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McDonald's Corporation (MCD)

  • 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
  • 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.
    | Thu, Feb. 26, 7:11 AM | 2 Comments
  • 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.
    | Wed, Feb. 25, 7:36 AM | 3 Comments
  • 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
    | Tue, Feb. 24, 10:53 AM | 5 Comments
  • 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.
    | Thu, Feb. 19, 9:28 AM | 16 Comments
  • 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%.
    | Wed, Feb. 18, 10:46 AM | 11 Comments
  • 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.
    | Sat, Feb. 14, 10:13 AM | 24 Comments
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