Thu, Oct. 8, 8:36 AM
- McDonald's (NYSE:MCD) lands a Buy rating from SunTrust as the investment firm picks up coverage on the restaurant stock.
- SunTrust takes note of the strong track record of McDonald's CEO Steve Easterbrook in pulling off large-scale turnarounds.
- This week has seen the launch of McDonald's all-day breakfast. Early buzz has been positive on the launch, although the final word will come when Q4 results roll in.
- Previously: The 2:00 p.m. Egg McMuffin is here (Oct. 06 2015)
Tue, Oct. 6, 10:24 AM
- More than 14K McDonald's (NYSE:MCD) stores will sell breakfast items today past the old cutoff time of 10:30 AM in the company's roll-out of all-day breakfast.
- The highly-anticipated initiative involved a significant commitment by franchisees to install extra griddles and train staff on new operating procedures.
- McDonald's and other QSR chains have focused on the breakfast daypart because of strong traffic trends. NPD reports breakfast visits rose 5% for the 12 months ending in June, compared to a 1% gain for lunch visits and flat dinner traffic growth.
- Analysts think McDonald's will get some extra post-breakfast traffic from the program, although there is a risk of lunch diners trading down to lower-priced breakfast items.
- McDonald's All-Day Breakfast Menu
- Eater.com has a full review of all the items on the McDonald's menu.
Fri, Oct. 2, 9:32 AM
- Nomura thinks Chick-fil-A is the biggest long-term threat to McDonald's (NYSE:MCD) in the U.S.
- Chick-fil-A is breaking into new markets and has the brand loyalty that has escaped Mickey D's.
- The private chicken chain is now ranked 8th by sales in the quick-service restaurant industry, despite not being opened on Sundays.
Tue, Sep. 29, 8:18 AM
- McDonald's (NYSE:MCD) is upgraded by Credit Suisse to an Outperform rating after being rated at Neutral.
- The investment firm says same-store sales trends are turning positive for the restaurant chain. McDonald's has the benefit of lapping a period where sales in Asia were extremely weak due to a supplier issue. New initiatives in the U.S. including all-day breakfast are expected to have invigorated the brand a bit.
- Credit Suisse raises its price target on MCD to $112 vs. yesterday's close of $96.06 and the 52-week trading range of $87.50 to $101.88. CS says MCD shares have solid support in the low $90s due to the strong dividend yield.
Thu, Sep. 17, 10:28 AM
- Starbucks (SBUX) showed sizzling single-serve sales growth over the four weeks ending on September 5, according to a new Nielsen data read digested by UBS.
- Single-serve sales were up 41% for Starbucks on 53% unit growth.
- The company grew K-cup market share by 40 bps Y/Y to 16.7% over the period.
- McDonald's (MCD -0.6%) and Dunkin Brands (DNKN) also took K-cup market share, while Keurig Green Mountain (GMCR -2.2%) gave some back.
- Overall, K-cup sales in the U.S. have been growing at a double-digit rate even with some deceleration from last year's pace.
Tue, Sep. 15, 8:59 AM
- Restaurant sales continue to outpace broad retail with a 0.7% M/M gain for August.
- The category rose over 8% during the month on a year-over-year comparison.
- The increase in sales at U.S. restaurants places even more pressure on McDonald's (NYSE:MCD) to report positive same-store sales growth.
- Previously: August Retail Sales +0.2% to miss consensus (Sep. 15 2015)
Mon, Sep. 14, 11:15 AM
- With market eyes on a Fed rate-hike decision considered to be a bit of a toss-up amid differing opinions, Goldman Sachs is banking on the (slightly) more dovish position that the agency will wait until December. The bank is still laying out how to play the hike when it invariably comes.
- Strength in balance sheets is what you need, it says, noting that those companies outperform (by an average 5%) in the three months after a rate-boosting cycle begins. In Goldman's "High Quality Stock" basket: CMG, DLTR, PEP, KMI, BLK, GOOG, AAPL, PCLN, ORCL, WFC.
- Meanwhile, it suggests avoiding companies with high floating-rate debt as they bear the brunt of a move away from near-zero interest rate policy. "When the tightening cycle finally starts, the immediate impact will be felt by firms with high proportions of variable rate borrowing."
- Included in that "avoid" list: CL, COL, JNJ, AAPL, EBAY, MET, KO, GIS, F, MCD, GM, TWX, CVX, AGN, MON.
- (Yes, cash-rich Apple made both lists, having a strong balance sheet along with floating debt.)
Wed, Sep. 9, 12:14 PM
- The Board of Health in New York City approved a measure to require chain restaurants to denote dishes with more than 2.3K milligrams of salt.
- The new rule will apply to close to 10% of items at chain's with more than 15 outlets nationwide.
- Local operators may need to change restaurant boards again in the future to comply with federal labeling rules.
- Related stocks: PNRA, CMG, MCD, QSR, DNKN, SHAK, WEN.
Wed, Sep. 9, 8:27 AM| Wed, Sep. 9, 8:27 AM | 44 Comments
Fri, Sep. 4, 3:21 PM| Fri, Sep. 4, 3:21 PM | Comment!
Fri, Sep. 4, 7:28 AM
- The restaurant industry posted same-store sales growth of 1.7% in August, according to data from Black Box Intelligence.
- Average traffic fell 1.1% during the month, while the per person average check amount rose 2.7%.
- YTD restaurant same-store sales are up 2.2%.
- Restaurant stocks: CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, BDL, NATH LUB, QSR, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, SHAK, HABT, NDLS, BOJA, PBPB, PLKI, FRSH, RAVE, LOCO, TACO, PZZA, KONA, BGR, BJRI, CHUY, FRS, CBRL, GTIM, TAST, ARKR
Wed, Sep. 2, 1:55 AM
- McDonald's (NYSE:MCD) U.S. franchisees have voted to begin offering all-day breakfast on Oct. 6, a widely expected decision that the company and investors hope will help end a sales slump that began nearly three years ago.
- The move - the company's biggest menu change in years - follows months of testing the idea at various locations.
- According to McDonald's sales reports, breakfast currently accounts for about 25% of its U.S. sales
- Previously: McDonald's tops poll of 'breakfastarians' (Aug. 18 2015)
- Previously: McDonald's roundup: Store trimming, breakfast and loyalty program tests, shares eye $100 (Aug. 13 2015)
- Previously: McDonald's closer to all-day breakfast roll-out (Jul. 21 2015)
Wed, Aug. 26, 9:01 AM
- Burger King (NYSE:QSR) proposed today in several major newspaper advertisements a "truce" with McDonald's (NYSE:MCD) in the form of a partnership to operate a one-day pop-up store to sell a joint burger called the McWhopper.
- Sales proceeds would be earmarked for the Peace One Day nonprofit organization.
- A new Facebook post from McDonald's rejects the offer, saying a acknowledgement of friendly business competition and a commitment to raise global awareness will suffice.
- "P.S. A simple phone call will do next time," writes McDonald's CEO Steve Easterbrook to his counterpart at the Restaurant Brands International property.
Wed, Aug. 26, 7:35 AM
- McDonald's (NYSE:MCD) will expand testing of its Create Your Taste platform to another 30 locations in five states before a much broader U.S. roll-out.
- An article in QSR Magazine highlights some of the frustrations of franchisees over the initiative.
- The upfront cost is markedly high at $100K to $150, while some franchisees also complain on the limited upside from CYT since it doesn't apply to 70% of customers who order from the drive thru window.
- Drawing repeat customers to CYT after the initial novelty wears off is also seen as an issue.
Tue, Aug. 25, 9:54 AM
- REIT talks tends to please investors of retail chains and give shares a jolt, but the strategy doesn't make sense uniformly.
- In the case of McDonald's (MCD +1.9%), unloading valuable property and taking on lease payments doesn't make sense to some analysts.
- Rental income from franchisees rose 26% over the last five years to $6.1B in 2014, a steadying influence against comp sales erosion.
- The Golden Arches is facing pressure from some hedge funds to convert to a REIT to unlock value and buyback firepower.
Fri, Aug. 21, 11:31 AM
- An effort by Chick-fil-A to expand into the Denver International Airport is meeting resistance due to the company's previous stances on same-sex marriage.
- Politicians in Boston and San Francisco have voiced similar concerns over the chicken chain entering their cities.
- The political issues could slow down a broader U.S. roll-out of Chick-fil-A which is a development that could benefit McDonald's (MCD -1.4%), KFC (NYSE:YUM), Hardee's, and others. The chains already have a one-day sales advantage in markets with Chick-fil-A stores due to the company's policy to stay closed on Sundays.
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