Core Insights - The article discusses the macro-environment and the potential role of emerging markets in investment portfolios for 2026 [1] Investment Strategy - The investment strategy emphasizes quality investments, diversification, timely additions, and a long-term focus [1] - The author reflects on past mistakes such as chasing risk and following uncomprehended advice, which serves as a learning experience [1] Portfolio Composition - The broad market investments include DIA, VOO, QQQM, and RSP, while sector and non-US investments feature XLE/IXC, IDU/BUI, FEZ, SCHF, and EWC/BBCA [1] - Metals investments include CEF, SGOL, SLV, and XME, while notable stocks mentioned are JPM, MCD, WMT, and MAA [1] - Municipal bonds from NCI are also part of the investment group, contributing to managed income portfolios targeting approximately 8% yields [1] Features of Investment Group - The CEF/ETF Income Laboratory focuses on high-yield opportunities and is designed for both active and passive investors [1] - The majority of holdings are monthly-payers, which facilitate faster compounding and steady income streams [1] - Additional features include 24/7 chat support and trade alerts for investors [1]

Paycom - Paycom's earnings report showed revenue of $544 million, exceeding expectations of $493 million, but earnings per share (EPS) came in at $2.45, slightly below the expected $2.44 [2][3] - The company is adopting a cautious approach due to macroeconomic uncertainty, with a revenue growth outlook suggesting a maturing phase rather than hyper growth, projecting 2026 revenue between $2.17 billion and $2.19 billion [3][4] McDonald's - McDonald's reported strong quarterly results, beating expectations on both revenue and EPS, with same-store sales in the U.S. up 6.8%, significantly above expectations [6][8] - Revenue reached $7 billion, contributing to a positive market reaction, with several analysts raising price targets and maintaining buy ratings [7][9] - The company's strategy of focusing on value offerings has been effective in attracting customers amid a tight spending environment [8][9] Restaurant Brands - Restaurant Brands, the parent company of Burger King and Popeyes, reported revenue of $2.47 billion and adjusted EPS of $0.96, slightly beating expectations [12] - However, the company faced challenges with Popeyes experiencing a sharp sales decline, while Burger King showed modest growth with same-store sales up 2.7% [13][14] - Overall, the international growth story is mixed, with global same-store sales increasing by 3.1%, but not strong enough to satisfy investor expectations [14]

Core Insights - Fast food earnings week showcased strong performance from major players, particularly McDonald's and Restaurant Brands International, highlighting the competitive landscape in the industry [1] McDonald's Performance - Global same-store sales increased by 5.7% in Q4, surpassing the expected 3.7%, with U.S. comps rising 6.8%, marking the largest increase in about two years [2] - Revenue grew by 10% to $7.01 billion, with adjusted EPS reaching $3.12, exceeding the expected $3.05 [2] - Operating margins are projected to be in the mid-to-high 40% range, indicating strong profitability [2] - Strategies included subsidizing "extra value" meals, reviving the Monopoly promotion, and launching a Grinch holiday campaign that resulted in the highest single sales day in company history [3] - Despite concerns over GLP-1 medications affecting appetite, McDonald's reported no material impact on sales, with protein items still performing well [3] Restaurant Brands International (RBI) Performance - RBI reported Q4 adjusted EPS of 96 cents, slightly above expectations, with revenue of $2.47 billion, exceeding the anticipated $2.41 billion [6] - Same-store sales rose by 3.1%, with organic revenue increasing by 6.5% after adjusting for currency and refranchising [6] - International same-store sales surged by 6.1%, with Burger King's international comps climbing 5.8%, outperforming the expected 3.7% [6] - Domestically, Tim Hortons saw comps grow by 2.9%, below the 3.8% forecast, while Popeyes experienced a decline of 4.8%, indicating a need for strategic changes [7] - RBI closed its Burger King China joint venture, with private equity firm CPE acquiring approximately 83%, while RBI retains a minority stake and board representation [8]

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Core Insights - McDonald's reported strong fourth-quarter results, with revenue and comparable sales exceeding analysts' expectations, driven by increased US traffic and the popularity of value meals [1][2] Financial Performance - Revenue for the fourth quarter rose 10% year-on-year to $7.01 billion, surpassing the forecast of $6.81 billion [1] - Earnings per share (EPS) matched estimates at $3.03, up from $2.80 a year earlier [1] - Comparable sales increased 5.7% globally, exceeding the projected 3.76%, with US comparable sales rising 6.8%, the fastest growth in over two years [2] - Operating income for the quarter grew 10% to $3.16 billion [2] Full-Year Results - McDonald's reported full-year systemwide sales of over $139 billion, with loyalty program sales totaling approximately $37 billion, a 20% increase year-on-year [3] - The number of 90-day active loyalty users reached around 210 million, a 19% increase from the previous year [3] - Adjusted EPS for the full year came in at $3.12, beating the expected $3.04 [3] - The company declared a quarterly dividend of $1.86 per share, reflecting a 5% increase [3] Strategic Insights - CEO Chris Kempczinski emphasized the effectiveness of McDonald's value leadership strategy, which has improved traffic and strengthened value and affordability scores [4] - The company experienced an 8% increase in global systemwide sales and strong comparable sales growth across all segments [4] - McDonald's stock reached an all-time high, although shares were trading flat on the morning following the announcement [4]

Core Insights - McDonald's reported fourth quarter results that exceeded Wall Street expectations, driven by a focus on value meals and effective marketing strategies, resulting in a third consecutive quarter of US sales growth [1][2] US Performance - US same-store sales increased by 6.8% in the fourth quarter, surpassing the expected 5.1% growth, while full-year same-store sales rose by 2.1%, above the anticipated 1.6% [1][2] International Performance - Global same-store sales grew by 5.7% in the fourth quarter, exceeding the estimated 3.8% increase, with full-year international sales rising by 3.1%, higher than the expected 2.6% [2] Financial Metrics - Adjusted earnings per share for the quarter rose by 10% to $3.12, surpassing the expected $3.04, while the full-year figure reached $12.20, $0.06 above analyst forecasts [3] - Revenue for the fourth quarter was reported at $7 billion, exceeding the estimated $6.8 billion, and full-year revenue was $26.9 billion, slightly above the expected $26.7 billion [4] Strategic Initiatives - The reintroduction of Extra Value Meals, which offered a 15% discount, has been a key factor in improving customer traffic and enhancing value perception [3] - Support for franchisees regarding the Extra Value Meal initiative is expected to continue, with the CFO indicating its fundamental importance in the current market environment [4] Market Outlook - The company anticipates a challenging fast food industry environment in the US and other markets through 2026 [4] - Analysts express optimism that increased consumer spending, potentially driven by larger tax refunds, could disproportionately benefit McDonald's [5] - The company expects first quarter results in both US and international markets to decelerate sequentially from the fourth quarter [5]

Financial Data and Key Metrics Changes - For the full year 2025, the company delivered comparable sales growth of 2.4%, net restaurant growth of 2.9%, and system-wide sales growth of 5.3% [31][32] - Organic adjusted operating income growth was 8.3%, and nominal adjusted EPS growth was over 10% [7][30] - The company achieved its third consecutive year of approximately 8% organic adjusted operating income growth, demonstrating consistency within the industry [7][49] Business Line Data and Key Metrics Changes - Tim Hortons, which represents roughly 42% of operating profit, delivered comparable sales growth of 2.8% in Canada, outperforming the broader Canadian QSR industry [10][14] - The international segment, contributing about 27% of operating profit, saw comparable sales growth of 4.9% and net restaurant growth of 4.9%, driving system-wide sales growth of nearly 11% [14][15] - Burger King U.S. achieved comparable sales growth of 1.6% for the full year, including 2.6% in the fourth quarter [20][24] - Popeyes experienced a net restaurant growth of 1.6% but faced a decline in comparable sales of 3.2% for the year, resulting in system-wide sales growth of -0.7% [25][28] Market Data and Key Metrics Changes - In the international markets, particularly in Europe and Asia Pacific, the company benefited from structural growth and positive same-store sales, with notable performance in France and Japan [62][66] - Burger King China reported a 9.2% growth in comparable sales, driven by improvements in restaurant fundamentals and a new joint venture with CPE [16][17] Company Strategy and Development Direction - The company is focused on long-term investments and operational improvements, with a goal to return to a 99% franchise business model [9][30] - The strategy includes refranchising efforts at Burger King U.S. and expanding the restaurant footprint in China [6][30] - The upcoming Investor Day on February 26 will address the company's growth algorithm and plans for net restaurant growth [9][30] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 was a challenging year due to elevated costs and macroeconomic pressures, but the fundamentals of the business showed resilience [44][46] - The company expects to ramp back towards 5% unit growth by the end of the growth algorithm period, with a positive outlook for 2026 [32][40] - Management expressed confidence in the ability to build on the momentum from 2025, emphasizing the importance of franchisee profitability and operational consistency [30][44] Other Important Information - The company generated nearly $1.6 billion of free cash flow in 2025 and returned $1.1 billion of capital to shareholders through dividends [36][37] - The total liquidity at year-end was approximately $2.4 billion, with a net leverage ratio of 4.2x [37] Q&A Session Summary Question: Can you discuss the comparable sales evolution and trajectory in 2026, particularly for Tim Hortons and Burger King? - Management indicated that the strong performance in 2025 sets a positive foundation for 2026, with expectations for a similar consumer environment and continued focus on fundamentals [53][54] Question: How much of the international momentum is driven by a healthier backdrop versus share gains? - Management responded that the momentum is a combination of a supportive market backdrop and effective local strategies, with strong performance in various international markets [60][63] Question: Can you summarize the performance in developed markets, particularly Europe? - Management highlighted consistent positive performance across major Western European markets, with strong results in Turkey and a healthy business in Canada [71][72]

Financial Data and Key Metrics Changes - For the full year 2025, the company delivered comparable sales growth of 2.4%, net restaurant growth of 2.9%, and system-wide sales growth of 5.3% [31] - Organic adjusted operating income (AOI) growth was 8.3%, and nominal adjusted EPS growth exceeded 10% [7][31] - The company achieved its third consecutive year of approximately 8% organic adjusted operating income growth, demonstrating consistency within the industry [7][50] Business Line Data and Key Metrics Changes - Tim Hortons, which represents about 42% of operating profit, achieved comparable sales growth of 2.8% in Canada, outperforming the broader Canadian QSR industry [10] - The international segment, contributing around 27% of operating profit, saw comparable sales grow by 4.9% for the full year, with system-wide sales growth nearing 11% [15] - Burger King U.S. reported comparable sales growth of 1.6% for the full year, with a notable 2.6% in the fourth quarter [20] Market Data and Key Metrics Changes - In Canada, Tim Hortons experienced a solid performance despite macroeconomic challenges, with breakfast food sales growing by 3.5% [11] - The international segment's performance was bolstered by strong results in markets like France and Australia, with double-digit system-wide sales growth [15][17] - Burger King China reported a 9.2% increase in comparable sales, driven by improved restaurant fundamentals and marketing efforts [16] Company Strategy and Development Direction - The company is focused on long-term growth, with plans to return to a 99% franchise business model and accelerate net restaurant growth to 5%+ [9][32] - A new partnership with CPE in China aims to double Burger King China's restaurant footprint to at least 2,500 units by 2030 [16] - The company is prioritizing operational consistency and franchisee profitability, particularly at Popeyes, where leadership changes have been made to enhance performance [25][26] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 was a challenging year due to elevated costs and macroeconomic pressures, but the fundamentals of the business remained resilient [44] - The company expects to build on the momentum from 2025, with a commitment to delivering another year of 8% organic AOI growth in 2026 [42][43] - Management highlighted the importance of franchisee profitability as a key metric for assessing business health, with Tim Hortons maintaining strong average four-wall EBITDA [45] Other Important Information - The company generated nearly $1.6 billion in free cash flow in 2025 and returned $1.1 billion to shareholders through dividends [36] - The total liquidity at year-end was approximately $2.4 billion, with a net leverage ratio of 4.2x [37] - The upcoming Investor Day on February 26 will provide further insights into the company's strategic plans and performance metrics [9] Q&A Session Summary Question: Can you discuss the comparable sales evolution and trajectory in 2026, particularly for Tim Hortons and Burger King? - Management indicated that the strong performance in 2025 sets a positive foundation for 2026, with expectations for a similar consumer environment and continued focus on fundamentals [53][54] Question: How much of the international momentum is driven by a healthier backdrop versus share gains? - Management responded that the momentum is a combination of a supportive market backdrop and effective local strategies, with structural growth in many international markets [60][62] Question: Can you summarize the performance in developed markets, particularly Europe? - Management noted that Western European markets showed consistent positive performance, with strong results across major markets like France, Spain, and Germany [71]

Core Insights - Restaurant Brands International (QSR) reported a 7.4% increase in Q4 revenue to $2.47 billion, with adjusted operating income rising 16.5% to $674 million, driven primarily by Tim Hortons' performance [1] - Despite meeting earnings expectations, investor reaction was lukewarm, with shares retreating slightly in early trading [1] Financial Performance - Adjusted diluted EPS was $0.96, aligning with consensus estimates - Revenue of $2.47 billion exceeded the $2.44 billion estimate by 1.2%, marking a 7.4% year-over-year growth - Adjusted operating income increased by 16.5% to $674 million, while reported operating income fell by 2.2% to $621 million - Net income from continuing operations rose 5.8% to $274 million, impacted by higher tax expenses [1] Brand Performance - Tim Hortons led the growth with revenue of $1.14 billion, up 10.6%, and comparable sales growth of 2.8% in Canada - The International segment generated $263 million in revenue, a 10.8% increase with 6.1% comparable sales growth - Burger King reported $383 million in revenue, up 2.1%, with U.S. comparable sales increasing by 2.6% - Popeyes experienced a revenue decline of 2.5% to $196 million [1] Capital Allocation and Outlook - The company returned $1.1 billion to shareholders in 2025 through dividends and reduced net leverage to 4.2x from 4.6x - A Q1 2026 dividend of $0.65 per share was declared, with a 2026 annual dividend target set at $2.60 per share - CEO Josh Kobza highlighted the company's consistent execution and progress in strengthening its brands, maintaining long-term targets of 3%+ comparable sales growth and 8%+ organic adjusted operating income growth through 2028 [1]

The value part of this. I mean, the company's CEO was quick to point out like the first sentence in the press release was about value. This is a return to value for McDonald's. Is McDonald's been successful in actually providing that value to U.S. consumers in the most recent quarter.It does appear to be that way. And I think there really had been a focus you know, there's been a focus with McDonald's for a while on the value piece of it. But I think they also fine tuned the value offering with the extra va ...