|Bid||213.80 x 800|
|Ask||214.00 x 1000|
|Day's Range||212.64 - 216.25|
|52 Week Range||153.13 - 216.26|
|Beta (3Y Monthly)||0.33|
|PE Ratio (TTM)||28.40|
|Earnings Date||Jul 26, 2019|
|Forward Dividend & Yield||4.64 (2.16%)|
|1y Target Est||222.04|
Chipotle CEO Brian Niccol explains to Yahoo Finance why the burrito chain hasn't entered the plant-based meat craze.
Ray Kroc’s fast food creation – McDonald’s Corporation (MCD), now the leader in the burger franchise industry – will be reporting earnings on Friday, July 26. Preliminary data from Q2 suggests that the upcoming report will be a boon for investors. Expected gains in earnings and revenue provide further justification of CEO Steve Easterbrook’s ongoing turnaround and improvement plan, and a 4.5% gain in US same-store comp sales points to a much-needed acceleration in the company’s core market. Let’s take a closer look now: The Analyst ConsensusMCD keeps a strong buy consensus rating, based on 18 buys and 6 holds assigned in the past three months. The share price, $214, is up 20.7% year-to-date, outpacing both the S&P500 and the Dow Jones indexes. That strong run-up has pushed the stock almost to its average price target – $219 – leaving just a 2.6% upside. The Earnings ForecastThe fast food giant’s top-line numbers are expected to support a growth thesis. The consensus on total quarterly revenue, $5.34 billion, while down almost a half-percent from the year-ago quarter, is 7.6% higher than Q1’s top-line number. The EPS forecast of $2.06 is 3.5% higher than one year ago, and 19.7% higher than Q1. Last quarter, the company just missed the EPS expectation, so investors will be watching carefully to see if it hits the top line this week.After revenues and earnings, investors will be looking at the comp sales numbers. MCD has been charting growth in this metric for four years now, and is likely to continue that positive trend. US comps are anticipated at or near 4.5%, up from last year’s 2%. If comps keep growing at this rate, they will soon converge with 6% international rate.These gains come while MCD management has set operating margin targets in the mid-40% range for the long term. The trend is going in the right direction for them – in Q1, the margin was 42.3%, compared to 41.7% one year earlier. While not quite at the target, this is an industry-leading number; Yum! Brands (YUM), owner of KFC and Taco Bell, reports an operating margin of just 34.5%.To keep its lead, MCD is pursuing several initiatives to keep margins high in the face of increasing food, labor, and transport costs. These include menu changes, digital ordering kiosks, and online ordering.Looking forward, the company management is expected to give rollout details on upcoming home delivery options. Home delivery is widely seen as the next battleground for fast food franchises, and with its dense store network, McDonald’s is well positioned to lead the industry in that area. Checking in with the AnalystsWall Street’s analysts are decidedly bullish on MCD, although there are some concerns that upcoming Q2 gains are already baked into the price, leaving little or no room for growth. Longbow’s Alton Stump lays out this case in his recent note on the stock, saying, “U.S. McDonald's franchisees lead us to predict same-store sales were up 4.5%-5.0% in Q2, giving confidence McDonald's will beat the Q2 U.S. same-store sales growth consensus forecast of 4.3%. However, this type of comp beat is already reflected in current sentiment.” Stump sets a hold rating on MCD, in line with his view of the stock’s stable situation.By contrast, Andrew Charles of Cowen, looks at the store comps and sees reason to buy in: “We raise our 2Q U.S. comp estimate from 4.5% to 5.0%, vs 4.3% consensus. Our U.S. ReModel analysis suggests an accelerated contribution to U.S. comps in 2H19 that is not reflected in consensus… Raising PT from $225 to $235.” Charles’ price target suggests room for a 9.6% upside to MCD.For a different perspective, Telsey Advisory analyst Robert Derrington sees technology investments as the key driver for MCD in Q2. In his words, “[T]he company’s investments in this area are a ‘game-changer’ for its system—further separating it from its fast food peers through better efficiencies and sales growth.” He adds that he sees a “more compelling same-stores sales outlook for McDonald’s this year and next, as the company’s size, scale and technology investments—coupled with new product introductions—will lead to sustainable comparable sales growth, a metric that appears poised to lead Industry trends for years to come.”Derrington makes MCD one of his top picks, describing it as both an offensive and defensive investment, valuable in both good times and slower times. He sets a price target of $230, indicating confidence in a 7.3% upside. (>>Click Here to see the full list of MCD Analyst Ratings)
Starbucks (SBUX) stock is up over 41% YTD. But, will this uptrend continue after the coffee giant's earnings report is released after the market closes on Thursday, July 25?
(Bloomberg) -- McDonald’s Corp. may boast about how juicy its burgers are, but it can hardly say the same about some of its bond yields.Investors are now paying to lend euros to the American fast food chain as post-crisis monetary policy has kept interest rates at or near all-time lows. With the European Central Bank ready to add more stimulus to the euro zone, the already record pile of $13.3 trillion of negative-yielding debt is poised to grow even further, sweeping some U.S. issuers in the European market along with it.Euro-denominated debt issued from McDonald’s with a 4% coupon is now yielding -0.174%, data compiled by Bloomberg show. Its 2% euro bonds due 2023 yield -0.148%.McDonald’s is hardly alone in this phenomenon, as easy money policies have driven European yields below zero in other U.S. company bonds, too, including some from Apple Inc., PepsiCo Inc., AT&T Inc. and International Business Machines Corp. to name a few.Of the $13.3 trillion of negative-yielding corporate and sovereign debt as tracked by Bloomberg, $245 billion is from the U.S. and Canada. The U.S. companies’ dollar-denominated debt still offers yields in positive territory, where U.S. interest rates -- though likely to fall -- are still much higher than in Europe.While these companies are investment-grade rated and already offer less yield than their junk-rated counterparts, some high-yield companies also have bonds that trade with negative yields, such as Altice France SA, Telecom Italia SpA and Nidda Healthcare Holding (Stada).Read more: Negative-Yield Credit Mountain May Double as Euro Spreads Narrow\--With assistance from Phil Kuntz, Laura Benitez, Tasos Vossos, Benjamin Purvis and Paula Sambo.To contact the reporter on this story: Molly Smith in New York at email@example.comTo contact the editors responsible for this story: Nikolaj Gammeltoft at firstname.lastname@example.org, Dawn McCartyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Over the past several years, global fast food giant McDonald's (NYSE:MCD) has reinvented itself on two critical fronts that have propelled significant out-performance in MCD stock. Over the past five years, while the S&P 500 is up roughly 52%, MCD stock is up more than double that, rallying nearly 125% over that same stretch.Which two reinventions have been the fuel behind this big rally? First, McDonald's reinvented itself on the technology front, transforming from an old school fast food chain with outdated stores, to a modern fast food chain with technology and data at the core of its operations. Second, McDonald's reinvented itself on the menu front, pivoting from selling junk food at low prices, to selling healthier foods at low prices.These two critical transformations, against the backdrop of industry-low prices, has turned McDonald's into a shining star in the quick service restaurant category. McDonald's has rattled off big comparable sales growth quarter after big comparable sales growth quarter. Margins have moved higher thanks to re-franchising initiatives. The long-term profit growth trajectory has improved.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAbove all else, MCD stock has more than doubled over the past five years. * 10 Stocks to Buy From This Superstar Fund This big multi-year rally in McDonald's stock price should continue in late July. The company is set to report second quarter earnings on Friday, July 26. Most data points indicate that those numbers will be really good -- good enough to keep MCD stock on its longer term uptrend. Second Quarter Numbers Should Be GoodMost data points indicate that McDonald's second quarter earnings report will be very good.For starter's, U.S. retail sales growth accelerated from 2.9% in the first quarter, to 3.4% in the second quarter, while food service sales growth accelerated from 4.4% to 4.6%. Thus, the restaurant backdrop became more favorable in Q2. That makes sense. During the second quarter, unemployment rates remained low, wage gains continued, rates dropped, and the broader consumer economic backdrop improved.Further, McDonald's continued to push forward on the technology and menu innovation fronts in the quarter. Specifically, McDonald's rapidly expanded its digital delivery business in the second quarter, and not coincidentally, Domino's (NYSE:DPZ) blamed its poor second quarter numbers on "turbulence" from the expansion of delivery services. Also, McDonald's opened up a hyper-modern new Times Square flagship store and continued to leverage Big Data to improve operational efficiency.Meanwhile, on the menu innovation front, McDonald's doubled down on fresh beef Quarter Pounders in Q2 (which have been a huge success over the past year) and rolled out its Worldwide Favorites menu in the quarter.Because of the positive internals and externals, many analysts are reporting positive second quarter channel checks. In May, Cleveland Research said that U.S. traffic trends were doing well and running ahead of consensus expectations. In mid-July, Cowen sounded a similarly bullish tone on U.S. traffic trends.Broadly, it appears that McDonald's is set to report strong second quarter numbers at the end of July. McDonald's Stock Should Rally in ResponseAlthough MCD stock is trading at a premium valuation ahead of the Q2 print, favorable second quarter numbers should be enough to keep this stock on its long-term winning trajectory.MCD stock presently trades at about 24-times forward earnings. That's a huge multiple for this stock. Over the past five years, MCD stock's average forward earnings multiple has hovered around 20. This is the highest MCD stock's forward earnings multiple has been this decade. Consequently, it's fair to say that a lot of good news is already priced into McDonald's stock.But, not all of it. The premium valuation underlying MCD stock is warranted by strengthening fundamentals and a favorable market backdrop, as the company is firing on all cylinders as rates plunge to new lows. This combination means that MCD stock's multiple should be substantially above-average today.All in all, while valuation is a concern here, it isn't a big enough concern to wipe out the fact that the company is performing at its peak. So long as the company continues to do so -- and so long as rates remain low -- MCD stock should stay on a healthy uptrend. Bottom Line on MCD StockMcDonald's has been firing on all cylinders for several years now. Most data points indicate that this company continued to fire on all cylinders in the second quarter of 2019. As such, Q2 numbers should be pretty good -- good enough to support recent strength in MCD stock.As of this writing, Luke Lango was long MCD. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy From This Superstar Fund * 7 Stocks to Buy This Summer Earnings Season * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk The post MCD Stock Looks Good Ahead Of Earnings appeared first on InvestorPlace.
On CNBC’s “Trading Nation” Monday afternoon, Craig Johnson of Piper Jaffray sees McDonald's Corp (NYSE: MCD ) moving higher and says it's a safe bet. Johnson says Chipotle Mexican Grill, Inc. (NYSE: CMG ...
Second-quarter 2019 earnings results so far are not as disappointing as expected initially. However, the forecast of overall earnings dip for two consecutive quarters is still looming large.
The Dow Jones Index is having an amazing year. From its January low of 22,686, the Dow Jones Index has surged nearly 5,000 points to top 27,000 for the first time. With such huge gains, it's time to start thinking about what Dow Jones stocks to sell.As you'd expect, when the market as a whole rips so much, it sets up some great profit-taking opportunities in individual stocks out of the Dow Jones' 30 components. * 7 Defense Stocks to Buy to Fortify Your Portfolio From vulnerable healthcare stocks to overpriced consumer staples plays and more, here are five Dow Jones stocks to sell before the market slides again.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Stocks To Sell: Boeing (BA)It has been baffling watching Boeing (NYSE:BA) stock recently. You would have expected a massive correction in BA stock since several of the company's jets crashed, calling into question the safety of the Boeing Max line of jets.Instead, BA stock has been astoundingly resilient. This would be one thing if BA stock had already been cheap when the safety issues began. But no, BA stock wasn't cheap at all. It had just quadrupled in value since early 2016 and reached its highest P/E ratio in years in March.It seems that investors have forgotten that the airline industry is cyclical. Yes, oil prices are low right now. Airlines are making a lot of money for the moment. When airlines make huge profits, they order planes. In fact, they order too many planes. This cycle has happened every few years dating back to the 1960s. Yet investors seem to think this commercial aviation boom will go on forever. It won't.On the military side, yes, orders have been up. But analysts modeling this upturn in defense spending indefinitely will also be disappointed. What happens if and when the Republicans lose power in Washington? There's also the little matter that we have no idea how bad the issues will be from the Boeing Max situation. BA stock is still really expensive. Coca-Cola (KO)Source: Shutterstock The chase for yield has investors rushing back into a lot of slow-growing defensive companies. The rationale makes sense on the surface. Lower interest rates mean that bonds are less attractive investments.Yet investors, especially retirees, still need current income. So they sell their bonds and other fixed income holdings to buy stocks with larger yields. Coca-Cola (NYSE:KO) is one such popular stock.It's not hard to see the appeal of KO stock as a bond alternative. It yields more than U.S. Treasuries or bank CDs while offering a dividend that Coca-Cola has increased every year for decades on end.However, cracks are forming in Coca-Cola's growth and income story. Namely, there's hardly any growth.Soda sales have plunged in America and other developed markets. Emerging market growth has largely offset this so far, but there are limits to that. Soda sales may drop even more sharply going forward as more jurisdictions implement sugar taxes. As a result, Coca-Cola has hardly grown in recent years - it has taken on more debt and boosted its dividend payout ratio to keep the yield going up. That works for a while, but without organic growth, Coca-Cola's dividend stream will turn to a trickle over time. * 10 Tech Stocks That Are Still Worth Your Time (And Money) Based solely on earnings, for a slow (or at times no-) growth company like Coca-Cola, you'd rarely pay more than 20x earnings, if that. As such, it's hard to justify KO stock being worth more than $45 now. If you own KO stock solely for the dividend, it's a fine holding. But don't anticipate much, if anything, in the form of share price gains over the next year or two. McDonald's (MCD)One has to wonder if McDonald's (NYSE:MCD) is about to launch CBD-infused burgers. Or perhaps a national Beyond Meat (NASDAQ:BYND) burger rollout. That is to say, investors are bidding up MCD stock like it's a hot craze, even though its business momentum is decidedly pedestrian at best.In fact, many of the company's franchisees have been complaining. All-day breakfast greatly increased complexity for operators and raised labor costs without doing much for overall revenues. McDonald's is also asking its franchisees to make extensive store overhauls even though the local operators haven't exactly been rolling in cash flow lately. Franchisees sent a harshly-worded letter around earlier this year demanding that:"We can NOT afford the waste that a 'one size fits all' reinvestment program creates […] We must allow our owner operators to take back control of the reinvestment that is happening, stop the useless and problematic investing, and focus our reinvestment in what will actually produce a return on investment (drive thrus and kitchens)."Over on Wall Street, however, no one seems worried about McDonald's questionable strategy in recent years. MCD stock is up 36% over the past 12 months and is up more than 22% year-to-date. This has led McDonald's to sport a bloated 28x P/E ratio. Investors are likely to get indigestion when they look back at paying more than $200 a share for MCD stock. UnitedHealth Group (UNH)Source: Shutterstock If you watched the first Democratic presidential debate, you probably won't be too surprised by this pick. A sizable number of candidates, when asked if they would get rid of private for-profit health insurance, raised their hands in affirmation. The political world has moved a lot since 2016, when Bernie Sanders' suggestion of abolishing private health care seemed radical.Now, there's a decent chance that the eventual Democratic nominee will be pushing to outlaw or at least greatly curtail private insurance going forward. Would that nominee, if elected, be able to push legislation through what will likely still be a Republican Senate in 2021? Probably not.Still, do you want to own a private insurer like UnitedHealth Group (NYSE:UNH) ahead of the election? Absolutely not. Even if you think the Republicans will keep the White House, think back to 2015. * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip Hillary Clinton went on the attack against Martin Shkreli and biotech firms for jacking up prescription drug prices. Biotech stocks collapsed shortly thereafter. Private health insurers are about as popular as nuclear waste dumps with a large portion of the electorate. With the presidential election still a year away, politicians have plenty of time to threaten and demonize firms like UnitedHealth. Sell this recent pop in UNH stock; it's toxic given the political environment. Johnson & Johnson (JNJ)Source: Shutterstock On a similar note, Johnson & Johnson (NYSE:JNJ) also exposes investors to a great deal of political risk ahead of the election. JNJ is a highly diversified business with many consumer care products that are (mostly) above reproach.But JNJ also sells a lot of prescription drugs, and both Trump and the Democrats are making loud noises about going after pricing, which would cut into JNJ's margins. Trump's efforts to curtail drug prices appear to be stalled for the time being. But make no mistake, the issue is a perfect one for politicians to use to drum up votes during election season.Johnson & Johnson also has its liability issue related to baby powder products which allegedly led to cancer. It is exposed to large verdicts against it related to this. Presumably JNJ will be able to reduce its liability greatly over time as cooler heads prevail, but for now, it's another big overhang on JNJ stock. If JNJ stock were cheaper, you could discount the political worries; it's a very strong and diversified company. But at this valuation, JNJ stock could easily have more downside before it bottoms.At the time of this writing, Ian Bezek owned JNJ stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Defense Stocks to Buy to Fortify Your Portfolio * 10 High-Flying, Overvalued Stocks in Danger of Crashing * 8 Stocks to Buy That Are Growing Faster Than Amazon The post 5 Dow Jones Stocks to Sell Before the Market Slumps appeared first on InvestorPlace.
Among the sectors seeing a spate of earnings reports this week is consumer discretionary, the S&P 500's fourth-largest sector weight and home to some of the best-performing large-cap stocks this year. ...
McDonald's stock is at record highs as the Dow Jones component revamps restaurants, adopts AI and expands its digital offerings. But is MCD stock a buy now?
Starbucks' (SBUX) third-quarter fiscal 2019 results are likely to be driven by new store additions and robust performance of the China-Asia-Pacific and Americas segments.
BJ's Restaurants' (BJRI) various sales-building initiatives are likely to aid second-quarter revenues. High costs may affect earnings.