Fri, Oct. 21, 8:09 AM
- McDonald's (NYSE:MCD) reports global comparable store sales increased 3.5% in Q3.
- Comparable store sales were 1.3% higher in the U.S., in-line with estimates and a solid mark considering the company was overlapping its All Day Breakfast introduction. The 1.3% gain also beats the broad industry average during the three-month period.
- Comparable-store sales growth were up 3.3% in the International Lead segment. The High Growth segment recorded a +1.5% comp and the Foundational segment comp was +10.1%.
- Total operating costs and expenses fell 7% to $12.818B.
- The company spent $3.4B in share repurchases and dividends during the quarter.
- Previously: McDonald's beats by $0.01, beats on revenue (Oct. 21)
- MCD +3.72% premarket to $114.68.
Fri, Oct. 21, 7:59 AM
Thu, Oct. 20, 5:30 PM
Tue, Oct. 18, 10:02 AM
- A pretty interest pullout from today's release of consumer price numbers from the Bureau of Labor Statistics was the comparison between food prices at home and at restaurants (H/T Jonathan Maze of Nations Restaurant News).
- September CPI data: Food at home -2.2% Y/Y and -0.1% M/M, food away from home +2.4% Y/Y and +0.2% M/M
- The high cost of eating out is seen by analysts as a major factor in why traffic has been falling this year. Rising healthcare and labor costs have pressured restaurant chains to ratchet up prices.
- Some related stocks: MCD, WEN, DIN, EAT, CBRL, QSR, JACK, BWLD, NDLS, PNRA, BJRI, BLMN, IRG, CAKE.
- Related ETF: BITE.
Mon, Oct. 17, 1:49 PM
- A judge has downsized a case filed against McDonald's (MCD -1.4%) over its liability for labor violations of franchisees.
- Claims made against the company for issues in Chicago, San Francisco, Los Angeles and Indianapolis will be pushed down the road until after the National Labor Relations Board rules on joint employer conditions.
- Shares of McDonald's are at a 2016 low after the company disclosed it lost some key execs to retirement.
- Previously: More management shake-up at McDonald's (Oct. 16)
Mon, Oct. 17, 1:18 PM
- Same-store restaurant sales were negative for the fourth consecutive month in September, with a drop of 1.1%, according to data from Black Box Intelligence.
- Same-store traffic was 3.5% lower Y/Y during the month. Higher prices partially offset the traffic decline.
- 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, FOGO, ARCO, SHAK, YUM.
- Related ETF: BITE.
Sun, Oct. 16, 11:09 PM
- Karen King - in charge of overseeing more than 14.2K U.S. restaurants - plans to retire as chief field officer at year-end, as is Erik Hess, SVP of customer experience.
- Their exits come alongside a trio of other recently-announced executive departures, and as McDonald's (NYSE:MCD) tries to turn around its U.S. business. The introduction of all-day breakfast about a year ago fueled some optimism, but same-store sales rose just 1.8% in Q2 vs. expectations for 3.2%.
- "Their retirements provide an opportunity to change our organizational structure to further enhance our connectivity with our owner-operators and our customers,” says a McDonald's spokesman.
- Source: WSJ
Fri, Oct. 14, 2:54 PM
- Piper Jaffray is out with the results of its annual Taking Stock With Teens Survey. The top brands listed by the 10K teens included in the survey are posted below.
- Top clothing brands: Nike (NYSE:NKE) 29%, American Eagle Outfitters (NYSE:AEO) 9%, Forever 21 5%, Ralph Lauren (NYSE:RL) 4%, Urban Outfitters (NASDAQ:URBN) 3%.
- Top handbag brands: Michael Kors (NYSE:KORS) 34%, Kate Spade (NYSE:KATE) 19%, Coach (NYSE:COH) 10%, Louis Vuitton (OTCPK:LVMHF) 5%, Longchamp Vera Bradley (NASDAQ:VRA) 3%.
- Top footwear brands: Nike 51%, Vans (NYSE:VFC) 9%, Converse 7%, Adidas (OTCQX:ADDYY) 6%, Steven Madden (NASDAQ:SHOO) 2%.
- Top restaurant chains: Starbucks (NASDAQ:SBUX) 14%, Chipotle (NYSE:CMG) 11%, Chick-fil-A 10%, Taco Bell (NYSE:YUM) 3%, Panera Bread (NASDAQ:PNRA) 3%, McDonald's (NYSE:MCD) 3%, Olive Garden (NYSE:DRI) 3%.
- Nothing earth-shattering in the tech results, dominating teen mindspace are Snapchat (Private:CHAT), YouTube, Instagram and Netflix (NASDAQ:NFLX).
Thu, Oct. 13, 4:34 PM
- The pretax charge amounts to about $0.12 per share on an after-tax basis. The charges are part of the company's plan to refranchise 4K restaurants by the end of 2018, and reap G&A savings of $500M by the end of 2017.
- Going forward, look for additional charges in connection with those initiatives.
- MCD +0.3% after hours
Sat, Oct. 8, 9:09 AM
- Retailers want the U.S. election over and quick. The negative tone has created a degree of uncertainty with consumers that has impacted spending and traffic patterns, according to a host of top execs.
- "There is just great uncertainty as to what is going to happen in the U.S. in particular as a result of the outcome of the election," noted Yum Brands (NYSE:YUM) CEO Greg Creed recently. "People may be hunkering down a little bit," he added.
- Expect the topic to be raised on a large number of Q3 earnings calls over the next month to explain away revenue misses.
- It's not an excuse that everyone is buying into. Retail Metrics president Ken Perkins doubts that daily shopping needs are cut short by election fascination and notes consumer confidence is measuring high. Then there's Amazon (NASDAQ:AMZN) which seems to be rolling right along without any Clinton-Trump fatigue.
- Beyond the election wildcard, two underestimated factors impacting some retailers in a more concrete way are the lower level of SNAP (food stamps) benefits being paid out by the government and the elevated cost of health care. There is also the massive challenge with a millennial generation that shuns chains. Just ask anyone in the restaurant sector (NASDAQ:BITE).
- Add it all up and it makes for a challenging period for a mix of retailers that includes Dollar General (NYSE:DG), Dollar Tree (NASDAQ:DLTR), Fred's (NASDAQ:FRED), Ross Stores (NASDAQ:ROST), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Staples (NASDAQ:SPLS), McDonald's (NYSE:MCD), Popeyes Louisiana Kitchen (NASDAQ:PLKI), Wendy's (NYSE:WEN), Supervalu (NYSE:SVU), Kroger (NYSE:KR), SIgnet (NYSE:SIG), TJX Companies (NYSE:TJX), and Casey's General Stores (NASDAQ:CASY).
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, IYC, FDIS, SCC, RCD, UCC, PMR, UGE, SZK, CNDF, FTXD, JHMC.
Thu, Oct. 6, 11:39 AM
- McDonald's Japan reports sales rose 7.8% in September. Same-store sales were up 11.5% during the month.
- Both marks are a deceleration from the rapid sales growth this year at the chain.
- YTD: Total sales are +17.2%, same-store sales +21%, customer count +8.5%, spending per customer +11.6%.
- Full McDonald's Japan report
- McDonald's (NYSE:MCD) owns 50% of the Japanese entity.
Wed, Oct. 5, 7:01 AM
- McDonald's (NYSE:MCD) is close to striking a deal to sell franchise rights for restaurants in Singapore and Malaysia to Reza, reports Reuters.
- Sources indicate that the 20-year agreement could bring in as much as $400M.
- McDonald's operates about 120 restaurants in Singapore and 260 in Malaysia.
- The development falls in line with the company's strategy to shift to a less capital-intensive franchise model on a broad global scale.
Mon, Oct. 3, 9:49 AM
- A move by McDonald's (MCD -0.7%) to franchise restaurants in China could bring in $1.5B to $2.0B up front, according to inside sources.
- The restaurant operator would then be entitled to 5% to 7% of the sales kicked up at those franchised units in China.
- A move to give up some control in China is seen by the company as a strategic positive.
- "In the lower-tier cities, we want to accelerate, and a local partner would have more local wisdom and more local resources," notes McDonald's China CEO Phyllis Cheung.
Thu, Sep. 29, 10:02 AM
- It's National Coffee Day in the U.S., but it's weather in Brazil and Vietnam that is the focus of the coffee industry.
- Drought conditions and crop disease concerns have pushed prices higher and created some short-term supply constraints.
- Indexmundi.com shows robusta coffee prices are up 18% YTD and mild arabicas prices are 16% higher.
- Higher commodity prices can hit packaged coffee sellers harder than chains selling fresh coffee, although hedging activity also plays a larger factor in how individual companies shake out.
- On a consumer level, don't expect any relief at Starbucks on their base coffee prices ($1.85 tall, $2.10 grande, $2.45 venti) anytime soon.
- Related tickers: SBUX, DNKN, SJM, QSR, MCD, MDLZ, KKD, WWAV, JVA, OTCQB:JAMN, OTCQB:BCCI, FARM, OTCPK:NSRGY.
- ETFs: JO, CAFE.
Thu, Sep. 29, 8:28 AM
- Shares of McDonald's (NYSE:MCD) are on watch after the company boosted its dividend payout rate. The yield moves up to 3.26% based off of yesterday's closing price.
- The company also noted that this year is the final year of its three-year target to return $30B to shareholders in cash. Through the end of August, McDonald's has returned a total of $26B and the restaurant operator is on track to complete the remaining amount by the end of the year.
- A reset of McDonald's capital allocation target is likely to be announced by the end of the year.
- Previously: McDonald's declares $0.94 dividend (Sept. 29)
- MCD +0.10% premarket to $115.30.
Thu, Sep. 29, 8:03 AM