Seeking Alpha

McDonald's Corporation (MCD)

  • Thu, Mar. 5, 8:29 AM
    • A deeper dive into the Beige Book notes indicates some wage pressure is being seen in the U.S. at low-level positions, notes Bloomberg.
    • The revelation could explain the round of minimum wage hikes over the last month - most notably at retail giant Wal-Mart.
    • Analysts note that even a minor lift at the bottom of the wage structure puts some pressure that ripples up the chain.
    • Beige Book: "A staffing firm in the Chicago District reported some companies were also willing to raise rates for unskilled workers to reduce turnover, and contacts in the Atlanta District noted increasing entry-level wages."
    • Fast-food chains could be the next domino to fall.
    • Previously: Beige Book takes note of oil prices and dollar (Mar. 04 2015)
    • Related stocks: MCD, SONC, JACK, WEN, QSR, YUM, PZZA.
    | 1 Comment
  • Thu, Mar. 5, 7:49 AM
    • Piper Jaffray downgrades McDonald's (NYSE:MCD) to a Neutral rating from Overweight.
    • Analysts with the firm see a long road before ambitious management initiatives start to pay off.
    • Shares of the restaurant operator moved 13% off their December lows in cracking back into triple digits this week.
    • MCD -0.75% premarket to $99.75.
  • Wed, Mar. 4, 10:34 AM
    • McDonald's (MCD -0.4%) formally announces it will only source chickens raised without antibiotics identified as important to humans.
    • The company also sets a policy to stop buying milk from cows treated with artificial growth hormones.
    • Shares of McDonald's have been see-sawing around the $100 mark most of the week - a level a lot of traders see as significant.
    • Previously: McDonald's to buy antibiotic-free chicken
    • Previously: McDonald's hits triple digits again (Mar. 02 2015)
  • Wed, Mar. 4, 10:11 AM
    • McDonald's (MCD -0.5%) will stop buying chickens raised with human antibiotics in a gradual process, according to a report from Reuters.
    • An announcement by the company is expected later today.
    • The development could be a "tipping point" in the poultry industry, notes industry insider Jonathan Kaplan.
    • Shares of chicken-focused Pilgrim's Pride (PPC -1.5%) are lower - while Tyson Foods (TSN -1%), Sanderson Farms (SAFM -0.6%), and Hormel (HRL -0.6%) could all be impacted by a heightened focus on the use of antibiotics with livestock.
    • Buffalo Wild Wings (BWLD -1.7%) is also on watch as a company that buys a fair amount of chicken from suppliers.
  • Wed, Mar. 4, 6:48 AM
    • RBC Capital upgrades McDonald's (NYSE:MCD) to Outperform from Sector Perform.
    • The investment firm lifts its price target on the restaurant operator to $115 from $93.
    • Sentiment has turned more positive on McDonald's without the company reporting any new sales numbers. A new CEO and reports on activist investors have been part of the story.
    • MCD +0.39% premarket to $100.13.
  • Tue, Mar. 3, 8:00 AM
    • Bank of America Merrill Lynch raises its price target on McDonald's (NYSE:MCD) to $112 on optimism about a new activist investor on the scene.
    • Shares of McDonald's recaptured the $100 mark yesterday in what some traders see as an important development.
    • MCD -0.03% premarket to $99.97.
    | Comment!
  • Mon, Mar. 2, 12:49 PM
    • Shares of McDonald's (MCD +1.4%) hit $100 for the first time since last July as investor interest in the global restaurant company continues to pick up.
    • Earlier today, a sizzling read on FQ2 comps from Sonic was another strong sign that customer traffic in the fast-food sector has re-energized.
    • Investors are betting with a new CEO at the helm, McDonald's can take back some market share lost to Sonic, Wendy's, Burger King, and other burger chains.
    • Previously: Blazing comp tipped by Sonic for FQ2
  • Thu, Feb. 26, 7:11 AM
    • McDonald's (NYSE:MCD) is catching the eye of analysts after breaking out with a 10% move over the last month to threaten the $100 level again.
    • Earlier in the week, Janney Montgomery Scott lifted its same-store sales forecast on MCD on its view the broad rise of traffic in the restaurant industry will include the chain.
    • Investors also see a more active board and new CEO as positive factors for the company.
    • McDonald's improved its U.S. comp during Q4, but lost market share to most major fast-food chains.
    • Previously: Restaurant rally leaves Golden Arches behind (Feb. 18 2015)
    • MCD -0.3% premarket.
  • Wed, Feb. 25, 7:36 AM
    • Labor groups in Europe have accused McDonald's (NYSE:MCD) of skirting around paying €$1B ($1.1B) in taxes by sending revenue through Luxembourg.
    • The European Commission has been asked to investigate the company.
    • It's a fairly common procedure in Europe for U.S. fast-food chains to use a royalty payment system in order to lower their tax rates.
  • Tue, Feb. 24, 10:53 AM
    • Restaurant stocks are out-performing market averages again as more chains report improved comparable-restaurant sales growth.
    • The read on Q1 is that pricing and traffic trends are strong, despite what some broad measures of overall consumer confidence show.
    • The $2 gas benefit is believed by analysts to have had a greater impact on restaurant spending than other areas of retail.
    • Gainers include Luby's (LUB +4.9%), Cosi (COSI +5.4%), Rave Restaurant Group (RAVE +4.5%), Texas Roadhouse (TXRH +2.4%), Krispy Kreme Dougnuts (KKD +2.8%), Popeyes Louisian Kitchen (PLKI +1.7%), Bob Evans Farms (BOBE +1.1%), Darden Restaurants (DRI +1.4%).
    • Even McDonald's (MCD +0.8%), which trailed the Q4 comp average in the sector by a wide margin, is out ahead of the S&P 500.
    • Previously: Cracker Barrel +4.1% after traffic accelerates and guidance lifted
  • Thu, Feb. 19, 9:28 AM
    • Shares of McDonald's (NYSE:MCD) are on watch after Wal-Mart announces a broad increase in hourly wages for its U.S. workers.
    • The two companies have been the largest targets of labor protests over the last year over their wage policies.
    • Fast-food chains Wendy's (NASDAQ:WEN), Burger King (NYSE:QSR), and Taco Bell (NYSE:YUM) have also seen more demonstrations than the remainder of the sector.
  • Wed, Feb. 18, 10:46 AM
    • Restaurants stocks are out-performing as a group after Jack in the Box, Qdboa, Tim Hortons, and Burger King all reported comparable-restaurant sales momentum this week.
    • The recent round of earnings from the sector has confirmed analyst predictions of a benefit from lower gas prices in the U.S.
    • The developments have also made the recent performance by McDonald's ((NYSE:MCD) -0.2%) look even more anemic.
    • Previously: Let's talks $2 gas (Nov. 29 2014)
    • Previously: Restaurant sales show sharp increase in January (Feb. 11 2015)
    • Leading gainers: Jack in the Box (NASDAQ:JACK) +6.0%, BJ's Restaurants (NASDAQ:BJRI) +3.6%, Sonic (NASDAQ:SONC) +2.6%, Texas Roadhouse (NASDAQ:TXRH) +2.2%, Brinker International (NYSE:EAT) +2.1%, Luby's (NYSE:LUB) +2.0%, Wendy's (NASDAQ:WEN) +1.5%, Cheesecake Factory (NASDAQ:CAKE) +1.4%, Nathan's Famous (NASDAQ:NATH) +1.3%, Ark Restaurants (NASDAQ:ARKR) +1.3%.
  • Sat, Feb. 14, 10:13 AM
    • Craft soda is starting to become a trend to watch closely, according to industry insiders.
    • Though still accounting for only ~1% of the total U.S. soda market, major retail chains have increasingly been willing to bet on local craft brands in store aisles.
    • The craft craze is old news for the beer industry where coming-of-age millennials buy craft/local beers at a 50% higher rate than brand-loyal older generations. Fading stars such as Budweiser and Bud Light are testament to the impact of the millennial paradigm.
    • The craft influence in coffee hasn't been lost on Starbucks which has strategically deployed trucks on college campuses in an effort to win over students.
    • Despite the progressive reputation of Starbucks, analysts think new upstarts such as Craft (subscription) and Cups (app) have a shot of gaining influence with the Indie-minded millennial crowd on "customization" and pricing.
    • What to watch: An increase in M&A activity in the beverage sector is expected as major companies strategically pick off more local craft brands to incubate.
    • Craft coffee watch: GMCR, SBUX, JVA, SJM, KRFT, DNKN, QSR, MCD.
    • Craft soda watch: PEP, KO, MNST, COT, DPS, OTCQB:JSDA, REED, SODA,  FIZZ.
  • Fri, Feb. 13, 4:53 PM
    • A McDonald’s (NYSE:MCD) shareholder group is calling for changes to the company’s board - most of whom have served for more than a decade - because of ongoing sales woes.
    • CtW Investment Group, which manages pension funds that hold about 0.2% of MCD shares, is demanding a "robust refreshment of the board’s membership and leadership."
    • CtW's executive director tells WSJ that naming a new CEO and the board’s election of a Google exec as a new member were positive steps, but that the board needs more new voices and should disclose its succession plan.
  • Mon, Feb. 9, 2:22 PM
    • Shares of McDonald's (MCD -1.3%) trade lower after the company's 1.8% decline in January global comps was worse than the consensus forecast for -1.2%.
    • Though analysts see a bright spot in the U.S. with the restaurant chain turning over a positive comp for a second straight month, they warn that the fragile APMEA region could remain under pressure for the first half of the year.
    • Comp sales fell off an alarming 39% in Japan during the month.
    • The report on February U.S. sales from McDonald's is of interest to see if the highly-advertised Pay with Lovin' program was able to budge the needle.
    • A WSJ reporter had a cringeworthy Pay with Lovin' experience last week in what could be an indication of a strategic misfire.
    • Others have noted the feel-good aspect of the campaign may be hard to bring home with labor unrest existing in the McDonald's employee ranks.
    • Previously: Asia drags down McDonald's in January
  • Mon, Feb. 9, 8:23 AM
    • McDonald's (NYSE:MCD) reports global comparable-store sales fell 0.8% in January.
    • The company saw the comp slide 12.6% on the APMEA region (Asia/Pacific, Middle East, and Africa). A shift in the timing of the Chinese New Year was a factor.
    • The U.S. comp turned mildly positive at +0.4% due to some strength in the breakfast daypart.
    • The company's performance Germany and the U.K. helped bring up the European comp to +0.5%.
    • MCD -0.8% premarket.
    | 1 Comment
Visit Seeking Alpha's
MCD vs. ETF Alternatives
Company Description
McDonald's Corp franchises and operates McDonald's restaurants in the food service industry. Its geographic segments include the United States, Europe, and Asia-Pacific, Middle East and Africa.
Sector: Services
Industry: Restaurants
Country: United States