|Bid||210.98 x 800|
|Ask||211.23 x 900|
|Day's Range||210.90 - 214.18|
|52 Week Range||173.41 - 221.93|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||27.73|
|Earnings Date||Jan 28, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||224.84|
The fast-food giant has largely sat out the chicken sandwich wars, with key players including privately-held Chick-fil-A, Wendy’s Co. (WEN) and Restaurant Brands International Inc.’s (QSR) Popeyes Louisiana Kitchen. Data compiled by Kalinowski Equity Research shows franchisees are concerned that McDonald’s (MCD) is missing a sales opportunity.
President Xi Jinping said China was facing a "grave situation" as the death toll from the coronavirus outbreak jumped to 41, overshadowing celebrations of the Lunar New Year that began on Saturday. With more than 1,400 people infected worldwide, most of them in China, Hong Kong declared a virus emergency, scrapped celebrations and restricted links to mainland China.
(Bloomberg) -- Crude posted the worst weekly decline in more than a year on concern that the spread of China’s coronavirus will cripple fuel demand. Brent futures sank 2.2% in London on Friday. Deaths from the coronavirus rose to at least 26 and China expanded travel restrictions for about 40 million people in an attempt to halt contagion. The U.S. is monitoring more than 60 people for potential infection and lawmakers said health authorities are expected to confirm a third case.The Asian virus has spooked traders even as the World Health Organization stopped short of declaring a global health emergency. The contagion is disrupting travel during the Lunar New Year holiday, when hundreds of millions normally fly or ride home. The selloff has accelerated as trend-following funds turned bearish, according to TD Securities.“Contagion fears are spiking ahead of the biggest yearly migration ahead of new year,” said Daniel Ghali, a commodities strategist at TD Securities. “The fear factor is the risk of contagion, synonymous to what happened in 2003 with SARS which led to a 2% drop in Chinese economic growth.”The fast-spreading virus is the latest challenge for a market that’s been buffeted this year by geopolitical turmoil in the Middle East and North Africa, as well as the phase-one trade deal between Beijing and Washington. Goldman Sachs Group Inc. said earlier this week that, if the coronavirus has an impact similar to the 2003 SARS epidemic, demand could be curbed by 260,000 barrels a day. While this is not the first time global oil markets contend with an epidemic threatening demand, the current supply environment could worsen the situation.“The slightest fear of any economic slowdown will spur a long wave of liquidations because the market is so oversupplied,” said Walter Zimmermann, chief technical strategist at ICAP Technical Analysis.Some businesses in China including McDonald’s Corp. and Starbucks Corp. temporarily shut some stores in efforts to contain the virus.See also: China’s Economy Was Brightening This Month Before Virus Fear HitBrent crude for March settlement fell $1.35 to settle at $60.69 a barrel on the ICE Futures Europe exchange in New York putting its premium over WTI for the same month at $6.50 a barrel. Brent futures fell 6.4% this week.West Texas Intermediate futures for March delivery slipped $1.40 to end the session at $54.19 a barrel on the New York Mercantile Exchange, the lowest level since October. Meanwhile, based on the commodity’s relative strength index, WTI is sitting in oversold territory and is due for a rally.Options traders are paying the most since Oct. 31 for protection against price swings, according to the CBOE/CME WTI volatility index.\--With assistance from James Thornhill, Grant Smith and Saket Sundria.To contact the reporter on this story: Jackie Davalos in New York at email@example.comTo contact the editors responsible for this story: David Marino at firstname.lastname@example.org, Jessica Summers, Mike JeffersFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Wall Street fell in a broad sell-off on Friday, as investors fled equities on growing concerns over the scope of the coronavirus outbreak, capping the S&P 500's worst week in six months. All three major U.S. stock averages turned sharply negative, with the S&P 500 seeing its biggest one-day percentage drop in over three months after the Centers for Disease Control and Prevention confirmed the second case of the virus on U.S. soil, this time in Chicago.
Wall Street lost ground on Friday as mounting worries over the scope of the coronavirus outbreak overshadowed positive corporate earnings. All three major U.S. stock averages extended their losses after the Centers for Disease Control and Prevention confirmed the second case of the virus on U.S. soil, this time in Chicago. For the holiday-shortened week, all three indexes are on course to post a decline with the Nasdaq set to snap a six-week winning streak.
McDonald's Corp. said Friday that it has shut stores in Wuhan and surrounding cities in China due to the coronavirus outbreak. In a statement from McDonald's in Asia, the company said that the fast-food giant's operations in the Hubei province are normally in cities where public transportation is accessible. In Wuhan, Ezhou, Huanggang, Qianjiang and Xiantao, public transport has been suspended. Across China, McDonald's has taken measures to prevent the spread of coronavirus, including a required system of measuring worker body temperatures when they arrive for work; the distribution of masks to crew members and hand sanitizers to customers; and stepped up cleaning of delivery boxes after they return to the restaurant. McDonald's stock has gained 13.8% over the past year while the Dow Jones Industrial Average is up 19%. Read also: McDonald's earnings preview: Chick-fil-A is the fast-food giant's biggest competition in the U.S.
This partly has to do with a better-than-expected Q4 earnings season overall so far, along with a void of economic metrics this week that might cause market participants pause.
Starbucks' (SBUX) international segment witnessed growth of 6% in the prior-year quarter, a trend that is likely to continue in first-quarter fiscal 2020.
A new coronavirus that has killed 26 people in China was confirmed in Europe for the first time on Friday as it spreads despite Chinese attempts to quarantine the city at the heart of the outbreak. China closed Shanghai Disneyland and part of the Great Wall and suspended public transportation in 10 cities as it rushed to contain the virus, stranding millions of people at the start of the country's Lunar New Year holiday. Wuhan, a city of 11 million where the virus was first identified, is in virtual lockdown.
McDonald's partnered with the Council for Adult and Experiential Learning (CAEL) to offer all employees a real-time career advising tool. The workers can also browse existing opportunities at McDonald's restaurants and corporate headquarters. McDonald's "forward-thinking" approach puts it in a better position to grow future managers from within the organization, Marie Cini, president of CAEL said in the press release.
The stake is being sold by state-owned CITIC Ltd , which together with CITIC Capital and Carlyle Group bought 80% of McDonald's China business in 2017. Zhang Yichen, talking to Reuters Global Markets Forum participants on the sidelines of the World Economic Forum meeting in Davos, Switzerland, said the final result of the sale should be known in early February. "Getting an additional stake will consolidate the control of the company in the hands of CITIC Capital which will facilitate (the) long-term stability of the company," said Zhang, who is also chairman of McDonald's China and Hong Kong.
Chinese private equity firm CITIC Capital plans to raise $200 million by listing a "blank cheque" special purpose acquisition company (SPAC), according to a filing with the U.S. Securities and Exchange Commission. The flagship alternative investment arm of conglomerate CITIC Group will be the first state-owned company from China to list an SPAC - a vehicle that raises funds for the sole purpose of using the money for acquisitions. The SPAC, named CITIC Capital Acquisition Corp, said in the filing it intends to search globally for companies in the energy efficiency, clean technology and sustainability sectors.
McDonald's (MCD) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
DOW UPDATE Shares of IBM and Intel are seeing strong returns Wednesday morning, propelling the Dow Jones Industrial Average into positive territory. The Dow (DJIA) was most recently trading 108 points (0.
McDonald's Corp (NYSE: MCD ) is testing a new chicken sandwich across three states and the National Owners Association is urging McDonald's franchise owners not to "get distracted" with inaccurate ...
McDonald's Corp. said Wednesday that it has launched an app that will help its employees take full advantage of the education benefits the fast-food giant offers. Archways to Careers will serve as a career advising tool that will connect workers with professionals at InsideTrack, a McDonald's partner and coaching organization. The app builds on the Archways to Opportunity program that helps workers learn English language skills, get a high school diploma and provides financial aid for college tuition. McDonald's stock has gained 14.4% over the past year while the Dow Jones Industrial Average is up 19.6% for the period.
McDonald's today announced the launch of a new career exploration mobile application called Archways to Careers that will help restaurant employees nationwide maximize education benefits and take the next step in their professional journey– whether at McDonald's or elsewhere. Built with long-standing partner, the Council for Adult and Experiential Learning (CAEL), and with support from InsideTrack, a national success coaching organization, McDonald's will now be able to offer all restaurant employees a real-time career advising tool that connects them to InsideTrack's professional and credentialed advisors to support, coach and help them chart a path to achieve the future job or career they desire.
Coronavirus worries weighed on stocks, as investors try to balance buying the dip and remaining cautious. Let's look at a few top stock trades for this shortened trading week. Top Stock Trades for Tomorrow No. 1: Roku (ROKU)Source: Chart courtesy of StockCharts.comRoku (NASDAQ:ROKU) has been trading really poorly lately, with the exception of Tuesday. Despite its nearly 5% rally, there's still a lot of "junk" overhead. That is to say, the chart just isn't clean right now.Some investors will say Roku is clearing downtrend resistance (purple line), while others will say it has yet to do so (brown line). Either way, it's trying to reclaim its 20-day moving average, and is still below its 50-day moving average.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI don't really like messy charts. However, we can simplify this one. On the upside, let's see if Roku can clear the 50-day moving average near $141.75. Above it puts $150 on the table, a notable level since August, and it's also where the backside of prior uptrend support (blue line) comes into play. * The 10 Best Value Stocks to Own in 2020 On the downside, look to see if Roku breaks below $127.50 support. Below puts the $117.50 to $120 area, and the 200-day moving average on the table. Top Stock Trades for Tomorrow No. 2: Netflix (NFLX)Source: Chart courtesy of StockCharts.comOn Tuesday after the close, Netflix (NASDAQ:NFLX) will report earnings. While the stock suffered badly in the third quarter, it has performed quite well since the start of the fourth quarter. Even though bulls are in control at the moment, this one tends to be a wild mover on earnings.Shares have reclaimed the 200-day moving average and continue to ride the 20-day moving average higher. However, the stock hasn't been able to reclaim prior range support near $340.The setup now is simple: Either bulls rally NFLX stock on earnings and reclaim $340, or shares pull back.If it's the former, look to see if NFLX can fill the gap back up toward $362. Above it puts $370 on the table, followed by range resistance at $385. On a pullback below the 20-day moving average, look for support from the 200-day moving average near $323, with the 50-day moving average and uptrend support at $315. Top Stock Trades for Tomorrow No. 3: Yeti (YETI)Source: Chart courtesy of StockCharts.comYeti (NYSE:YETI) posted big gains on the day, but is hitting a critical level on the upside. The $35 to $36.50 zone has been a big level of resistance over the past year, as investors have failed to sustain any of the stock's rallies over this area.On the plus side, the stock continues to put in a series of higher lows and is not overbought -- technically speaking.If Yeti can clear Tuesday's high, it puts the 2019 high just over $38 on the table. Over that, and $40-plus can be achieved amid a powerful breakout. Likewise, resting in this $35 to $37 zone could give Yeti stock a necessary pause before continuing higher too. * 4 Marijuana Stocks to Buy for the Big 2020 Rebound Below $35 may keep resistance in play for the time being, and likely puts the 20-day moving average in play. Top Stock Trades for Tomorrow No. 4: McDonald's (MCD)Source: Chart courtesy of StockCharts.comMcDonald's (NYSE:MCD) stock began struggling in October, but was then hammered after earnings. The stock fell 15% from peak to trough, and dropped below all of its major moving averages.Since bottoming in early November, McDonald's stock has been acting much better, and the stock has really taken flight so far in 2020. Shares are technically overbought (blue circle), but are now taking pause.If MCD continues higher, look to see if it can reclaim $215. Over $215 puts $220 resistance on the table. However, a controlled pullback to the 200-day moving average and uptrend support (blue line) would be ideal for bulls to buy the dip. Top Stock Trades for Tomorrow No. 5: Beyond Meat (BYND)Source: Chart courtesy of StockCharts.comBeyond Meat (NASDAQ:BYND) remains volatile, rallying about 11% on Tuesday and moving out of that nice bullish consolidation from last week.Let's see if BYND can take out last week's high near $135. Above $140, and the $170 area may be possible. On a pullback, see that $110 buoys Beyond. Below the backside of prior downtrend resistance (blue line), and the 20-day or 50-day moving average is possible.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long ROKU. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Monthly Dividend Stocks to Buy to Pay the Bills * 7 Earnings Reports to Watch Next Week * 7 5G Stocks to Connect Your Portfolio To The post 5 Top Stock Trades for Wednesday: ROKU, NFLX, YETI appeared first on InvestorPlace.
In late 2019, shares of premium fast casual restaurant chain Shake Shack (NYSE:SHAK) plummeted on the heels of a disappointing third-quarter earnings report that included the company's slowest comparable sales growth rate in a year, significant margin compression and a reduced full-year comparable sales and margin guide. SHAK stock, which was flying high around $105 just a few weeks earlier, crashed to $55 a few weeks after the print.Source: JHENG YAO / Shutterstock.com Then, this year, Goldman Sachs turned bullish.Following an investor presentation from management, the analyst team at Goldman Sachs recently released a hugely bullish report on Shake Shack with a simple yet compelling thesis that went something like this:InvestorPlace - Stock Market News, Stock Advice & Trading TipsShake Shack reported bad third-quarter numbers because of delivery headwinds related to the company moving from multiple delivery platforms to just one -- GrubHub (NYSE:GRUB). Over the next quarter and into next year, those delivery headwinds will turn into tailwinds driven by marketing synergies with GrubHub, while menu innovation and international expansion tailwinds kick in. As that happens, the numbers will improve and Shake Shack's stock will bounce back. * The 10 Best Value Stocks to Own in 2020 The market liked the sound of that. In response to the GS report, SHAK stock popped more than 10%. But I'm wary of this rebound.For one, there are bigger headwinds here than the delivery platform transition alone. I don't see those headwinds going away any time soon. And SHAK stock is still very richly valued. Ultimately, this combination of persistent headwinds and a full valuation could limit further upside in shares. Shake Shack Has Some ProblemsBulls want to blame Shake Shack's bad third-quarter performance -- 2% comparable sales growth (the worst in a year), 1.3% two-year-stack comparable sales growth (also the worst in a year), a nearly 300 basis point drop in restaurant-level operating margins (continuing a multi-quarter trend of huge margin compression), and a reduced full-year comps and margin guide -- on the fact that Shake Shack went from multiple delivery platforms to one delivery platform in the quarter.But does one small change really impact all of those financials that much?No. There are some much larger and longer-running headwinds at play here.First, new Shake Shack stores aren't performing up to par. Average weekly sales and average unit volumes have been in decline since 2015, and that decline isn't moderating. It's getting worse, because the more Shake Shack grows outside of its core high-income, urban-centric markets, the less well their stores perform on average. No matter how many new chicken options the company adds to the menu, this dynamic won't change, because it's built into Shake Shack's business model of high prices and small portions.Second, persistent cost pressures -- including rising wages, higher delivery packaging costs and food inflation -- are weighing on margins. These pressures aren't going anywhere. The labor market is full, so wages will keep rising. Delivery is the future of fast-food distribution, so those costs are sticking around. Food inflation will keep running higher as demand grows with strong economic activity.Third, the company is sticking to a cadence of roughly 40 new company-owned stores per year. That's a problem, because the store base is growing, but the number of new stores being added is not. So the unit growth rate is slowing, which is creating a natural drag on revenue growth rates. Shake Shack Stock Is Priced Too RichlyAll things considered, Shake Shack's numbers likely won't bounce back in 2020. If they don't, SHAK stock won't bounce back, either, because even after the selloff, shares remain very richly valued.The average restaurant stock trades around 26-times forward earnings. Shake Shack stock trades at 115-times forward earnings. Bulls will argue that Shake Shack only has 151 locations in America, versus 14,000 for McDonald's (NYSE:MCD), so SHAK stock deserves its premium valuation because of its huge long-term growth potential.Fair enough on the face of it. But let's play that scenario out.Shake Shack will never be as big as McDonald's. McDonald's caters to the entire income spectrum; Shake Shack's customers are in the $100,000 and up income bracket. Only 30% of American households belong in that bracket, and far less at a global level. But to be aggressive, let's assume that in a best-case scenario, Shake Shack can one day be 30% the size of McDonald's.McDonald's is a $160 billion company. The 100th McDonald's store opened in 1959, so to go from 100 stores to where they are today, it took McDonald's 61 years. Again being aggressive, let's say Shake Shack can go from its 100th company-owned store (opened in 2Q18) to 30% of McDonald's size in about 30 to 35 years, implying a roughly $50 billion market cap for Shake Shack by around 2051.Now let's discount that market cap target back by 10% per year. That equates to a $2.6 billion market cap today.Shake Shack's market cap as of this writing is over $2.6 billion. Even if you assume that Shake Shacks gets to 30% the size of McDonald's globally within 30 to 35 years (which, to my mind, is a best-case scenario), then SHAK stock today still isn't undervalued. Bottom Line on SHAK StockBulls would have you believe that Shake Shack's bad third-quarter numbers were the result of near-term delivery headwinds that won't persist for much longer. I don't buy that. There are much larger- and longer-running headwinds at play that will continue to adversely impact Shake Shack's growth trajectory for the foreseeable future.SHAK stock, at a triple-digit forward earnings multiple, isn't priced for this. As such, I'd be wary of buying into a SHAK stock bounce.As of this writing, Luke Lango did not own a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Monthly Dividend Stocks to Buy to Pay the Bills * 7 Earnings Reports to Watch Next Week * 7 5G Stocks to Connect Your Portfolio To The post Will Shake Shack Stock Really Roar Back Above $100? appeared first on InvestorPlace.