Update McDonald’s (MCD)
If you’re worried that the U.S. and global economies are going to slow in the second half of 2010, then McDonald’s (MCD) on its second quarter performance is the stock for you. (Of course if you think the upswing of the last week isn’t just a bounce, McDonald’s isn’t the stock for you. See my post Two weeks of summer rally or three days of bounce? )
The company reported earnings on July 23 for the quarter of $1.13, a penny better than the Wall Street consensus, and revenue of $5.95 billion, slightly above projections for $5.91 billion. Comparable store sales climbed 3.7% in the United States, 5.2% in Europe, and 4.6% in the Asia/Pacific, Middle East and Africa business unit.
Update McDonald’s (MCD)
Economists aren’t sure but McDonald’s (MCD) is investing for a global economic recovery.
McDonald’s expects to increase global capital spending to $2.4 billion in 2010, up from $2.1 billion in 2009. That will let the company add 1,000 new stores and “re-image’ 2300 more. To put that capital budget in the context of the rest of the fast-food industry, the $300 million increase in McDonald’s capital spending is larger than Burger King’s (BKC) entire capital budget, Deutsche Bank calculates.
The increased spending includes a 25% increase in capital spending in China that would finance the opening of 150 to 175 new stores in China in 2010.
None of this is terribly surprising when viewed through the lens of the company’s February 9 report of same-restaurant sales for January.
Update McDonald’s (MCD)
Ronald McDonald delivered a big surprise this morning.
McDonald’s announced fourth quarter earnings of $1.11 a share before the market opened on January 22. That was 9 cents a share better than Wall Street had expected. In the fourth quarter of 2008 the company earned 87 cents a share. Revenue climbed 7.3% from the fourth quarter of 2008 to $5.97 billion. That too was above the Wall Street consensus (at $5.94 billion.)
But the biggest surprise came on global comparable store sales There the company reported an increase of 2.3%. Wall Street had been expecting comparable store sales to fall by 0.03%. Comparable store sales growth was, however, lower than last quarter’s 3.8% increase.
Europe was the star, Asia was a disappointment, and the United States was the big surprise when it came to regional comparable store sales.
Update Middleby (MIDD)
On November 10 Middleby (MIDD) reported third quarter earnings of 83 cents a share, four cents a share better than Wall Street projections, but still 19% down from the third quarter of 2008. Revenue fell 7.5% from the third quarter of 2008. At $154 million revenue was about $10 million below the Wall Street consensus.
If you used a magnifying glass, you could find signs of improvement in the revenue number. In the second quarter of 2009 revenue was down 8.6% from the second quarter of 2008. In the third quarter of 2009 the year-to-year decline was just 7.2%.
And in the earnings number too. Gross margin climbed to 40.3% in the quarter from 38.9% in the third quarter of 2008.
