Oct. 28, 2014, 2:11 PM| 5 Comments
Oct. 23, 2014, 2:51 PM
- McDonald's (MCD +0.3%) continues to ride into a "perfect storm" of negatives in the U.S., Europe, and Asia - warns Valuentum Securities equity chief Brian Nelson.
- He sees the same pressure which drove global comps lower in Q3 leading to another slide in Q4 and into 2015 as any re-imaging efforts take time to implement.
- The fast-food chain is losing U.S. customers to fast-casual superstars on the premium end of its menu, while feeling promotional pressure from burger peers on the lower end.
- What to watch: Some retail analysts have suggested the company should follow the lead of Buffalo Wild Wings and attempt to be a brand incubator for new concepts. It's an idea that worked very well for shareholders who held on to Chipotle (+1354.3%) since it spun off from McDonald's.
- Previous on Mickey D's: Q3 results, Q3 report highlights, the millennials problem
Oct. 22, 2014, 12:01 PM
- Food prices rose in September, according to data from the Bureau of Labor Statistics.
- The category, which gets stripped out of the core CPI number, rose 0.3% M/M and 3.0% Y/Y.
- Prices for food consumed at home increased 3.2% Y/Y during the month.
- Meat prices were 13% higher, driven up by a 17.8% spike in beef prices.
- Food input costs are a significant concern in the restaurant sector.
- 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.
- Related ETFs: DBA, COW, MOO, PAGG.
Oct. 21, 2014, 10:51 AM
- McDonald's (MCD -0.4%) warns global same-store sales are likely to be negative in October as the same headwinds in Q3 remain lingering into Q4.
- The restaurant chain faces an erosion of sales growth for different reasons in Asia (safety), the U.S. (quality), and Russia (government intervention).
- If there's one common theme coming from restaurant analysts today, it's the concern over the difficulty the chain is having connecting with millennials.
- The group, which includes teenagers and young adults, tends to dine out less and show a clear preference for what they see as the higher quality options at Chipotle or Starbucks.
- Previous: MCD Q3 earnings, highlights.
Oct. 21, 2014, 8:18 AM
- McDonald's (NYSE:MCD) reports global comparable-store sales declined 3.3% in Q3.
- Traffic dips were an issue across segments, while the meat supplier issue in China led to a 9.9% tailoff in comps in the APMEA region.
- The company says "sustained competitive activity" contributed to the 3.3% drop in U.S. comps. Operating income during the quarter dropped 10% as McDonald's tried to pull different levers to get consumers in the doors.
- MCD -1.9% premarket.
Oct. 21, 2014, 8:02 AM
Oct. 20, 2014, 5:30 PM
Oct. 20, 2014, 1:34 PM
- Strong consumer affinity for Chick-fil-A is a factor in the sluggish U.S. sales trends at McDonald's (MCD), according to restaurant industry analysis.
- The southern-based chain rated as the favorite restaurant destination for families in a recent survey and is now churning out over $5B in sales a year, from less than $1B per year in 1999.
- What to watch: McDonald's reports earnings tomorrow. A major focus will be on if higher menu prices will offset traffic declines and escalated commodity and labor costs. Analysts expect adjusted EPS of $1.36 on revenue of $7.2B.
- MCD earnings preview
Oct. 20, 2014, 10:55 AM
Oct. 13, 2014, 3:30 PM
- There's a grim forecast on U.S. restaurant traffic out from NPD Group.
- Analyst Bonnie Riggs predicts growth will be limited to less than 0.5% a year out to 2022.
- Though the analyst cites some pockets of strength such as the breakfast daypart, the fast-casual segment, and higher-end restaurant demand - she thinks overall restaurant revenue will be pressured by soft demand from the middle class.
- Millennials are a particular concern with their visits to restaurant outlets in steady decline over the last few years.
- Related stocks: MCD, BKW, SONC, JACK, YUM, PLKI, DENN, BOBE, CBRL, DIN, EAT, RRGB, TXRH, BH, FRS.
Oct. 10, 2014, 9:36 AM
- The Fair Minimum Wage Act (H.R. 1010) has been stalled in Congress even as several states and municipalities propose their own minimum wages laws.
- The HR 1010 legislation calls for the incremental increase in the federal minimum wage to $10.10 per hour after which it would be indexed to inflation.
- What to watch: Analysts expect most voter referendums on minimum wage increases to pass in November, while a national framework remains in limbo.
- Full bill (.pdf)
- Related stocks: PLKI, BKW, WEN, JACK, SONC, YUM, MCD, GTIM, TAST.
Oct. 7, 2014, 7:06 AM
- McDonald's Japan warns it expects a loss this year of ¥17B ($157M) which would mark the first loss for the restaurant operator in 11 years.
- Escalating expenses and soft demand have hampered the company all year.
- McDonald's (NYSE:MCD) owns 50% of the Japanese restaurant chain holding entity.
- MCD -0.5% premarket
Oct. 6, 2014, 8:38 AM
- There's a head-scratching analyst move in the restaurant sector with Morgan Stanley upgrading Burger King Worldwide (NYSE:BKW) to Overweight and downgrading McDonald's (NYSE:MCD) to Equalweight.
- MS likes the positive impact that could be seen from a Timothy Hortons-Burger King combination, but some skeptics think the same underlying challenging QSR traffic trends are in play for both companies.
- Premarket: BKW +1.7%, MCD -0.6%.
Sep. 29, 2014, 2:58 PM
Sep. 24, 2014, 9:45 AM
- JPMorgan backs McDonald's (MCD +0.7%) with a reiterated Buy rating and $102 price target.
- The note from the investment firm is less enthusiastic than most on the buy side with the admission given that McDonald's is likely dead money.
- The 3.61% dividend yield on MCD is considered a formidable backstop by analysts.
Sep. 23, 2014, 1:41 PM
- Traffic to quick-service restaurants was flat for the year ending on June 30, according to data compiled by the NPD Group.
- Establishments with an average check price of $10-$20 saw more traffic growth than sub-$10 outlets.
- Fine dining restaurants saw a 3% increase in visits over the period.
- The research firm says "cultural and economic phenomenon" have created a shift in consumer dining habits that may be permanent.
- Restaurants 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.
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