McDonald’s Offers No Surprises (MCD, YUM, SBUX)
Same-store sales in US McDonald’s Inc. (NYSE: MCD) stores rose 8.9% in the first quarter, substantially higher the 5.5% rise in same-store sales in the company’s Asia/Pacific, Middle East, and Africa region and the 5% rise in Europe. The company…
Excluding currency effects McDonald’s total sales rose 7% in the quarter, identical with growth in total sales at Yum! Brands Inc. (NYSE: YUM), which reported earnings on Wednesday. Starbucks Corp. (NASDAQ: SBUX) reports earnings next week and is expected to post revenues of $3.18 billion, a jump of 14% over the same period a year ago.
Overall, McDonald’s posted EPS of $1.23, right in line with the consensus estimate, on revenue of $6.55 billion, slightly ahead of the consensus estimate of $6.54 billion. The EPS estimate for next quarter is $1.44 on revenues of $7.15 billion. Good weather is not likely to offer much of boost in the current quarter, so the company better have something else up its sleeve.
McDonald’s shares are up about 1.7% in the pre-market at $96.95, in a 52-week range of $76.50-$102.22.
Paul Ausick
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
