Latest news with #McDonald'sCorp
Yahoo
03-05-2025
- Business
- Yahoo
McDonald's CEO: 'The US Economy Is Divided' As Wealthy Customers Keep Coming While Regular Families Cut Back
McDonald's Corp. (NYSE:MCD) is kicking off 2025 with a warning about a growing divide among U.S. consumers, noting a clear split along income lines. What Happened: During its first quarter earnings call on Thursday, McDonald's CEO, Chris Kempczinski's opening remarks centered around the declining foot traffic in the quick-service restaurant industry, especially from the low and middle income consumer cohort, both of which are down nearly 10% compared to the prior year quarter. However, traffic among high-income consumers remains strong, which Kempczinski said 'illustrates the divided U.S. economy, where low- and middle-income consumers in particular are being weighed down,' by factors such as inflation and a bleak economic outlook. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share. Donald Trump just announced a $500 billion AI infrastructure deal — here's how you can invest in the entertainment market's next big disruptor at $2.25 per share. During the Q&A session, CFO Ian Borden noted that McDonald's customer base skews toward low- and middle-income consumers, prompting the company to double down on its commitment to 'strong value' and 'affordability' across its menu offerings. Borden adds that this value-focused strategy helped McDonald's outperform its closest competitors on same-store guest counts during the first quarter. Why It Matters: The company experienced a 3.6% year-over-year decline in same-store sales during the quarter, which marks its steepest decline since 2020, during the COVID-19 pandemic. As a result, McDonald's missed consensus estimates, with $2.67 in earnings per share, from $5.96 billion in revenue. This coincides with the Consumer Sentiment Index crashing to a three-year low in April, at 50.4, down from 57 in March, with tariffs, inflation expectations, and market reactions taking their toll. Inc. (NASDAQ:AMZN) CEO Andy Jassy expressed similar concerns during the company's first-quarter earnings call on Thursday, pointing to shifts in consumer behavior reminiscent of the pandemic. 'There's maybe never been a more important time in recent memory than now to try to keep prices low,' he said. Photo Courtesy: New Africa On Read More: Invest Where It Hurts — And Help Millions Heal: Invest in Cytonics and help disrupt a $390B Big Pharma stronghold. Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab 4,000 of its pre-IPO shares for just $0.30/share! Send To MSN: Send to MSN UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article McDonald's CEO: 'The US Economy Is Divided' As Wealthy Customers Keep Coming While Regular Families Cut Back originally appeared on Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
McDonald's Corp (MCD) Q1 2025 Earnings Call Highlights: Navigating Consumer Challenges and ...
Global Comp Sales: Declined by 1% in the first quarter. US Comp Sales: Declined 3.6% due to broad-based consumer challenges. Adjusted Earnings Per Share: $2.67 for the quarter, a 1% increase in constant currencies. Restaurant Margins: Generated over $3.3 billion for the quarter. Adjusted Operating Margin: Approximately 45.5%. International Developmental Licensed Markets Comp Sales: Increased by 3.5%, driven by positive results in the Middle East and Japan. Foreign Currency Translation Impact: $0.04 headwind on earnings per share. Warning! GuruFocus has detected 2 Warning Sign with AME. Release Date: May 01, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. McDonald's Corp (NYSE:MCD) has launched a new McValue platform in the US, which includes a $5 meal deal that has resonated well with customers. The company has introduced exciting new menu items, such as McCrispy Chicken Strips, which are expected to drive growth. McDonald's Corp (NYSE:MCD) has achieved all-time high customer satisfaction scores in the US, indicating strong operational execution. The Minecraft movie marketing campaign was a success, with collectibles selling out faster than anticipated, demonstrating effective promotional strategies. The company is focusing on beverages as a growth area, with plans to expand its offerings and capture a larger share of the profit pool in this category. Global comp sales declined by 1% in the first quarter, with a 3.6% decline in the US, reflecting broad-based consumer challenges. Traffic from low- and middle-income consumers in the US has significantly decreased, indicating economic pressures on these cohorts. The UK market is not yet gaining share, and execution improvements are needed to address this issue. The company faces a more inflationary environment in Europe, particularly due to beef prices, which impacts profitability. Despite the success of the McValue platform, the buy-one-add-one-for-a-dollar component is not driving as much incrementality as expected. Q: Can you discuss the recent US sales trajectory and momentum, considering the consumer pressures and the impact of the Minecraft marketing campaign? A: Christopher Kempczinski, CEO, noted that the year is evolving as expected, with Q1 being the toughest quarter. The Minecraft promotion exceeded expectations, selling out collectibles in 10-14 days. The focus now is on execution, especially in a pressured consumer environment, to drive growth through value programs, marketing, and menu innovation. Q: How do the consumer dynamics and McDonald's value perception differ in key international markets compared to the US? A: Kempczinski highlighted that Europe is challenging due to high inflation, particularly in beef. However, strong value programs and marketing can drive performance. In China, the business has stabilized, and Japan is performing solidly. The US faces significant pressure from low-income consumers, with traffic declines nearly 10%. Q: How is the US McValue platform performing, and are adjustments needed? A: Kempczinski explained that the McValue platform is designed to be agile. The $5 meal deal is performing well, driving significant incrementality. However, the "buy one, add one for a dollar" component is not as incremental, and adjustments may be considered to enhance performance. Q: With mid-single-digit menu pricing in the US, how do you manage the spread between value and premium offerings? A: Kempczinski emphasized the importance of balancing strong value programs with full-margin marketing and menu innovation. The focus is on disciplined pricing and ensuring that the overall P&L works for both franchisees and the company. Q: Are there any signs of international boycotts affecting McDonald's, and how are you addressing this? A: Kempczinski stated that surveys show no change in consumer sentiment towards McDonald's despite some anti-American sentiment. The brand remains strong globally, with no impact on business. The franchise model, with local operators, helps adapt to cultural nuances. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
Is McDonald's Corp. (MCD) the Best Dow Stock for the Next 12 Months?
We recently published a list of . In this article, we are going to take a look at where McDonald's Corp. (NYSE:MCD) stands against other best and worst dow stocks for the next 12 months. The Dow Jones Industrial Average (DJIA), or the Dow, is a price-weighted index that has long been seen as a barometer of the health of the U.S. economy. After touching all-time highs in late November 2024, the index has corrected nearly 7% in 2025 (as of April 23) and is down 12% from its highs. Rightly so, the correction reflects several unfavourable developments, including economic uncertainties and geopolitical tensions weighing on economic growth. The market is expected to remain volatile as the trade and other aspects of the US administration's policy agenda play out. Amid this volatility, based on the potential for share price appreciation in the next 12 months, we have created a selection of the best and worst Dow stocks from the 30 Dow constituent stocks. If we analyse its trackable history from 1899, the Dow has fallen 7% or more on a single day twenty times. Of those, only seven occurred after the year 2000, and the 5.5% decline on April 5, 2025, doesn't count as one of those seven, or not even in the historical top twenty. So, technically, this correction was not as severe as earlier. From corrections post 2000, the sharp declines when Covid-19 struck were the most noticeable – Dow fell 7.8%, 10%, and 12% on 9, 12, and 16th March, respectively, and saw further significant declines in that year. That said, the current period remains one of the most confusing times for market participants, even for the larger players in the equity market, who remain uncertain about their estimates for the broader markets, such as the Dow. In a recent interview, Lauren Goodwin, Chief Market Strategist at New York Life Investments, emphasized that the fundamental picture remains cloudy and investors are still looking for clarity in macroeconomic fundamentals. Despite some positive economic data recently, policy uncertainty is limiting visibility. As more data is released, she believes markets are entering a sustained period of elevated volatility across equities and fixed income. In these testing times, investors should examine fundamentals more critically, preferring Dow stocks with earnings resilience, clear competitive advantages, and exposure to long-term, secular growth themes. On April 28, Stephanie Link, Hightower Advisors' chief investment strategist, shared her positive outlook on the stock market in an interview on CNBC. With major tech companies, consumer, and financial companies set to announce results, she believes that if corporate earnings remain strong, the recent market rebound could continue. Since early April, the market has recovered significantly, and she attributed the rally to better-than-expected profit margins and steady corporate performance. Although the prominent tech names aren't cheap in terms of valuation, she views the recent declines as long-term buying opportunities. While markets may remain volatile in the coming months, the best opportunities in the Dow over the next 12 months should come from stocks with strong pricing power and earnings momentum. Investors should stick to stocks with strong brands, recurring revenue models, and competitive moats, which enable them to navigate macro uncertainty. Since the Dow comprises large-cap companies across various industries, these stocks might perform better during sell-offs. To identify the best and worst Dow stocks, we began with the 30 constituent stocks of the DJIA Index. We then ranked these stocks in ascending order based on the consensus 1-year median potential upside. Additionally, we also include data on hedge funds holding stakes in these stocks, utilizing Insider Monkey's Q4 2024 hedge fund database to provide deeper insights into institutional investor trends. It is important to note here that the terms 'best' and 'worst' refer strictly to the relative upside potential and do not imply any fundamental strengths or weaknesses of the underlying are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here). A cook in a busy kitchen assembling cheeseburgers for is difficult to imagine someone not knowing McDonald's Corp. (NYSE:MCD) and the celebrated golden arches. The company franchises, owns, and operates McDonald's restaurants across over 100 countries, serving a locally relevant menu of food and beverages. Best known for serving hamburgers, cheeseburgers, and French fries, the company had 43,477 restaurants as of end-2024, with around 95% franchised. As visible from its share price outperformance year-to-date (+10%), the company's business remains resilient amid inflationary pressures, helped by its global brand, franchise model, and strong operational efficiency. Over the last few years, the company has benefited from its 'Accelerating the Arches' strategy, which focuses on growing market share, expansion of digital platforms, and menu innovations. Corroborating its investment case, an analyst at Erste Group upgraded the stock's rating to a Buy from Hold on March 17. The analyst based his upgrade on the company's high and stable operating margin and business stability. With a 2025 gross profit margin and revenue growth estimate of 57% and 2% year-over-year, he expects MCD's international segment to grow faster than the domestic business, which should support earnings and share price momentum. In mid-April, Morgan Stanley analyst Brian Harbour reaffirmed his confidence in the stock with a Buy rating and a price target of $330. Overall, MCD ranks 28th on our list of best and worst dow stocks for the next 12 months. While we acknowledge the potential of Dow stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MCD but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Boston Globe
01-05-2025
- Business
- Boston Globe
McDonald's store traffic falls unexpectedly as diners grow uneasy about economy
Flagging consumer confidence is hurting U.S. demand at McDonald's and other restaurant chains. Last week, rival Chipotle also reported weaker-than-expected same-store sales in the first quarter. Chipotle CEO Scott Boatwright said concern about the economy was the 'overwhelming reason' consumers dined out less often. Advertisement McDonald's has responded by expanding its U.S. value menu, which lets customers buy one item for $1 when they buy a full-priced item. It's also offering its $5 Meal Deal through this summer. That deal was introduced last June and extended several times. Revenue at the Chicago chain fell 3% to $5.95 billion, short of analysts' forecast of $6.09 billion, according to FactSet. Net income fell 3% to $1.86 billion. Adjusted for restructuring charges and other one-time items, the company earned $2.67 per share, beating Wall Street projections by a penny. Shares of McDonald's Corp. fell just over 1% before the opening bell Thursday.
Yahoo
31-03-2025
- Business
- Yahoo
The Zacks Analyst Blog Highlights McDonald's, Abbott Laboratories, O'Reilly Automotive and MIND Technology
Chicago, IL – March 31, 2025 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: McDonald's Corp. MCD, Abbott Laboratories ABT, O'Reilly Automotive, Inc. ORLY and MIND Technology, Inc. MIND. The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including McDonald's Corp. (MCD), Abbott Laboratories (ABT) and O'Reilly Automotive, Inc. (ORLY), as well as a micro-cap stock MIND Technology, Inc. (MIND). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the research reports have been hand-picked from the roughly 70 reports published by our analyst team can see all of today's research reports here >>> Ahead of Wall Street The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens and attempts to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each can read today's AWS here >>> PCE Levels Steady-to-Warmer; Pre-Markets DownToday's Featured Research ReportsMcDonald's shares have outperformed the Zacks Retail - Restaurants industry year-to-date (+7.2% vs. +3.8%). The company is benefiting from its in-house initiatives like the Accelerating the Arches strategy, menu innovation, value offerings and global expansion strategies. It plans to open approximately 2,200 restaurants globally in 2025, with opening 50,000 restaurants by estimates for 2025 have moved north in the past seven days, depicting analysts' optimism about the stock's growth potential. However, the decline in average checks in the United States and negative comparable sales in the United Kingdom and China are inflationary pressures are still weighing down consumer spending. It expects to witness labor, food, paper and commodity inflation in 2025.(You can read the full research report on McDonald's here >>>)Shares of Abbott have outperformed the Zacks Medical - Products industry over the past year (+18.0% vs. +9.0%). The company's pipeline is unlocking new growth opportunities, supporting the company's positive momentum and strong growth outlook for 2025. Freestyle Libre, Lingo and Libre Rio CGM devices are on a great trajectory. Alinity, the company's next-generation suite of systems, is a key driver in the core lab diagnostics is optimistic about its latest progress with biosimilars and expects this to significantly boost EPD sales, beginning 2025. Within Nutrition, despite softness in the international pediatric arm, Abbott is regaining market share banking on strong Adult Nutrition the significant runoff of COVID-19 testing-related sales is hurting Abbott's Diagnostics growth. Headwinds such as tough macro conditions and foreign exchange also adds to the worry.(You can read the full research report on Abbott here >>>)O'Reilly Automotive's shares have outperformed the Zacks Automotive - Retail and Wholesale - Parts industry over the past year (+24.4% vs. +10.3%). The company has been generating record revenues for 32 consecutive years and the trend is likely to continue on the back of growth in the auto parts market, vehicle longevity, store expansion, a strong distribution network and a customer-centric business model.O'Reilly Automotive plans to increase its inventory level for the rest of the year to keep products available in all the markets it serves. However, the company has slashed guidance for comps growth and operating margins due to the unpredictability associated with the fourth also expects challenges in its DIY business as sales with higher margins have slowed more than expected. The company's high capex needs to develop advanced superior offerings might limit its cash flows. Thus, the stock warrants a cautious stance.(You can read the full research report on O'Reilly Automotive here >>>)Shares of MIND Technology have outperformed the Zacks Technology Services industry over the past year (+27.5% vs. +9.9%). This microcap company with market capitalization of $8.63 million is benefiting from strong revenue growth, reaching $31.8 million for the nine months ended Oct. 31, 2024, driven by a robust $26.2 million backlog and a sales pipeline exceeding twice that amount. Net income of $3 million marks a turnaround from a $1.2 million prior-year loss, reflecting cost efficiencies and after market services, which comprise 40% of revenues, provide stable, high-margin income. Gross margins improved to 45%, supported by pricing power, higher-margin product sales and operational efficiencies. A debt-free balance sheet with $3.5 million in cash enhances financial elevated inventory levels pose liquidity risks, and reliance on energy exploration exposes MIND to sector cyclicality. Competition from larger players, geopolitical risks, R&D uncertainties, and slow software adoption present additional challenges.(You can read the full research report on MIND Technology here >>>) Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report MIND Technology, Inc. (MIND) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
