43 AM
    • McDonald's Japan reported a net loss of ¥29.28B ($238M) for the first nine months of the year.
    • The loss for the period was the largest since the stock started trading in Tokyo in 2001.
    • Total sales were off 20% to ¥137.55B ($1.12B).
    • During Q3, same-store sales declined 20% on a traffic drop of 15%.
    • McDonald's (NYSE:MCD) owns 50% of the Japanese holding company.
    • McDonald's Japan earnings release
    | Thu, Nov. 12, 10:43 AM | 12 Comments
  • Thu, Nov. 12, 9:37 AM
    • McDonald's (NYSE:MCD) will dive into consumer data trends to decide which menu items to place on its new digital menu boards next year, according to execs.
    • The listed items may even change day to day based on weather. Eventually, the menu boards could change based on current inventory and hot selling patterns.
    • U.S. President Mike Andres noted stores in Canada that tested the new menu boards saw a sales boost.
    | Thu, Nov. 12, 9:37 AM | 12 Comments
  • Wed, Nov. 11, 12:16 PM
    | Wed, Nov. 11, 12:16 PM | 3 Comments
  • Tue, Nov. 10, 3:30 PM
    • Citing a sharply higher debt load thanks to just-announced plans to boost capital returns to $30B from $20B by the end of 2016, S&P cuts McDonald's (MCD +0.1%) to BBB+ from A-. The outlook is stable.
    • The agency figures the company's debt to EBITDA ratio will rise to the low-to-mid 3x range versus the previously expected mid-2x - maybe good for the stockholders, but not necessarily for the creditors.
    • Any capital returns beyond what's been currently announced would likely result in another rating cut, says S&P. As for a credit rating increase, it's unlikely even if MCD's turnaround plan bears fruit, says the agency, as the company is likely to remain focused on capital returns.
    • Previously: McDonald's hikes dividend, ups refranchising goal, sets 2016 targets; shares rise (Nov. 10)
    | Tue, Nov. 10, 3:30 PM | 9 Comments
  • Tue, Nov. 10, 2:01 PM
    • In a PR issued in tandem with the company's annual investor meeting (runs from 1PM-5PM ET, webcast), McDonald's (MCD +1.4%) confirms it's not pursuing a REIT for its real estate assets. Exec Pete Bensen: "We have concluded that any potential value creation from a REIT is out-weighed by the significant financial and operational risks to our business and the continued progress of our turnaround."
    • Also announced: McDonald's is hiking its quarterly dividend by 5% to $0.89/share (3.1% yield at current levels). The next dividend is payable on Dec. 15 to shareholders on record as of Dec. 1. $30B worth of capital returns are now expected over the 3-year period ending 2016, up from a prior $20B.
    • The company now aims to refranchise 4K restaurants, up from a prior target of 3.5K. 93% of restaurants are expected to be franchised by the end of 2018, up from a current 81%. McDonald's is also hiking its G&A cost savings target by $200M/year to $500M/year; it aims to cut its G&A base by nearly 20% from the start of 2015.
    • For 2016, on a constant currency basis, McDonald's is aiming for 3%-5% system-wide sales growth, 5%-7% op. income growth, capex of $2B, and a 1-year ROIC in the high teens. ~1K new restaurants are expected to be opened. In actual dollars, consensus is for revenue to drop 3.3% in 2016 to $24.5B.
    • Earlier: McDonald's won't pursue REIT
    | Tue, Nov. 10, 2:01 PM | 19 Comments
  • Tue, Nov. 10, 1:16 PM
    • McDonald's (MCD) CEO Stephen Easterbrook says the fast-food giant won't be pursuing a REIT transaction.
    • Shares remain halted for now. The WSJ reported in October McDonald's was nearing a decision on whether to create a "McREIT" for its massive real estate assets.
    | Tue, Nov. 10, 1:16 PM | 17 Comments
  • Tue, Nov. 10, 1:07 PM
    • McDonald's (MCD - unchanged) has been halted.
    | Tue, Nov. 10, 1:07 PM | 13 Comments
  • Tue, Nov. 10, 7:13 AM
    • Restaurant workers in more than 270 cities plan to strike today in one of the most organized labor events in the fast-food sector.
    • The walkout aimed at raising the federal minimum wage to $15 is timed exactly one year from the national election. Most GOP candidates oppose an increase in the $7.25/hr minimum wage, while the Democrat candidates support popping the minimum wage up to a $12/hr to $15/hr range.
    • An increase in the minimum wage could have a ripple effect outside of just fast-food chains.
    | Tue, Nov. 10, 7:13 AM | 99 Comments
  • Tue, Nov. 10, 4:04 AM
    • McDonald's (NYSE:MCD) investors will be focusing on the company's analyst day this afternoon, which will be the first with Steve Easterbrook, who has been the restaurant's chief executive since March.
    • What's on the menu? Updates on the company's plan to sell off some stores, restructuring real estate assets into a McREIT, possible share buybacks and a continued focus on breakfast.
    • Many analysts are also swooning over McDonald's improved performance in the third quarter after roughly two years of declining comparable store sales.
    | Tue, Nov. 10, 4:04 AM | 4 Comments
  • Mon, Nov. 9, 1:15 PM
    | Mon, Nov. 9, 1:15 PM | 23 Comments
  • Thu, Nov. 5, 2:11 PM
    • The restaurant sector is having a rough earnings season in general. Noodles (NDLS -11%) and Papa John's (PZZA -3.7%) were two of the latest to disappoint, after Buffalo Wild Wings (BWLD -1.2%) and Chipotle (CMG -0.3%) set a negative tone last week.
    • Shares of Popeyes Louisiana Kitchen (PLKI -7.7%) trade at their lowest level of the year. The company reports earnings on November 11. Analysts expect revenue of $61M and EPS of $0.44.
    • Other leading decliners today include Jack in the Box (JACK -4.3%), Chuy's Holdings (CHUY -4.5%), Texas Roadhouse (TXRH -4%), and Sonic (SONC -2.9%).
    • Many of the names have been trading off due to labor wage pressure and lower Q3 traffic than anticipated.
    • A surprising outlier in the sector has been McDonald's (MCD +0.2%) which has doubled up the return of the S&P 500 over the last month. Habit Restaurants (HABT +8.2%) is also in rally mode following earnings.
    | Thu, Nov. 5, 2:11 PM | 7 Comments
  • Wed, Nov. 4, 7:45 AM
    • McDonald's (NYSE:MCD) plans to test a range of premium hamburgers at 28 restaurants the U.K. in what could be a defensive measure to ward off rivals. The burgers will be priced at around £4.7 ($7.25).
    • A permanent roll-out of the "Signature Collection" is set for 400 refurbished restaurants in the region.
    • McDonald's U.K. press release
    | Wed, Nov. 4, 7:45 AM | 10 Comments
  • Tue, Oct. 27, 1:38 PM
    • Attorneys with McDonald's (NYSE:MCD) asked a judge to throw out a subpoena request from the National Labor Relations Board in the joint employer case brewing in NYC.
    • The company pointed out to the court that it has already spent more than a million dollars producing documents, while it only faces a fraction of that in potential fines.
    • The NRLB thinks McDonald's has control over the working conditions of franchisee employees which would bring in new levels of liability.
    • The eventual ruling in the case could have a large impact in the restaurant industry if companies are determined to be "joint employers" along with franchise owners
    | Tue, Oct. 27, 1:38 PM | 10 Comments
Company Description
McDonald's Corp franchises and operates McDonald's restaurants in the food service industry. Its geographic segments include the United States, Europe, and Asia-Pacific, Middle East and Africa.
Sector: Services
Industry: Restaurants
Country: United States