McDonald's Corp

In March, McDonald's decided to temporarily close its Russian restaurants, and it has been losing money since then. Now, the company announced plans to permanently exit Russia.

Former McDonald's CEO Steve Easterbrook was fired in 2019, but new details later surfaced about his relationships with employees. McDonald's sued him for severance money.

Steve Easterbrook was forced to repay McDonald's $105 million after he engaged in a consensual relationship with another employee. What's his net worth?

The McDonald’s McRib NFT is being created in celebration of the McRib’s 40th anniversary. Here are all the details.

McDonald’s is offering free breakfast to U.S. educators this week as a way to thank these “everyday heroes.”

Why did the McDonald brothers sell the McDonald’s chain in 1961? Read about Richard and Maurice McDonald’s $2.7-million deal with Ray Kroc.

It’s no big secret that Dunkin’ Donuts has the highest relative leverage in the industry. Leverage comes with a number of risks— a substantial risk is the interest paid on debt.

Starbucks’ main cost driver is its price per pound of coffee beans. The two most consumed coffee beans are Arabica and Robusta blends.

Employment could be turning around The below chart shows employment growth for countries in Europe. The Eurozone, which only includes countries using the euro (so, excluding the United Kingdom and Russia), has been experiencing a declining growth rate over the past two years. While the overall growth was in positive territory from mid-2010 to mid-2011, […]

Unit growth isn’t the only factor that drives revenue. A restaurant can keep adding more restaurants. Eventually, it can capture newer markets. This is what Chipotle is doing.

The expected capital expenditure index increased by 1% to 101.7 in April from 100.7 in March.

Valuation multiple Investors should look at valuation multiples when deciding whether to enter or exit a stock. Valuation multiples are driven by perceived growth, risk and uncertainties, and investors’ willingness to pay for a stock. There are various multiples to evaluate a stock. In this article, we’ll use the PE (price-to-earnings) ratio due to its […]

Valuation multiple Investors may want to look at valuation multiples when deciding whether to buy or sell stocks. Valuation multiples are driven by perceived growth, risks and uncertainties, and investors’ willingness to pay. Analysts use various multiples to evaluate stocks. In this article, we’ll use the PE (price-to-earnings) multiple due to its high visibility in […]

Wall Street analysts are expecting McDonald’s (MCD) to post EBIT of $2.1 billion in 3Q16. This represents an EBIT margin of 33.2% compared to 30.7% in 3Q15.

So far in this series, we’ve discussed McDonald’s (MCD) estimated revenue, sources of revenue, and estimated EBIT (earnings before interest and tax) margins.

Jack in the Box (JACK) and Restaurant Brands International (QSR) are analysts’ favorites among the companies we’ve reviewed in this series.

With positive same-store sales growth expected in all three of YUM’s divisions, analysts are expecting the leverage to improve the company’s margins.

Valuation multiple We’ve used the forward PE (price-to-earnings) multiple for our analysis, due to its high visibility in Starbucks’s (SBUX) earnings. The forward PE multiple is calculated by dividing a company’s stock price by analysts’ earnings estimates for the next four quarters. Starbucks’s forward PE multiple Starbucks’ lower-than-expected SSSG (same-store sales growth) in fiscal 3Q17, lowering of […]

McDonald’s (MCD) is scheduled to announce its 3Q16 results on October 21, 2016. As of October 13, 2016, it was trading at $115.40, a fall of 9.4% from July 25.

Over the past four quarters, Starbucks’s same-store sales growth has increased due to growth in ticket and traffic.

In the last four quarters, McDonald’s has beaten analysts’ estimates. In 3Q16, analysts are expecting the company to post EPS of $1.48, a year-over-year rise of 6.1%.

After posting its 1Q18 earnings today, McDonald’s (MCD) was trading 4.0% above yesterday’s closing price.

Although beef prices recently increased slightly, they’ve been on a downtrend trend since the beginning of 2015. They’re expected to remain elevated for the rest of 2015.

Domino’s added more units internationally last quarter. The company added a total of 662 units in the last 12 months.

In 2Q17, analysts expect Dunkin’ Brands (DNKN) to post EPS (earnings per share) of $0.62, which represents a rise of 8.8% from its EPS of $0.57 in 2Q16.

The Eurozone’s Retail PMI (purchasing managers’ index) dipped to 50.4 in June from the 51.4 recorded in May.

Looking at analysts’ ratings for Starbucks, about 79% of analysts have “buy” recommendations for Starbucks, 21% have “hold” recommendations, and none has “sell” recommendations.

The Redbook showed some strength in same-store sales during the April 19 week by recording a year-on-year rate of +3.7%.

Management stated that it expects the second quarter EPS to lag by 20% YoY. It expects full-year EPS growth of 10% in 2015.

Yum! Brands has a forward PE ratio of 25x. This indicates that the stock is valued fairly. It’s a stable company with a long history of EPS growth.

In the fourth quarter, analysts expect Shake Shack (SHAK) to post adjusted EPS of $0.03, a fall of 69% from $0.10 in the corresponding quarter of 2017.

Target price On January 13, 2017, Starbucks (SBUX) was trading at $57.85. The company’s share price may already have been factored into the estimates we’ve discussed in this series. In this article, we’ll look at analysts’ recommendations and estimated target prices for the stock over the next 12 months. Despite Starbucks posting strong 4Q16 earnings […]

Bloomin’ Brands’ revenue was affected by as much as 0.7% due to price increases for beef and seafood. A restaurant can do little when facing rising prices

The expected capital expenditure index increased by 0.9% to 100.8 in May from 101.7 in April.

Wall Street analysts’ estimated EBITDA for the fourth quarter is $633 million—compared to $918 million in the same quarter last year.

Yum! Brands develops, operates, franchises, and licenses the Pizza Hut, KFC, and Taco Bell brands. It’s set to announce its 3Q16 results on October 5, 2016.

Following its dismal performance in 3Q15, Yum! decided to release its same-store sales growth performance for China on a monthly basis.

In the 12 months leading up to January, prices fell 0.1%, the first decline since October 2009. In December, consumer prices rose by 0.8% year-over-year.

On October 20, Yum! announced that it will separate its China division from the rest of its business. It’s expected to complete this by the end of 2016.

Same-store sales at Jack in the Box’s company-operated restaurants are expected to grow 4%–6% in 3Q15 and 4.5%–5.5% for the year. Qdoba’s sales are expected to increase 6%–8%.

Pork prices have dropped significantly in 2015 from the high of $1.38 per pound in June 2014 to the low of $0.65 per pound in March 2015.

Wall Street analysts set a price target of $125.1 for the next 12 months with a return potential of 5% from the closing price of $119.2 on January 25.

Shake Shack (SHAK) has an enterprise-value-to-revenue multiple of 13.9x, compared to the peer average of 3.5x.

Starbucks (SBUX) posted its fiscal 2Q17 earnings after the market closed on April 27, 2017. Its EPS was $0.45 on revenues of $5.3 billion.

In the next four quarters, analysts are expecting Starbucks (SBUX) to post revenue of $23.8 billion, which represents an increase of 8.4% from $22.0 billion in the corresponding quarters of the previous year.

With disappointing same-store sales performance across all four segments, it isn’t surprising that McDonald’s reported revenues of $6,987 million—a 4.5% decline.

On Friday, investment bank UBS started coverage on Beyond Meat Stock (BYND). At 10:08 AM ET today, the stock was trading 4.4% lower at $76.5.

CMG reported $372 million in food costs in 3Q14. Food costs accounted for 34.3% of the revenue. It was an increase of 70 basis points year-over-year (or YoY).

The ICSC-Goldman and Johnson Redbook indices both report consumer spending data each week, but people consider the ICSC-Goldman index to be more consistent.

About 47% of analysts have “buy” recommendations on Chipotle, 50% of analysts have “hold” recommendations, and 3% have “sell” recommendations on the company. Overall, the stock has a “buy” rating.

Investing for retirement has its own unique characteristics. Your priorities change, and so should your investing strategies.

Yum! Brands’ (YUM) division in China includes its business in mainland China. It’s the combined revenues from all the brands—KFC, Pizza Hut, East Dawning, and the Little Sheep.

During the latest earnings call, Shake Shack’s (SHAK) management offered revenue guidance in the range of $159 million to $163 million in 2015.

Franchise revenues include royalties and franchise fees. Royalties are calculated as a percentage of franchise restaurant revenues, which are driven by same-store sales.

The restaurant industry is susceptible to a wide array of risks of macro and micro factors. As a huge global brand, McDonald’s faces several risks.

The Starbucks year-to-date return was 7.5% compared to an average return of 4.9% among its rivals.

Dunkin’ Brands Group (DNKN) has three major costs of operations. The costs of operations include general and administrative expenses, cost of products sold, and occupancy expense. Dunkin’s general and administrative expenses accounted for $56 million in the second quarter. This was 30% as a percentage of sales—compared to $62 million, or 34%, as a percentage of sales.

Shake Shack (SHAK) posted its fourth-quarter earnings after the market closed on February 25. Before looking at analysts’ reactions, we’ll look at Shake Shack’s fourth-quarter performance and stock performance.

Unit growth is a key driver that Starbucks is aggressively pursuing to grow the company’s sales. In the last 12 months, Starbucks has added 1,599 net new restaurants, or 8% growth in units.

During the third quarter, McDonald’s launched its “Our food. Your questions” campaign. It enables communication between McDonald’s and its customers.

Shake Shack is trading at 3.3 times the average peer valuation, which may mean that the company is overvalued.

Share volume was ~14.4 million shares, compared to the 50-day average daily volume of ~4.7 million, according to NASDAQ. Wendy’s closed 2.2%, up at $8.16. Wall Street analyst consensus estimated an adjusted earnings per share (or EPS) of $0.09.

Panera Bread is a limited-service fast-casual restaurant company. In July 2017, JAB acquired Panera in a $7.5 billion deal and took it private.

The Morningstar Global Wide Moat Focus Index has global exposure, unlike the Morningstar International Moat Index (MOTI).

Increasingly, restaurants are using technology to increase customer traffic and drive same-store sales.

Chipotle reported its 1Q15 EPS of $3.88, which increased an impressive 47%, compared with an EPS of $2.64 in the corresponding quarter in 2014.

Shake Shack is conceptualized as a “new fine-casual” restaurant format. The fine-casual restaurant is a hybrid of the fine dining and fast-casual dining formats.

Year-to-date, Domino’s stock is up 8.7%, as of February 20. It has rocketed 21% since the company’s last earnings release in October 2014.

China is part of the APMEA region. Same-store sales were down 22.7%. Approximately 5,000 restaurants were affected when McDonald’s suspended its meat supplier.

For six months ending June 2014, China’s division reported revenue of $3 billion, or 52% of Yum! revenues. China only represents 15% of the more than 40,000 Yum! restaurant units.

Food inflation can squeeze a restaurant’s operating margins, but a restaurant can adjust the menu pricing and pass the cost on to customers.

After posting its fiscal 2Q17 earnings on April 27, 2017, Starbucks (SBUX) stock rose 5.3% to reach $64.57 on June 2, 2017. The aggressive expansion plans in the CAP (China and Asia-Pacific) region and its implementation of technological advancements led Starbucks stock price to rise. However, since then, the stock has seen downward momentum.

Yum! Brands’ (YUM) division in India includes its businesses in India, Nepal, Bangladesh, and Sri Lanka. As of June 2014, the company had 714 restaurant units in India.

McDonald’s (MCD) revenues declined 4.5% YoY. Revenues in the restaurant industry are mainly driven by same-store sales and unit growth. The global same-stores sales were down to -3.3% YoY.

On April 20, investment firm Sanford Bernstein reiterated its “outperform” rating for Starbucks (SBUX) with a price target of $56.

As of December 2014, the six-month outlook for capital expenditure plans was 102.4. It has been above 100 levels for the past 12 months.

McDonald’s, the world’s largest fast food chain, has over 38,000 restaurants across 120 countries. In 2018, it had approximately $21.0 billion in sales.

As of October 21, 2014, Chipotle Mexican Grill’s (CMG) year-to-date (or YTD) returns were~16.3%—compared to an average return of 8.3% on the S&P 500 Index.

Starbucks will report its first-quarter earnings after the market closes on Tuesday. Analysts expect the company to report double-digit EPS growth.

Dunkin’ Brands, the owner of the Dunkin’ Donuts and Baskin-Robbins brands, is scheduled to announce its 2Q17 earnings before the market opens on July 27, 2017.

Management anticipates the effective tax rate to be in the range of 37% to 38% for the “foreseeable future.” Corporate tax rates in the U.S. are high, and force some companies to move their headquarters to countries offering lower tax rates.

Apple must sort out its production issues quickly and make iPhones available in emerging markets sooner rather than later. The potential demand for the iPhone 6 Plus in Asian countries such as India, China, and Japan is huge.

McDonald’s November same-store sales indicate a continued slide in all segments. Tensions between Russia and Ukraine are partially to blame.

Starbucks (SBUX) reported its earnings on April 23 after the market closed. Shares started trading at $48.55. The shares were up slightly from the day before.

Starbucks (SBUX) is scheduled to announce its fiscal 3Q17 earnings after the market closes on July 27, 2017. Starbucks’ fiscal 3Q17 extends from April 3, 2017.

Burger King (BKW) introduced premium products internationally that should complement its menu. It launched a Hashbrown Whopper in Korea, a Barbecue Bacon Whopper in the U.S., and a Mexican Whopper in Spain.

There is no way to know how long we could be seeing these lower fuel prices, but restaurants should certainly benefit from the decline.

Investors use a bunch of metrics to determine if a stock is attractive. One such metric is the PEG or the price-to-earnings-to-growth ratio.

Davidson Kempner added a new position in Apple Inc. (AAPL) that accounted for 2.19% of the fund’s 4Q portfolio. Apple found favor with hedge funds last quarter.

Dunkin’ Donuts’ main competitor on the coffee sales front is Starbucks, which sells coffee from its company-owned fleet of retail locations.

Chipotle Mexican Grill (CMG) operates more than 1,700 fast-casual restaurants. Here’s everything you need to know about the business.

Stocks at the top of the SPDR S&P 500 ETF (SPY) on January 13 were Southwestern Energy (SWN), Chipotle Mexican Grill (CMG), and Range Resources (RRC).

McDonald’s (MCD) competition includes large international and national food chains as well as regional and local retailers of food products.

Russia has supported President Assad’s regime in its war in Syria against the rebels. For an economy in recession, with growth contracting at a 4.3% rate in 3Q15, funding a civil war could be a sure drain on its available resources.

Shake Shack (SHAK) filed for an initial public offering, or IPO, for $100 million through Class A common stock. Should you bite it?

Starbucks’ revenue mix is weighted in favor of beverages. This should come as no shock, considering the firm’s roots trace back to a single coffee shop at Pike’s Place Market in Seattle.

Why traffic increased in 3Q15 Starbucks has a strong loyalty program known as My Starbucks Rewards, or MSR, with 10.4 million active members. Membership increased 28% year-over-year in 3Q15. This program is built into Starbucks’s (SBUX) existing technology ecosystem, which is scalable. As the company expands its breadth of services and innovates ways to reward […]

About 38% of corn produced is used as animal feed in the United States. Naturally, a drop in the price of corn will have an impact on meat prices as well.

Starbucks’s (SBUX) share price has been soaring since it announced its fiscal 4Q16 results on November 3, 2016. Let’s explore why.

Following its 3Q15 earnings, McDonald’s shares increased 8% on positive improvement expectations. The valuation multiple also rose 7.3% as a result of a share price increase.