McDonald’s (MCD) reported Q1 non-GAAP earnings Tuesday of $2.70 per diluted share, up from $2.63 a year earlier. Analysts polled by Capital IQ expected $2.73. Total revenue for the quarter ended March 31 was $6.17 billion, compared with $5.90 billion a year earlier. Analysts surveyed by Capital IQ expected $6.17 billion. McDonald’s shares were down 2% in recent Tuesday premarket activity.
McDonald’s Q1 Non-GAAP Earnings, Revenue Rise Read Post »
Amazon.com reports Q1s earnings after the bell. Analysts polled by FactSet predict sales rose 12% to $142.65 billion, which would be up from the 9% sales growth Amazon saw a year ago and a Q1 record for the company. Analysts expect Amazon made $8.95 billion in profit from April to June, up from $3.17 billion in the same period a year earlier. Amazon CEO Andy Jassy has significantly reoriented the company to focus on artificial-intelligence innovations. Earlier this month, in his annual letter to shareholders, he said generative AI may be the largest technology transformation since the cloud and perhaps since the Internet. But he also said Amazon remains committed to cost-cutting.
Amazon Expected to Report Record Q1 Sales Read Post »
The following is a summary of the McDonald’s Corporation (MCD) Q1 2024 Earnings Call Transcript: Financial Performance: McDonald’s reported global comparable sales growth of nearly 2% in Q1 2024, marking the 13th consecutive quarter of positive growth. The average franchising cash flow remained strong despite the elevated cost environment. Adjusted earnings per share for the quarter were $2.70, an increase of about 2% in constant currencies. The adjusted operating margin for the quarter was nearly 45%. Inflation from 2023 will carry over into early 2024, impacting both food and paper costs as well as labor. Expectations for operating margins in 2024 are in a ‘mid to high 40s range,’ but it remains uncertain due to macroeconomic factors. Business Progress: McDonald’s is focusing on providing affordable meals by launching everyday value menus across several international markets. The McDonald’s mobile app and digital engagement initiatives are driving increased engagement and frequency from
McDonald’s(MCD.US) Q1 2024 Earnings Conference Read Post »
Domino’s Pizza Inc (NYSE:DPZ) shares were climbing Tuesday after the company reported better-than-expected first-quarter results. The results came amid an exciting earnings season. Here are some key analyst takeaways from the release. BMO Capital Markets On Domino’s Pizza Analyst Andrew Strelzik reiterated an Outperform rating while raising the price target from $535 to $575. Domino’s Pizza reported first-quarter earnings of $3.58 per share, surpassing consensus of $3.41 per share, with the beat being “driven by stronger comps, higher supply chain profits, and a lower tax rate,” Strelzik said in a note. The company “continues to realize meaningful domestic business momentum,” with its partnership with Uber Technologies Inc’s (NYSE:UBER) Uber Eats and loyalty revamp, “as well as more vocal marketing,” he added. “DPZ’s strategy is driving broad momentum, including among the more challenged low-income consumer cohort, which should extend through the remainder of 2024 and beyond,” the analyst further wrote. TD Cowen On Domino’s Pizza Analyst Andrew Charles maintained
Nike’s (NKE) recent challenges stem from the loss of talent as a combination of layoffs and voluntary departures hurt morale, productivity and near-term performance, Wedbush said Tuesday in a report, citing an interview with Peter Orcutt, who worked at the footwear company for 24 years. The company lacks any near-term catalyst for product innovation, and despite new releases, is missing a “groundbreaking” release for the Olympics in three months, Wedbush said. Orcutt, a senior leader who left in a major round of layoffs in early 2020, said that the company pursued a direct-to-consumer strategy too aggressively, which damaged its wholesale partnerships and pushed retailers to seek alternatives, the Wedbush report said. Nike rival Adidas is gaining ground, and early views of Adidas’s 2025 products impressed industry insiders, Orcutt said, according to the Wedbush report. “There are several key challenges that the company must work through,” Wedbush said. Partly because “one
Nike Faces Talent Loss, Lacks Innovation Spark Amid Aggressive Competition, Wedbush Says Read Post »
By Emily Bary and Tomi Kilgore Revenue was slightly above forecasts, but same-store sales growth came up short McDonald’s Corp. said Tuesday its value message continued to resonate with customers during tough times, as the fast-food giant reported first-quarter revenue that rose above Wall Street’s estimates and said it will be testing a bigger burger in the coming months. That helped the stock (MCD) reverse an early sharp loss to trade little changed, even though the company missed profit expectations for the first time in more than two years and also missed on same-store sales. “And as we look to further build on our leadership in beef, or team of chefs from around the world have created a larger, satiating burger,” said Chief Financial Officer Ian Borden on the post-earnings call with analysts, according to an AlphaSense transcript. “We’ll be testing this burger in a few markets later this year,
McDonald’s Stock Bounces as Revenue Beat, New ‘Larger’ Burger Offset Profit Miss Read Post »
CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lower our 12-month target to $287 from $310, 23.4x our 2024 EPS, below MCD’s five-year average forward P/E of 25.6x, reflecting weaker customer traffic trends. We cut our 2024 EPS to $12.26 from $12.30 and 2025’s to $13.41 from $13.53. MCD posted Q1 adj-EPS of $2.70, $0.03 below consensus. Revenue of $6,169M (+ 4.6% Y/Y) was in line with consensus. Adj. operating income rose 2.1% Y/Y to $2,771M vs. $2,825 consensus, with margin contracting 110 bps to 44.9%. Same-store sales rose by 1.9% vs. 2.4% consensus, driven by growth in the U.S. (+2.5%) and Int’l Operated Markets (+2.7%), partly offset by Int’l Developmental Licensed Markets (-0.2%), largely due to the war in the Middle East. Despite a tough macro backdrop, where most consumers seek superior value,
CFRA Maintains Hold Opinion On Shares Of Mcdonald’s Corporation Read Post »
CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target of $233, up $12, is calculated using an EV/EBITDA multiple of 17x from our 2024 adj-EBITDA estimate of $150.0 billion (up from $141.8 billion) vs. 12x-30x historical average. We lift our 2024 adj-EPS (excludes Rivian valuation and stock-based comp) to $7.47 from $6.85 and 2025’s to $8.75 from $8.53. Q1 revenue of $143.3 billion (+12.5% Y/Y) beat by $764 million, with operating income of $15.3 billion (+221% Y/Y), $4.3 billion or 39% above consensus. AWS grew a staggering 17% Y/Y and is now a $100 billion run-rate business, of which AI represents just a few billion dollars today. Advertising grew a solid 24% Y/Y. We wouldn’t look too much into the cautious Q2 guidance, as AMZN is notorious for conservative guidance. We’re also not
CFRA Reiterates Buy Opinion On Shares Of Amazon.com, Inc. Read Post »
The following is a summary of the Amazon.com, Inc. (AMZN) Q1 2024 Earnings Call Transcript: Financial Performance: Amazon reported Q1 2024 revenue of $143.3 billion, a 13% increase year-over-year, excluding impacts from foreign exchange rates. Operating income was $15.3 billion, a 221% increase from the prior year. The company reported a trailing 12-month free cash flow, adjusted for equipment finance leases, of $48.8 billion, which is an increase of $53.2 billion year-over-year. Advertising sales saw a year-over-year increase of 24%. The AWS segment recorded a revenue growth of 17.2% YoY, reaching an annualized run rate of $100 billion. Business Progress: Amazon is expanding their product selection and has launched an AI tool for making product listing easier for sellers. Nearly 60% of Prime orders were delivered on the same or following day in Q1, and the company is working to improve delivery speed further. Fulfillment efficiency is being optimized by
Amazon(AMZN.US) Q1 2024 Earnings Conference Read Post »
The following is a summary of the Starbucks Corporation (SBUX) Q2 2024 Earnings Call Transcript: Financial Performance: Starbucks reported Q2 total company revenue of $8.6 billion, a decrease of 1% year-over-year. Global comparable store sales declined 4% year-over-year due to a 3% negative growth in North America and an 11% negative growth in China. The company’s operating margins contracted by 140 basis points to 12.8%, and earnings per share decreased by 7% to $0.68. The consolidated operating margin contracted 140 basis points from the prior year to 12.8%. Q2 Earnings Per Share (EPS) was $0.68, indicating a decrease of 7% from the previous year. The channel development segment’s revenue was $418 million in Q2, marking a 13% decline from the previous year. Business Progress: The Mobile Order & Pay system represented 31% of all transactions in the quarter, setting a new record. Starbucks Rewards members in the U.S grew by
Starbucks(SBUX.US) Q2 2024 Earnings Conference Read Post »
Domino’s Pizza Group delivered a negative first-quarter performance, but store rollout is seen as an indicator for its medium-term health, Numis analysts Richard Stuber and Tim Barrett write in a research note. The pizza chain–the holder of the master franchise agreement to own, operate and franchise Domino’s stores in the U.K. and Ireland–still expects to open more than 70 stores this year, with 38 stores under construction or with planning permission, the analysts say. The company’s initiatives including its GBP4 lunch offer, loyalty trial and Uber Eats rollout support management’s reiteration of its full-year earnings guidance, they add. Shares are down 0.9% at 322.80 pence.
Domino’s Pizza Group’s Store-Opening Plans, Initiatives Look Positive Read Post »
Starbucks (SBUX) shares sank more than 12% in premarket activity Wednesday after the company reported fiscal Q2 adjusted earnings and sales that missed the market’s expectations. The company reported fiscal Q2 non-GAAP earnings late Tuesday of $0.68 per share, down from $0.74 a year earlier. Analysts polled by Capital IQ expected $0.80 Net revenue for the quarter ended March 31 was $8.56 billion, down from $8.72 billion a year earlier. Analysts surveyed by Capital IQ expected $9.16 billion. Comparable-store sales during the quarter were down 4% worldwide, the company said. Analysts polled by Capital IQ expected 1% growth.
Starbucks Fiscal Q2 Non-GAAP Earnings, Revenue Decline; Shares Slump Premarket Read Post »