Latest news with #McDonald's'
Miami Herald
3 days ago
- Entertainment
- Miami Herald
McDonald's analyst grills new stock price target on McCrispy reaction
Okay, people, so what do you think of McDonald's' McCrispy Strips? "Hey @McDonalds please stop hyping up your much delayed chicken snack wraps with your new McCrispy strips that have the texture of octopus and the flavor of a tire on a dirt road," one person said on X. Don't miss the move: Subscribe to TheStreet's free daily newsletter "You'll never be @Popeyes because they beat you to it, and these were delicious. Give up now, clown." All right, all right, don't sugarcoat it. Tell us how you really McFeel. "Yes," another poster said. "One bite of this clump of hard rubber was enough for me." "to me they were awful. rubbery and not crispy at all. super chewy and no flavor :/," another person declared on Reddit. "They're spongy and soggy," yet another complained. "Never again." Okay, so we're getting a social-media vibe now. And more important, an investment firm is getting a negative buzz as well. Now, to be fair, some people had nice things to say about McCrispy Strips, especially when they're paired with the new creamy chili dip. And many customers liked MCD's use of 100% white meat. "McDonald's promised that the strips are made with 'juicy, 100% white meat' and they weren't lying," Leah Groth wrote in on April 30. "McDonald's promised that the strips are made with 'juicy, 100% white meat' and they weren't lying," Leah Groth wrote in Eat This Not That on April 30. "While the uber-popular McNugget is made from ground chicken meat and shaped into a dippable form, the McCrispy is an actual strip of whole chicken meat, putting McDonald's on the shortlist of fast-food chains that use real chicken for their tenders," she added. Groth called the McCrispy tasty and spicy without the help of a dip, but she added that the creamy chili dip "seriously elevated the taste to next-level status." McDonald's (MCD) unveiled McCrispy Strips in April, and on May 5 they became available at all participating restaurants nationwide. The move marked the first time since 2021 that the fast-food giant introduced a permanent menu item in the U.S. Chairman and CEO Chris Kempczinski told analysts during the first-quarter-earnings call in May that the launch of McCrispy Chicken Strips should contribute to growth. But he warned that "we remain cautious about the overall health of the consumer. Related: McDonald's CEO sounds alarm on major customer problem "We entered 2025 knowing that it would be a challenging time for the [quick-service-restaurant] industry, due to macroeconomic uncertainty and pressures weighing on the consumer. "During the first quarter, geopolitical tensions added to the economic uncertainty and dampened consumer sentiment more than we expected." While the Chicago company narrowly beat Wall Street's earnings expectations for the quarter, revenue fell short and U.S. same-store sales shrank 3.6%, the worst showing since the 8.7% tumble of Q2 2020 and the Covid pandemic lockdown. McDonald's shares are up 6.3% in 2025 and up 18% from a year ago. "The key for us now for the balance of the year is about execution," Kempczinski said. "And in an environment where there is a pressured consumer, you've got to simply outexecute your competitors. "And that means you've got to outexecute them on your value programs, you've got to outexecute them when it comes to marketing and menu innovation." Kempczinski talked about a halo benefit from the McCrispy to set up the reintroduction of the Snack Wrap, which is slated to return to McDonald's menus on July 10. But Loop Capital analyst Alton Stump wasn't so sure and downgraded McDonald's to hold from buy and cutting his price target to $315 from $346. Related: Popular chicken chain launches its version of McDonald's wraps The analyst said on June 6 that he had "growing concerns" that McDonald's' domestic comparison growth profile would not rebound as much as expected over the remainder of 2025. Customer feedback about the chicken strips has to date been predominantly negative, he said. That does not bode well ahead of McDonald's pending Snack Wrap introduction, which will include the new chicken strip, he said. Stump said he'd based his prior positive view of the shares on the company's ability to rejuvenate U.S. same-store sales via these two new products. McDonald's did not immediately respond to a request for comment. Related: Fund-management veteran skips emotion in investment strategy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
26-05-2025
- Business
- Yahoo
With 76% ownership, McDonald's Corporation (NYSE:MCD) boasts of strong institutional backing
Institutions' substantial holdings in McDonald's implies that they have significant influence over the company's share price 48% of the business is held by the top 25 shareholders Recent sales by insiders We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Every investor in McDonald's Corporation (NYSE:MCD) should be aware of the most powerful shareholder groups. With 76% stake, institutions possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future. Let's take a closer look to see what the different types of shareholders can tell us about McDonald's. Check out our latest analysis for McDonald's Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. We can see that McDonald's does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see McDonald's' historic earnings and revenue below, but keep in mind there's always more to the story. Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in McDonald's. Looking at our data, we can see that the largest shareholder is The Vanguard Group, Inc. with 9.8% of shares outstanding. With 7.3% and 4.8% of the shares outstanding respectively, BlackRock, Inc. and State Street Global Advisors, Inc. are the second and third largest shareholders. A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our information suggests that McDonald's Corporation insiders own under 1% of the company. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own US$146m worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying. The general public-- including retail investors -- own 24% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that McDonald's is showing 2 warning signs in our investment analysis , you should know about... Ultimately the future is most important. You can access this free report on analyst forecasts for the company. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
16-05-2025
- Business
- Yahoo
Walgreens to close 1,200 stores nationwide. Are any Arizona stores shuttering?
Walgreens first announced widespread store closures in October 2024, when the pharmacy said it planned to close 1,200 underperforming stores. The store closures are part of an attempted turnaround for the company, which has struggled with declining profits — in the last quarter of fiscal year 2024, Walgreens lost $3 billion. When CEO Tim Wentworth discussed the closures in a 2024 earnings call with investors, he said that out of 8,700 stores, only 6,000 are profitable. Walgreens shuttered 70 stores nationwide by November 2024 and plans to close 500 more by August 2025. Will the closures affect Arizona stores? Here's what to know. Walgreens has no plans to close any stores in Arizona, according to a Walgreens spokesperson. Walgreens operates roughly 8,700 stores in 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands, according to its website. There are Walgreens locations in more than 40 Arizona cities. Stores in metro Phoenix alone number close to 100. Opening soon: Viral 'vegan McDonald's' restaurant making its Arizona debut. What to know Reach the reporter at Follow @reia_reports on Instagram. This article originally appeared on Arizona Republic: Walgreens to close 1,200 US stores. Are any Arizona stores shuttering? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Earnings Update: McDonald's Corporation (NYSE:MCD) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts
McDonald's Corporation (NYSE:MCD) just released its latest quarterly report and things are not looking great. McDonald's missed analyst forecasts, with revenues of US$6.0b and statutory earnings per share (EPS) of US$2.60, falling short by 2.8% and 3.3% respectively. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on McDonald's after the latest results. We've discovered 2 warning signs about McDonald's. View them for free. Taking into account the latest results, the most recent consensus for McDonald's from 30 analysts is for revenues of US$26.4b in 2025. If met, it would imply a modest 2.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 7.0% to US$12.22. Before this earnings report, the analysts had been forecasting revenues of US$26.5b and earnings per share (EPS) of US$12.31 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates. View our latest analysis for McDonald's There were no changes to revenue or earnings estimates or the price target of US$332, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic McDonald's analyst has a price target of US$364 per share, while the most pessimistic values it at US$300. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth. Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that McDonald's' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.9% growth on an annualised basis. This is compared to a historical growth rate of 6.1% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.6% annually. Factoring in the forecast slowdown in growth, it seems obvious that McDonald's is also expected to grow slower than other industry participants. The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that McDonald's' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$332, with the latest estimates not enough to have an impact on their price targets. With that in mind, we wouldn't be too quick to come to a conclusion on McDonald's. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple McDonald's analysts - going out to 2027, and you can see them free on our platform here. We don't want to rain on the parade too much, but we did also find 2 warning signs for McDonald's (1 is significant!) that you need to be mindful of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-04-2025
- Business
- Yahoo
Here's What To Make Of McDonald's' (NYSE:MCD) Decelerating Rates Of Return
What trends should we look for it we want to identify stocks that can multiply in value over the long term? Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. Having said that, while the ROCE is currently high for McDonald's (NYSE:MCD), we aren't jumping out of our chairs because returns are decreasing. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on McDonald's is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.23 = US$12b ÷ (US$55b - US$3.9b) (Based on the trailing twelve months to December 2024). Thus, McDonald's has an ROCE of 23%. That's a fantastic return and not only that, it outpaces the average of 10.0% earned by companies in a similar industry. Check out our latest analysis for McDonald's In the above chart we have measured McDonald's' prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering McDonald's for free. Over the past five years, McDonald's' ROCE and capital employed have both remained mostly flat. This tells us the company isn't reinvesting in itself, so it's plausible that it's past the growth phase. Although current returns are high, we'd need more evidence of underlying growth for it to look like a multi-bagger going forward. With fewer investment opportunities, it makes sense that McDonald's has been paying out a decent 56% of its earnings to shareholders. Given the business isn't reinvesting in itself, it makes sense to distribute a portion of earnings among shareholders. Although is allocating it's capital efficiently to generate impressive returns, it isn't compounding its base of capital, which is what we'd see from a multi-bagger. Since the stock has gained an impressive 92% over the last five years, investors must think there's better things to come. Ultimately, if the underlying trends persist, we wouldn't hold our breath on it being a multi-bagger going forward. McDonald's does have some risks though, and we've spotted 2 warning signs for McDonald's that you might be interested in. If you want to search for more stocks that have been earning high returns, check out this free list of stocks with solid balance sheets that are also earning high returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
