McDonald’s performance is sensitive to any changes in price levels—be it food, labor, or rent. So how much does it cost for McDonald’s to generate revenue?
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.
American Airlines (AAL) announced its 4Q17 earnings on January 25, 2018. It reported adjusted EPS (earnings per share) of $0.95, an increase of 3.3% YoY.
Second breach in two years On October 12, 2017, Hyatt revealed that its payment system had been breached. There was unauthorized access detected in 41 hotels in 11 countries, exposing customer credit card information at these locations. About 50% of these hotels were located in China. *Other affected countries and territories include Brazil, Colombia, Guam, Indonesia, […]
As per the latest JOLTS report, about 2.1 million Americans quit their jobs voluntarily in August, which was a decrease of 70,000 from the previous reading.
As per the latest JOLTS report, about 3.2 million Americans quit their jobs voluntarily last month. This is an increase of 0.1 million from the previous month.
Load factor improves In August 2017, United Continental’s (UAL) utilization (load factor) fell 0.2 percent points. This fall was expected, as capacity growth for the month was higher than traffic growth. The load factor, the most commonly used measure of an airline’s capacity utilization, is calculated by multiplying capacity by traffic. A higher load factor […]
Utilization rising Delta Air Lines’ (DAL) traffic has outpaced its capacity growth for some time now. As a result, its utilization has improved over the past seven months. In August 2017, is utilization improved by 3.5% to 87.9%. As of August 2017, utilization had improved by 1.5% to 85.9% YTD (year-to-date). Outlook reduced Delta Air Lines’ unit revenue […]
Analysts seem to be favoring MGM Resorts (MGM) stock over the other major casinos. Of the 17 analysts tracking the stock, 16 of them recommend a “buy.”
Capacity growth for the seven major airlines grew 6.9% year-over-year or YoY—higher than the average 4.6% YoY growth recorded in the first half of 2017.
Unit revenue or passenger revenue per available seat mile are the airline industry’s most-watched metric. It measures the efficiency of an airline’s operations.
US GDP growth bounced back in the second quarter of 2017, recording 2.6% year-over-year or YoY growth—slightly lower than the 2.7% YoY growth analysts had estimated.
Marriott’s RevPAR for 2Q17 rose 2.2% YoY in constant dollars across its worldwide properties. Its North America RevPAR rose 0.9% YoY in constant dollars.
Analyst views According to Reuters, of the 22 analysts tracking Hyatt (H), three analysts (13.6%) have a “strong buy” rating on the stock, two analysts (9.1%) have a “buy” rating, 16 analysts (72.7%) have a “hold” rating, and one analyst (4.5%) has a “sell” rating. There are no “strong sell” ratings on the stock. Analyst […]
Analyst estimates In 2Q17, analysts expect Hyatt’s revenue to grow by 3.9% YoY (year-over-year) to $1.2 billion. Sales growth is expected to increase for the rest of the year. Sales are expected to grow 5.4% YoY to $1.1 billion in 3Q17, and 5.5% YoY to $1.2 billion in 4Q17. Hyatt is expected to see revenue […]
Carnival is among the most profitable and financially strong leisure travel companies in the world. It provides leisure travel to all major cruise destinations across the globe.
Analyst recommendations Analysts favor MGM Resorts (MGM) stock over other major casinos’. All 20 analysts tracking the stock recommend “buy.” Seven (35%) of these analysts have “strong buy” recommendations, while the remaining 75% have “buy” recommendations. For Melco Resorts & Entertainment (MLCO), 15 (68.2%) of the 22 analysts tracking the stock recommend “buy,” and 31.8% […]
Visitor arrivals increase In May 2017, visitor arrivals rose 3.7% YoY (year-over-year) to 2.6 million visitors. However, month-over-month, visitor arrivals fell 6.3%. Visitor arrivals have been improving since September 2016, except in February 2017, when they fell 5.6% to 2.5 million visitors. In the first five months of the year, visitor arrivals in Macao rose 6.3% […]
China: The key market The Macao region relies heavily on the Chinese mainland, as it garners a huge majority (about 67%) of its visitors and VIP gamers, from China and its neighboring countries. The weakness in the Chinese economy will adversely affect the spending capacity of people in the country, which could lead to a […]
Inflation rate Inflation is an overall rise in the price of goods and services in an economy, leading to the fall in purchasing power of money. Macao’s annual inflation, as measured by the composite consumer price index, rose 0.95% YoY (year-over-year) in May 2017, higher than the 0.8% increase seen in April. Macao’s inflation has […]
VIP revenue driving short-term growth The recent growth in Macao casino revenue has been driven by the VIP segment. In the first quarter of 2017, VIP gross gaming revenue grew 16.8% YoY (year-over-year) to 35.6 billion Macao patacas. The VIP segment is also showing good signs. The repayment cycle has been maintained at a healthy 20 […]
Airfares in 2016 Due to heavy price discounts by airlines, airfares fell ~5% YoY (year-over-year) in 2015. According to the latest data from the U.S. Department of Transportation, average domestic airfares continued to fall in 2016. According to the report, 4Q16 airfares fell 6.1% YoY to $347, compared with $369 in 4Q15. Airfares fell 8.8% […]
Analyzing airline load factors May continued to be a mixed bag for airlines, with volatile capacity utilization. Delta Air Lines (DAL), American Airlines (AAL), Alaska Airlines (ALK), and JetBlue Airways (JBLU) managed to grow their traffic at a higher pace than their capacity growth. As a result, their capacity utilization improved. Delta’s utilization improved by […]
Consumer spending Consumer spending accounts for almost two-thirds of the US economy. In 1Q17, consumer spending rose 0.3% YoY (year-over-year), the slowest pace seen since the fourth quarter of 2009. It is also significantly lower than the 3.5% YoY growth seen in 4Q16. The slow growth in consumer spending is due to low demand for […]
Out of the 31 analysts tracking Priceline (PCLN), seven analysts have a “strong buy” recommendation on the stock, and 18 analysts have a “buy” recommendation on the stock.
For 1Q17, analysts are estimating Priceline’s (PCLN) revenues to grow 13.8% year-over-year to $2.4 billion, lower than the 16.7% YoY growth seen in 1Q16.
From 2012 to 2014, Priceline’s gross bookings grew at an average of 30%. For 2015, accounting for the strong US dollar, growth was just 10% YoY, or 25% on a constant currency basis.
Southwest Airlines (LUV) reported a significant earnings decline for the first quarter of 2017, though it continued to maintain its position as one of America’s most profitable airlines.
Margins are expected to be volatile in 2017. For the first quarter of the year, Delta Air Lines’ (DAL) margin is expected to fall 16.7% as compared to 23.6% in 1Q16.
Labor Thanks to the oil price drop, labor costs now form the highest component of an airline’s expenses. In such a scenario growing unrest among pilots and the union clout can end the airline party. Fuel prices Fuel costs now form the second major cost component of airlines. Airline margins have improved tremendously due to […]
According to IATA (or International Airline Transport Association), for September 2016, global passenger travel demand grew 7% year-over-year (or YoY).
Crude oil is trading below $50 per barrel, one of its lowest recent prices, and it is expected to take some time before it recovers, given the huge oversupply.
Traffic growth Delta Air Lines (DAL) saw average traffic of about 59.0 million passenger miles for the quarter, a 0.2% year-over-year decline, despite a growth in capacity. This was driven by weak revenues in all of Delta’s markets except Latin America. As of September 2016, traffic had grown by 1.9% YTD (year-to-date) to 163.2 billion […]
The prime issue that has led to a crisis in regional airlines is that the regional players pay much less than their legacy peers, even when the regional sector accounts for half or more of all flying.
The airline industry is cyclical, which means that its business depends on the country’s economic growth. Most analysts have revised their GDP estimates downward, resulting in a consensus estimate of 2.9% YoY growth.
While most of the airlines that are suffering from the labor crunch are mid-sized carriers, the issue is a potential threat for the large carriers as well.
After an improvement in Delta Air Lines’ margins (DAL) in 1Q16, analysts are expecting EBITDA margins to improve in 2Q16 as well to 26% as compared to 21% in 2Q15.
You should keep watch on American Airlines’ expected future debt reduction, capacity expansion, and future margins since analysts believe that airline margins have peaked.
American Airlines’ AAdvantage frequent flyer program is one of the largest and oldest card programs in the industry. The airline recently changed it from a mileage-based to a revenue-based model.
In 2014 and 2015, American Airlines (AAL) and the entire airline industry experienced historically high profitability due to the extreme decline in fuel costs.
In this part of the series, we’ll look at the main services and categories that add to American Airlines’ (AAL) revenues. The major component of revenues still comes from airfares.
For 1Q16, analysts estimate American Airlines’ revenues to decline by 4% to $9.4 billion and then to slow to 2% and 0.5% in 2Q16 and 3Q16, respectively.
According to Bloomberg consensus, 70.6% of the 12 analysts tracking United Continental Holdings (UAL) have given the stock a “buy” recommendation. About 29.4% have given it a “hold” rating.
On March 21, Starwood and Marriott amended their merger agreement to top Anbang’s offer. The amended merger spread is trading at an annualized return of 1.3%.
On March 14, Starwood Hotels & Resorts Worldwide (HOT) announced that it received an unsolicited takeover approach from a consortium of investors led by China’s Anbang Insurance Group.
Priceline’s (PCLN) rental car business continues to grow. For the first nine months, rental car days grew by 17% year-over-year, and rental car days accounted for ~12% of the total bookings.
McDonald’s PE multiple was flat at 22.07x after the announcement of its earnings on January 25. Over the next two days, it rose to touch 22.4x on January 27.
Southwest Airlines is the only airline to have paid dividends consistently since 1980. And it has been raising its dividend payouts for the past four years.
