McDonald’s (NYSE:MCD) had an intraday reversal yesterday, losing ground in early trading before recovering back into positive territory, thanks to its fourth-quarter earnings report. Ahead of the open, the fast-food giant said it collected $1.16 per share in profits, matching the consensus view. Revenue rose 4% on a year-over-year basis to $6.2 billion, also in line with what analysts were expecting.
In the conference call that accompanied the earnings figures, MCD said it is well-positioned to invest in its business. The company plans to invest $2.5 billion of capital to build 1,100 new restaurants and give a face lift to many existing locations.
For the current month, MCD expects global comparable sales to increase 4% to 5%. Its breakfast dollar menu has been strong, the introduction of fruit smoothies has been successful so far, and the McCafe coffee drinks is having a positive impact on the international breakfast business. They say beef is currently their most volatile cost, so who knows, they may borrow from fellow fast-food brand Chick-fil-A and encourage customers to “Eat Mor Chikin [sic].” (more…)
Moms and Dads, get your shopping lists ready! Wal-Mart Stores (NYSE:WMT) announced this week that it is dropping its prices on toys to get a jump on the holiday shopping season and potentially gain an edge over competitors such as Target (NYSE:TGT).
Wal-Mart’s (NYSE:WMT) plan for world domination has extended to the Cape of Good Hope. The world’s largest retailer has announced its intention to spend nearly $4.8 billion on the South African chain of Massmart low-cost retail stores. The Congress of South African Trade Unions (Cosatu) quickly voiced its displeasure, noting they will “oppose the setting up of any [Wal-Mart] stores in [the area].”
A couple of weeks ago, 
