MCD

(Bloomberg) -- Walmart Inc. warned rising fuel costs are squeezing the company’s bottom line and could lead to higher prices for shoppers. Most Read from Bloomberg Spot the Difference: Putin Gets Trump Treatment From Xi in China Iran Says the US’s Latest Proposal Has ‘Narrowed the Gaps’ Modi’s Toffee Gift to Meloni Ignites Rally in Wrong Indian Stock Iran in Talks With Oman Over Permanent Hormuz Toll System Dow Average Climbs to Record on US-Iran Deal Hopes: Markets Wrap The world’s largest retailer said comparable sales in US stores, excluding fuel, rose 4.1% in the latest quarter, slightly better than what Wall Street analysts were expecting. It also forecast adjusted profit for the second quarter that missed expectations. The mixed results show that the company continues to gain market share across income levels with its focus on low prices, fast delivery and wide assortment. But that emphasis on affordability is facing pressure as inflation accelerates and the conflict in Iran drives up fuel prices. Walmart shares fell as much as 8% on Thursday, the steepest intraday drop since November 2023. The stock had risen 17% so far this year as of Wednesday’s close. Shares of some of Walmart’s peers, including Target and Kroger, also fell in regular trading on Thursday. “The high-income consumer is spending with confidence in many categories, whereas the low-income consumer, we can tell, is more budget-conscious, trying to navigate certain financial distress,” Chief Financial Officer John David Rainey said in an interview with Bloomberg News. Walmart is viewed as an economic barometer due to its large size and footprint across the US and other markets. Spending has largely held up in recent years, although consumers have become increasingly selective with their purchases. Good deals and unique products can still attract buyers. Additionally, higher tax refunds this year have given families some extra cash, but this benefit is expected to fade. As fuel prices pressure consumers’ budgets, they’re putting less gas in their tanks, with the number of gallons per pump falling below 10 for the first time since 2022. If fuel costs stay at current levels, prices across the board could rise in the second quarter and the second half of the year, Rainey said. Walmart’s prices rose about 1.2% during the last quarter. Fuel weighed on Walmart’s profit margin, with the company a...

Concerned about an AI bubble? Sign up for The Daily Upside for smart and actionable market news, built for investors. Someone call the chiropractor: There’s a K-shaped kink in the backbone of the economy, and retail therapy isn’t helping. Expect symptoms of the dual-track economy to appear in a plethora of earnings calls from retail giants this week, including Home Depot today, Target tomorrow and Walmart on Thursday. Complicating matters further? The supply chain shock from the closure of the Strait of Hormuz is already showing up in consumer spending habits. Sign up for The Daily Upside at no cost for premium analysis on all your favorite stocks. READ ALSO: ‘Bucket List’ Vacations Give Way to Budget-Friendlier Trips amid Sky-High Fuel Prices and Walmart Rattles Investors with Slowing Sales-Growth Forecast Signs of consumer distress are practically omnipresent these days. The University of Michigan’s consumer sentiment survey has recently plummeted to near all-time lows, even below the dizzying early days of the Covid-19 pandemic. And last week delivered a bleak warning to the retail giants’ strip mall neighbor, when McDonald’s CEO Chris Kempczinski admitted that the consumer environment is “certainly not improving.” Kempczinski flagged fast-rising gas prices as the “core issue” facing lower-income consumers, who are disappearing from the chain’s customer base. Domino’s CEO Russell Weiner echoed the sentiment in the pizza company’s earnings report in late April, and Whirlpool CEO Marc Bitzer warned last week of “recession-level” industry decline for big-ticket items like dishwashers. It’s why this week’s gamut of retail earnings may be just as significant a macroeconomic indicator as the next quarterly update from AI king Nvidia on Wednesday. And, for now, any sign of consumer resilience can just as easily be interpreted as the continued entrenchment of the K-shaped economy: US retail sales in April, for instance, advanced for the third consecutive month, according to a Commerce Department report last week; however, the 0.5% gain was not adjusted for inflation (CPI rose 0.6% month-over-month in April) and may reflect larger tax refunds to higher-earning consumers. The Federal Reserve Bank of New York last week also said that US credit card debt in the first quarter had ticked down from a record high at the end of last year … but did cop to “weakness in lowe...

McDonald’s delivered steady performance in Q1, beating Wall Street’s revenue and profit expectations amid a persistently challenging consumer environment. Management credited disciplined execution of its three-part strategy: emphasizing value offerings, driving marketing campaigns, and introducing menu innovation. CEO Chris Kempczinski specifically highlighted the U.S. relaunch of Extra Value Meals and a new under-$3 menu as instrumental in regaining share among value-oriented customers. Marketing partnerships, such as with Netflix’s KPop Demon Hunters, and new beverage category launches globally, also contributed to broad-based sales gains. Is now the time to buy MCD? Find out in our full research report (it’s free). Revenue: $6.52 billion vs analyst estimates of $6.47 billion (9.4% year-on-year growth, 0.7% beat) Adjusted EPS: $2.83 vs analyst estimates of $2.74 (3.1% beat) Adjusted EBITDA: $3.57 billion vs analyst estimates of $3.44 billion (54.7% margin, 3.6% beat) Operating Margin: 45.3%, in line with the same quarter last year Locations: 45,699 at quarter end, up from 43,756 in the same quarter last year Same-Store Sales rose 3.8% year on year (-1% in the same quarter last year) Market Capitalization: $195.9 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Dennis Geiger (UBS) asked about the U.S. sales trajectory for the remainder of the year, with CEO Chris Kempczinski emphasizing confidence in the marketing calendar and McValue program, but noting uncertainty due to worsening consumer sentiment. Brian Harbour (Morgan Stanley) probed the frequency and rationale behind value menu changes. Kempczinski explained that having both meal deals and entry-level pricing is critical, and highlighted recent improvements in value perception scores. John Ivankoe (JPMorgan) questioned refranchising and margin strategy, with CFO Ian Borden acknowledging company-operated margin challenges and outlining criteria for optimizing ownership to maximize returns. David Tarantino (Baird) inquired about franchisee profitability pressures amid inflation. Kempczinski and Borden noted stable cash flow last year but flagged heighte...

McDonald’s Corporation (NYSE:MCD) is included among the 10 Best US Stocks to Invest in According to Billionaires. Ken Wolter / Shutterstock.com McDonald’s Corporation (NYSE:MCD) is the world’s leading global foodservice retailer with over 37,000 locations in over 100 countries. On May 8, Morgan Stanley lowered its price target on McDonald’s Corporation (NYSE:MCD) from $334 to $331, while keeping an ‘Equal Weight’ rating on the shares. The reduced target still represents an upside of over 20% from the current price levels. Similarly, RBC Capital also trimmed its price target on McDonald’s Corporation (NYSE:MCD) by $25 on May 9, but maintained a ‘Sector Perform’ rating on the shares (read more details here). The move comes after McDonald’s Corporation (NYSE:MCD) reported better-than-expected results in its Q1 report on May 7, with the foodservice retailer topping estimates in both profits and revenue. The company’s global comparable sales surged by 3.8% during the quarter, up from a 1% decline reported last year. Ian Borden, McDonald’s Corporation (NYSE:MCD)’s CFO, flagged a weaker start to the second quarter due to the high fuel prices putting persistent pressure on low-income consumers and turning sales slightly negative in April. However, the company reaffirmed its full-year 2026 financial guidance and reiterated its plan to expand to about 50,000 restaurants by the end of 2027. While we acknowledge the potential of MCD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 12 Best Blue Chip Dividend Stocks to Buy Now and 10 Best Fortune 500 Stocks to Buy According to Analysts Disclosure: None. Follow Insider Monkey on Google News.

Restaurant Brands International Inc. (NYSE:QSR) was among Jim Cramer’s stock calls on Mad Money as he discussed how semiconductor and AI infrastructure stocks are driving the market higher. Cramer highlighted the company’s latest quarterly results, as he remarked: Restaurant Brands International Inc. (NYSE:QSR) owns and operates quick-service restaurant chains, including Tim Hortons, Burger King, Popeyes, and Firehouse Subs. While we acknowledge the potential of QSR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years Disclosure: None. Follow Insider Monkey on Google News.

McDonald’s Corporation (NYSE:MCD) is included among the 10 Best Inflation-Hedge Stocks to Buy for 2026. Ken Wolter / Shutterstock.com On May 8, Baird lowered its price recommendation on McDonald’s Corporation (NYSE:MCD) to $305 from $330. It reiterated a Neutral rating on the shares. The firm updated its model following Q1 results, saying optimism around the company’s internal growth drivers was being balanced against broader external risks. During the Q1 2026 earnings call, Chairman, President, and CEO Christopher Kempczinski said global system-wide sales rose 6% in constant currency, while global comparable sales increased 3.8%. He also noted that McDonald’s gained market share in nearly all of its top 10 markets during the quarter. Executive Vice President and Global CFO Ian Borden said strong revenue performance helped drive adjusted earnings per share of $2.83. That figure included a $0.13 benefit from foreign currency translation. Borden added that adjusted operating margin came in at 46%. He also acknowledged that margins at U.S. company-operated restaurants fell short of expectations and described the results as unacceptable. According to Borden, McDonald’s is reassessing the mix between franchised and company-owned locations as it looks to maximize value across the system. On restaurant expansion and rising construction costs, management reaffirmed its long-term growth plans while taking a more measured approach toward returns. Borden said the company still believes it can reach about 50,000 restaurants by the end of 2027. Kempczinski added that management is reevaluating the development pipeline as construction costs continue to rise. McDonald’s Corporation (NYSE:MCD) is a global foodservice retailer with operations across the US, International Operated Markets, and International Developmental Licensed Markets & Corporate segments. The US remains its largest market, with about 95% of locations operated by franchisees. While we acknowledge the potential of MCD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Value Stocks to Buy in 2026 According To Warren Buffett and 10 Best St...

McDonald’s pivoted to deals in order to attract inflation-weary customers amid a cutback in restaurant spending.

McDonald’s MCD) is standing out in what it calls a challenging macroeconomic environment as consumers, especially lower-income households, are pulling back on discretionary spending due to rising fuel and grocery costs. Delivering a stronger-than-expected Q1 report on Thursday, McDonald’s was able to excel due to its value pricing, strategic marketing, and menu innovation, which drove broad-based sales growth, market-share gains, and strong international performance. As a longtime fixture in institutional and retail portfolios, this raises the question of whether it’s time to consider McDonald’s stock for its steady global expansion and defensive hedge against economic downturns. McDonald’s Q1 sales were up 9% year over year to $6.51 billion, eclipsing estimates of $6.48 billion. Global comparable sales increased nearly 4% with all major segments contributing, highlighted by a standout performance in the U.K, Germany, and Australia. U.S. comparable sales also rose roughly 4%, driven by higher customer traffic and sustained market share gains. Notably, systemwide sales, which include all McDonald’s franchises, were up 11% to over $34 billion. On the bottom line, net income was up 6% YoY to $1.98 billion. This translated into adjusted EPS of $2.83, which was also a 6% increase from the prior year quarter and exceeded expectations of $2.74 by 3%. Excluding certain expenses, operational income was up 12% to $2.95 billion, with operating margins slightly increasing to 46% from 45% a year ago. Image Source: Zacks Investment Research Maintaining its strategic margin focus, McDonald’s still expects FY26 operating margins in the mid to high 40% range. Supporting its accelerated expansion, the fast-food giant still plans to open 2,600 new restaurants globally this year, with capital expenditures projected at $3.7-$3.9 billion, up from $3.2 billion in 2025. Although McDonald’s believes its long-term expansion strategy is on track, it warned of slower Q2 comparable sales due to tough YoY comparisons and a challenging consumer environment. Image Source: Zacks Investment Research Alongside its steady expansion, McDonald’s continues to attract investors with its reliable dividend, as the company is on the cusp of hitting Dividend King status (50+ consecutive years of dividend increases). Image Source: Zacks Investment Research MCD currently has a 2.62% yield, most recently...

McDonald's (MCD) delivered strong first-quarter results against a low bar, though there were signs t

You can find original article here Nrn. Subscribe to our free daily Nrn newsletters. Wendy’s same-store sales fell 7.8% in the first quarter, the company said on Friday, as struggles among low-income consumers and the chain’s shift away from breakfast proved too tough to overcome. But international is a relative bright spot, though same-store sales outside the U.S. also declined, by 0.4%. Still, the company reached a 1,000-unit deal with an unnamed restaurant operator to expand the brand in China, a potentially landmark deal for a chain eager to open restaurants internationally.  Wendy’s operates more than 1,400 locations outside the U.S., up 50% over the past five years. But the company still has an issue in the U.S., where it is losing considerable market share to rivals McDonald’s and Burger King, which just reported same-store sales of 3.9% and 5.8%, respectively. Same-store sales at the Dublin, Ohio-based chain were down at least 6.2% in each of the past four months, with the worst performance in February. That includes a 6.4% decline in April, during the company’s second quarter. The chain's domestic same-store sales have fallen for five straight quarters. Wendy’s results were better than analysts expected, sending the company’s stock up around 4% in early morning trading on Friday. The chain has struggled with low-income consumers, who have been cutting back on dining out at fast-food restaurants in recent years. Wendy’s has had more success with higher-income consumers. But breakfast is also an issue. The morning daypart hurt Wendy’s same-store sales by 100 basis points, suggesting that the morning hours’ results are down well into the teens. Consumers have cut back on breakfast, currently the weakest daypart in the fast-food sector right now. But Wendy’s has also given some operators the ability to stop service in the morning, which is a “large part” of why the company’s morning results have struggled. “Breakfast remains an important daypart and growth opportunity for many restaurants in the system,” Ken Cook, Wendy’s interim CEO, told analysts. “Breakfast has been the most challenged daypart across the industry. That’s true both last year and this year, and we’re seeing the same thing.”  One big challenge for Wendy’s, and many other fast-food chains, is costs. Beef prices have soared, which has forced the brand and its operators to pay a...

<span>STORY: McDonald's was among the companies on Thursday that said higher gas prices linked to the Iran war were disproportionately hurting low‑income consumers, as the burger chain warned of a weak start to its second quarter.</span><span>"The lower end seems to be really struggling at this point," Buchanan said. "And this earnings season really has highlighted that. From Whirlpool to McDonald's, we've seen some of these names and corporations really communicate [that] in a very direct way."</span><span>"The tipping point is an inflection in labor," Buchanan continued. "If we have a labor blip where jobs aren't as plentiful... we really feel like there's a lot of stress that could emanate throughout our marketplace" that could pressure U.S. stock prices.</span>

Earnings season marches on as investors will hear from big companies including McDonald's and CoreWeave. Data on the U.S. jobs market will also be watched closely, culminating in April nonfarm payroll numbers Friday.