Tag Archives: Golden Arches

Did McDonald's Just Lose Its Innovative Touch?

By Sean Williams, The Motley Fool

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Last year was rough for much of the restaurant industry, but fast-food giant McDonald’s had seen considerably tougher challenges before. It has thrived through countless recessions by focusing on its value menu to drive new and repeat customers into its restaurants, modifying its menu to suit ever-changing palates, and remodeling its restaurants to appeal to both family-oriented and younger crowds.

However, last year wasn’t a particular rough year for the overall economy, yet McDonald’s turned in one of the year’s most disappointing performances on record, reporting its first same-store sales decline in nine years in November. McDonald’s blamed a weakening economy which constrained consumers’ pocketbooks, increasing competition, and European weakness for the shortfall.

A lot of people believe that McDonald’s struggles will only be temporary given its global appeal. McDonald’s introduced healthier eating habits with salads and the McWrap, revolutionized fast-food dining with its Value Menu, and has been at the forefront of nearly every major innovation in the fast-food industry over the past three decades. But has anyone considered that maybe McDonald’s is losing its innovative touch?

Source: Commons.wikimedia.org. 

From innovator to emulator
McDonald’s CEO Don Thompson, who has been on the job for only a few months now, conducted an interview with CNBC on Friday, where he answered questions regarding the direction his company is headed. Thompson keyed in on some pivotal strategies that he thought would give McDonald’s the opportunity to succeed including the introduction mobile payments, creating even healthier food selections to target millennials, developing a delivery service, and potentially changing its menu to serve breakfast all day.

The reaction among most investors and Wall Street analysts to Thompson’s interview is that McDonald’s has the plan to succeed. My reaction is that Thompson and McDonald’s are on the path to emulation instead of innovation.

McDonald’s has severely lagged many of its peers when it comes to the targeting of millennials, both in terms of offering mobile payments as an option and with regard to healthier eating options. While McDonald’s was busy testing eBay‘s mobile-payment system PayPal in 30 of its French restaurants last year, Starbucks locked up a contract to install Square’s mobile readers in 7,000 of its locations.

In terms of healthier eating options, McDonald’s is finding increased competition from the likes of Starbucks and Chipotle Mexican Grill . Although McDonald’s is doing an admirable job of bringing salads and wraps to fast-food consumers, Starbucks and Chipotle can offer conveniently quick, organic, natural, and/or antibiotic-free sources of meat, fruits, and veggies to customers. With McDonald’s content to stay the course and both Starbucks and Chipotle stepping up their game, a younger crowd of eaters has made the move away from the Golden Arches toward these two brands.

Similarly, a delivery service in the states could be a novel idea if Burger King Worldwide hadn’t already beaten McDonald’s to the punch. In early 2012, Burger King began testing a delivery service in Washington D.C.,

Source: FULL ARTICLE at DailyFinance

Starbucks' Brilliant Sandwich Move

By Demitrios Kalogeropoulos, The Motley Fool

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Would you like a sandwich with your coffee?

Starbucks just booked strong revenue growth for its fiscal second quarter. And the rise was fueled in part by one unlikely star product: panini sandwiches.

The coffee king’s sales jumped higher by 7% in the U.S. Of course, popular espresso beverages — like the vanilla spice latte and hazelnut macchiato — did their part by selling well. But food also played a big role in delivering Starbucks’ outsized sales gains.

Food and prepaid cards pair well
That’s partly thanks to the company’s prior success in selling massive amounts of prepaid cards. Customers loaded more than $1 billion onto their loyalty cards in the final three months of 2012, and gift cards were one of the most popular presents over the holidays. Those trends added up to billions of dollars of Starbucks money just sitting in people’s pockets, ready to be spent.

And customers chose to spend more of that cash on food last quarter. The company’s expanded availability of paninis was a hit, boosting food sales and drawing more traffic into the stores during those typically slower afternoon hours.

Satisfied customers
Thankfully for Starbucks, the uptick in food sales didn’t seem to hurt customer satisfaction, either. Speed and friendliness metrics have fallen at McDonald’s lately, and customer complaints are on the rise. It’s probably no coincidence that Mickey D’s has seen its sales growth tick down over the past few quarters.

But Starbucks has managed the opposite result. The company said that, despite the busier stores and expanded food options, order accuracy and staff friendliness metrics actually rose. The overall satisfaction scores at Starbucks locations improved last quarter by the highest amount in two years.

Another helping
All of that bodes well for the company’s ambitious plans to broaden its food menu. Starbucks spent $100 million to buy the La Boulange bakery brand last year, and it has been testing new bakery food options in its Northern California stores.

The company is happy enough with the results that it expects to introduce the new treats to all Starbucks locations over the next 18 months. Given that customers added 32% more dollars onto their loyalty cards last quarter, they’ll have plenty of money to spend on trying out the new food options when they arrive. 

Hungry for more?
With its premium beverages, McDonald’s has been pushing into Starbucks’ territory. But the company’s stock turned in a dismal year in 2012, underperforming the broader market by 25%. Looking ahead, can the Golden Arches reclaim its throne atop the restaurant industry, or will this unsettling trend continue? Our top analyst weighs in on McDonald’s future in a recent premium report on the company. Click here now to find out whether a buying opportunity has emerged for this global juggernaut.

Source: FULL ARTICLE at DailyFinance

McDonald's Veteran Returns As Global Chief Brand Officer

By Kevin Chen, The Motley Fool

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McDonald’s  has elected Steve Easterbrook as its new executive vice president and global chief brand officer. The 18-year McDonald’s veteran returns to the company following a stint as the CEO of Wagamama, a U.K.-based Japanese noodle restaurant chain.

Easterbrook will be responsible for global marketing, menu development, and consumer and business insights. He replaces Kevin Newell, who recently assumed the new role of chief brand and strategy officer for McDonald’s USA

A U.K. native, Easterbrook became CEO of McDonald’s U.K. in 2006. By the end of 2010, after serving as corporate vice president and chief brand officer, he was promoted to president of McDonald’s Europe, a role in which he was responsible for around 7,000 restaurants in 39 countries. He left McDonald’s the following year to become the CEO of U.K. chain PizzaExpress, and from there he took the reins at Wagamama.

“Steve has demonstrated dynamic leadership and creative thinking within the restaurant industry and throughout his previous career at McDonald’s,” said McDonald’s President and CEO Don Thompson. “I’m thrilled to welcome him back to the Golden Arches and confident that with his expertise, we will reach customers in new and innovative ways.”

Easterbrook will report to Thompson and will be based in Oak Brook, Ill.

The article McDonald’s Veteran Returns As Global Chief Brand Officer originally appeared on Fool.com.

Fool contributor Kevin Chen has no position in any stocks mentioned. The Motley Fool recommends and owns shares of McDonald’s. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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From: http://www.dailyfinance.com/2013/04/14/mcdonalds-veteran-returns-as-global-chief-brand-of/

Why Starbucks Is Getting Into the Food Business

By Demitrios Kalogeropoulos, The Motley Fool

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With casual-dining rivals such as McDonald’s and Dunkin’ Brands pushing deeper into its coffee space, Starbucks is set to push back. The company will be rolling out an expanded food menu soon. Fool contributor Demitrios Kalogeropoulos discusses why this makes sense for Starbucks, and what kind of boost it could give to the company’s sales.

McDonald’s turned in a dismal year in 2012, underperforming the broader market by 25%. Looking ahead, can the Golden Arches reclaim its throne atop the restaurant industry, or will this unsettling trend continue? Our top analyst weighs in on McDonald’s future in a recent premium report on the company. Click here now to find out whether a buying opportunity has emerged for this global juggernaut.

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From: http://www.dailyfinance.com/2013/04/13/why-starbucks-is-getting-into-the-food-business/

Dow Takes a Break After a Strong Week

By Jeremy Bowman, The Motley Fool

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After four straight days of gains, the Dow Jones Industrial Average took a breather today, finishing the session unchanged at 14,865, though it was down all session, at one point by as much as 0.5%. The S&P 500 and Nasdaq both declined slightly.

Disappointing retail sales numbers from March seemed to cool off this week’s rally, especially after some strong results from individual retailers yesterday. Sales at the consumer level dropped by 0.4%, its worst performance in nine months, with no expectations of any change, while a separate consumer confidence report also showed poorer results than expected. The combination of federal budget cuts through sequestration and an increase in the payroll tax seems to be weighing on consumer spending habits. The Producer Price Index was also off by 0.6%; however, the core rate, which excludes the volatile food and energy categories, was up 0.2%. While a long-term drop in prices is generally bad for the economy, a short-term decline can help spur consumption. The numbers also indicate that inflation continues to be well under control.

JPMorgan Chase finished down 0.6% after reporting earnings this morning. A slowdown in lending hampered the nation’s No. 1 bank by assets, as well as rival Wells Fargo , which also reported earnings this morning. Both banks topped earnings estimates, but did so on cost-cutting rather than strong revenue growth. Wells delivered EPS of $0.92, while JPMorgan had an adjusted per-share profit of $1.41.

Home Depot was today’s big winner, gaining 2.4% after its former unit, HD Supply, announced it would go public with a $1-billion IPO. Home Depot remains HD Supply’s biggest customer, and the IPO seems to confirm investor belief in the continued recovery of the housing sector. The home-improvement specialist also received an upgrade from Jeffries Group to “buy,” from “hold,” after the investment research firm said that increasing housing prices and conservative guidance could provide strong upside potential in the stock.

McDonald’s was another strong gainer, moving up 1.6% after bringing back Steve Easterbrook as Chief Global Brand Officer. Easterbrook had formerly overseen McDonald’s Europe, the Golden Arches‘ biggest region, with 7,000 restaurants in 39 countries. The fast-food chain also tripled the pay for its former and current CEO, and was also receiving some negative publicity after an ad in Massachusetts came out that seemed to associate eating Big Macs with mental illness and depression. McDonald’s immediately pulled the ad.  

With big finance firms still trading at deep discounts to their historic norms, investors everywhere are wondering if this is the new normal, or whether finance stocks are a screaming buy today. The answer depends on the company, so to help figure out whether JPMorgan is a buy today, I invite you to read our premium research report on the company today. Click here now for instant access!

From: http://www.dailyfinance.com/2013/04/12/dow-takes-a-break-after-a-strong-week/

1 Company's Caribou Coffee Closure Celebration

By Andrew Marder, The Motley Fool

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It’s been a year of good news for Starbucks , and this week’s announcement that Caribou Coffee is closing or rebranding a number of its locations is just one more good tiding. Caribou made the announcement that stores would be closing in certain regions starting on April 14. Some of those businesses will be permanently shuttered while others will switch over to Peet’s Coffee locations later this year. The company behind both Caribou and Peet’s is German holding company Joh. A. Benckiser, an investment vehicle for the Reimann family.

White ground to run
While the store closures are a nice touch, the real win for Starbucks is the move to Peet’s locations, which goes some way to validating the moves Starbucks has made recently. Peet’s splits its focus between coffee and tea, and is a more upscale experience than Caribou. That aligns almost precisely with the Starbucks model, which recently added Teavana to its portfolio.

That acquisition is going to put more tea on Starbucks’ shelves, and give the company a stronger foot to extend into tea-heavy markets, like Europe. The addition will also help Starbucks differentiate itself from competitors like Caribou and Dunkin’ Brands‘ Dunkin’ Donuts chain. Dunkin’ has been on a tear recently, with comparable sales up 3% in the U.S. and operating margin surpassing 47% last quarter.

The tea addition should help Starbucks continue its strong growth. But the move from Caribou and Peet’s isn’t the only thing going Starbucks’ way recently.

Coffee fit for a king
In February, Starbucks’ Seattle’s Best Coffee brand became the new coffee for Burger King . The collaboration should help Starbucks compete with McDonald’s McCafe program, which has helped the burger-chucker increase revenue over the past few years. Last quarter, management said that work is continuing behind the scenes to keep McCafe as a driver of long-term growth.

Now, Starbucks has a way to capitalize on that same customer segment through its Burger King partnership. While the move is clearly aimed at the McDonald’s crowd, there’s sure to be some overlap with Dunkin’s customers, as well. That’s a double win for Starbucks, which is successfully tapping both the high and low end of the market in a bid to maintain its dominance.

For now, things look good for the company, and as it expands its tea line over the year, look for news of new international expansion, which the company has said will be more in focus this year.

McDonald’s turned in a dismal year in 2012, underperforming the broader market by 25%. Looking ahead, can the Golden Arches reclaim its throne atop the restaurant industry, or will this unsettling trend continue? Our top analyst weighs in on McDonald’s future in a recent premium report on the company. Click here now to find out whether a buying opportunity has emerged for this global juggernaut.

Source: FULL ARTICLE at DailyFinance

How Subway Has Torpedoed McDonald's Golden Arches

By Sean Williams, The Motley Fool

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Subway isn’t a publicly traded corporation, but it’s completely mopped the floor with McDonald’s over the previous decade.

In 2003, McDonald’s had 31,129 total systemwide restaurants. By the end of 2012, that figure had jumped to 34,480 for an annualized growth rate of 1%. Considering that we exited the worst recession in 70 years, that’s a reasonable and understandable growth rate. Subway, on the other hand, had just 20,260 stores in 2003 and is on pace to eclipse 40,000 stores this year, for an annualized growth rate of nearly 7%!

It hadn’t dawned on me just how methodically Subway had dominated the golden arches until I read an article on “The Exchange” over the weekend that highlighted McDonald’s chicken McWrap as a “Subway buster.” Upon finishing the article I was intrigued as to exactly how the sub chain had come to so thoroughly dominate the global fast-food giant.

This isn’t the problem
My first postulation was that Subway’s emphasis on fresh meals and healthier eating habits had a lot to do with its surge beyond McDonald’s. Fast food is cheap, but it’s often associated with high fat content and low nutritional value. However, I’d contend that McDonald’s efforts in expanding its menu to include more nutritious foods have been more than adequate to counter Subway’s “Eat Fresh” campaign. McDonald’s was introducing snack wraps long before many of its peers, and offers a full array of salads and other low-calorie options.

The sign of a trendsetter is emulation, and both Burger King Worldwide and Jack in the Box have done a great job demonstrating that McDonald’s is the clear leader. Burger King‘s new menu aimed at reinvigorating its domestic sales is strikingly similar to McDonald’s menu, while Jack in the Box followed McDonald’s lead in remodeling its restaurants in order to create a more inviting ambience.

My next thought was that perhaps it’s because of Subway’s price points, or the value offered. Again, I’d have to disagree (you are correct, I am disagreeing with myself!) and point out that the Golden Arches‘ value menu is practically unsurpassed. The value menu is what initially drives cost-conscious consumers into its restaurants or through the drive-through and gives McDonald’s the opportunity to demonstrate its value and generate return business. Wendy‘s is the latest to emphasize the importance of its value menu, focusing on its “Right price, right size” menu. Initial estimates, which include a beefed-up advertising campaign, have been positive according to CEO Emil Brolick.

It’s all in the marketing
What I see as the biggest differentiating factor that’s propelled Subway well ahead of McDonald’s is its dominance in social media and with regard to brand ambassadors.

In determining social media presence, I took to Twitter to see which company, if either, might have the advantage. McDonald’s has dished out (as of this writing) 11,660 tweets, is following 12,166 other accounts, and boasts 1,055,061 followers — an impressive total. …read more
Source: FULL ARTICLE at DailyFinance

Four Stocks Joining the New High Party

By Russ Krull, The Motley Fool

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It took a while, but the S&P 500 finally broke through its 2007 high. Market watchers like seeing the big indexes breaking to new highs, but it’s even more fun when stocks you own join the party. I was lucky enough to have four in my portfolio hit new 52-week highs.  Here’s a little haiku fun to celebrate.

McDonald’s

   Burgers and coffee.

   Golden Arches span the world.

   I’m lovin’ it.

Becton, Dickinson

   Medical supplies.

   New injection for pharma.

   Still fairly priced.

Magellan Midstream Partners

   Pipelines and storage.

   Partnerships are on a tear.

   Good payout with growth.

McCormick

   McCormick simmers.

   Stock price getting too spicy?

   Savor the flavor.

A Foolish investor might comment that new highs are nice but  would want to know if I’d buy the stocks today. Although none of the four is cheap, I’d add to one of them, am comfortable holding two, and am considering either trimming or selling covered calls against the other one.

Becton is the “add to.” I’d like to buy it at a lower price. However, about 15 times next year’s estimates is a fair price for a steady dividend grower that’s still innovating with new products like prefilled injectables.

Like Becton, McDonald’s is trading at a fair price for a solid dividend growth stock. The only reason I wouldn’t add to my McDonald’s position is that it’s already one of my top two holdings.

Magellan Midstream has been a very good holding. It’s a great partnership with good prospects to continue growing the payout. But it’s up nearly 20% this year, the price rise has dropped the yield below 4%, and it looks just a little overpriced, which earns it a hold.

And that leaves McCormick. This is a great company with strong brands, an excellent dividend growth track record, and an effective cost-control program. But at 20 times forward earnings, it’s expensive. I don’t want to sell the position, but I also don’t want to add at today’s prices. Two possible paths forward are sell part of the position and wait for a drop to buy it back or sell an out-of-the-money covered call option.

These four stocks are typical of the type of investment that’s being driven up in price by the Fed’s zero-interest-rate policy and QE3. By pinning rates to zero and bidding up bond prices, the Fed is pushing investors from fixed income to dividend-paying equities. Even when the stocks are expensive, they can look like a bargain compared to cash and bonds with negative real returns. One big risk is what happens to stocks when the Fed pulls the plug.

If you’re looking for some long-term investing ideas, you’re invited to check out The Motley Fool’s brand-new special report, “The 3 Dow Stocks Dividend Investors Need.” It’s absolutely free, so simply click here now and get your copy today.

The article Four Stocks Joining the New High Party originally appeared on Fool.com.

…read more
Source: FULL ARTICLE at DailyFinance

McDonald's Gives Investors a Reason to Smile

By Tamara Rutter, The Motley Fool

MCD Chart

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McDonald’s served up better-than-expected same-store sales figures for February. The company released its sales report this week, which showed that global sales at existing restaurants fell 1.5%, compared with the 1.6% decline analysts had initially forecasted. The fast food chain’s same-store sales in the U.S. were down 3.3% for the month, better than the 3.5% expected drop.

At first glance, these numbers may seem trivial. However, the results provide insight into important business trends that can help investors better assess the company’s performance in markets outside the United States. This is a small step in the right direction for the world’s biggest hamburger joint. It was enough to push the stock up nearly 2% on Friday.

A recipe for profits
Menu innovation is important for Mickey D’s going forward if it hopes to keep an edge over competitors, such as Burger King Worldwide and Wendy’s . Burger King‘s re-entrance to the public market last year came complete with a menu revamp. In fact, the debut marked the biggest menu expansion since Burger King was born in 1954, according to Bloomberg.

The company’s new menu options included frappe coffees, specialty salads, and fruit smoothies. If this sounds familiar, it’s because McDonald’s pioneered these offerings in the fast-food category. As a result of increased competition in the space, Mickey D’s continues to roll out new menu options, such as the Grilled Onion Cheddar Burger and the Hot ‘n Spicy McChicken. Moreover, management said its limited-time Fish McBites offering supported February’s results.

Make no mistake: McDonald’s is still the leader in fast food. “For the first time in the history of the burger wars, the Golden Arches control more than half the category,” according to Roben Farzad at Bloomberg. Shares of McDonald’s are up more than 9% in 2013. Take a look at its price performance year-to-date compared with industry peers.

MCD data by YCharts.

The company’s international exposure could take a bite out of profits as consumer confidence wavers in major markets, such as China and Japan. Not to mention that McDonald’s and rival Yum! Brands have been under pressure in China after news broke that the restaurants served chicken with heightened levels of harmful hormones.

But the Fool’s top analyst on the company says you shouldn’t be worried by these trends.

He’ll also shed light on whether McDonald’s is a buy at today’s prices. Click here now to read our premium research report on the fast-food giant.

 
 

var FoolAnalyticsData = FoolAnalyticsData || []; …read more
Source: FULL ARTICLE at DailyFinance

This Is Not the Time to Buy Mickey D's

By Alyce Lomax, The Motley Fool

Filed under:

McDonald’s shareholders went through a phase where they weren’t “lovin'” the fast food giant’s stock price as much as they were several years ago. Mickey D’s long progression of amazing financial performance over years’ time has slowed. Today, McDonald’s watchers got a serving of “less bad” same-store sales data, but remember: the stock‘s recent appreciation may be too much, too soon.

Same-store sales at the Golden Arches fell 1.5% in February, and although that’s a negative number, it’s better than the 1.63% decline analysts had expected.

The U.S. is a serious area for concern right now, given macroeconomic uncertainty and signs that many American consumers are feeling pinched. Wal-Mart‘s recent leaked emails about a scary drop in shoppers’ traffic and spending recently could certainly haunt McDonald’s. These two consumer giants peddle cheap products, and they share some similar customers whose budgets have been constrained by higher gas prices and issues like the payroll tax hike, which particularly hurts those with lower incomes.

Along those lines, in the U.S., McDonald’s same-store sales fell 3.3% last month, and again, that may be a tad better than analysts’ estimates for a 3.55% decline but it’s still not what could be particularly called good.

For a while there, McDonald’s shares had tanked, and much of the weakness likely had to do with the company’s very difficult comparisons to past victorious years. On the other hand, longtime CEO Jim Skinner retired last summer, handing over the reins to Don Thompson, who has been trying to follow a pretty tough act.

Anybody who wanted to get in on this stock on the cheap missed the boat, particularly given current economic uncertainties, including whether the management transition has been smooth. Therefore, its share price price recovery now seems ahead of itself.

Right now, the fast food giant doesn’t look like an appetizing stock buy given its “less bad” news. Although it’s trading at 15 times forward earnings, which is far cheaper than Wendy’s (which has a whopping forward price-to-earnings ratio of 27) and Burger King (forward P/E of 20), McDonald’s recent numbers and the macro environment don’t make it a screaming buy right now.

At this point, quick-serve restaurant stocks like Chipotle and Panera look like more appetizing buys. These two companies have greater growth opportunities and serve many customers whose financial positions are likely more stable, and their meals are by no means outrageously priced even while they provide higher-quality fare than one gets at many fast-food joints.

Chipotle and Panera don’t even look that overvalued compared to the restaurant stocks named above, particularly given the aforementioned growth opportunities. Chipotle trades at 27 times forward earnings, and Panera trades at just 20 times forward earnings.

McDonald’s shares are inching up today, but investors shouldn’t be too quick to accept “less bad” as all that good, particularly without taking the macroeconomic environment into consideration. I’d wait for better, more bargain-priced days to get …read more
Source: FULL ARTICLE at DailyFinance

Will the Dow Ever Stop Setting Records?

By Dan Caplinger, The Motley Fool

Filed under:

Obviously, no market ever rises forever. But for the fourth straight day, the Dow Jones Industrials are pushing into record territory, this time responding to much-stronger-than-expected gains in employment. A jump of 236,000 jobs in nonfarm payrolls caused the unemployment rate to fall to 7.7%, its lowest level in more than four years. Job gains were broad across various industries, pointing to general strength but leading some economists to point out that gains this big were commonplace in past expansions. By 10:55 a.m. EST, the Dow had given back a big part of its earlier gains but was still up 28 points, while the broader market was also up modestly.

Among Dow stocks, McDonald’s was one of the best performers, climbing about 1.5% despite seeing global same-store sales drop 1.5%. Despite hopes that new products like its Fish McBites would help boost revenue, comps fell throughout its Europe, U.S., and Asia-Pacific regions, although sales were positive in China. Looking forward, McDonald’s needs to execute well on its expansion plans in order to get sales moving in the right direction.

Sticking with the Golden Arches theme, Latin-American McDonald’s franchisee Arcos Dorados saw its shares fall 0.4% after announcing its quarterly earnings despite opening higher on apparent strength in its results. Despite a slight drop in net income, Arcos Dorados managed to post comparable-sales growth of 8.6% during the fourth quarter, even though weakness in the Brazilian economy has weighed on the company’s performance in its biggest market. Guidance for 2013 was even more optimistic: Arcos Dorados expects a potential economic rebound to allow double-digit sales growth and further market-share expansion. With new stores also coming, Arcos Dorados appears to have its growth story still intact despite investors’ uncertainty.

Finally, Pandora soared 16.4% following a favorable earnings report. A 54% jump in revenue wasn’t enough to make Pandora profitable, but with an 8.5% share of radio listeners, the service is clearly gaining traction among users. Further, news that CEO Joe Kennedy is leaving the company may signal a new phase in Pandora’s growth as the key to the company’s future changes from innovation to better execution of its existing strategy.

Learn more about McDonald’s
McDonald’s may be up today, but it was one of the worst-performing blue-chip stocks of 2012. Our top analyst on the company will tell you whether you should be worried by this trend, and he’ll shed light on whether McDonald’s is a buy at today’s prices. Click here now to read our premium research report on the company.

var FoolAnalyticsData = FoolAnalyticsData || []; …read more
Source: FULL ARTICLE at DailyFinance

Arcos Dorados Earnings: An Early Look

By Dan Caplinger, The Motley Fool

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Earnings season is winding down, with most companies already having reported their quarterly results. But there are still some companies left to report, and Arcos Dorados is one of them. The key to making smart investment decisions with stocks releasing their quarterly reports is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise.

Those who know Spanish will understand the reference to the Golden Arches, as Arcos Dorados is the biggest McDonald’s franchisee in Latin America. But with McDonald’s having seen some struggles in its own overseas business, has Arcos Dorados dealt with the same challenges? Let’s take an early look at what’s been happening with Arcos Dorados over the past quarter and what we’re likely to see in its quarterly report on Friday.

Stats on Arcos Dorados

Analyst EPS Estimate

$0.22

Change From Year-Ago EPS

(8.3%)

Revenue Estimate

$1.04 billion

Change From Year-Ago Revenue

8.4%

Earnings Beats in Past 4 Quarters

1

Source: Yahoo! Finance.

Will Arcos Dorados give investors what they want this quarter?
Analysts have kept their fourth-quarter earnings views on Arcos Dorados rock-steady over the past few months. But investors haven’t been quite as comfortable, as they’ve seen their shares lose 1% of their value in a stock market that has generally been soaring.

For years, Arcos Dorados has been an attractive way to play the booming consumer market in emerging economies of Latin America. But during 2012, aggressive action from the Brazilian government to rein in speculation sent its currency reeling, which hurt earnings at Arcos. Yet the company has seen impressive same-store sales when you exclude the currency impact, and Arcos has taken advantage of far less saturation in Brazil and elsewhere in Latin America to push growth aggressively.

However, competitors are using Arcos Dorados’ playbook against it. Burger King recently created a joint venture with franchisee Beboca called BK Centro America, which will allow Burger King restaurants throughout the six nations of Central America. Given the success that Arcos has had in South America, Burger King may look for a similar deal there in the future.

One tough situation Arcos Dorados faces is in Venezuela, where recent currency devaluations have now been followed by the death of leader Hugo Chavez. With Arcos Dorados getting nearly 9% of its earnings from Venezuela in the first half of 2012, instability there could prove to be problematic for the franchisee.

In its quarterly report, look for Arcos Dorados to talk about the long-term economic impact of coming global sporting events in Brazil, including the 2014 World Cup and 2016 Olympics. They may seem a long way off, but preparing for all the attention that Brazil will get over the next several years could be critical for Arcos Dorados to build a favorable reputation from the events.

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Source: FULL ARTICLE at DailyFinance

Jamba Earnings: An Early Look

By Dan Caplinger, The Motley Fool

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Earnings season is winding down, with most companies already having reported their quarterly results. But there are still some companies left to report, and Jamba is about to release its quarterly earnings. The key to making smart investment decisions with stocks releasing their quarterly reports is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you’ll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

Jamba was a pioneer in the smoothie business, but lately, a bunch of much larger competitors have challenged the company on its own home turf. Let’s take an early look at what’s been happening with Jamba over the past quarter and what we’re likely to see in its quarterly report on Tuesday.

Stats on Jamba

Analyst EPS Estimate

($0.11)

Year-Ago EPS

($0.15)

Revenue Estimate

$46 million

Change From Year-Ago Revenue

3.8%

Earnings Beats in Past 4 Quarters

1

Source: Yahoo! Finance.

Will Jamba satisfy investors this quarter?
Analysts have been rock-solid in their calls on Jamba over the past few months, not budging an inch either on the previous quarter or on full-year 2013 results. The stock, though, has done extremely well, rising 25% since late November on hopes for moves from Jamba to unlock shareholder value.

Jamba has made great steps forward recently. With a big promotional deal with the makers of the Twilight movies back in October, as well as efforts to put its Jamba2Go dispensers in school, the company is trying to do more business with school-age kids. It even targeted younger children with a kids’ meal offering in January.

Jamba is also revamping its customer experience. The company introduced a new format that has limited menus but the potential for drive-thru service, and it’s working with eBay‘s PayPal to offer smartphone-based payment through a PayPal app.

A big part of Jamba’s share-price rise, though, likely comes from speculation that the company might get bought out. Starbucks bought Evolution Fresh back in 2011, so it’s not likely to be a buyer. Yet although fast-food giants McDonald’s and Burger King have both come out with their own lines of smoothies as part of broader efforts to diversify their menu offerings, either one could benefit from potential growth from buying Jamba.

In its quarterly report, don’t expect huge numbers in what’s typically a seasonally weak time for the company. Instead, focus on future strategies for growth as well as early indications of how its recent initiatives are doing.

Would a McDonald’s buyout of Jamba make sense? Get a broader picture of the Golden Arches by reading our premium research report on the stock, in which our analysts look at whether McDonald’s can reverse its poor performance in 2012. The report comes …read more
Source: FULL ARTICLE at DailyFinance

The Fool Looks Ahead

By Rick Aristotle Munarriz, The Motley Fool

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There’s never a dull week on Wall Street. Let’s go over some of the news that will shape the week to come.

Monday
The market kicks off with Stratasys reporting its latest quarterly results on Monday morning. Three-dimensional printing was one of last year’s hottest sectors, though investors have been steering clear of the few publicly traded companies specializing in additive manufacturing lately. Stratasys will give the niche a shot to get back into the limelight.

Tuesday
Qihoo 360 reports on Tuesday. The company behind China‘s leading Internet browser and provider of online security solutions turned heads this summer when it rolled out its own search engine. The market was even more surprised when Qihoo 360’s engine began to take off at the expense of the market darling.

Qihoo 360 will shed some light on its progress on Tuesday, and that will hopefully include some insight into the recent legal fisticuffs in the world’s largest Internet market.

Wednesday
Alon USA Parnters checks in on Wednesday. The limited partnership has the capacity to crank out 70,000 barrels a day through a crude oil refinery in Texas. Analysts are holding out for a juicy quarterly profit of $1.83 a unit when it reports.

Thursday
Skullcandy
is one of the bigger disappointments of the 2011 IPO class. The maker of headphones and other audio accessories went public at $20, and it has since shed more than two thirds of its value. We’ll see on Thursday whether it can turn in an amplified performance with its latest report.

Friday
Friday is usually quiet on the earnings front, but that won’t stop Arcos Dorados from reporting. The Argentina-based company is the world’s largest Mickey D’s franchisee, serving up Big Macs and fries across Latin America and the Caribbean. If there’s every any doubt where its burger-flipping allegiance lies, just know that the corporate moniker means “Golden Arches” in Spanish.

Beyond next week
The Motley Fool’s chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report: “The Motley Fool’s Top Stock for 2013.” Just click here to access the report and find out the name of this under-the-radar company.

The article The Fool Looks Ahead originally appeared on Fool.com.

Longtime Fool contributor Rick Aristotle Munarriz has no position in any stocks mentioned. The Motley Fool recommends Stratasys and owns shares of Arcos Dorados, Skullcandy, and Stratasys. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Source: FULL ARTICLE at DailyFinance

Investors Shake Off Fears From Sequester

By Matt Thalman, The Motley Fool

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The Dow Jones Industrial Average quickly fell more than 117 points this morning, after the Senate failed to pass bills that would have stopped the $85 billion in automatic government spending cuts, known as the sequester, from going into effect today. But because of some positive economic numbers, the bears couldn’t hold the markets down.

This afternoon, the Dow rallied, closing the day up 0.25%, followed by the S&P 500, which gained 0.23%. Most market participants are claiming that the stronger-than-expected ISM manufacturing numbers gave the bulls a reason to forget about the possible future problems caused by the sequester.

The Dow’s downers
Unfortunately, not all of the Dow’s components ended the day on a positive note. Shares of both of the index’s major energy stocks closed down.

Chevron lost 0.21%, while ExxonMobil dipped lower by 0.13%. The moves were likely caused by the U.S. Energy Department‘s weekly report on U.S. crude inventory levels, which came out this afternoon. The report showed that inventories rose by 1.13 million barrels, marking the sixth straight weekly rise.

The stockpiles continued climbing this week because of increased imports even as domestic production fell and demand increased. Current crude supplies in the U.S. are 9.4% higher than they were at this time last year, and if inventory levels continue to move higher, crude prices will likely fall, causing lower profits for the major oil players.  

Shares of Cisco Systems lost 0.12% today. Lately, the company has been losing favor against smaller, faster-growing, competitors such as Palo Alto Networks . The latter operates in the network security hardware industry and competes with Cisco and Juniper Networks.

Palo Alto recently posted quarterly revenue growth of 70% year over year and expects growth of 52% to 58% in the coming quarter. Cisco can no longer offer investors that kind of rapid growth, and FBR Capital Markets analyst Daniel Ives believes Palo Alto will “continue to gain market share in the overall network security market from the larger incumbents.”  

Today McDonald’s announced that it was cutting two items from its menu, causing investors to cut the stock price by 0.23%. The king of fast food will no longer offer the Chicken Selects or the Fruit & Walnut Salad, and it’s considering removing the Angus burgers from its menu as well. A number of McDonald’s franchisees favor the cut. According to the Associated Press, one former owner feels the menu has become too broad, causing no one item to sell in massive quantities.  More importantly, though, this move may disappoint customers, and even cause some to stop eating under the Golden Arches.

 

After making investors rich in 2011, McDonald’s has been one of the worst-performing blue-chip stocks of 2012. Our top analyst on the company will tell you whether you should be worried by this trend, and he’ll shed light on whether McDonald’s is a buy at today’s prices. Click here now to read our …read more
Source: FULL ARTICLE at DailyFinance