Latest news with #AndrewCharles
Business Insider
4 days ago
- Business
- Business Insider
Too Much ‘Boom and Splat' but McDonald's Can Serve Up Sales Lift in Q2
Shares in fast food giant McDonald's (MCD) were less tasty today despite analysts suggesting it was on track to meet Q2 sales expectations with a little help from Minecraft. Confident Investing Starts Here: Promotional Success Five-star TipRanks-rated analyst Andrew Charles of TD Cowen said the group was on track to hit same-store sales of 2.8%, boosted by its collaboration with the film A Minecraft Movie in April. This included a Minecraft Movie meal with collectibles. However, despite the success of the promotion, Charles, who talked to a number of industry experts about the iconic fast-food brand, said it showed how McDonald's was the victim of a boom/splat mentality. This means that the business continues to see 'short-term spurts in reaction to promotions before trends quickly return to softer, pre-promotion levels.' Indeed, in its Q1 earnings in early May it saw revenue decline 3% year-over-year to $5.96 billion. More importantly, global comparable sales were down 1%, with U.S. sales dropping 3.6% due to fewer customers Nice Pie Instead, the experts Charles spoke to said the company had to return to a more durable sales growth pattern. This includes innovating at lower prices rather than discounting core items; implementing a more frequent cadence of menu innovation; and relaunching successful past menu items such as Fried Apple Pies. The experts were more bullish on a second-half sales improvement this year, fueled by the addition of McCrispy Strips to its menu. Despite this, Charles expects its shares to remain range-bound between $305-$320 until more durable sales growth is evident. He has a price target of $305 on the stock and a Hold rating. Is MCD a Good Stock to Buy Now? On TipRanks, MCD has a Moderate Buy consensus based on 14 Buy and 10 Hold ratings. Its highest price target is $364.
Yahoo
30-04-2025
- Business
- Yahoo
Starbucks Q2 Comps Miss Sparks Analyst Pushback
Starbucks (NASDAQ:SBUX) slid in early trading after Q2 comparable sales fell short of expectations, even as management touted progress in its Back to Starbucks turnaroundhighlighting smoother store operations, deeper customer engagement and a long-term setup in China. Global comps dropped 1%, with North American sales down 1% and U.S. units off 2%, offset slightly by higher average tickets. CEO Laxman Narasimhan and his team stressed on the earnings call that new barista training, digital-order enhancements and expanded loyalty perks are taking hold, and they pointed to China's flat comps as evidence the recovery plan can work in tougher markets. Wall Street's verdict was swift. Goldman Sachs cut its rating to Neutral from Buy, warning of too many near-term headwinds and fading share-gain momentum. TD Cowen's Andrew Charles kept a Buy but trimmed his price target to $90 from $102, now modeling a more balanced recovery in 202627 instead of an earlier rebound. Morgan Stanley's Brian Harbour remains Overweight with a $95 target but quipped that patience will be required, noting bears calling for a longer turnaround timeline had it right this time. Jefferies' Andy Barish dropped to Hold, citing persistent brand challenges and a cautious consumer backdrop, while BTIG's Andrew Strelzik slashed near-term forecasts and cut his target to $100, saying EPS pressure is likely greater and more prolonged than once expected. Investors should care because Starbucks' valuation espeically if comps keep lagging and analysts further shave forecasts, the stock could sink back toward its five-year average. Moreover, with Q3 comparable-store sales and updated guidance due in late July, markets will be watching whether the Back to Starbucks plan can regain momentum or if SBUX needs to adjust its playbook once more. As a recap, Starbucks missed Q2 earnings expectations with non-GAAP EPS of $0.41 and revenue of $8.76 billion, both below estimates. Global same-store sales fell 1%, driven by a drop in transactions, while North America comps slipped 1% and U.S. sales declined 2%. International markets grew modestly, with China flat. The company added 213 stores, reaching 40,789 globally. Despite traffic challenges, Starbucks declared a $0.61 dividend for May, signaling continued shareholder focus amid slower post-pandemic recovery in footfall and top-line growth. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
30-04-2025
- Business
- Yahoo
Starbucks Q2 Comps Miss Sparks Analyst Pushback
Starbucks (NASDAQ:SBUX) slid in early trading after Q2 comparable sales fell short of expectations, even as management touted progress in its Back to Starbucks turnaroundhighlighting smoother store operations, deeper customer engagement and a long-term setup in China. Global comps dropped 1%, with North American sales down 1% and U.S. units off 2%, offset slightly by higher average tickets. CEO Laxman Narasimhan and his team stressed on the earnings call that new barista training, digital-order enhancements and expanded loyalty perks are taking hold, and they pointed to China's flat comps as evidence the recovery plan can work in tougher markets. Wall Street's verdict was swift. Goldman Sachs cut its rating to Neutral from Buy, warning of too many near-term headwinds and fading share-gain momentum. TD Cowen's Andrew Charles kept a Buy but trimmed his price target to $90 from $102, now modeling a more balanced recovery in 202627 instead of an earlier rebound. Morgan Stanley's Brian Harbour remains Overweight with a $95 target but quipped that patience will be required, noting bears calling for a longer turnaround timeline had it right this time. Jefferies' Andy Barish dropped to Hold, citing persistent brand challenges and a cautious consumer backdrop, while BTIG's Andrew Strelzik slashed near-term forecasts and cut his target to $100, saying EPS pressure is likely greater and more prolonged than once expected. Investors should care because Starbucks' valuation espeically if comps keep lagging and analysts further shave forecasts, the stock could sink back toward its five-year average. Moreover, with Q3 comparable-store sales and updated guidance due in late July, markets will be watching whether the Back to Starbucks plan can regain momentum or if SBUX needs to adjust its playbook once more. As a recap, Starbucks missed Q2 earnings expectations with non-GAAP EPS of $0.41 and revenue of $8.76 billion, both below estimates. Global same-store sales fell 1%, driven by a drop in transactions, while North America comps slipped 1% and U.S. sales declined 2%. International markets grew modestly, with China flat. The company added 213 stores, reaching 40,789 globally. Despite traffic challenges, Starbucks declared a $0.61 dividend for May, signaling continued shareholder focus amid slower post-pandemic recovery in footfall and top-line growth. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
09-02-2025
- Business
- Yahoo
Super Bowl food stock plays: Wingstop, Domino's poised to win on game day
The nation's largest chains will get a boost this Super Bowl Sunday as fans chow down on wings and pepperoni slices. During Super Bowl LIX, the National Chicken Council estimates fans will eat a record 1.47 billion wings as they watch the Kansas City Chiefs and Philadelphia Eagles compete for the Lombardi Trophy. TD Cowen analyst Andrew Charles said that the big day is a boost to any delivery-centered business. "We like Domino's. We like Wingstop. ... It's a win for the [home delivery] category," Charles said. He cited the two names as top stocks based on their reputations for value and innovation. Last quarter, Wingstop's (WING) same-store sales increased 20.9%. For the fourth quarter, Wall Street estimates an 11.70% year-over-year jump. BTIG analyst Peter Saleh called Wingstop one of his "top picks" for 2025 as it gains "new customers and more traffic," with its $16.99 boneless meal bundle that previously provided a "pretty meaningful lift in transactions and same-store sales." Last year, DoorDash (DASH) saw the biggest spike in orders for buffalo wings, cauliflower wings, pepperoni pizza, and chocolate-covered strawberries compared to the year prior. Buffalo Wild Wings, owned by Inspire Brands, said it recorded its biggest sales day in history for Super Bowl 2024. It typically sells over 11 million wings on the day. Chicken wing prices have jumped 7.2% from last year, per Wells Fargo, as grocers try to balance demand. Michael Swanson of Wells Fargo said consumers would "empty the shelf" if grocers reduced their chicken wing prices. So instead, stores have raised prices moderately to ensure supply doesn't run out ahead of the weekend. "The store is trying to put that price that finds just the right balance between the amount of chicken wings they have and what people are willing to buy for," he told Yahoo Finance over the phone. Read more: Best credit cards for groceries (2025) Tyson Foods (TSN) CEO Donnie King said that the end of January and early February are typically the highest two weeks of sales for chicken wings, adding that demand has been "very strong." "Wings show up in all [kinds] of places, from pizza restaurants to casual dining," he said. Domino's (DPZ) continues to lead the pizza space with its value perception, Charles said. It also wins over fans with new menu items, like its New York-style pizza. A Domino's spokesperson told Yahoo Finance that Sunday is typically one of Domino's US top five busiest delivery days of the year, with 2 million pizzas sold on the day, a 40% jump compared to the typical Sunday. In Q3, Domino's posted a 3% increase in same-store sales, and it's expected to see a 1.75% increase in the fourth quarter. And if you're hosting — don't forget the drinks and sides. Molson Coors (TAP) and Mondelēz (MDLZ) are top plays among their peers, Bank of America analyst Bryan Spillane said. "Super Bowl could be a really good launch point" for Molson Coors, he told Yahoo Finance over the phone. The beer giant already dropped its 60-second commercial spot. "As we head into the summer ... the [year over year] comparisons are easy. We don't know what's going to happen with tariffs ... will Mexican beer prices have to go up? If they do, that's probably going to be good for both Molson Coors and Bud." For its latest quarter, Wall Street projects a 7.3% decline in volume, compared to the 12.3% decline in the prior quarter. Improvement is expected to continue throughout the year. Mondelēz's Oreo cookies continue to be a growth driver for the snack giant. "They've got more ability to do more at the point of sale, especially with packaging, to augment the marketing message," Spillane said. The brand has also been able to "clear" hurdles around the fear of cocoa inflation. This week, Mondelēz posted results that slightly missed estimates on revenue and earnings, but did clock 3.1% growth in its net revenue. Meanwhile, main player PepsiCo (PEP) may still struggle to stand out during the game, even with its ad for Mountain Dew. Mountain Dew and Pepsi are losing market share to Coke (KO), per Spillane. "[Its] salty snack business, Doritos and Lays, ... [is] still struggling," he added. On Tuesday, the company posted earnings that were largely in line with the Street's expectations on the top and bottom lines. However, Frito-Lay North America sales dropped 2.7% year over year. CEO Ramon Laguarta told Yahoo Finance he is encouraged by the snacking category broadly returning to growth again. Overall, snack brands, unlike restaurants, have struggled with getting inflation-weary shoppers over the sticker shock of their hiked prices. "Fast food ... restaurants, as a group ... have done much better at identifying ... where value is for consumers and then driving better performance," he said, adding that companies like PepsiCo and Hershey (HSY), among others, are "still trying to drive demand and get consumers past the sticker shock of things being so expensive." — Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@ Click here for all of the latest retail stock news and events to better inform your investing strategy
