MCD - McDonald's Corporation

NYSE - NYSE Delayed Price. Currency in USD
+0.44 (+0.24%)
At close: 4:00PM EDT
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Previous Close186.37
Bid0.00 x 1100
Ask186.97 x 800
Day's Range185.93 - 188.65
52 Week Range153.13 - 190.88
Avg. Volume3,678,142
Market Cap142.969B
Beta (3Y Monthly)0.39
PE Ratio (TTM)24.78
EPS (TTM)7.54
Earnings DateApr 29, 2019 - May 3, 2019
Forward Dividend & Yield4.64 (2.49%)
Ex-Dividend Date2019-02-28
1y Target Est197.69
Trade prices are not sourced from all markets
  • McDonald’s vs. Burger King: What's the Difference?
    Investopedia22 hours ago

    McDonald’s vs. Burger King: What's the Difference?

    Like PepsiCo, Inc. versus the Coca-Cola Company or Ford Motor Company versus General Motors Company, the battle between McDonald's Corporation (NYSE: MCD) and Burger King represents one of the most iconic and important business rivalries in American history. For more than 60 years, McDonald's has been the trailblazer that set the standard by which all other franchises operate.

  • What Do Gaming Stocks and Marijuana Stocks Have in Common?
    InvestorPlace2 days ago

    What Do Gaming Stocks and Marijuana Stocks Have in Common?

    I'm a huge sports fan. Always have been. I'm an even bigger fan of making money (and that's saying something). We're smack in the middle of a great time for both at once -- thanks to some great news for gaming stocks.In terms of sports, the NBA and NHL playoffs start in just a few weeks. Major League Baseball's spring training is in "full swing" (sorry, couldn't resist). In fact, I'm writing to you from Florida, where I'm catching a few Philadelphia Phillies' practices and games.And to top it all off… the 2019 NCAA basketball tournament just got under way. You've also heard it called "March Madness," and that brings us to investing.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMore than 40 million people were expected to fill out those famous brackets - picking winners round-by-round all the way through the championship. From those little office pools to big-time bets elsewhere, nearly 20% of adults in the U.S. are expected to bet on the tournament. The American Gaming Association (AGA) estimates that about $8.5 billion in total will be wagered on the tournament, which puts it up with the Super Bowl as the most bet on sports events each year.This year's tournament marks a landmark shift, especially for gaming stocks. It is the first time in its 80-year history when betting on it is legal outside of Nevada. * 7 Beaten-Up Stocks to Buy as They Reverse Course Similar to marijuana, the wave of legalized sports betting is building since a Supreme Court decision last May left the question of sports betting up to individual states. It hasn't taken long for several to jump on board in just the last 10 months. In addition to Nevada, sports betting is now legal in New Jersey, Pennsylvania, West Virginia, Rhode Island, Delaware, Mississippi and New Mexico.I realize eight states do not make a wave, but this is just the beginning. More than 20 other states are at least considering legalization. In less than a year, more than half of all states have either jumped on the sports betting bandwagon or are thinking about it.A wave of legalization is powerful on its own, but there's more to the story. In addition to more states allowing sports betting, the ways people can bet and the types of bets available are also about to explode. The Great American Sports Betting BoomAny time the government opens up a huge new market, investors can win very big. That's true now for gaming stocks.Not convinced? Just look at marijuana.Last fall, Canada legalized cannabis throughout the entire nation. More and more U.S. states are doing the same, even though it is technically illegal on the federal level. (Just wait until that changes!)Thanks to this wave of marijuana legalization, sales in the United States and Canada are growing at more than 20% per year… and will do so for many years. The legal marijuana industry is set to grow 10-fold over the coming decade.This will create massive new markets and stock winners. Actually, it already is.At Matt McCall's Investment Opportunities, marijuana stocks have surged 58% on average just since the beginning of the year. One is up more than 156%. Another is up 98.5%. Two more have gained over 70%. All in less than three months.Another government action - the Supreme Court ruling last May - opened the door to legal sports betting. It will take a little longer to unfold state by state, but this is also a huge opportunity still in its early stages.Let's look at some numbers. If you can grasp the significance of these, you'll be well on your way to making a fortune with gaming stocks in the  Great American Sports Betting Boom.In 2017, the last full year before the Supreme Court's decision, Nevada was the only state that allowed sports gambling. A total of $4.87 billion was wagered legally in that state. But that paled in comparison to the estimated $150 billion that was bet illegally. About 30 times more money was bet illegally than legally.As more states come on board, there is no doubt that a large percentage of those illegal bets will move over to legal channels. Eilers & Krejcik Gaming, a boutique research firm specializing in the gaming and technology sector, sees annual gaming revenue of $6 billion in the U.S. by 2023. That's based on 32 states legalizing sports gambling, which seems more than reasonable over the next four years. One Gaming Stock to Get You StartedLike marijuana, the sports betting market is being created in large measure thanks to government actions. Also like marijuana, the opportunity is made even more exciting by the various ways to profit from it. There are a number of gaming stocks that can succeed and take a big piece of the growing sports gambling pie.The most obvious would be the casinos, which can easily add a sportsbook and attract gamblers who are already on their properties.Plus, technology is needed to power the gambling experience on land and on mobile devices. In the coming years, the majority of wagers will be placed via apps. You want to own companies that are at the forefront of this technology.Then there are the leagues and the teams themselves. One company that encompasses many of these opportunities is William Hill (OTCMKTS:WIMHY). You may not be familiar with the name, but in London there are more William Hill betting stores than there are Starbucks (NASDAQ:SBUX) or McDonald's (NYSE:MCD) locations.As cool as that is, I'm more interested in how aggressively this leading betting and gaming stock is going after the U.S. market. William Hill has already expanded into six of the eight states where sports betting is legal, and we know there is more to come.William Hill has also already partnered with a few professional teams, from the minor leagues to the big leagues, including the NHL's Las Vegas Golden Knights and New Jersey Devils. This trend should continue and include more of the largest franchises in the world.It also opens the door for something I expect will be a big boost to the company and sports betting itself: in-game wagering. Simply open an app on your phone and place your bet as the game is going on. Which player will score the next goal? Who will commit the next foul? To stick with the sports theme, this is a slam dunk. Sports fans will love this.William Hill has a big advantage with its well-established app, name recognition, and loyalty among gamblers. Its sportsbook app has been downloaded more than 2.5 million times from Apple's (NASDAQ:AAPL) App Store.I recommend William Hill in my Investment Opportunities service. We're down since I added it last July. But honestly, that makes it an even better buy for you, reading this today. A lot of the sports betting/gaming stocks have been off to a slow start, but looking out over the long term, I expect it to climb much higher as legalized sports gambling spreads.That's a bet I expect to pay off big time.The thing I love best about sports betting is that it's a big investing theme that gives us multiple ways to make money. So is the spreading legalization of marijuana.As the cannabis market explodes, more and more companies are coming public. Please don't rush out and buy them! There's some homework to do first. Make sure the fundamentals back up the hype. And the timing has to be right.That's all part of my Cannabis Cash Calendar system, which I designed specifically for marijuana IPOs. The early results are impressive: Overall, our marijuana stocks have surged 58% on average in less than three months. One of our biggest gainers is a stock that recently went public. We're up more than 85% since we bought it in early December.I already have the date circled for my next recommendation -- just two weeks away, on April 4.You can get exclusive access to it as soon as it's released to my Investment Opportunities readers. Click here to learn more about this opportunity and how to get on the list to be notified.Even if you don't know a thing about the marijuana markets… even if you've never bought a stock before. You could take just a small stake, and potentially multiply it over the next 12 months. Click here to learn more about this incredible story.Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of Investment Opportunities and Early Stage Investor. He has dedicated his career to getting investors into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in (STMP), +1,523% in Ulta Beauty (ULTA), +1,044% in Tesla (TSLA), +611% in Liquefied Natural Gas Limited (LNGLY), +324% in Bitcoin Services (BTSC), just to name a few. If you're interested in making triple-digit gains from the world's biggest investment trends BEFORE anyone else, click here to learn more about Matt McCall and his investments strategy today. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks That Will Continue to Rebound in 2019 * 5 Stocks To Buy for the Happiest Employees * 7 ETFs for a Millennial Portfolio Compare Brokers The post What Do Gaming Stocks and Marijuana Stocks Have in Common? appeared first on InvestorPlace.

  • This tricked-out sofa is a couch potato's dream prize
    American City Business Journals2 days ago

    This tricked-out sofa is a couch potato's dream prize

    The fast food giant is partnering with Uber Eats to award the ultimate in binge seating to one lucky fan.

  • McDonald's (MCD) Gains But Lags Market: What You Should Know
    Zacks3 days ago

    McDonald's (MCD) Gains But Lags Market: What You Should Know

    McDonald's (MCD) closed the most recent trading day at $186.37, moving +0.76% from the previous trading session.

  • Domino’s Pizza Stock Looks Too Cheap
    InvestorPlace3 days ago

    Domino’s Pizza Stock Looks Too Cheap

    Stocks like Domino's Pizza (NYSE:DPZ) don't go on sale very often. But to some investors, "on sale" might be an exaggeration.Source: Shutterstock Domino's Pizza stock, even after its recent selloff, is hardly cheap. Indeed, DPZ stock still trades at over 22 tines analysts' consensus earnings per share estimate. * 10 Stocks on the Rise Heading Into the Second Quarter That's a huge multiple for a relatively mature company. And given that DPZ stock has tanked lately in part due to its big Q4 earnings miss last month, it's a multiple that might not seem all that attractive.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut DPZ has plenty of room to grow into that multiple. Between the company's same-store-sales growth and the new stores it will open, its revenue should continue to increase nicely for years to come. Given its franchise model and the leverage on its balance sheet, its higher revenues will have an amplified effect on its earnings.DPZ is still facing risks. But those risks seem manageable, as Domino's is well-positioned to handle any challenges ahead. DPZ stock isn't cheap, but stocks like this shouldn't be, and they very rarely are. The Case for DPZ StockDPZ simply has come to dominate the pizza business. Yum! Brands' (NYSE:YUM) Pizza Hut's growth has stalled out in recent years. Papa John's (NASDAQ:PZZA) sales are collapsing. Yet Domino's keeps growing at impressive rates.Indeed, during the company's "disappointing" Q4, its U.S. same-store sales rose 5.6% year-over-year. Meanwhile, Pizza Hut's comparable-store sales were unchanged. Papa John's comps fell 8%. McDonald's (NYSE:MCD) same-store sales rose 2.3% in Q4, and most investors thought its results were good.No major chain's same-store sales are increasing as rapidly as those of DPZ. No major chain, in fact, is coming close. That trend should continue, and Domino's can benefit from opening new stores, as well.It's adding stores to U.S. metro areas. That's been a successful strategy despite fears that new stores might "cannibalize" existing stores. The company's overseas business continues to grow, in terms of both comparable stores and new opportunities.DPZ still expects its annual retail sales to rise 8%-12% over the next few years, with its global comparable sales increasing 3%-6% and its net store count rising 6%-8% annually. On the other hand, 8%-12% growth might not sound like much, since DPZ stock has a trailing-twelve month P/E ratio of 29.But because of DPZ's franchise model, 8%-12% revenue growth results in earnings and cash-flow growth that's much higher than that. Store-level costs are borne by franchisees, enabling DPZ's operating margins to rise faster than its revenue. And the leverage on Domino's balance sheet further boosts its net margins. For 2020, for instance, analysts' consensus estimate calls for a 9.8% increase in sales and an 18% increase in EPS. The Risks and Rewards of DPZ StockThe company's 8%-12% revenue-growth guidance, then, suggests that its earnings easily could increase 100% or more over the next four or five years. Even assuming that the P/E ratio of DPZ stock drops in several years as DPZ matures, investors will still have an easy path to double-digit annual returns, including dividends. Any outperformance - or a continued willingness by investors to pay up for DPZ stock - sets up a path for DPZ to reach $500 and beyond.But there are risks facing DPZ stock. The most obvious one is the potential for recession in the U.S. or in key international markets. Domino's struggled during the financial crisis: its same-store sales declined 4.9% in 2008. But it clearly has a better business ten years later, and its emphasis on low price points could mitigate the macro pressures on it, particularly domestically.There are two smaller concerns. The first is that on the whole there's much more competition in the pizza industry than ever before. The rise of online ordering services like GrubHub (NYSE:GRUB) and DoorDash has allowed thousands of restaurants to offer delivery services, breaking pizza's traditional dominance of that space. In turn, other chains now offer delivery, including casual dining giants like Brinker International (NYSE:EAT) and Dine Brands Global (NYSE:DIN).But as that trend has accelerated lately, Domino's sales don't appear to have suffered. The company's comp-sales growth has decelerated from 12% in 2015 to 6% in 2018. That's not necessarily a surprise, however, given the tougher competition. But 6% still is more than enough growth to leverage expense growth and expand margins. And it hardly suggests that the company's business model is facing an existential threat. The Best FranchiserThe final risk is one facing the entire industry. Companies like McDonald's and Burger King owner Restaurant Brands International (NYSE:QSR) have benefited from franchising more restaurants. That's benefited MCD stock, in particular, as rising labor and food costs become the problem of the franchisees , not that of the corporate parent.But as James Brumley pointed out last year, at some point franchisees won't be able to handle that pressure any more. Carrols Restaurant Group (NASDAQ:TAST), the largest Burger King franchisee, shows the problem. Over the past three years, QSR stock is up 63%, but TAST has declined by almost 25% during the same period.Domino's franchisees, however, are doing quite well. The company pointed out in a recent investor presentation that its franchisees' average EBITDA per store has soared in the past decade, rising from $49 million in 2008 to over $137 million in 2018. Franchise-level profits have stopped increasing lately, but they're still positive, and franchisees' margins still look quite healthy.So, purely from a business standpoint, Domino's looks like far and away the best pick among restaurant stocks. It has more opportunities to open additional stores than its large peers. DPZ can still take plenty of market share from its corporate rivals (and independent pizzerias). Its franchisees are happy. Since Domino's is doing an awful lot right at the moment, the owners of Domino's stock have little to complain about.Given DPZ's growth potential, DPZ stock is worth paying up for. With Domino's Pizza stock now 15% cheaper than it was just a few weeks ago, the shares may be expensive, but they're still attractive.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post Domino's Pizza Stock Looks Too Cheap appeared first on InvestorPlace.

  • CNBC3 days ago

    Restaurant Brands CEO: Burger King's $5 coffee subscription will help it win the breakfast wars

    For Burger King, its new $5 monthly coffee subscription is a way to get customers into their stores in the morning to check out their other breakfast offerings, Restaurant Brands CEO Jose Cil said.

  • Coca-Cola Stock Still Is Too Expensive
    InvestorPlace3 days ago

    Coca-Cola Stock Still Is Too Expensive

    I'll be honest: I simply don't understand the bull case for Coca-Cola (NYSE:KO). The KO stock price has held up reasonably well in recent years, admittedly. But Coca-Cola stock isn't cheap. There are obvious risks to demand going forward. Add on disappointing growth, and the numbers here don't seem to add up.Source: Coca-ColaI concede that I've long been a skeptic toward KO stock. I called it "expensive" 20 months ago at roughly the same price, and it's at least held up. On this site, Luke Lango made a "buy the dip" case last month; a few days later, Josh Enomoto highlighted the company's opportunity in China.With all due respect, I disagree. The issue from here is that many investors are valuing Coca-Cola for what it was: a wonderful business that produced steady growth and lockstep increases in its dividend. Coca-Cola stock famously has made billions of dollars for Warren Buffett and Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B). It's also been a great long-term investment for the rest of us.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks on the Rise Heading Into the Second Quarter But times change. And those changes have notably shifted the investment case here. The KO Stock Price Tumbles After EarningsAt this point, it seems increasingly difficult to make the fundamental case for Coca-Cola stock. A multi-year transformation -- including a "refranchising" of its bottling operations -- has hit revenue in recent years, but it was supposed to create a leaner, more profitable company.That's a key reason why the KO stock price fell over 8% after disappointing earnings last month -- a huge move for a typically low-volatility stock. Guidance for 2019 was much weaker than expected. Coca-Cola expects earnings growth of -1% to 1% against 2018's $2.08.Investors were hoping for much more after the refranchising. The problem goes beyond results for a single year, however, as 2019 guidance implies EPS of $2.06 to $2.10. In 2013, Coca-Cola's non-GAAP EPS was $2.08. Over six years, including a massive transformation, earnings per share will barely move, if at all.But even that doesn't tell the full story.Coca-Cola stock, like so many other U.S.-based investments, has benefited from a lower tax rate. The underlying (i.e., adjusted) tax rate in 2013 was 23%. It's estimated to be 19.5% in 2019. That lower rate provides a 4.5% benefit to net earnings. Billions of dollars in share buybacks boost EPS as well. Considering this, Coca-Cola has 4.5% fewer shares outstanding than it did in 2013. In other words, KO is making less pre-tax profit than it did six years ago (the figure has declined about 8.7% by my math).And yet, Coca-Cola stock trades for 22x the midpoint of 2019 EPS guidance. That multiple seems incompatible with the performance over the past few years. The Risks to KO StockTo be fair, a stronger dollar has been an issue, hitting revenues and profits overseas. Coca-Cola is projecting a significant currency headwind, with 6% to 7% impact on operating income in 2019 alone. This comes after a 4% hit in 2018. Essentially, much of the potential benefit of the refranchising has been swallowed by currency effects.That said, it's not as if the dollar is guaranteed to get weaker going forward. KO stock still looks reasonably expensive against even currency-neutral growth. Meanwhile, risks are rising.Soda consumption continues to decline in the U.S., dropping by 20%-plus over two decades according to one report. Coca-Cola has tried to diversify, acquiring Costa Coffee and sparkling water manufacturer Topo Chico last year. But a $5 billion coffee deal -- let alone a $220 million bottled water purchase -- doesn't move the needle much against a $200 billion market cap.The trend here is consistently negative, particularly in terms of diet soda. Sparkling waters from Nestle (OTCMKTS:NSRGY), National Beverage (NASDAQ:FIZZ) (even with some recent trouble), and private companies like Polar and Spindrift are taking share from diet soda. Neither Coke with its Dasani brand, nor Pepsi (NASDAQ:PEP) with its Aquafina, have been able to win much in that market. New BrandsMeanwhile, HSBC Securities highlighted an interesting stumbling block for Coca-Cola's plans for expansion. Coca-Cola has looked to new extensions, including flavored Diet Coke and an orange-vanilla offering for its full-calorie brand. But, as HSBC pointed out, those efforts are likely to upset the same bottlers who have taken over Coke's operations.Smaller products have high startup costs, as well as long payback periods. Coke's refranchising may slow it from following the brand expansion strategy that's currently popular among consumer companies. It's a bit analogous to the risk facing Coke customers McDonald's (NYSE:MCD) and Restaurant Brands International (NYSE:QSR). Those companies have shifted costs to their franchisees too. However, those franchisees may rebel as their parents look to compete solely on price or otherwise push the limits of their profitability. Not Enough GrowthFrom here, zero growth isn't worth the risks facing the industry. As such, KO stock looks far too expensive. I asked last year if Coca-Cola might be the next giant to stumble after consumer heavyweights Anheuser-Busch InBev (NYSE:BUD), Kraft Heinz (NASDAQ:KHC), and Altria (NYSE:MO) saw big declines.It hasn't happened yet, even with the post-Q4 selloff. But I wouldn't be shocked if it did. In fact, I'd be less surprised if KO stock fell sharply than if Coca-Cola somehow figured out how to grow in an industry destined for long-term declines.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post Coca-Cola Stock Still Is Too Expensive appeared first on InvestorPlace.

  • Analysts Expect Dunkin’ Brands’ EPS Growth to Fall in 2019
    Market Realist3 days ago

    Analysts Expect Dunkin’ Brands’ EPS Growth to Fall in 2019

    Is There More Upside to Dunkin’ Brands Stock?(Continued from Prior Part)Analysts’ expectations For 2019, Dunkin’ Brands’ (DNKN) management expects its adjusted EPS to be in the range of $2.94 to $2.99. For the same period, analysts are

  • What Are Analysts Expecting from Dunkin’ Brands’ Revenue in 2019?
    Market Realist4 days ago

    What Are Analysts Expecting from Dunkin’ Brands’ Revenue in 2019?

    Is There More Upside to Dunkin’ Brands Stock?(Continued from Prior Part)Analysts’ expectations For 2019, analysts expect Dunkin’ Brands (DNKN) to post revenue of $1.36 billion, which represents a rise of 3.0% from $1.32 billion in 2018. The

  • Analysts Favor ‘Hold’ Rating for Dunkin’ Brands
    Market Realist4 days ago

    Analysts Favor ‘Hold’ Rating for Dunkin’ Brands

    Is There More Upside to Dunkin’ Brands Stock?(Continued from Prior Part)Analysts’ recommendationsOf the total 25 analysts that follow Dunkin’ Brands (DNKN), 24.0% have given the stock a “buy” rating, 68.0% are favoring a “hold” rating,

  • Is There More Upside to Dunkin’ Brands Stock?
    Market Realist4 days ago

    Is There More Upside to Dunkin’ Brands Stock?

    Is There More Upside to Dunkin’ Brands Stock?Stock performanceAs of March 19, Dunkin’ Brands (DNKN) was trading at $71.55, which represents a rise of 3.9% since the announcement of its fourth-quarter earnings on February 7. The company is

  • Wendy’s Stock Falls after Mizuho Downgrade
    Market Realist4 days ago

    Wendy’s Stock Falls after Mizuho Downgrade

    Mizuho Downgrades Wendy’s from 'Buy' to 'Neutral'(Continued from Prior Part)Stock performance The Mizuho downgrade appears to have led a fall in Wendy’s (WEN) stock price. Today, at 10:30 AM EST, the company was trading ~1.2% lower from its

  • Mizuho Downgrades Wendy’s from ‘Buy’ to ‘Neutral’
    Market Realist4 days ago

    Mizuho Downgrades Wendy’s from ‘Buy’ to ‘Neutral’

    Mizuho Downgrades Wendy’s from 'Buy' to 'Neutral'Wendy’s downgradeMizuho downgraded Wendy’s (WEN) from “buy” to “neutral” today and also lowered its 12-month price target from $20 to $18. The new price target implies an upside

  • CNBC4 days ago

    Starbucks announces trials for recyclable and compostable cups

    Starbucks said it will start trials for recyclable and compostable cup designs later this year in several markets. The coffee giant has drawn fire in the past from environmental activists for the roughly 6 billion cups it uses every year. Last year, it pledged to phase out plastic straws from all of its stores by 2020.

  • TheStreet.com5 days ago

    McDonald's Could Break Out on the Downside: Don't Spill the Special Sauce

    Some market watchers and technical analysts might call it a triangle formation. The volume pattern is not conclusive but the On-Balance-Volume (OBV) line shows a decline from November. A weakening OBV line tells me that sellers of MCD have been more aggressive.

  • CNBC6 days ago

    How this 'Shark Tank' judge went from scraping gum at McDonald's to starting a venture fund with billionaire Stephen Ross

    Anyone who gets to appear as a guest judge on "Shark Tank" has made it pretty big, from Major League Baseball star-turned-investor Alex Rodriguez to Bethenny Frankel of "Real Housewives of New York City." Even Ring founder Jamie Siminoff , who appeared as a contestant in 2013 (he later sold the company to Amazon for $1 billion) , returned to the show as a judge. Sunday's guest judge, Matt Higgins, is no exception.

  • Will Burger King's $5 Coffee Trick Hurt Starbucks and McDonald's?
    Motley Fool7 days ago

    Will Burger King's $5 Coffee Trick Hurt Starbucks and McDonald's?

    The BK Cafe Coffee subscription could drive business away from rival morning haunts.

  • 3 Best Restaurant Stocks Morgan Stanley Says to Take a Bite Of
    InvestorPlace9 days ago

    3 Best Restaurant Stocks Morgan Stanley Says to Take a Bite Of

    U.S. same-restaurant sales dipped into negative territory in February for the first time in nine months. A potentially softening U.S. restaurant environment suggests investors need to be even more selective when it comes to choosing restaurant stocks. Morgan Stanley analyst John Glass recently said investors should focus their attention on fast food stocks in 2019. * 15 Stocks That May Be Hurt by This Year's Big IPOs Here's a look at his top three favorite restaurant stocks to buy.InvestorPlace - Stock Market News, Stock Advice & Trading Tips McDonalds (MCD)Source: Shutterstock The past decade hasn't all been smooth sailing for McDonald's (NYSE: MCD) or its investors. However, Glass says the Golden Arches are still the gold standard of restaurant stocks: "U.S. sales will outpace peers in '19 and should accelerate as the year progresses as benefits from a comprehensive re-imaging plan become more visible."McDonald's has made an aggressive push toward its Experience of the Future initiative in recent years. This initiative emphasizes mobile ordering, delivery and pickup options, store remodels and in-store kiosks.Glass says heavy investments likely clouded McDonald's numbers in 2018. The market doesn't seem to appreciate how much these under-the-radar improvements could improve business efficiency in coming years.In the near term, focus on value offerings and local advertising in 2019 should support same-store sales numbers. Glass predicts return on invested capital will soon hit new highs as McDonald's reaps the rewards of its investments. In addition, he says earnings will get a boost from declining capital expenditures starting in 2020.Finally, in an increasingly unpredictable market environment, MCD stock offers investors value, stability and an attractive 2.5% dividend yield. Morgan Stanley has an "overweight" rating and $210 price target for MCD stock. Restaurant Brands International (QSR)Source: Shutterstock Restaurant Brands International (NYSE: QSR) is the parent company of Burger King, Popeyes and Tim Hortons. Glass says there is a huge disconnect between QSR stock valuation and the company's impressive growth numbers. Fundamentals at Tim Horton's seem to be improving, including same-restaurant sales growth of 2.4% in the most recent quarter. Burger King's SRS growth dropped from 10.1% in 2017 to just 8.9% in 2018, but it still outpaced most of its peer group. Popeyes stole the show for QSR stock investors last year. SRS growth jumped from 5.1% in 2017 to 8.9% in 2018.Glass said that after a big year in 2018, investors can expect more big numbers for this restaurant stock in 2019."Catalysts include improving margins at Tim's, better visibility on international expansion and economics, and increased investor outreach to help broaden the shareholder base."From a valuation perspective, QSR stock is trading at a free cash flow yield of roughly 7% based on Morgan Stanley's 2020 cash flow estimates. Glass points out that makes QSR a rare value among restaurant stocks. * 15 Stocks Sitting on Huge Piles of Cash Morgan Stanley has an "outperform" rating and $70 price target for QSR stock. Chipotle Mexican Grill (CMG)Source: Shutterstock Chipotle Mexican Grill (NYSE: CMG) has been a battleground stock for several years now. The company's growth story was derailed back in 2015 following a series of food safety scares. However, CMG stock has nearly doubled in the past year on optimism that new CEO Brian Niccol can replicate his past success as head of Taco Bell. Glass says Chipotle is a perfect early-stage turnaround opportunity for investors. Niccol and the management team are pushing hard on several initiatives, focusing on throughput, advertising, menu improvements, digital ordering and customer loyalty. Early returns on the initiatives have been positive, but 2019 will certainly be a show-me year for Chipotle.Because Chipotle's restaurants are company owned and not franchised, the company may face unique margin pressures compared to its franchised peers. Rising wages will certainly take a bite out of Chipotle's bottom line. However, Glass said investors should be watching traffic as a key indicator that Chipotle's outlook is improving. In the fourth quarter, Chipotle reported 6.1%t SRS growth, double-digit revenue growth and a 2% increase in total transactions.As long as the recovery keeps trending in the right direction, Glass said long-term margins could eventually improve from around 18.7% to 21%. Morgan Stanley has an "overweight" rating and $617 price target for this restaurant stock.As of this writing, Wayne Duggan did not hold a position in any of the aforementioned securities.Compare Brokers The post 3 Best Restaurant Stocks Morgan Stanley Says to Take a Bite Of appeared first on InvestorPlace.

  • ETFs & Stocks for a Green Portfolio on St. Patrick's Day
    Zacks9 days ago

    ETFs & Stocks for a Green Portfolio on St. Patrick's Day

    St. Patrick's Day is around the corner and investors across the world are keen on trying their Irish luck for green returns in their stock portfolio.

  • Forget BJ's Restaurants, Buy These 3 Restaurant Stocks Instead
    Zacks9 days ago

    Forget BJ's Restaurants, Buy These 3 Restaurant Stocks Instead

    Demand for restaurant services depends on consumer spending. In a fiercely competitive industry, these three restaurant stocks stand to gain.

  • Big changes coming to Buffalo Wild Wings
    Yahoo Finance Video5 days ago

    Big changes coming to Buffalo Wild Wings

    Buffalo Wild Wings is making big changes just in time for March Madness. Yahoo Finance’s Brian Sozzi sat down with the CEO of their parent company, Inspire Brands, and tells Alexis Christoforous about what’s in store.

  • Starbucks Investor Day Live
    Yahoo Finance Video6 days ago

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