Jun. 9, 2014, 8:22 AM
- Some restaurant sector analysts think Taco Bell's (YUM) aggressive breakfast push has cut into McDonald's (MCD) breakfast market share to slow overall growth trends for the company in the U.S.
- Though execs with McDonald's cited "ongoing broad-based challenges" as a drag on U.S. sales, the relentless marketing push by Taco Bell to younger consumers could be aging the brand.
- MCD -0.2% premarket
Jun. 9, 2014, 8:08 AM| 4 Comments
Jun. 3, 2014, 8:58 AM
- The city council in Seattle approves an increase in the minimum wage to $15 per hour.
- Mayor Ed Murray is expected to sign the measure into law today.
- The pay floor will be implemented over several years with the specific time-frame depending upon the size of a business.
- Fast-food restaurant chains (MCD, BKW, WEN, JACK, YUM, SONC, PLKI) are expected to feel the biggest pinch from higher minimum wage levels.
Jun. 2, 2014, 11:34 AM
- Improved traffic at restaurants chains in April helped boost the Restaurant Performance Index monitored by the National Restaurant Association by 0.3% to 101.7.
- The Expectations Index, which measures the six-month outlook for operators, improved 0.2% to 102.2 to mark the highest level for the index in two years.
- Restaurant stocks: CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, LUB, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN
May 28, 2014, 10:30 AM
- McDonald's (MCD -0.8%) will return $18B-$20B to shareholders through dividends and share repurchases.
- The company plans to refranchise up to 1.5K restaurants by the end of 2016.
- CEO Don Thompson skirts questions on raising the minimum wage in the U.S. The exec wants the rising cost of health care factored into the debate.
- Management takes a few cracks at Taco Bell's breakfast roll-out. Mickey D's has a real kitchen is the synopsis.
- Sanford Bernstein Strategic Decisions Conference webcast
May 28, 2014, 9:09 AM
- Standpoint Research is out with Strong Sell ratings on Starbucks (SBUX), McDonald's (MCD), and Wal-Mart (WMT) on moral grounds.
- Analyst Ronald Moas has made a lot of noise on the issues of wealth redistribution and the unfair treatment of employees by corporate giants, but his rants have done little to move stock prices.
May 23, 2014, 11:05 AM
- Wells Fargo analyst John Baumgartner forecasts a continued drop in milk prices after seeing Class I milk peak earlier in the month.
- The news could be a relief for a number of companies (DF, WWAV, SJM, DF, NSRGY, LWAY, DNKN, MCD, SBUX, GIS, HSY, MJN, ADY) which have faced margin pressure over the escalated cost of wholesale milk products.
- Milk price chart
- Related ETF: MOO
May 22, 2014, 10:17 AM
- McDonald's (MCD) annual meeting is in full swing outside of Chicago.
- Outside over 100 protesters have been arrested, but inside the building the tone from execs is cool confidence.
- The company acknowledges some weakness in sales growth, but points to building momentum in the current quarter.
- Management is defiant that the restaurant chain has made significant moves to improve the healthiness of its menu. Yogurt in Happy Meals is the latest example.
- A question from a shareholder on the potential of a stock split is brushed aside as a plan that doesn't add value.
- On menu innovation, CEO Donald Thompson says a "couple of things" are coming down the pipe.
May 22, 2014, 9:10 AM
May 21, 2014, 10:39 AM
- McDonald's (MCD +0.5%) will see more protesters than normal outside its annual meeting this week with the company's wage structure a point of contention with organized labor groups.
- Shareholders will vote tomorrow on executive compensation amongst a number of other issues. A triple-digit trading price on MCD is expected to keep most activist investors at bay.
- Annual meeting webcast
May 20, 2014, 11:39 AM
- McDonald's (MCD -0.4%) is seeing some social media backlash after introducing a new character named Happy yesterday.
- The response has ranged from confusion to derision.
- Happy was unveiled as part of the company's refresh of its Happy Meal menu which includes a low-fat yogurt option.
- What to watch: Taco Bell has been hammering McDonald's in marketing campaigns aimed at the young breakfast crowd. Based on the early response, Happy isn't going to make Mickey D's any edgier, although channel checks also indicate Taco Bell's breakfast traffic has only been moderate.
May 15, 2014, 7:51 AM
- Fast-food workers are planning to walk off the job at chains across the country today in an organized move to protest low wages.
- The push for a higher minimum wage has gained traction in several states and major cities, although President Obama's proposed $10.10 per hour rate doesn't have the support in Congress yet for a federal minimum wage hike.
- Related stocks: MCD, BKW, JACK, WEN, SONC, DENN, PLKI, DPZ.
May 14, 2014, 11:25 AM
- Coffee prices could be driven higher later this year due to high demand for premium beans and a tight supply as a result of a harsh drought in Brazil.
- The International Coffee Organization forecasts H1 coffee production will be down close to 5%.
- The wildcard: An early outbreak of El Nino could also disrupt crops across South America.
- What to watch: Starbucks (SBUX), Tim Hortons (THI), McDonald's (MCD), and Keurig Green Mountain (GMCR) could get pinched if coffee prices push significantly higher. Analysts note not all of the input costs can be passed off to consumers and hedging strategies weaken above a price level of $3/pound.
- Related ETF: JO
May 13, 2014, 10:28 AM
- McDonald's (MCD -0.1%) got an early lift from a UBS note calling out the chain to see a pickup in store traffic before falling back off of all-time highs.
- The investment firm's price target of $120 implies shares of the restaurant operator could continue reaching new heights.
- UBS isn't the first investment firm to note McDonald's might pull out some balance sheet leverage plays.
May 8, 2014, 10:19 AM
- A flat April comp number by McDonald's (MCD -0.2%) in the U.S. is drawing the attention of retail analysts who were looking for a bit more.
- The company ran a free coffee promotion during the month aimed at stealing the thunder away from Taco Bell's breakfast launch.
- Though a margin pinch was anticipated as a result of the promotion, increased traffic was expected to boost supplemental breakfast sales.
May 8, 2014, 9:14 AM
- McDonald's (MCD) reports global comparable-store sales increased 1.2% in April.
- Comp growth was flat in the U.S. amid what the company called a "challenging" industry dynamic.
- Comparable-store sales rose 0.3% in Europe and put in a solid 2.9% gain for the Asia/Pacific, Middle East and Africa region.
- MCD -0.2% premarket
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