Shares of British baker and fast-food chain Greggs rose 11.5% to 1,790p on Wednesday, topping the FTSE mid-cap index, after the company reaffirmed its full-year profit guidance despite a slowdown in u... ...

McDonald’s Corporation (NYSE:MCD) is included among the Best Stocks for a Dividend Stock Portfolio. McDonald's Corporation’s (MCD) Dividend History: A Reliable Addition to Any Dividend Stock Portfolio McDonald’s Corporation (NYSE:MCD) is an American multinational fast food company. With a largely franchised model and strong operating margins, the company is able to turn a significant portion of its revenue into profit and cash flow, funding both dividends and share buybacks. Recent results also underscor ...

Core Viewpoint - Wendy's is facing significant challenges including stagnant sales growth, a declining stock price, and negative earnings revisions, which are impacting its outlook negatively [1][4][9] Company Performance - Wendy's has experienced flat to negative comparable sales growth and has struggled to adapt to changing consumer preferences for healthier options and convenience-driven formats [2][5] - Current quarter EPS projections have been cut by 16%, and next quarter estimates are down 17.4%, indicating a loss of confidence in the company's near-term performance [5] - Sales are expected to decline by 3.4% this year, with only a modest rebound of 4.5% projected for 2026, while earnings are anticipated to drop by 12% this year with a 7.9% recovery next year [6] Valuation and Market Sentiment - Despite weak fundamentals, Wendy's stock trades at a forward earnings multiple of 11.1x, its lowest in a decade, but the weak growth profile makes this valuation appear expensive [6][9] - Analysts have been cutting estimates across various timeframes, pushing Wendy's stock into Zacks Rank 5 (Strong Sell) territory [3][5] - The stock has failed to gain momentum even after an earnings beat, and it is trading close to new lows, which could lead to further selling pressure [8][9] Investment Outlook - Without a clear path to sustainable growth, it is suggested that investors may want to avoid Wendy's and focus on stronger operators in the restaurant space [10]

Core Viewpoint - McDonald's has established itself as a reliable entity in the dividend space, demonstrating consistency in a competitive restaurant sector [1]. Company Summary - McDonald's is recognized for its strong dividend performance, which is a key attraction for investors seeking stability [1]. Industry Summary - The restaurant industry is characterized by high competition, yet McDonald's has successfully built a solid reputation and operational consistency within this dynamic environment [1].

Core Viewpoint - McDonald's has established itself as a reliable entity in the dividend space, demonstrating consistency in a competitive restaurant sector [1]. Company Analysis - McDonald's is recognized for its ability to maintain a solid performance despite the dynamic nature of the restaurant industry [1]. Industry Context - The restaurant sector is characterized by high competition, yet McDonald's has successfully built a strong reputation for reliability and consistency [1].

Core Viewpoint - McDonald's is expected to report quarterly earnings of $3.15 per share, a 6.1% increase year-over-year, with revenues projected at $6.71 billion, reflecting a 3.5% increase compared to the same period last year [1]. Earnings Estimates - The consensus EPS estimate has been revised 0.5% higher in the last 30 days, indicating a collective reevaluation by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Revenues- Company-owned and operated sales- Total' to be $2.43 billion, a decrease of 1.2% year-over-year [5]. - 'Revenues- Franchised revenues- Total' is projected to reach $4.15 billion, marking a 5.3% increase from the previous year [5]. - 'Revenues- Total Other revenues' is expected to be $142.01 million, showing a significant year-over-year increase of 59.6% [6]. - 'Revenues- Company-owned and operated sales- International Developmental Licensed Markets & Corporate' is estimated at $169.09 million, indicating a decline of 21.4% year-over-year [6]. Systemwide Restaurant Metrics - Total systemwide restaurants are estimated to be 44,128, up from 42,406 a year ago [7]. - Total systemwide restaurants in International Developmental Licensed Markets & Corporate are projected at 19,940, compared to 18,589 last year [7]. - Total systemwide restaurants in International Operated Markets are expected to reach 10,605, an increase from 10,333 in the same quarter last year [8]. - Total systemwide restaurants in the U.S. are projected at 13,590, compared to 13,484 a year ago [8]. - Total franchised systemwide restaurants are estimated at 42,099, up from 40,238 last year [9]. - Total company-owned and operated restaurants are expected to be 2,046, down from 2,168 a year ago [9]. - Franchised Developmental licensed restaurants are projected at 9,396, an increase from 8,815 last year [10]. - Franchised Foreign affiliated restaurants are estimated at 10,493, compared to 9,531 in the same quarter last year [10]. Stock Performance - McDonald's shares have shown a return of +2% over the past month, slightly trailing the Zacks S&P 500 composite's +2.3% change [10].

Core Viewpoint - Wendy's has recently cut its dividend by 44%, but the stock still offers a yield above the S&P 500 average, potentially making it an underrated income stock for investors [2][11]. Dividend Changes - Wendy's reduced its quarterly dividend from $0.25 to $0.14, resulting in an annual payout of $0.56 per share [4]. - The new dividend payout ratio is approximately 74% of earnings, which appears sustainable given the current earnings levels [5][10]. Financial Performance - In the first quarter of 2025, Wendy's reported diluted earnings per share of $0.19, down by $0.01 year over year [5]. - The company has experienced a 35% decline in stock price since the beginning of the year, attributed to the dividend cut and disappointing sales results [6]. Market Valuation - Wendy's stock is currently trading at 11 times its trailing earnings, significantly lower than the S&P 500 average of 25 times [8]. - The stock is near its 52-week low, indicating a potentially undervalued position in the market [8]. Investment Outlook - Despite recent challenges, Wendy's remains a leading fast-food chain, and the current low valuation combined with a sustainable dividend yield of 5.2% presents a contrarian investment opportunity [9][11]. - There is a belief that the market has overreacted to Wendy's recent performance, suggesting that the stock could be a good long-term investment if financial conditions stabilize [12].

Group 1 - McDonald's Corp (NYSE:MCD) has not participated in the stock rally, showing a 7% deficit in Q2 while other Dow stocks have double-digit gains for 2025 [1] - The stock is currently testing a historically bullish trendline and is within one standard deviation of its 320-day moving average, having closed above this trendline in eight of the last ten sessions [2] - Historical data indicates that similar signals have led to a 67% chance of MCD's stock rising one month later, with an average gain of 3%, which would place it above its year-to-date breakeven level [3] Group 2 - The 14-day relative strength index (RSI) for MCD is currently at 30, indicating it is in "oversold" territory, which may signal potential rebound opportunities [5] - Options trading for MCD is currently attractive, with a Schaeffer's Volatility Index (SVI) of 17%, suggesting lower-than-usual volatility expectations among options traders [5]

Group 1 - Redburn Atlantic downgraded McDonald's shares from "buy" to "sell" and reduced the price target from $319 to $260, citing weight-loss drugs like Ozempic as a significant threat to the business [1] - McDonald's shares have recently dropped to their lowest level since April, moving away from a previous attempt to break through the $320 resistance level [2] - The stock is currently testing support from the 200-day moving average, which has historically contained multiple pullbacks over the past year [2] Group 2 - Options trading volume for McDonald's is currently at double the intraday average, with 7,142 calls and 2,437 puts exchanged [3] - The June 345 call is the most active contract, indicating a trend of new positions being sold to open [3] - The 50-day put/call volume ratio for McDonald's is at 1.13, placing it in the 90th percentile of annual readings, suggesting a more pessimistic outlook among options traders [3]

Core Insights - McDonald's Corp reported a revenue miss for the fiscal first quarter, leading to a 1.3% decline in stock price to $315.58, despite beating profit expectations [1] - Same-store sales in the U.S. fell for the second consecutive quarter, marking the largest decline since Covid-19, attributed to adverse weather and consumer caution [1] Financial Performance - Year-to-date, McDonald's stock is up 8.9%, with the $310 level expected to provide support against further pullbacks [2] - The stock has remained below $320 since reaching a record high of $326.32 on March 10 [2] Market Sentiment - Short-term options traders exhibit a bearish sentiment, indicated by a Schaeffer's put/call open interest ratio (SOIR) of 1.41, ranking in the top percentile of the past 12 months [3] - Options trading activity shows a significant bearish lean, with 7,993 puts and 5,917 calls traded, which is double the average intraday volume [4] - The most active options include the weekly 5/2 320-strike call and the 310-strike put, with new positions being opened [4]