Beleaguered burger giant McDonald's (MCD - Get Report) reported a challenging earnings report on Wednesday, putting the pressure on its new CEO Steve Easterbrook to serve up more details on a turnaround plan. Initially, there was some confusion on Wall Street as to what the Golden Arches reported in terms of earnings. Net earnings came in at 84 cents a share, which included a 17 cents-a-share hit from strategic charges stemming from the closure of 220 underperforming restaurants in the U.S., China, and Japan, and the negative impact from foreign currency of 9 cents a share.
Excluding the strategic items and the impact of the strong dollar, McDonald's earnings came in at $1.01 a share, not as bad as initially thought, but still below the adjusted consensus forecast of $1.06 a share. "Turnarounds are often bumpy in nature, and they require bold decisions," admitted McDonald's CEO Steve Easterbrook, who has seven weeks into holding the top job at the company. In addition, McDonald's sluggish April sales may mean it has felt an impact from Yum Brands' (YUM) relentless focus on breakfast at its Taco Bell division. In recent weeks, Taco Bell has launched four new varieties of its Biscuit Taco, and poked fun at McDonald's Egg McMuffin in multiple high-profile TV commercials. Sales of breakfast are about 25% of McDonald's U.S. business and have continued to be a solid performer, even as the rest of the menu has fallen out of favor with consumers.
Source: The Street
Related Articles:
- 5 Lessons Learned About Investing In Dividend Growth Stocks
- 6 High-Yielding Mega-Cap Stocks
- Dividend Investors Should Focus On Stocks, Not The Market
- The Secret Ingredient of Dividend Growth Stocks
- Stocks Providing Positive Feedback With Increased Dividends
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
It’s no secret that most investors who buy high-yield stocks are looking for income. But every once in a while, yield hunters may come acros...
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
Dividend-paying securities are the major sources of consistent income when returns from the equity market are at risk. Why Growth-Focused Di...
-
Not all stocks that pay high dividends are too good to be true. In fact, some stocks with high yields have lots of room to grow, or they tra...
-
After an abysmal 2018, real estate investment trusts (REITs) have been on a roll this year. After pulling one of the worst performances sinc...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
Cheap stocks can be hard to find in a high-flying market like the current one. The S&P 500 is flirting with all-time highs following its...
-
Large-cap consumer staples companies are not known for making big moves in their share prices. But on the morning of Monday, April 22, Kimbe...
-
The past few years, I’ve urged readers to study a little-followed group of businesses I consider “cash cows.” Large investors generally igno...
-
Big, boring AT&T (NYSE:T) recently made a splash, selling its minority stake in streaming video site Hulu. AT&T stock gained 0.7% on...
0 comments
Post a Comment
Post a Comment