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.
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)
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, 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. 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
Tue, Aug. 18, 2:30 PM
- McDonald's (MCD +0.3%) moves over $101 to a 13-month high as investors start to become more comfortable that a turnaround can take hold.
- Looking ahead, the Street sees McDonald's Q3 same-store sales as coming in flat and Q4 at +0.3%, while UBS has more promising estimates of +1.3% (Q3) and +2.3% (Q4). Anything in positive territory could propel shares past the low $100s.
- There's also an Investor Day event scheduled for November 10 that could be a major catalyst.
- Previously: McDonald's roundup: Store trimming, breakfast and loyalty program tests, shares eye $100 (Aug. 13 2015)
Thu, Aug. 6, 12:19 PM
- The hamburger sector is trading off despite Jack in the Box (JACK -5.8%) and Habit Restaurants (HABT -11.2%) both reporting strong Q2 same-store sales growth.
- Traders think some of the stocks are blowing off steam after recent gains, although worries on the ability of operators to pass off labor and food input costs have also crept up.
- The burger slide is hitting Wendy's (WEN -1.8%), Sonic (SONC -7.2%), Burger King owner Restaurant Brands (QSR -1.5%), and Shake Shack (SHAK -7.3%). McDonald's (MCD) is holding steady with its dividend yield continuing to be a strong backstop.
- Previously: Habit Restaurants lower after earnings (Aug. 06 2015)
- Previously: Strong comp sales at Jack in the Box (Aug. 05 2015)
Thu, Jul. 23, 2:07 PM
- McDonald's (MCD +0.5%) is back in positive territory after a bouncy day of trading.
- There's been mixed reaction from analysts and investors to the report from the Chicago-based company.
- Though an early read that Q3 global comps are trending positive is a sign of a turnaround, the lack of a sales bounce from promotions in the U.S. (Third-Pound Sirloin Burger, Double Cheeseburger and Fries) tips that menu execution still isn't resonating.
- There was confirmation from execs that the all-day breakfast initiative is moving forward.
- Previously: McDonald's beats by $0.02, beats on revenue (Jul. 23 2015)
- Previously: McDonald's tips positive global comps for Q3 (Jul. 23 2015)
Thu, Jul. 23, 8:13 AM
- McDonald's (NYSE:MCD) reports global comparable-store sales fell 0.7% in Q2.
- The U.S. comp was -2% on negative traffic, while APMEA was -4.5% and Europe +1.2%.
- Operating margin growth: U.S -6%, Europe -20%, APMEA -26%.
- Foreign currency swings cut into total revenue by eleven percentage points, turning a +1% gain to a -10% drop.
- SG&A expenses -6% to $592.4M.
- The company says it expects positive global comparable-store sales in Q3 with a return of momentum in China a factor.
- The restaurant chain will continue to test the all-day breakfast initiative.
- Previously: McDonald's beats by $0.02, beats on revenue
- MCD -0.24% premarket to $97.35.
Mon, Jun. 8, 8:04 AM
- McDonald's (NYSE:MCD) reports global comparable-store sales fell 0.3% in May vs. -0.9% expected.
- The comp in the U.S. was -2.2%, while the Asia/Pacific/Middle East/Africa region reported -3.2% comparable-store sales growth.
- The restaurant chain continued to show improvement in Europe with a 2.3% increase in comparable-store sales.
- Systemwide McDonald's sales were 7.2% lower Y/Y (+1.8% constant currency) in May.
- YTD McDonald's global comparable-store sales -1.5%.
- MCD +0.55% premarket to $96.07.
Fri, May 8, 8:53 AM
- McDonald's (NYSE:MCD) reports global comparable-store sales fell 0.6% in April vs. -1.8% expected.
- The comp in the U.S. was -2.3%, while the comp for the Asia/Pacific/Middle East/Africa region was -3.8%.
- Sales in Europe were better as strength in U.K. and Germany led to a +1.0% gain in comparable-store sales.
- Systemwide McDonald's sales were 8.8% lower Y/Y (+1.5% constant currency).
- MCD +1.1% premarket to $97.85.
Wed, Apr. 22, 8:44 AM
- Shares of McDonald's (NYSE:MCD) trade higher in early action with investors focused on the May 4 unveiling of a turnaround plan.
- The restaurant chain's string of negative comps in the U.S. stands out with KFC, Taco Bell, Sonic, and Jack in the Box all moving in the other direction.
- Restaurant analysts think the company channeling Ray Kroc's "take risks" mantra could tip a more dramatic transition for the company than originally forecast.
- Previously: McDonald's EPS of $0.84
- Previously: McDonald's to 'take risks' after global traffic slides
- MCD +2.15% premarket.
Wed, Apr. 22, 8:07 AM
- Global comparable-store sales fell 2.3% for McDonald's (NYSE:MCD) in Q1.
- Foreign exchange swings cut into revenue by 10 full percentage points.
- Comparable-store sales fell in each of the company's geographic regions (U.S. -2.6%, Europe -0.6%, APMEA -8.3%) on weak traffic patterns.
- SG&A expenses fell 6% to $583M during the quarter.
- Total operating expenses were 4% lower to $4.573B which may have helped the company beat EPS estimates.
- The company says a turnaround plan will be detailed on May 4. CEO Steve Easterbrook quotes McDonald's founder Ray Kroc in saying "taking risks" is part of the new operating paradigm.
- MCD +0.82% premarket to $95.61.
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