Aug. 8, 2014, 8:21 AM
- McDonald's (NYSE:MCD) reports global comparable-store sales fell 2.5% in July vs. -2.6% expected.
- Comps in the U.S. fell 3.2% during the month.
- Europe showed a 0.5% comp gain, while the Asia/Pacific, Middle East and Africa region was down 7.3% due largely to the food supplier issue in China.
- The company says its global comparable sale forecast for 2014 is now at risk as a result of the China supplier issue.
- MCD -0.6% to $92.72
Aug. 7, 2014, 7:46 AM| 1 Comment
Aug. 6, 2014, 8:14 AM
- McDonald's (NYSE:MCD) is testing a new promotion in South Florida in which drive-in customers are guaranteed that their orders will be ready in 60 seconds.
- If the participating stores miss on the one-minute deadline, customers will receive a free lunch item on their next visit.
- What to watch: The lightning-fast speed of Chipotle's order processing has caught the eyes of the QSR industry as it continues to churn out double-digit comps. Look for McDonald's to make order processing speed a larger priority in 2H.
Aug. 4, 2014, 11:05 AM
- McDonald's (MCD -0.6%) indicates in a SEC filing that the food safety issue tied to a supplier from China affected markets representing 10% of its revenue.
- MCD statement: "While this matter will negatively impact results in the near term, we cannot reasonably estimate the impact on full year 2014 earnings at this time."
Aug. 4, 2014, 8:06 AM| 8 Comments
Aug. 4, 2014, 4:02 AM
- McDonald’s (NYSE:MCD) will restore its full menu in China later this week, after the fast-food chain pulled many items for almost two weeks due to the expired meat investigation at Shanghai Husi Food, a unit of McDonald’s long-term supplier OSI Group.
- While McDonalds will continue using food from OSI’s alternate operations in China, other brands like Yum (NYSE:YUM) and Burger King (NYSE:BKW) have cut ties with OSI since the food scandal.
Jul. 30, 2014, 11:10 AM
- McDonald's (MCD -0.2%) will have to be a defendent in cases brought before the NLRB against its franchisees, according to a ruling by the NRB general counsel
- If the 5-person NLRB ruling board agrees on the distinction of what constitutes a joint employer, it could spell trouble for other restaurant operators as well.
Jul. 29, 2014, 1:36 PM| 6 Comments
Jul. 29, 2014, 8:16 AM
- NPD Group's long-range forecast for restaurant traffic calls for less than 1% growth annually.
- Breakfast traffic is expected to grow faster than lunch and dinner traffic.
- "Margins are being squeezed, and it’s a battle for share," warns the research firm.
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Jul. 29, 2014, 7:31 AM| Comment!
Jul. 28, 2014, 12:33 PM
- Many McDonald's (MCD -0.1%) stores in China are only selling drinks, french fries, and desserts after last week's meat scare drastically reduced the company's ability to supply meat for its products.
- Though the press in China is typically hard on large American companies caught up in food scandals, most brands have only suffered temporary sales disruptions.
Jul. 25, 2014, 3:21 PM
- Russia's consumer safety regulator files a lawsuit seeking to ban some of McDonald's (MCD +0.3%) menu items, claiming it had uncovered traces of E.coli bacteria in some Caesar wraps and salads and saying the company is deceiving consumers about the nutritional value of some of its burgers and shakes.
- MCD may be the latest victims of worsening ties between the U.S. and Russia, and the agency has been known to act in the Kremlin's political interests in times of political tensions with other countries.
- Russia is one of MCD's key markets outside of the U.S., with ~400 outlets.
Jul. 25, 2014, 7:59 AM
- McDonald's (NYSE:MCD) says it will stop selling all chicken products produced in China to its Japan outlets and stop selling chicken nuggets and other items in Hong Kong after reports earlier this week that a Chinese food supplier may have shipped expired meat.
- In Japan, MCD will import all its chicken products from Thailand, which already was supplying 62% of MCD Japan's chicken product imports, with China supplying the remainder.
- The food safety scare in China also has ensnared KFC parent Yum Brands (NYSE:YUM), which has required all its KFC and Pizza Hut restaurants to seal up and stop using all meat materials supplied by the Chinese Husi factory.
Jul. 24, 2014, 10:41 AM
- McDonald's (MCD +0.1%) says it will stick with its Chinese meat provider despite a government investigation into practices at a facility that allegedly used expired meat.
- Industry experts say MCD's decision, while tough for consumers to swallow, is understandable, since MCD likely can figure out how to solve an isolated management problem at a single plant faster than it can take on new suppliers that may have other problems.
- U.S.-based OSI Group, which owns the Shanghai facility at issue, has been a long-time MCD partner in China and last year opened its ninth and 10th processing plants in the country.
Jul. 23, 2014, 7:12 AM
- Following a disappointing Q2 and outlook from McDonald's (NYSE:MCD), Baird pulls its Outperform rating and Susquehanna its Positive rating.
- Shares -0.5% premarket after yesterday's 1.3% decline.
- Previously: McDonald's profit slips as same-store sales come in flat
Jul. 22, 2014, 9:46 AM
- McDonald's (MCD -2.3%) opens lower after reporting a 1% Y/Y drop in Q2 earnings, which also came in below expectations,
- Global comparable sales from Q2 were relatively flat vs. expectations of a 0.8% gain, reflecting negative guest traffic in all major segments: Same-store U.S. sales fell 1.5% vs. estimates of a 0.3% decline, reflecting negative comparable guest traffic amid "ongoing broad-based challenges," same-store Europe sales fell 1% vs. expectations for 0.7% growth, and Asia/Pacific same-store sales rose 1.1% vs. estimates for 1.5% growth as China sales remain strong.
- Continuing strength in China is questionable following MCD's entanglement in another Chinese food safety scandal; Forbes’ Brian Solomon says, “If, as they have in the past, Chinese customers again spurn fast food chains associated with safety problems, it could negatively impact the earnings for McDonald’s.”
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