McDonald’s Wants More Chicken, Better Coffee

McDonald’s chicken sales are growing faster than beef, but the company has more work to do to claim more share in the market, the company says at an investor conference. Chicken counts for some of the chain’s biggest selling brands, but McDonald’s needs more of them, the company says. McDonald’s coffee is also too inconsistent as its restaurants use 100 different coffee machines across its global restaurants, and the company has more to do to improve its taste, the chain says.

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CFRA Retains Hold Opinion On Shares Of Roku, Inc.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We think it is uncertain whether ROKU’s operating system holds great value in the fast-changing video streaming market as it attempts to be the preferred platform that viewers use to toggle easily between different streaming channels. The launch of its own branded TVs held promise to spur new subscribers at ROKU. However, Walmart’s (WMT 61 ****) planned $2.3B purchase of Vizio to bolster its own advertising business, like Amazon (AMZN 177 ****), is a negative for selling ROKU televisions through this retailer. ROKU’s operating outlook shows modest gains in EBITDA, with $4M in ’23, a $95M consensus estimate in ’24, and $239M in ’25; these are not material to apply TEV/EBITDA valuation. A long-term DCF model to value ROKU is difficult, in our view, given the uncertainties

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Nvidia’s GPU Tech Conference Expected to Highlight Rising Impact of Generative AI, BofA Says

NVIDIA (NVDA)’s GPU tech conference next week is expected to emphasize the rising impact of generative artificial intelligence and omniverse digital twins on various end-markets, BofA Securities said Tuesday in a report. BofA lifted its price objective on Nvidia to $1,100 from $925 and maintained its buy rating on the stock before the conference on March 18-21 in San Jose, California. BofA expects the conference to showcase the “opportunity to re-architect” $1 trillion to $2 trillion of global computing infrastructure with accelerators, leading to an annual market of $250 billion to $500 billion over the next three to five years, compared with the prior $250 billion forecast. The conference is also expected to discuss a monetization update across recurring software and services and increasing enterprise use cases and demand from various countries and regions, the report said. “AI is critical in countries developing tools to assist in applications such as

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Buy Nucor Stock. It Deserves a Higher Valuation Than Cleveland-Cliffs, Analyst Says. — Barrons.com

Nucor stock is rising and shares of Cleveland-Cliffs are falling after an analyst argued the former steel maker deserves a better valuation than the latter. Citi analyst Alexander Hacking flipped his ratings on the stocks. He now rates Nucor shares at Buy instead of Hold, lifting his target for the stock price to $240 from $180. He kept his price target for Cliffs stock at $22 but lowered his rating to Hold from Buy. Cliffs’ “revenues have been as good as advertised (if not better) based on strong volumes, record [automotive] steel prices, and resilient hot rolled coil [pricing], but higher costs have led to underwhelming [earnings],” wrote Hacking. Hot-rolled coil, a benchmark steel product, is processed for use in car manufacturing. Cliffs is a significant provider of steel to auto makers. Cliffs is expected to earn about $1.50 a share in 2024, according to FactSet. That is better than

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McDonald’s Customers Are Eating at Home More. Maybe a Bigger Burger Will Bring Them Back. — Barrons.com

By Angela Palumbo McDonald’s has been feeling the pressure as more people shift to grocery shopping as opposed to eating at restaurants. The fast-food chain has several plans to keep customers coming in for its Big Macs and Chicken McNuggets. During a presentation at the UBS Global Consumer and Retail Conference on Wednesday, fast-food giant McDonald’s noted a shifting trend of customers that has negative implications for the business. “You’re starting to see food at home inflation versus food away from home getting back to its more, I think, historical dynamic, which means I think some of those consumers are just choosing to eat at home more often,” said Chief Financial Officer Ian Borden. According to the U.S. consumer price index for February, prices for food at home have increased 1% over the last 12 months while prices for food away from home have jumped 4.5%. Consumers also are facing

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McDonald’s Expects Slightly Q1 Lower International Development Licensed Sales Due to War in Middle East, CFO Says

McDonald’s (MCD) expects Q1 international developmental licensed segment sales to be slightly lower than the previous quarter due to the war in the Middle East and “challenges” in China, Chief Financial Officer Ian Borden said Wednesday. “I think you’ve heard lots of different companies talk about the, what I’ll call the macro and consumer challenges in China,” Borden said in a presentation at a retail conference, according to a Capital IQ transcript. “I think our business is doing okay, but I think the environment continues to be challenging.” Shares of McDonald’s were down more than 3% in recent trading.

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Adobe Expected to Post 1Q Revenue, Profit Increase — Earnings Preview

By Denny Jacob Adobe is scheduled to report its first-quarter results Thursday after the market closes. Here’s what you need to know. NET INCOME: The software maker is expected to post $1.54 billion in net income, up from $1.25 billion a year earlier, according to FactSet. REVENUE: The San Jose, Calif.-based company is expected to post $5.14 billion in revenue for the quarter ended March 1, compared with $4.66 billion in the prior-year period, according to FactSet. Adobe previously forecast revenue between $5.1 billion and $5.15 billion. ADJUSTED EARNINGS: Stripping out one-time items, earnings are expected to come in at $4.38 a share, according to FactSet. The stock price declined about 6.8% during the quarter and recently traded at $580.39. WHAT TO WATCH — Look for fresh details from Adobe following its scrapped $20 billion bid for collaboration-software company Figma. News of the abandoned deal came a few days after

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CFRA Adds Eli Lilly To The High-quality Capital Appreciation Portfolio

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We add Eli Lily and Company (LLY) to CFRA’s High-Quality Capital Appreciation Portfolio. LLY is one of the largest U.S. drug makers in terms of revenue and is a leading developer of drugs in a wide range of therapeutic areas such as endocrinology, which includes a diabetes drug portfolio that generates more than half of its total revenue. We are increasingly optimistic on LLY’s many ongoing efforts, including late-stage therapies such as donanemab (for Alzheimer’s disease), pirtobrutinib (for certain forms of leukemia and lymphoma), and tirzepatide (for sleep apnea and cardiology). Such innovation could complement LLY’s 10 key current drugs, which represent the majority of LLY’s total sales. LLY replaces CVS Health Corporation, which was downgraded to a Hold recommendation.

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Tesla to See Growth, Margin Improvement Despite Near-Term Headwinds, Wedbush Says

Tesla (TSLA) is likely to see growth and margin improvement in the coming quarters despite the near-term headwinds it is facing, including the slowdown in global demand for electric vehicles, Wedbush said in a note Wednesday. Analysts said the negative sentiment around the company and Chief Executive Elon Musk is way overdone. “The stock is way overshooting on the negative front as the demand story for Tesla is more in stabilization mode heading to the rest of 2024, price cuts are moderating, battery costs/production is showing strong cost efficiencies, and a Model 2 is on the roadmap for the next year,” Wedbush said. The demand will remain sluggish during Q1 while the Berlin arson shutdown and the Delaware court’s ruling on Musk’s compensation package add to the near-term issues, according to the note. Wedbush said that the risk-reward for Tesla is very attractive with AI and full self-driving progress, potentially

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CFRA Maintains Buy Rating On Shares Of International Business Machines Corp.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lift our target by $20 to $216, utilizing a P/E of 21x our ’24 EPS view, near peers, but well above IBM’s three-year average (~14x) on growing interest in the company’s AI and hybrid cloud solutions and our view that investor sentiment is improving around the company following years of underperformance. We maintain our ’24 EPS view at $10.30 and raise our ’25 estimate by $0.12 to $11.02. IBM shares have experienced some multiple expansion in recent months. While we think shares will continue to justifiably trade below many higher-growth consulting peers given IBM’s high level of net debt ($43.1B exiting ’23, 86% of which is fixed with an average rate of 3%), we also believe the company still has some room to grow its multiple

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