Research archive for MCD

McDonald's released same store sales for the month of February yesterday before the market opened -> McDonald's February Global Comparable Sales Rise 7.5%. They managed to beat in the US, but fell short in Europe and that impacted on the overall number. And Mr. Market focused on that point, the miss on the headline number, the stock sold off heavily on a day (down nearly three and a half percent at the worst point) that the rest of the market was enjoying gains. Europe accounts for around 40 percent of all McDonald's sales, and the sales number was 4 percent versus the 6.6 percent expected.

McDonald's reported before the bell. These were also exceptional numbers, and luckily for us, they were also the full year numbers. Why I say luckily is that we can get simple valuations without wondering about what they might or might not make for the next two quarters. If you want to download the .pdf for the full year numbers, go to their investor relations segment of their website and you will see it staring at you. Here are some of the highlights:

We managed to see same store sales from McDonald's (Another Strong Month; Global Comparable Sales Up 5.5% in October) before the market opened (darnit, a whole hour later than last week) which actually blew the market expectations away. Austerity means that you are more likely to eat less fancy food and more affordable food. Aspirational purchases might include an indulgence at a McDonald's. Weird that, not so? US sales were up 5.2 percent year on year, Europe up 4.8 percent and Asia/Pacific, the Middle East and Africa (that is us) was up 6.1 percent. Thanks for smiling and eating cheap affordable food. Even if it is not for you (the food that is), the value for money proposition is hard to argue with, cheap, not nasty, and you get the same thing every time. The share price initially indicated pre market that the stock was going to trade higher, but the stock settled a little lower in the normal trade. Like the story, like the company, like the stock.

Byron's beats has a look at another of our favourite stocks. McDonald's. What I have learnt in this business is that you don't really have to like the product, or approve of the product, you must just know what the consumer is up to. I must admit, one will have to watch the fast food space closely in anticipation of greater government intervention in peoples lifestyles in the future, the Danish example springs to the top of my mind immediately. And why do governments across the globe want to do this? Because if people want access to universal health services, then you must make sure that they are healthy. McDonald's have tweaked their menu to provide healthier options, wraps, salads, but I suspect that there is still a long way to go. They even serve Oatmeal and the McCafe has become HUGE, bigger than they might have suspected. Fruit smoothies and Frappes are quite a hit too, that is a recent launch, last year.

OK, that aside, there was some company news, McDonald's released same store sales that fell short of expectations. But, the headline kind of says it all: McDonald's Delivers 100th Consecutive Month of Positive Global Comparable Sales - August up 3.5%. That I guess is no mean feat. Personally I am a big fan of the model, what you see is what you get, the menu is customized for each region (which begs the question, when do we see a biltong and cheese burger here) and is good value for money. Really good value for money. Perhaps one less Sunday had something to do with it, and one extra Wednesday, when comparing to last year August!!

McDonald's reported quarterly numbers on Friday, it was always going to be one of those very busy days, numbers being thrown at you thick and fast. A truly global brand like GE, but perhaps more recognisable, because of the aim of being in every neighbourhood, and let us face it, DO NOT tell me you have not used the outlets (restaurants) as a landmark. Because you have.

Remember that McDonald's were planning to hire a whole lot of folks on the 19th of April? The announcement of course was made over three weeks ago, and by my calculations would add around four extra employees per store in the US. Which if you think about it, is not nothing. If you had to add four folks to your payroll in a small business, what would it do? This part amazed me though, because McDonald's had around 1 million applications for these jobs.

One of the highlights of yesterday in the US was the announcement from McDonald's of the creation of 50 thousand McJobs. Yip, the fast food, I mean casual dining giant announced that they are hiring. Slang for McJob implies that the job is a dead end one with low skills and absolutely no prospects of going anywhere. BUT. It turns out that three quarters of the McDonald's execs have actually at some stage flipped burgers. Byron's beats takes a detailed look at both the business and the hiring spree, here goes.

McDonald's, one of our favourite companies reported January sales. And the US beat in sales was perhaps what saw the stock up as much as 2.6 percent in normal trading hours. Still a way away from their 52 week trading high, I suspect that everyone worried about higher food prices AND perhaps more to do with out with the defensives (like MacDee's) and into the consumer discretionary sector. That no doubt has weighed on markets globally. But check out their US sales beat reasons:

McDonald's, one of our preferred US stocks reported yesterday, pre the market. A slight revenue beat, but inline for the quarter as far as earnings are concerned 1.16 USD. I am often struck with companies that have a fairly aggressive dividend policy. And in fact have increased their dividend every year since 1976, when the company first paid a dividend: Cash Dividend History.

McDonald's with number yesterday, also a beat. Check out the official release: McDonald's Third Quarter Earnings Rise 12% on Strong Global Sales. They have hiked the quarterly dividend, up to an annual 244 cents a share, at the current price that puts them on a yield of 3.11 percent. Pretty good I guess. And in fact, as I said the other day, they have raised the dividend every year since 1976. Every year. Chief Jim Skinner is pretty pumped too: "As we begin the final quarter of 2010, our momentum continues with October global comparable sales expected to increase 5% to 6%."

McDonald's results Friday. From their front end fuzzy website: "We serve more than 60 million people around the world every day." 60 000 000 people that McDees serve a day. There are 6 697 254 041 on the planet when I checked up on the human clock counter Google. Divide that by 60 million and you get to 111.62. So, around 112 people a day nosh McDonald's. Phew, sounds like a lot.

McDonalds delivered results ahead of expectation and ahead on the top line for a change. American sales still struggling a little, but making headway slowly. The headline from the FT kind of sums it up Non-US sales drive strong McDonald's results. I like this one, good global brand, great margins, good business. This is unlike what Forrest Gump's mother would say "like a box of chocolates", because with this one, you do know what you are going to get. Product wise that is. What do you eat at McDonalds?

We like Mac and cheese sings Barney and friends. Those are the tunes that dominate the family car. Barney of course is referring to macaroni and cheese, but he could also be referring to MacDonald's who released global sales. Light in the US, but power in other areas, particularly Asia. China. One in each neighbourhood is what they want. On the way home I saw a billboard that confirmed what most people know, the food might not be good for you, but it is cheap. A coke, a cheeseburger and some fries for less than 20 bucks (only just). Sounds cheap to me. (Whisper) I don't eat meat but I like the company.