Fri, Oct. 23, 7:02 AM
- Piper Jaffray upgrades McDonald's (NYSE:MCD) to an Overweight rating after missing out on the recent rally with shares slotted at Neutral.
- The investment firm sees a number of "meaningful catalysts" which could propel shares to new levels.
- Piper has a price target of $130 on the restaurant stock.
- Previously: All-time high for McDonald's with turnaround still in its infancy (Oct. 22 2015)
Thu, Oct. 22, 11:20 AM
- McDonald's (MCD +7.5%) trades at an all-time high after the company showed broad progress across regions in turning around sales growth during Q3.
- Investors seem to be betting that the restaurant chain has outlived its supplier issues in China and is on the right track in the U.S. Pockets of Europe have been strong for McDonald's over the last several quarters.
- As expected, profit at McDonald's fell from a year ago as higher wage levels started to factor in.
- Shares of McDonald's sailed past $110 this morning or the first time ever and are up more than 20% over the last year vs. the modest 6% rise in the S&P 500.
- Previously: McDonald's beats by $0.12, beats on revenue (Oct. 22 2015)
- Previously: McDonald's +7% after reporting gains across all segments (Oct. 22 2015)
Thu, Oct. 22, 9:14 AM
Thu, Oct. 22, 8:15 AM
- McDonald's (NYSE:MCD) reports global comparable-store sales increased 4.0% in Q3 with improvement seen across all segments.
- Comparable-store sales rose 0.9% in the U.S. to mark the first quarterly gain in two years. International Lead Markets segment comparable-store sales rose 4.6%, while the High Growth Markets segment turned a 8.9% comp.
- Total revenue fell 5% after foreign exchange lopped off a full twelve percentage points.
- SG&A expenses +8.2% to $584M.
- The company says it expects positive global comparable-store sales in Q4.
- The turnaround of McDonald's into a "modern, progressive" burger company is underway, says management.
- Previously: McDonald's beats by $0.12, beats on revenue (Oct. 22 2015)
- MCD +6.59% premarket to $109.15.
Thu, Oct. 22, 7:59 AM
Wed, Oct. 21, 5:30 PM
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Wed, Oct. 21, 12:54 PM
- Taco Bell (NYSE:YUM) saw a 20% to 25% increase in customer traffic in the weeks after McDonald's (NYSE:MCD) introduced all-day breakfast, according to data from Foursquare. Though the chain has run some recent promotions, and now has over 25 items on the breakfast menu, the big jump still looks surprising.
- McDonald's showed a 9% traffic gain over the same time period.
- Another major fast-food player might be toying with the all-day breakfast concept. Burger King (NYSE:QSR) is reported to have one store in New Jersey already offering some breakfast items throughout the day. The company hasn't announced anything officially.
Wed, Oct. 21, 9:32 AM
- McDonald's (NYSE:MCD) confirms it's testing selling Monster Beverage (NASDAQ:MNST) drinks in about 20 stores in Michigan, Illinois, Ohio, Georgia, and Florida.
- A spokesperson for McDonald's said the Monster products are helping to generate incremental traffic and sales for the chain.
- Yesterday, Evercore ISI projected that a broad entry into the quick-service restaurant industry by Monster in the U.S. could add as much as $1.5B to annual revenue.
- Previously: Monster Beverage pops after being spotted in Mickey D's (Oct. 20 2015)
Wed, Oct. 21, 6:26 AM
- Starbucks (NASDAQ:SBUX) and Fiat Chrysler (NYSE:FCAU) have been ordered to pay tens of millions of euros in tax repayments, under a new ruling that may spell big trouble for other corporations.
- "All companies, big or small, multinational or not, should pay their fair share of tax," EU antitrust chief Margrethe Vestager declared at a news conference today, stating the two companies' European tax deals were illegal.
- Who's next? European regulators are finishing up investigations into McDonald's (NYSE:MCD) and Amazon's (NASDAQ:AMZN) tax affairs in Luxembourg and Apple's (NASDAQ:AAPL) arrangements in Ireland.
- Previously: Starbucks, Fiat in hot water over European tax deals (Oct. 15 2015)
Tue, Oct. 20, 9:23 AM
- Sonic (NASDAQ:SONC) CEO Clifford Hudson made an interesting observation during the firm's earnings call last night.
- Hudson called the introduction of all-day breakfast at McDonald's (NYSE:MCD) as "not material" to results at the chain. He and CFO Claudio San Pedro both said a bigger factor for Sonic - and perhaps rivals - is the option for consumers to grab a hamburger in the morning than the ability for them to order breakfast later in the day.
- Another nugget from Hudson is that a large competitor in the space (not McDonald's) has picked up their game from a sales standpoint. It's not clear if Hudson was talking about a burger chain like Wendy's or Jack in the Box, a gas station operator, or perhaps even Chipotle or Starbucks.
- Sonic earnings call transcript
- SONC +6.99% premarket to $28.4.
Mon, Oct. 19, 8:14 AM
- Credit Suisse adds McDonald's (NYSE:MCD) to its US Focus List as one of the firm's top investment ideas.
- Analysts back an Outperform rating and $112 price target on the restaurant stock.
- Shares of McDonald's trade at their highest level of the year as the fast-food chains heads into a period of relatively easy sales comparisons.
- MCD -0.21% premarket to $104.60.
Thu, Oct. 15, 4:10 PM
- McDonald's (NYSE:MCD) is close to deciding -- but hasn't quite yet -- on whether to restructure its sizable real estate assets into a McREIT, boardmember (and Abbott Laboratories CEO) Miles White tells The Wall Street Journal.
- Shares spiked as the news broke, to an all-time high of $105.20 (up 2.3%) before settling to close up 0.8%, at $103.66.
- "We have had a lot of review and a lot of debate" about restructuring, White said. He heads up McDonald's corporate governance committee.
- The company has a major investor update planned for November, and "the long-term role of real estate" is on the table.
- Glenview Capital's Larry Robbins said in March that McDonald's could unlock at least $20B in value by spinning off its real estate. Morgan Stanley argued previously that MCD could be worth $103-$107 under a REIT structure.
Thu, Oct. 15, 3:45 PM
Thu, Oct. 15, 3:50 AM
- McDonald's (NYSE:MCD) is calling the rollout of all-day breakfast in the U.S. a success and telling franchisees to prepare for the next course: a national value plan.
- "Regaining our dominance in value by aligning around a national value platform and the power of Opnad is the next step," U.S. president Mike Andres wrote in an e-mail to domestic franchisees and employees.
- Opnad is McDonald's national advertising fund that includes contributions from franchise owners.
Wed, Oct. 14, 9:29 AM
- Piper Jaffray's detailed survey of teenagers indicates their restaurants of choice may not be so different than their parents.
- Starbucks (NASDAQ:SBUX) was picked as the top restaurant by the 13-year old to 19-year old group, with Chipotle (NYSE:CMG) and Chick-fil-A ranking second and third.
- Perhaps a surprise, McDonald's (NYSE:MCD) ranked fourth, while Panera Bread (NASDAQ:PNRA) was solid with a 5th place listing.
- Notably missing from the list were Taco Bell (NYSE:YUM), Wendy's (NASDAQ:WEN), and Subway.
- Piper Jaffray infographic on survey results (.pdf)
Mon, Oct. 12, 3:22 PM
- Restaurant sales rose 1.5% in Q3 on a comparable-store basis, a deceleration from the 1.8% growth seen in Q2, according to data from Black Box Intelligence.
- A higher average guest check during the quarter, helped to offset a 1.2% decline in traffic.
- Black Box warns of continued traffic weakness in Q4 due to "stagnant" growth in employment and wages. There's also a tougher weather comparison with last year viewed as an overall favorable winter season for traffic.
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