Posts by Alex Rosenberg
- Alex Rosenberg at Talking Numbers5 mths ago
Warren Buffet is holding on to his very profitable Bank of America position.
In a CNBC interview that aired on Friday, the world’s most famous investor said he planned to hold his Bank of America warrants until just before they mature in 2021.
“We’ll exercise them probably the last month, which would be eight years or so from now,” Buffett said. “There’s no reason to exercise them sooner.” After all, “we love the position of being an owner.”
Of course, you would probably love being an owner too if you enjoyed an annual dividend of 6 percent on $5 billion worth of preferred stock. Buffet’s Berkshire Hathaway took a stake in Bank of America in August 2011. The warrants allow him to purchase shares at a price of $7.14, which is about where the stock was trading at the time. Since then, shares have doubled, meaning Buffett’s position has soared in value.
- Alex Rosenberg at Talking Numbers6 mths ago
McDonald’s might not be happy with your dollar anymore. The fast food giant announced that they are testing a “Dollar Menu and More” that includes items priced up to $5 (for 20-piece chicken nuggets). If McDonald’s finds success with the higher-priced menu in the five markets they currently testing, then a nationwide rollout is likely.
The Dollar Menu was introduced in 2002, and has since been a big driver for McDonald’s. In their second-quarter earnings call, CEO Don Thompson called it “a foundational component of our strategy,” and said that it represents 13 to 14 percent of sales.
But lately, franchisees have started to raise concerns about pricing, and the Dollar Menu has become a target of ire. According to a franchisee survey conducted by Janney Montgomery Scott analyst Mark Kalinowski, many franchisees complain that the Dollar Menu and discounting were cutting into their profits.