Showing posts with label MCD. Show all posts
Showing posts with label MCD. Show all posts

Monday, July 23, 2012

LargeCap Stocks to Watch Today

LargeCap Stocks to Watch TodayTomahawk, WI 7/23/12 (StreetBeat) -- McDonald's (MCD), the fast-food giant, is expected by analysts Monday to post second-quarter profit of $1.38 a share on sales of $6.94 billion.

Germany's Bayer and Onyx Pharmaceuticals (ONXX) said Monday that Tarceva, a jointly produced drug, in combination with Nexavar tablets for the treatment of hepatocellular carcinoma, a type of liver cancer, failed in further improvement of overall survival.

NRG Energy NRG said Sunday it reached a deal to buy GenOn Energy (GEN) for $1.7 billion in stock.

The merger creates the largest U.S. independent power producer.

Halliburton (HAL) is expected by analysts Monday to post second-quarter earnings of 75 cents a share on revenue of $6.93 billion.

Chipmaker Texas Instruments (TXN), according to analysts, will post second-quarter profit of 41 cents a share on revenue of $3.35 billion.

Texas Instruments posts numbers after Monday's closing bell.

Hasbro (HAS), the toy maker, is seen by analysts posting quarterly earnings on Monday of 24 cents a share on revenue of $832 million.

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Wednesday, June 20, 2012

Burger King (NYSE: BKW) shares return to public trade

Burger King (NYSE: BKW) shares return to public tradeAtlanta, GA 6/20/12 (StreetBeat) -- Shares of Burger King Worldwide Holdings Inc (NYSE: BKW) opened at $14.50 on Wednesday, as it started its first round of trading, less than two years of going private in a $3.26 billion sale to Brazilian investment fund 3G Capital Management LLC.

The world's second-biggest hamburger chain closed a $1.4 billion deal merging Burger King into Justice Holdings, a shell company cofounded by hedge fund veteran Bill Ackman.

In the deal, Justice shareholders and founders wound up with about 29 percent of the shares, with 3G retaining 71 percent ownership and receiving $1.4 billion in cash, the company said.

The deal and IPO from Burger King Worldwide Inc, known for its "Whopper" hamburgers, comes as it and other chains fight to keep up with fast-food leader McDonald's Corp (NYSE: MCD).

When the "reverse-merger" transaction was announced in April, Justice said it expected the fast-food chain's core profits in 2012 to almost double from 2010.

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Friday, April 20, 2012

McDonald's (MCD) Meets Analysts' Expectations

McDonald's (MCD) Meets Analysts' ExpectationsTomahawk, WI 4/20/2012 (StreetBeat) -- McDonald's Corp. (MCD) is still seeing its value meals and specialty drinks pay off with budget-conscious diners.

The world's biggest hamburger chain said Friday that its net income rose 7 percent in the first quarter, in line with Wall Street expectations.

McDonald's says global sales rose 7.3 percent at restaurants that were open at least 13 months, driven by gains from all regions. The metric is key because it excludes the impact of newly opened stores.

A big part of the McDonald's success story in recent years has been the chain's rollout of popular menu items such as coffee frappes and fruit smoothies, which have high profit margins and bring in customers throughout the day. Customers also love them because it's a way to have a treat for a couple of bucks.

Other recent introductions by the fast-food chain include oatmeal and Chicken McBites, which the company said helped boost sales in the U.S. in the first quarter.
For the first three months of the year, McDonald's reported a profit of $1.27 billion, or $1.23 per share. That compares with a profit of $1.21 billion, or $1.15 per share, in the year-ago period.

In the U.S., sales at restaurants open at least 13 months were up 8.9 percent, as new menu items like Chicken McBites, updated restaurants and warm weather drew customers. The results also benefitted from an extra day in the Leap Year.
McDonald's said sales in Europe, the company's biggest market, rose 5 percent despite economic turmoil and severe weather in many parts of the region. Sales in Asia Pacific, Middle East and Africa rose 5.5 percent, led by China, Australia and Japan.

At the same time, McDonald's is coping with rising costs for ingredients, as well as rising labor and rent expenses in some overseas markets. That led the fast-food chain to raise prices three times last year, for a total price increase of 3 percent. Because of its size, the way McDonald's handles price increases can influence the rest of the fast-food industry.

Shares of McDonald's, based in Oak Brook, Ill., rose $1.72, or nearly 2 percent, to $95.28 in premarket trading.

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Monday, April 9, 2012

McDonald's (NYSE: MCD) Pursuit of Perfect Fries Risks Overpromising

McDonald's (NYSE: MCD) Pursuit of Perfect Fries Risks OverpromisingChicago, IL 4/9/12 (StreetBeat) -- Biting into a McDonald's Corp. (NYSE: MCD) French fry should be like "walking on freshly fallen snow."

Barbara Booth, the company's director of sensory science, was presiding over the fast-food giant's semi-annual French Fry Evaluation -- a contest among McCain Foods Ltd., ConAgra Foods Inc. (NYSE: CAG)'s Lamb Weston and J.R. Simplot Co. to cook perfect versions of McDonald's "World Famous Fries."

"Close your eyes," Booth told the three executives and 11 supplier representatives as they sniffed, sampled and spit fries in a ritual akin to tasting a Napa Valley Pinot. "If you can't tell what you're eating in three seconds, there's a problem."

As chains such as Five Guys Burgers and Fries and Smashburger attract diners looking for a better burger, McDonald's is more than ever focused on the quality of its food. And in an age of 24-7 social media and hyper-informed consumers, the world's largest burger chain is being forced to open up about the provenance of its beef, potatoes and more.

In January, McDonald's began featuring online homages to its suppliers. In one "Supplier Story" video, Frank Martinez, who farms about 1,000 acres of potatoes (400 hectares) in Warden,Washington, brushes the dirt from a spud, slices it and declares: "Good potato!"

While sales growth at McDonald's stores open at least 13 months has exceeded 3 percent for two years, the company is "mindful American consumers are wanting more education than ever before," said Mark Kalinowski, an analyst at Janney Montgomery Scott in New York. "They want to make sure that they are not losing business to competitors that do a better job at communicating this type of message."

Conversation Change

Providing more information about the McDonald's menu is also a way to change the conversation, according to Michael Jacobson, executive director at the Center for Science in the Public Interest, a Washington-based advocacy group. Locally sourced potatoes don't change the fact that a large order of McDonald's fries delivers 25 grams of fat.

McDonald's tries "to come across as warm and fuzzy," Jacobson said. "They don't show the frying of the potatoes" which "end up far higher in calories than they start out at."

Last year, McDonald's store owners received an e-mailed call to arms from the chain's U.S. President Jan Fields. The industry has been "negatively impacted" by "food and product safety concerns," Fields wrote. "Our ultimate success will require a fundamental shift in how we approach Brand Trust and how we incorporate these efforts in to everything we do."

More Questions

Americans "have more questions about where their food comes from -- whether they're purchasing it from McDonald's or whether they're purchasing it from a grocery store," said Heather Oldani, a McDonald's spokeswoman. "We've just started to scratch the surface with the ‘Meet Our Suppliers' campaign."

McDonald's is making other efforts to come clean about its food. Earlier this year, the Big Mac seller said it will require its pork suppliers to phase out the gestation pens that animal- rights groups have long deemed cruel to pigs. The move follows that of Chipotle Mexican Grill Inc. (NYSE: CMG), which more than a decade ago began requiring its suppliers to raise pigs outside or in large cages and use antibiotic-free and vegetarian food.

Five Guys and Chipotle locally source their food. Some Five Guys locations post signs identifying the specific farm where their potatoes come from and the burrito seller tries to source veggies from nearby farms, defined as being within 350 miles of a restaurant, when practical.

Food Origin

While McDonald's took to Twitter about two years ago to get feedback on its menu and stores, it's now focusing the online conversations on suppliers and food origin, said Rick Wion, the social media chief, whose nine workers regularly send Twitter followers to YouTube videos about growers.

"We're continually looking at ways we can promote our suppliers and talk about what goes into our supply chain," he said. "We get questions about it all the time."

McDonald's would be best to proceed with caution in telling its food and supply-chain story, said Dick Adams, a San Diego- based restaurant franchisee consultant and former McDonald's store owner.

"There's no way that they can keep up with the smaller chains in terms of sourcing locally," said Adams, who says there's nothing wrong with McDonald's food. "They have to be careful they don't overpromise."

The emphasis on fries is no accident. McDonald's serves about 9 million pounds of them worldwide each day. And its competitors aren't standing still, according to Darren Tristano, executive vice president at the Chicago-based researcher Technomic Inc.

Fry Prepping

McDonald's suppliers spend weeks prepping for the fry evaluations, according to Ken Haynes, director of global quality at Lamb Weston: "It's a big deal."

The sampling began at 9 a.m. with the 15 tasters crowded around a large, rectangle table. Bottled water and unsalted crackers were on hand as palate cleansers.

Cooks in white lab coats served the first sample, the so- called "gold standard." The tasters waited two-and-a-half minutes and then got started. Three fries were eaten on the first bite to discern unwanted buttery, sour or reheated potato flavors. The tasters scribbled notes on a score sheet -- rating the fries on appearance, texture/mouth feel and flavor/aroma.

Booth pointed out black spots, dehydrated ends and oily and limp fries, all of which hurt a sample's score.

Eighty minutes later, a winner was declared: Lamb Weston, which for the second time in a row had triumphed with a sample from its American Falls, Idaho, plant. The final score was 95 out 100 points -- showing there was still room for improvement.

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Tuesday, November 22, 2011

Google+ Pages Officially a Failure

Google+ Pages Officially a FailureShawshank, VA 11/22/2011 (StreetBeat) – It's been just more than a week since Google+(Nasdaq:GOOG) launched pages for businesses and already most major brands have signed up. There's just one little problem: No one seems to know or care that these pages exist.

Some 61% of the top 100 biggest brands have created Google+ pages, all but one of which have fewer than 50,000 fans on the site so far, according to data released Wednesday by BrightEdge, a search engine optimization business. In fact, two dozen companies had no fans whatsoever and others such as McDonald's (NYSE:MCD) and Verizon (NYSE:VZ) were stuck in the dozens, despite the fact that many have hundreds of thousands if not millions of fans on Facebook.

Google+ Pages for businesses have had a weaj showing so far. So what's the one business that's actually managed to break the 50,000 mark? Google, and even it hasn't done that well. The Internet giant had roughly 65,000 fans at the time the report came out.

That said, Google+ pages are quite new and it may not be fair to compare their numbers with Facebook, but BrightEdge's report suggests a deeper problem. Only 12% of the top brands on Google+ mentioned those pages on the company Web site, hinting that businesses may have created a page just to do it but have little interest in promoting it.

As we said when Google+ Pages launched, there is great potential for these branded pages if Google can find ways to incorporate them when users search for news and updates about products and businesses online. But at the moment, it's hard enough to find a company's page when searching on Google+, let alone to stumble onto a page while browsing elsewhere online. If that doesn't change, Google+ Pages will stay dead.

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