Seeking Alpha

McDonald's Corporation (MCD)

  • Mon, Mar. 30, 9:23 AM
    • McDonald's (NYSE:MCD) will test all-day breakfast in at least one U.S. market, tips Janney Capital.
    • The development could put some pressure on fast-food rivals, although it's unclear how the restaurant chain will free ups it griddle for orders from a full menu (breakfast and lunch/dinner).
    • MCD +0.4% premarket.
    | Mon, Mar. 30, 9:23 AM | 17 Comments
  • Mon, Mar. 23, 3:24 PM
    • The Barron's 400 has regularly beaten the S&P 500 (NYSEARCA:SPY) since its 2007 launch, writes Chris Dieterich, and also powers the Barron's 400 ETF (NYSEARCA:BFOR), which has topped the S&P 500 by nearly 500 basis points since starting in June 2013. BFOR is up 6% YTD, more than double that of the S&P 500.
    • Among those added to the index during last week's twice-yearly rebalancing were Celgene (NASDAQ:CELG), American Airlines (NASDAQ:AAL), Starbucks (NASDAQ:SBUX), and Ameriprise Financial (NYSE:AMP).
    • Among those dropped were McDonald's (NYSE:MCD), Wells Fargo (NYSE:WFC), Verizon (NYSE:VZ), and IBM.
    • A "ruthless" quantitative security-selection method screens for growth, value, and cash flow, and filters further with other factors such as diversification.
    | Mon, Mar. 23, 3:24 PM | 22 Comments
  • Mon, Mar. 23, 10:47 AM
    • Hedge fund player Glenview Capital Management thinks McDonald's (MCD +1.3%) could unlock close to $20B in value with a REIT, according to reports.
    • Larry Robbins of Glenview has given his view on splitting McDonald's into two companies in talks at conferences earlier this year.
    • As is typically seen with REIT chatter, shares of McDonald's have perked up today on the new mention by Glenview.
    | Mon, Mar. 23, 10:47 AM | 14 Comments
  • Thu, Mar. 12, 4:15 AM
    • KFC (NYSE:YUM) and others may face pressure from consumer and environmental groups to change how its poultry are raised after McDonald's (NYSE:MCD) announced it would only source chickens raised without antibiotics identified as important to humans.
    • Both McDonald's and Yum are stepping up efforts to win back diners lured away by chains such as such as Chipotle (NYSE:CMG) and Panera Bread (NASDAQ:PNRA), which boast antibiotic-free meats.
    • Chicken stocks also took a hit yesterday on concerns that the push to remove antibiotics from hatcheries could raise costs or that inaction could crimp demand.
    • Previously: Chicken stocks hit by antibiotic concerns (Mar. 11 2015)
    • Previously: McDonald's unveils menu sourcing initiatives (Mar. 04 2015)
    | Thu, Mar. 12, 4:15 AM | 1 Comment
  • Mon, Mar. 9, 1:34 PM
    • Shares of McDonald's (MCD +0.9%) are holding themselves up in positive territory, despite the company's report on a lackluster U.S. performance in February.
    • Investors may be taking heart in a strong statement by the company that it will reassert itself as a modern, progressive burger company.
    • Retail analysts have made the point in the past that McDonald's has ceded burger market share as it pivoted to a healthier and broader menu in an attempt to compete with fast-casual chains.
    • A quick glance at the success of Pinnacle Foods' Hungry-Man business (Q4 earnings call transcript) and Wendy's with its giant-sized hamburgers indicates counter-trend initiatives are working in some pockets of the food industry.
    • Previously: McDonald's misses Feb. comp mark as U.S. disappoints
    • Previously: Restaurant peers nab U.S. customers from McDonald's
    | Mon, Mar. 9, 1:34 PM | 6 Comments
  • Mon, Mar. 9, 8:28 AM
    • McDonald's (NYSE:MCD) appears to have lost market share during February in the U.S.
    • Black Box Intelligence estimates that comparable-store sales in the restaurant industry rose 2.1% in February vs. the 4% decline reported earlier by McDonald's for the month.
    • The deceleration across the industry was strongly influenced by a 5.8% drop in New England due to a harsh winter month, while McDonald's cites broader promotional pressure.
    • Within the burger sector, Sonic reported a sizzling 11.5% comp for its FQ2 which included all of February and didn't mention any promotional headaches.
    • Retail analysts think Sonic (NASDAQ:SONC) and Jack in the Box (NASDAQ:JACK) have converted some loyal McDonald's customers - while on a smaller scale the higher-end burger concepts at Five Guys, Habit Restaurants (NASDAQ:HABT), In-N-Out Burger, and even Shake Shack (NYSE:SHAK) have had an influence.
    • An even deeper dive into breakfast traffic has concluded Starbucks (NASDAQ:SBUX) has taken some coffee-on-the-go share.
    • Previously: McDonald's misses Feb. comp mark as U.S. disappoints
    • MCD -1.21% premarket to $95.95 after shares floated over the $100 level last week.
    | Mon, Mar. 9, 8:28 AM | 7 Comments
  • Mon, Mar. 9, 8:07 AM
    • McDonald's (NYSE:MCD) announces global comparable store sales fell 1.7% in February versus -0.3% consensus estimate.
    • U.S. comps were down 4.0% during the month.
    • The company did not blame weather for the weak U.S. performance, but says "ongoing aggressive" competitive activity in the sector took a toll.
    • Europe comps +0.7% as an overall solid performance was dragged down by Russia.
    • The Asia/Pacific, Middle East and Africa comp was -4.4% as the company continues to struggle to gain traction in Japan. A shift in the Chinese New year into the month was a positive factor.
    • MCD -1.40% premarket to $95.77.
    | Mon, Mar. 9, 8:07 AM | 19 Comments
  • Sat, Mar. 7, 10:13 AM
    • A powerhouse quarter of improved comps and widened margins is in the books for the restaurant industry as investors look forward to see if the trend extends.
    • The industry is in a growth phase with eating and drinking establishments adding 58.7K jobs in February on a seasonally adjusted basis to mark the biggest monthly gain since December of 2012.
    • The early read on Q1 traffic is favorable (ex-weather), although chains could see some wage inflation pressure and innovation outlays with differentiated concepts popping up at Habit Restaurants (NASDAQ:HABT), Zoe's Kitchen (NYSE:ZOES), Shake Shack (NYSE:SHAK), and a host of others.
    • Major digital initiatives at chains such as Panera Bread (NASDAQ:PNRA) and Starbucks (NASDAQ:SBUX) also have the potential to be disruptive.
    • A few screens to pick through the restaurant stock menu are listed below.
    • Lowest forward P/E ratio: McDonald's (NYSE:MCD), Ruth's Hospitality (NASDAQ:RUTH), and Cracker Barrel (NASDAQ:CBRL).
    • Lowest price/free cash flow ratio: Ruby Tuesday (NYSE:RT), Nathan's (NASDAQ:NATH), Jack in the Box (NASDAQ:JACK).
    • Dividend yield +3%: DineEquity (NYSE:DIN), Darden Restaurants (NYSE:DRI), McDonald's, and Arcos Dorados (NYSE:ARCO).
    • Top YTD performers: Jack in the Box (JACK), Wendy's (NASDAQ:WEN), Sonic (NASDAQ:SONC), El Pollo LoCo (NASDAQ:LOCO).
    • PEG ratio below 2.00: Chuy's Holdings (NASDAQ:CHUY), Ruth's Hospitality, Krispy Kreme Donuts (NYSE:KKD), Cheesecake Factory (NASDAQ:CAKE), Brinker International (NYSE:EAT), Denny's (NASDAQ:DENN), Buffalo Wild Wings (NASDAQ:BWLD).
    • Short ratio below 2%: Yum Brands (NYSE:YUM), Jack in the Box (JACK), Chipotle (NYSE:CMG), DineEquity, Bloomin' Brands (NASDAQ:BLMN), Denny's (DENN), McDonald's (MCD).
    • Previously: Restaurant stocks continue hot streak (Feb. 24)
    | Sat, Mar. 7, 10:13 AM | 18 Comments
  • Fri, Mar. 6, 8:03 AM
    • A light bulb has gone off with some large retail chains such as Wal-Mart (NYSE:WMT) and TJX Companies (NYSE:TJX) which have hiked low-level wages in order to improve employee retention rates.
    • The math as compiled by Bloomberg is pretty compelling: The average retail sales worker makes $21,140 a year, while it costs $3,400 in training costs to replace them. At a high turnover rate it becomes more economical to lift wages.
    • The development is interesting to economists pondering the future impact of Wal-Mart's (10% of all retail sales in the U.S.) new wage structure on U.S. unemployment rates.
    • Related stocks: YUM, MCD, KR, TGT, SHLD, HD, WBA, LOW, GPS, JCP, BLMN.
    | Fri, Mar. 6, 8:03 AM | 61 Comments
  • 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.
    | Thu, Mar. 5, 8:29 AM | 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.
    | Thu, Mar. 5, 7:49 AM | 4 Comments
  • 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, 10:34 AM | 2 Comments
  • 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, 10:11 AM | 22 Comments
  • 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.
    | Wed, Mar. 4, 6:48 AM | 2 Comments
  • 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.
    | Tue, Mar. 3, 8:00 AM | 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
    | Mon, Mar. 2, 12:49 PM | 5 Comments
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