Tue, Jul. 5, 6:56 AM
- McDonald's (NYSE:MCD) wins a favorable ruling from the EU General Court on the trademarks of food and beverage items with the Mac or Mc prefix.
- The decision will prevent a company based in Singapore from using MACCOFFEE as a name for its products.
- Shares of McDonald's are down 8.8% since peaking at $131.96 in early May.
Tue, Jun. 28, 7:39 AM
Mon, Jun. 27, 11:16 AM
- The outperformance of low-P/E stocks that marked H1 is behind us, says RBC's Jonathan Golub, and it's time for the "Stable Growers" to re-asset leadership. He cautions about putting money to work too quickly though, noting the pullback so far has been limited.
- His list of Stable Growers (page 1, page 2): CHD, CL, CVS, K, MO, PEP, PG, PM, BCR, BDX, DGX, DVA, HSIC, JNJ, LH, MDT, SYK, TMO, UNH, ZBH, AFL, AON, MMC, TMK, CTAS, DHR, HON, ITW, LMT, MMM, NLSN, RSG, RTN, UPS, VRSK, WM, XYL, CMCSA, MCD, OMC, ADP, APH, EMC, MA, T, VZ, ECL, PX
Mon, Jun. 27, 8:57 AM
- Alongside franchise checks pointing to lower U.S. same-store sales, McDonald's (NYSE:MCD) will now face macro headwinds thanks to the Brexit, says Credit Suisse's Jason West, maintaining his Outperform rating, but cutting the price target to $130 from $135 (vs. Friday's $119.44 close).
- Among U.S.-listed restaurant firms, McDonald's has the highest exposure to Europe and the U.K., with 37% and 9% of global revenues, respectively.
- He lowers his Q2 estimate for U.S. SSS to 2.3% from 3.5%, and for global SSS to 3.2% from 3.7%. His H2 global SSS estimate is cut by about 50 bps to 2%.
- EPS estimates for Q2, 2016, and 2017 are lowered to $1.40 from $1.41, to $5.52 from $5.57,and to $6.23 from $6.32, respectively.
- Shares -0.8% premarket
Sun, Jun. 26, 9:04 PM
- Fast-food restaurant visits have grown at a quarterly rate of 2% since September 2015, but didn't grow at all in the quarter ended in May, according to not-yet-published data from the NPD Group, reports the WSJ.
- It's a "red flag" says NPD's Bonnie Riggs, since fast-food has been an area of growth and it represents 80% of the restaurant industry.
- Sonic (NASDAQ:SONC) CEO Clifford Hudson, in comments last week, said the consumer has become "more guarded," and is more price-sensitive than a few months ago.
- Wendy's (NASDAQ:WEN) and McDonald's (NYSE:MCD) have been trying to bring in eaters with various deals, but discounts are a tough long-term strategy because they cut into profit margins, and customers come to expect them.
- What about the perky fast-casual segment? Visits to those restaurants fell last month for the first time since 2004, even when stripping out the results of troubled Chipotle (NYSE:CMG).
Wed, Jun. 22, 5:05 PM
- After years of soaring demand accompanied by the expansion of better-burger chains like Shake Shack, Five Guys, and Smashburger, burger sales growth in the industry is starting to slow, according to Nomura.
- "It's clear that US burger-sector same-store sales have decelerated meaningfully," analyst Mark Kalinowski wrote in a recent research note. " No longer is the burger segment a beacon of brightness for the industry, as it was in Q1 [the first quarter of the year]."
- Kalinowski expects same-store sales to be relatively flat in Q2 of the year, and "odds are that meaningful improvement could be hard to come by over the next three to six months."
- Downgrades WEN and MCD to Neutral from Buy.
- Read more here.
Wed, Jun. 22, 11:04 AM
- Nomura shifts to a Neutral stance on McDonald's (MCD -1.7%) despite the major developments over the last year (HQ move, franchising model changes, far-reaching menu and automation innovation, cost-cutting) which have helped shares to a 25% run.
- "It's clear that U.S. burger-sector same-store sales have decelerated meaningfully in second quarter," writes Nomura's Mark Kalinowski. He notes that the restaurant chain is heading into a period of tougher sales comparisons which may pressure the headline comp number.
- Earlier today, Nomura tapped Yum Brands as its top restaurant pick off the potential for a Taco Bell spin-off.
Wed, Jun. 22, 2:08 AM
- McDonald's (NYSE:MCD) has received more than half a dozen bids for thousands of its China and Hong Kong stores, including offers from Beijing Tourism Group, Sanpower and ChemChina in a deal worth about $3B.
- According to Reuters, McDonald's is offering a 20-year master franchise agreement to buyers as part of the deal, but has placed restrictions which has discouraged some private equity firms from participating in the process.
Fri, Jun. 17, 7:18 AM
- McDonald's (NYSE:MCD) plans to outsource some jobs to India in a cost-cutting move, sources tip the New York Post.
- A company facility in Columbus, Ohio that provides support services to restaurants is reported to be one of the first casualties of the India outsourcing strategy.
- Earlier this year, McDonald's announced it would try to find ways to save $500M in costs by the end of 2017.
Wed, Jun. 15, 10:45 AM
- The cancer agency of the World Health Organization issues a detailed report in which it concludes that drinking coffee doesn't increase the risk of cancer.
- The experts did determine that drinking "very hot" beverages is one probable cause of oesophagus cancer in humans.
- Very hot was defined as 65 degrees Celsius or 149 degrees Fahrenheit. Coffee from some chains is served over that temperature if consumed immediately without any cream added.
- WHO report (.pdf)
- Previously: Coffee to rid itself of 'possible carcinogen' status (June 15)
- Related tickers: SBUX, DNKN, SJM, QSR, MCD, MDLZ, KKD, WWAV, JVA, OTCQB:JAMN, OTCQB:BCCI, FARM, OTCPK:NSRGY.
- ETFs: JO, CAFE.
Wed, Jun. 15, 2:26 AM
- Twenty-five years after classifying coffee as a possible carcinogen leading to bladder cancer, the World Health Organization has reversed course, and is expected to say today that coffee isn't classifiable as a carcinogen.
- WHO is also likely to state coffee has no carcinogenic effects related to other cancers and has even been seen to reduce the risk of liver and uterine cancers.
- Related tickers: SBUX, DNKN, SJM, QSR, MCD, MDLZ, KKD, WWAV, JVA, OTCQB:JAMN, OTCQB:BCCI, FARM, OTCPK:NSRGY
- ETFs: JO, CAFE
Tue, Jun. 14, 8:49 AM
- Retail sales topped expectations in May with some categories tipping off a healthy spending trend.
- Nonstore retailers once again led all categories with 12% Y/Y growth. Amazon (NASDAQ:AMZN) had a lot to say with that strong performance.
- Health and personal care stores were also solid with an 8% Y/Y rise in sales. Chains such as Walgreens (NASDAQ:WBA), Rite Aid (NYSE:RAD), Ulta Salon (NASDAQ:ULTA), and Sally Beauty Holdings (NYSE:SBH) continue to draw millennial interest.
- Department stores lagged once again with a 0.9% M/M drop and 6% Y/Y tail-off. A tough month of weather contributed to a 2% M/M drop in the building materials and garden equipment (HD, LOW) category.
- Restaurants performed ahead of expectations, sales were up 0.8% M/M and 6.5% Y/Y. That mark bodes well for McDonald's (NYSE:MCD) continuing its streak of staying in positive territory with comparable-store sales.
- Previously: Retail sales decelerate from April's pace (June 14)
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, RCD, PMR, JHMC, CNDF.
Mon, Jun. 13, 10:58 AM| Mon, Jun. 13, 10:58 AM | 27 Comments
Thu, Jun. 9, 6:28 PM
- Same-store sales at chain restaurants fell 0.3% Y/Y in May to record the third consecutive month of negative growth, according to data from Black Box Intelligence.
- Restaurant traffic was down 2.7% during the month. YTD traffic is -2.6% Y/Y.
- A weak performance in areas impacted by the downturn in the energy industry is contributing to the decline in same-store sales.
- There's also been some analysis suggesting that consumers are pushing back against menu price hikes.
- Restaurant stocks: CAKE, CBRL, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, 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.
Mon, Jun. 6, 12:39 PM
- Nation's Restaurant News points to a trend that may explain some of the weakness with restaurant traffic this year.
- Restaurants have been pushing prices higher over the last six months, despite lower retail food costs. On the other hand, grocery stores have lowered their prices in accordance with some easing of chicken, beef, and pork costs. It's a pricing spread that consumers may have caught on to if broad traffic trends are an indicator.
- Rising labor costs are the most obvious reason for the disparity. Restaurants expend about 30% of sales on labor costs, while groceries only spend about 14%.
- Related stocks: SVU, VLGEA, IMKTA, OTCPK:PUSH, SFM, WFM, CAKE, CBRL, EAT, DRI, RRGB, RT, BLMN, PBPB, MCD, QSR, WEN, SONC, BOBE, ,PLKI, BJRI.
- Related ETF: BITE, PBJ.
Sat, Jun. 4, 1:19 PM
- Impossible Foods aims to disrupt the food industry by developing meat products from plant-based ingredients. Launched by a top biochemist from Stanford, the startup says it's on the verge of offering meat lovers an alternative that looks, smells, and even sizzles (video) like regular ground beef.
- Science timeout: Impossible honed in on a molecule called heme that catalyzes the flavors in meat. A legume-derived heme-containing protein is put to the task of creating the meat taste that even top chefs have raved about.
- The first Impossible Burgers are expected to be launched this year in the U.S.
- Notable names are taking in an interest in the concept. During the last venture capital round, Impossible brought in fresh funds from Bill Gates and Hong Kong tycoon Li Ka-shing. Former Nest/Google exec Tony Fadell is also an angel investor. Impossible Foods CEO Patrick Brown confirmed at Recode's Code conference that the company turned down an offer from Google (pre-Alphabet split) for somewhere between $200M and $300M.
- If the startup were to ramp up at scale, the development might be something to watch for meat giants such as Cargill, Tyson Foods (NYSE:TSN), JBS (OTC:JBSAF), and National Beef Packaging Company (NYSE:LUK). Kraft Heinz (NASDAQ:KHC) and Kellogg (NYSE:K) are already active in the frozen veggie burger category, while Whole Foods Market (NASDAQ:WFM) has been dabbling with indie brands. There's also an interesting tie-in with McDonald's (NYSE:MCD) looking to appeal to millennials and Chipotle (NYSE:CMG) working on developing a "better burger" concept.
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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