Fri, Aug. 7, 7:58 AM
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)
Tue, Jul. 28, 3:50 PM
- Arby's reports same-store sales rose 7.6% in Q2.
- The privately-held restaurant chain had a 8.5% increase in same-store stores for the first half of the year.
- The strong performance by Arby's follows similar breakouts at Burger King, Sonic, and Wendy's.
- Missing from that list is McDonald's (NYSE:MCD) which has been stuck in reverse for sales in the U.S. and globally.
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.
Thu, Jul. 23, 7:59 AM
Thu, Jul. 23, 4:36 AM
- The New York Wage Board moved on Wednesday to raise minimum pay for fast-food workers from $8.75/hour to $15/hour - in NYC by the end of 2018 and by mid-2021 for the rest of the state.
- The decision does not need legislative approval, but requires the support of the state labor commissioner, which is expected.
- Similar wage hikes to $15/hour have been set in cities such as Los Angeles, San Francisco and Seattle over the past year.
- 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, Jul. 22, 5:30 PM
- ABB, ABC, ADS, AEP, ALK, AMAG, AOS, ASPS, BCC, BHE, BKU, BMS, BMY, BSX, CAB, CAM, CAT, CELG, CFX, CLFD, CMCSA, CMS, COR, CS, CSL, CY, DAN, DFRG, DGX, DHR, DLX, DNKN, DOW, DPS, DST, EQM, EQT, FAF, FCX, FIS, FNB, GM, GMT, GNTX, GPI, GPK, HBAN, HERO, HUB.B, IMAX, IQNT, IVC, JNS, KKR, KMB, LAZ, LLY, LUV, MAC, MCD, MHO, MINI, MJN, MMM, MNRO, MRGE, NDAQ, NEO, NUE, NWE, ORI, PDS, PENN, PHM, PRLB, PTEN, QSII, R, RCI, RS, RTN, SCHL, SFE, SHPG, SNA, SQNS, STC, STM, SYNT, TCB, TROW, UA, UAL, UNP, USG, UTEK, VAC, VRX, WAB, WCC, WIT, WM, WRLD, XRS
Tue, Jul. 21, 10:25 PM
- McDonald's (NYSE:MCD) might start offering all-day breakfast nationwide as soon as October after a test run went smoothly, according to an internal memo.
- The measure still needs to be approved by franchisee committees before going to a broad franchisee vote.
- Analysts think the switch by McDonald's to an all-day breakfast platform is a potential sales driver, although there's been some trepidation over operational challenges.
Mon, Jul. 20, 8:59 AM
- A new note from Credit Suisse on McDonald's (NYSE:MCD) leans to the optimistic side.
- The investment firm notes the restaurant operator is running into easier compares and should benefit from a more cohesive marketing message.
- Channel checks indicate the $2.50 double cheeseburger/small fry promotion is resonating well in urban markets.
- A poll of franchisees indicates the group is mixed on an all-day breakfast initiative and resoundingly negative toward a REIT plan.
- McDonald's reports Q2 earnings on July 23.
- Shares of MCD last traded over $100 in mid-May.
Fri, Jul. 17, 9:19 AM
- Today's read on consumer prices led to a completely different story for milk and eggs.
- The broad milk price category was down 1.1% M/M and 7.1% Y/Y to offer some relief for a wide variety of companies that includes McDonald's (NYSE:MCD), Starbucks (NASDAQ:SBUX), Coca-Cola (NYSE:KO), Dean Foods (NYSE:DF), WhiteWave Foods (NYSE:WWAV), and General Mills (NYSE:GIS). Milk prices also fell in April and May.
- Egg prices skyrocketed 18.3% M/M and are now 22% higher from a year ago on an unadjusted basis. Cal-Maine Foods (NASDAQ:CALM) has been shooting higher all year off of elevated egg prices amid an avian flu outbreak.
- Bureau of Labor Statistics CPI data
Thu, Jul. 16, 4:32 PM
Wed, Jul. 15, 10:24 AM
- McDonald's Japan plans to unveil a concept restaurant in Japan with an entirely different look for an one-day experiment, reports BurgerBusiness.com.
- Restaurant M is designed to be an upscale dining experience featuring five courses and white tablecloths. Kotaku has the pictures for non-believers.
- McDonald's Japan reported a 23.4% Y/Y drop in same-store sales during June.
- The Japanese restaurant franchise operator is 50%-owned by McDonald's (NYSE:MCD).
Wed, Jul. 15, 9:22 AM
- Nelson Peltz turned his sights on McDonald's (NYSE:MCD) during an interview on CNBC.
- The activist investor likes the balances sheet of McDonald's, although he questions if management has the stomach to make the dramatic changes which might be needed.
- Naturally, as Chairman of Wendy's Peltz was hesitant to go into specifics on how he would turn around the Golden Arches.
- Though management at McDonalds's has nothing to fear from Trian Partners, hedge funds Jana Partners and Corvex Management have been recent buyers of shares and could create some noise.
Sat, Jul. 11, 12:36 PM
- Chipotle (NYSE:CMG) has raised prices in the San Francisco area by an average of 10.5% to help offset higher wages the chain is paying out in the region.
- The minimum wage in San Francisco increased to $12.25/hr in May after sitting at $10.74/hr. The double-digit rise in prices at San Francisco-area Chipotle outlets compared to only a 0.5% increase across the U.S. for the company.
- Restaurant industry watchers are busy analyzing the impact of minimum wage hikes in San Francisco, Los Angeles ($15), Seattle ($15), and other cities along with the proposed hikes in 29 states (DOL list). The ability to pass off some of the wage burden is crucial with restaurants generating a good portion of their sales growth through higher average guest spending, instead of bustling traffic.
- What to watch: Though wage pressure is a factor for almost all companies in the restaurant sector, analysts note price elasticity varies widely by chain. Chipotle, Starbucks (NASDAQ:SBUX), Domino's Pizza (NYSE:DPZ) are expected to continue to ease past price hikes without a high correlation on demand, while smaller chains or privately-owned restaurants could be hit the hardest. Dine-in chains like Denny's (NASDAQ:DENN), Red Robin Gourmet Burgers (NASDAQ:RRGB), and IHOP (NYSE:DIN) are also expected to feel a pinch.
- Burger watch: The rise of competition in the hamburger segment impacts price elasticity negatively for players like Shake Shake (NYSE:SHAK), Habit Restaurants (NASDAQ:HABT), Sonic (NASDAQ:SONC), Burger King (NYSE:QSR), Jack in the Box (NASDAQ:JACK) and Wendy's (NASDAQ:WEN) - while at the top of the heap the timing is tricky for McDonald's (NYSE:MCD) to become too aggressive with price increases amid its turnaround charge.
- Previously: Higher guest spending boosts restaurants in Q2 (July 10)
Fri, Jul. 10, 2:08 PM
- Comparable-store sales in the restaurant industry rose 1.8% in Q2, according to the latest read from Black Box Intelligence.
- It's the fourth month in a row of rising comps in the sector despite some soft traffic trends.
- The average check per guest was up 3.4% during the quarter to take up the slack from the 1.7% drop in traffic.
- Weather was a factor in the Southwest where traffic fell 3.4% Y/Y.
- 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.
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