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Earnings Highlights: Caterpillar, Comcast, DreamWorks, Ford, Kodak, P&G and More

Here are some highlights from this past week's earnings coverage on BloggingStocks:

  • Aflac Inc. (AFL) higher Q1 earnings were better than analysts expected, due in part to a stronger yen.
  • Automatic Data Processing Inc. (ADP) Q3 EPS were the same as a year ago and revenue inched higher.
  • BlackRock Inc. (BLK) higher Q1 earnings fell short of analysts' expectations due to acquisition-related charges.
  • Broadcom Corp. (BRCM) posted record revenue in Q1 and swung to a profit from a year-ago loss.
  • Burger King Holdings Inc. (BKC) topped Wall Street's Q3 earnings estimate, but same-store sales fell.

Continue reading Earnings Highlights: Caterpillar, Comcast, DreamWorks, Ford, Kodak, P&G and More

Three Reasons to Buy McDonald's Stock

McDonald's MCD logoFast-food giant McDonald's (MCD) is without doubt the quintessential American fast-food restaurant -- but it is also a global name with strong sales at global stores. The company makes products enjoyed around the world and it offers those products at a price point accessible to nearly everyone.

Certainly, fast-food consumers have demonstrated a taste for McDonald's. But investors also have a taste for MCD stock. Over the past five years, the stock has shot up nearly 138% and so far this year there's been no sign the stock is slowing down. The restaurant stock now trades at 52-week highs.

Continue reading Three Reasons to Buy McDonald's Stock

Burger King: Decent Q3, but Sector Concerns Persist

At least initially, investors were impressed by hamburger chain Burger King's (BKC) beat of Wall Street's third quarter earnings estimate, 30 cents compared to the First Call estimate of 29 cents, with its shares jumping 3.5% to $21.41 on Thursday at mid-day.

Further, investors appeared to cut Burger King some slack, as the winter quarter's severe weather artificially depressed traffic. Chief Executive Officer John Chidsey said sales increased in March and were slightly higher in April, although they were still lower compared to a year ago. Burger King earned 34 cents in the third quarter of fiscal 2009.

Continue reading Burger King: Decent Q3, but Sector Concerns Persist

Starbucks Hopes Summer Menu Heats Up Sales

starbucks frappucinoSeattle coffee icon Starbucks (SBUX) has been on the resurgence in 2010 after consumers fled during the Great Recession. In order to keep the profits percolating, SBUX is looking to roll out a fresh new menu of Frappucinos and iced coffee for the hot summer months.

Growth is crucial for SBUX stock now after it has weathered the worst of the economic downturn. Notable achievements over the past few months include:

  • The announcement of the first-ever cash dividend to SBUX stock owners.
  • Gains of about 220% in Starbucks shares since the 2009 lows, from $8.24 on March 9, 2009, to the mid-$26 range today.
  • Four straight earnings reports topping Wall Street forecasts, with an average earnings surprise of almost 20%.
But despite these strides, SBUX stock is still down about 33% from its 2006 peak at about $40 a share. And the coffee marketplace has become increasingly crowded in the intervening years, so returning to its lofty perch as the coffee queen is no easy task.

Continue reading Starbucks Hopes Summer Menu Heats Up Sales

Can Burger King's 'Brunch' Menu Take Bite out of McDonalds?

Burger King (BKC) is turning up the heat in its war with McDonalds (MCD) for early morning sales. In selected markets, Burger King is advertising the availability of a "Burger King brunch" in a quest to cash in on lucrative morning sales. This is only a few months after announcing Burger King will carry coffee made by Starbucks to provide a more flavorful alternative to its BK Joe coffee.

This is what the fast-food breakfast wars have become: Mimosas at the drive-thru window.

Continue reading Can Burger King's 'Brunch' Menu Take Bite out of McDonalds?

Add Yum! Brands to Your Portfolio?

Yum Brands earningsYum! Brands (YUM), owner of KFC and Taco Bell, operates in the same industry as McDonald's (MCD), Burger King (BKC), and Wendy's/Arby's Group (WEN). All of these stocks are either at or near their respective 52-week highs. How does Yum! Brands look after its first-quarter report?

You've got to take notice of this stock. The one-year chart depicts an equity that consolidated for a while, only to finally break out and head to the upside. And here's some more good news for both traders and investors alike: Wednesday, the shares closed the regular session 1.8% higher from where they started. Then, during the after-hours session, following distribution of the earnings release, the bulls, deciding they wanted to remain in charge, gave the company another boost.

Continue reading Add Yum! Brands to Your Portfolio?

Can Value Menu Turn Around Arby's?

Though it's a bit later than fast-food rivals McDonald's (MCD) and Burger King (BKC), Arby's is at last rolling out a value menu of its own. The restaurant is adding more lower-priced items to its menu including a small roast beef sandwich, curly fries and a "jamocha" shake -- and operator Wendy's/Arby's Group (WEN) is backing them with an expensive new advertising campaign.

It's part of a big push by the higher priced fast-food joint to woo back cost-conscious customers who fled the pricier restaurant for cheaper rivals during the recession. Since Arby's ownership group Triarc bought the Wendy's name in 2008, it has seen its Arby's stores stuck in a steady downward spiral -- sped up by the recession.

But will this latest gambit help, or is Arby's a dying chain?

Continue reading Can Value Menu Turn Around Arby's?

Sonic's Q2: A Not-Too-Tasty Decline in Comps

I've never been to a Sonic (SONC) joint. I'm sure I would love the food; however, I can definitively state that I did not like the company's current earnings report, which was released yesterday after the bell.

For the second quarter, Sonic lost one penny per share. Last year, the business brought in 14 cents per share of positive profit, helped along by a gain of 6 cents attributable to a debt purchase. The current performance was unfortunately below estimates; the market wanted 2 cents of income to show up on the bottom line.

Continue reading Sonic's Q2: A Not-Too-Tasty Decline in Comps

Shareholders of Yum! Brands Receive Good News This Month

Yum! Brands (YUM), a collection of restaurant chains operating in the same space as McDonald's (MCD) and Burger King (BKC), didn't post the most exciting earnings report last month, but it might not matter. Just recently, shareholders received a couple pieces of good news.

First, UBS offered inspiring comments about the company and the stock last week. Shares were upgraded to buy status, rising from neutral. A higher price target of $44 was issued. The catalyst basically centers on things getting better on a fundamental basis for the restaurant brands; also, China's sales appear to have stabilized.

Continue reading Shareholders of Yum! Brands Receive Good News This Month

Wendy's/Arby's Group: Q4 Comps Don't Inspire

Wendy's/Arby's Group (WEN) is a stock that really isn't for most investors (in my opinion). It's not what I would call a quality name. If you want to play the fast-food sector, you'd be better off with McDonald's (MCD) or Yum! Brands (YUM).

Burger King (BKC), although not my favorite member of the list, might also be a more attractive selection than Wendy's/Arby's Group. I don't mean to be down on the fast-food entity, but it just isn't in the same league as those other investment ideas. Plus, a look at the fourth-quarter report shows that management has quite a bit of work to do.

Continue reading Wendy's/Arby's Group: Q4 Comps Don't Inspire

Burger King Will Enter into the Coffee Battle

Late Tuesday, Burger King (BKC) announced plans to revamp its breakfast menu in an attempt to turn around its floundering business. BKC is going to add Starbucks (SBUX) and Seattle's Best coffee to all of its U.S. restaurants.

BKC's senior vice president John Schaufelbeger stated, "We'll be delivering a better cup of coffee" -- a strategy that has paid off greatly for rival McDonald's (MCD). MCD's addition of quality coffee drinks to its menu has provided a boost to its total sales -- results BKC hopes to emulate.

Continue reading Burger King Will Enter into the Coffee Battle

Earnings Highlights: Aol, Burger King, Comcast, Hershey, Kellogg, UPS ...

Here are some highlights from this past week's earnings coverage on BloggingStocks:

  • Aol Inc. (AOL) reported a better-than-expected Q4 profit and said its revenue also topped estimates.
  • Burger King Holdings Inc. (BKC) higher Q2 earnings topped analysts' estimates but same-store sales fell.
  • Clorox Co. (CLX) higher Q2 earnings beat expectations and it lifted its full-year earnings guidance.
  • Comcast Corp. (CMCSA) Q4 earnings more than doubled and beat Wall Street expectations, but shares fell.
  • Gap Inc. (GPS) shares jumped after it forecast earnings above analysts' expectations, boosted by January sales.

Continue reading Earnings Highlights: Aol, Burger King, Comcast, Hershey, Kellogg, UPS ...

Burger King's Second Quarter: Comps Could Be Better

Burger King (BKC), which competes for the attention of fast-food junkies along with McDonald's (MCD), Wendy's/Arby's Group (WEN), and Yum! Brands (YUM), didn't do too badly when it came to bottom-line growth in the second quarter. Same-store sales, on the other hand, could have used a little assistance.

Earnings per share calculated out to 37 cents. That was good for a 12% increase. Great to see double-digit appreciation. However, domestic comps went down 3.3%, while total comps were off by 2%. The same-store sales metric is a very important indicator of the overall health of a business that has many locations.

Continue reading Burger King's Second Quarter: Comps Could Be Better

Yum! Brands Not Doing Well After Q4 Release

Yum! Brands (YUM), whose colleagues include McDonald's (MCD), Burger King (BKC), and Wendy's/Arby's Group (WEN), sold off this afternoon as the market digested the fourth-quarter earnings news that was released on Wednesday after the bell. I will say, even though this report wasn't a complete disaster, it also wasn't the most exciting document I've ever read.

Sales went down 1%, and earnings per share on an adjusted basis increased 7% to 50 cents. Earnings.com says 48 cents per share was the desired figure. Same-store sales in the United States decreased 8%.

Continue reading Yum! Brands Not Doing Well After Q4 Release

Before the Bell: Stocks to Struggle at the Open

U.S. stock futures were lower Thursday following declines in overseas markets as worries about Europe's sovereign debts resumed. Despite Cisco Systems' upbeat report concerns about the economic recovery ahead of the jobs report continued to affect investors' sentiment.

Already on Wednesday, several weak economic readings, including a service sector gauge, and disappointing results from Pfizer (PFE) pushed stocks lower. But Wall Street is bracing for the nonfarm payroll report due out Friday morning to get a better feel for the state of the economic recovery and employment.

Continue reading Before the Bell: Stocks to Struggle at the Open

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Last updated: May 24, 2012: 08:08 PM

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