McDonald's Corp. (MCD, Financial) presented disappointing second-quarter earnings on July 29. The quarter's indicators show how challenging the company's situation is, with negative same-store sales, flat revenue and an earnings miss.Despite this, shares have advanced slightly, the justification for which can be attributed to strategies to return value to the consumer like cheaper meal initiatives.Combining the bad situation with some trends in the fast-food chain's market, I believe a very cautious stance ...

And we talk with PG&E CEO Patricia Poppe about the company's turnaround and how it's serving the growing electricity demand from data centers.In this podcast, Motley Fool analyst Asit Sharma and host Dylan Lewis discuss:2024's largest IPO -- cold storage company Lineage -- and whether the REIT is worth watching for investors.McDonald's Q2 earnings, the chain's pivot to value-oriented menu items, and why the outlook for pinched consumers likely won't get better any time soon.PG&E CEO Patricia Poppe joins Mot ...

Investment Rating - The report assigns an "Accumulate" rating for the company, marking it as the first rating given [6]. Core Views - The company maintains its store opening pace as planned at the beginning of the year, but same-store sales are under pressure, leading to flat revenue year-on-year for Q2 2024. The introduction of low-priced meal packages is expected to boost sales in the coming period, although the same-store sales outlook for the year has been downgraded due to first-half performance. Material cost inflation has decreased, but labor cost pressures remain high, impacting profit margins. The low-priced package strategy may attract more customers in the second half of the year, and potential interest rate cuts in the U.S. could positively affect the consumer environment. Revenue projections for 2024, 2025, and 2026 are $25.99 billion, $27.33 billion, and $28.89 billion, with year-on-year growth rates of 1.9%, 5.2%, and 5.7% respectively. Net profit estimates are $8.42 billion, $9.00 billion, and $9.54 billion, reflecting a decline of 0.6% in 2024, followed by growth of 6.9% and 6.1% in the subsequent years. The current stock price corresponds to a PE ratio of 23, 21, and 20 for 2024, 2025, and 2026 respectively [3][4][6]. Financial Summary - For the fiscal year 2023, the company reported revenue of $25.49 billion, with a year-on-year growth of 10%. The projected revenue for 2024 is $25.99 billion, reflecting a modest growth of 1.9%. The net profit for 2023 was $8.47 billion, with a significant year-on-year increase of 37.1%. However, the forecast for 2024 indicates a slight decline in net profit to $8.42 billion, a decrease of 0.6%. The operating profit margin is expected to improve gradually from 45.7% in 2023 to 47.0% by 2026 [3][4][7]. Q2 Performance - In Q2 2024, the company's revenue was $6.49 billion, a slight decline of 0.1% year-on-year. The breakdown of revenue sources shows self-operated revenue at $2.46 billion, franchise revenue at $3.94 billion, and other revenue at $0.09 billion. The operating profit for the quarter was $2.92 billion, down 5.9% year-on-year, and net profit was $2.02 billion, reflecting a decrease of 12.5%. The net profit margin for the quarter was 31.2%, down 4.3 percentage points from the previous year [4][5][6]. Store Expansion - The company continues to expand its store count, with 13,484 locations in the U.S., 10,333 in International Operated Markets (IOM), and 18,589 in International Developmental Licensees (IDL) as of Q2 2024. This represents an increase of 27, 70, and 487 stores respectively compared to the end of 2023 [5][6].

A McDonald's employee working at a store in Savannah, Georgia, was sentenced to five years in federal prison after pleading guilty to lighting a fire inside a dumpster to clear out customers because the restaurant was overcrowded. Joshua Daryl McGregor, 34, was working at the restaurant on 2701 Montgomery Ave. in April 2023 when he became frustrated that the store was too busy, the U.S. Attorney's Office said in a press release."Intentionally setting a fire in an effort to shut down or damage someone else’s ...

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Let's take a look at what these Wall Street heavyweights have to say about McDonald's (MCD) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.McDonald's currently has an aver ...

FrankvandenBergh/E+ via Getty Images Showcase Intro This past July, we welcomed twenty-two new analysts who published their first-ever article on Seeking Alpha. Our first five introductions are spotlight features, including a longer excerpt from the analyst's article. The rest of the new analysts will be introduced after these with a more brief excerpt, and organized by rating from Strong Sell to Strong Buy. Each section includes details about the newcomers' interest and background, so you can get to kn ...

The fast-food environment is becoming increasingly more difficult to operate profitably in.Share prices of McDonald's (MCD 1.26%) were climbing higher despite the company missing analyst estimates when it reported its second-quarter results earlier this week. Customers have begun to push back on higher prices, which led the company to extend its $5 Meal Deal Promotion.Let's look at the fast-food chain's most recent results, its long-term prospects, and why competitors generally fare worse when the company b ...

TonyBaggett McDonald’s (NYSE:MCD) reported second-quarter earnings on Monday which failed to meet expectations in a number of metrics, but especially with regard to comparable sales, which were especially weak due to a slowdown in industry traffic. With customers frequenting fast-food restaurants less often during the second-quarter, McDonald’s has seen a decline in comparable sales in its key markets, including in the U.S. and Europe. It was the first comparable sales decline for McDonald’s since FY 20 ...

After a challenging second quarter, McDonald's executives told restaurant operators and analysts they are refocusing on how to recapture consumers with deals, as they pushed for an extension of the its $5 value meal platform.In a memo to the U.S. system obtained by CNBC on Monday, U.S. President Joe Erlinger said McDonald's struggled to sell diners on affordability, adding that he expects "industry and competitive challenges" to continue throughout the year. Erlinger encouraged operators to look ahead to bu ...

Core Insights - McDonald's stock rose 4% in intraday trading despite second-quarter earnings falling short of analyst expectations [1][4] - The company reported success with the $5 value meal launched last month, with nearly all U.S. locations approving its extension [1][3] - Executives noted sales growth among lower-income consumers, indicating a positive response to the value meal amid rising prices [2] Sales Performance - Comparable-store sales remained lower in July, but foot traffic has increased, with many customers purchasing additional items, leading to average tickets above $10 [4] - The company is evaluating strategies to enhance consumer awareness of its value offerings, including expanding the value menu and local deals [3] Strategic Outlook - McDonald's leadership emphasized the need for a broader value platform to attract consumers, rather than relying on limited offerings [3] - Executives are optimistic about extending the $5 meal deal beyond the initial four weeks due to its popularity [3]