Tag Archives: McDonald`s

by | June 14, 2022 · 5:30 am

McDonald`s new name is Vkusno & Tochka

Historians do not fully agree on the starting and end of the «cold war», but the period is generally considered to span from the announcement of the Truman Doctrine on 12 March 1947 to the dissolution of the Soviet Union on 26 December 1991.

At the end of the cold war, corporations rushed into Russia and opened their businesses, and one of them was McDonald`s. They opened their first restaurant in Pushkin Square in Moscow on January 31, 1990. The same day they opened, thousands were lined up to try the new tasty burgers. And that ladies and gentlemen were synonymous with Capitalism, and its arrival symbolized Soviet Union`s impending demise. On May 16, 2022, McDonald`s announced that it was leaving Russia.

Photo by Rajesh TP on Pexels.com

Now, McDonald`s is selling all of its 850 restaurants in Russia after Vladimir Putin invaded Ukraine. After 80 years of socialism, people in Russia rushed to McDonald`s and the American culture. The new Western way of eating. But now people in Russia rush to the new Russian burgers at the new Russian fast-food chain called Vkusno & Tochka, which means «tasty and that`s it».

Founded by businessman Alexander Govor, who acquired all the restaurants for an undisclosed sum. But he said he paid «far lower than market price.» Govor has been a McDonald`s franchisee since 2015 when he agreed to open 20 restaurants through his business GiD LLC.

Govor also made a lot of money in mining and oil refining in Siberia. He made his wealth in the coal business as co-owner of the coal mining company Yuzhkuzbassugol, in his hometown of Novokuznetsk. He bought the mine together with Evraz during liberalization in the 1990s under President Boris Yeltsin.

Evraz bought out Govor from the company, and one of the owners is Russian billionaire Roman Abramovich (Chelsea FC).

When McDonald`s opened their first restaurant in Russia, it had this slogan: «If you can`t go to America, come to McDonald`s in Moscow.» That slogan is over and out, and in comes Vkusno & Tochka`s new slogan; «The name changes – love stays».

Most of the things in the restaurants are similar to McDonald`s. The same quality, and taste. The same equipment and the same double cheeseburgers. The difference is that most of the money goes to Russia. Not America anymore.

Many people in Russia wanted to take part in the opening of the new fast-food chain, and the rebranding marked a new era in Russia on Sunday last week. The last big mac has finally left Russia.

Govor will pay about 60,000 Russian McDonald`s employees for the next two years, according to the agreement with McDonald`s. In the same agreement, he also agreed to pay suppliers and landlords.

Govor`s company will invest 7 billion rubles ($125 million) into the new business in 2022.

By the way: McDonald`s has the right to buy back its restaurants within 15 years, but «they made it clear to me that they would not buy back», Govor said. Really?

The S&P 500 plummeted -by 3,88% on Monday, but shares of Mcdonald’s outperformed the market, jumped +0,39% and closed «only» $32 below its 52-week high at $271,15.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shinybull.com. The author has made every effort to ensure the accuracy of the information provided; however, neither Shinybull.com nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities, or other financial instruments. Shinybull.com and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Leave a comment

Filed under Stocks

Tagged as , , , , , , , , , , , , , , ,

by | October 21, 2019 · 8:35 pm

The market for alternative proteins could hit $140 billion by 2029

McDonald`s Corporations is expected to report earnings on Tuesday 22 before market open, and the reported EPS forecast for the fiscal Quarter ending September 2019 is $2,21 which is up from last years $2,1 for the same quarter.

So far this year, the stock is up 17% and that is 2% lower than the S&P 500. Nor is it as good as its restaurant peers. Earnings is expected to be $2,21 a share on revenue of $5,48 billion. Previous quarter, they had an earnings of $2,05 a share and revenue of $5,34 billion.

Analysts have praised McDonald`s use of technology and their investments in AI, but also its experience of the Future restaurant remodeling.

Earlier this summer, McDonald`s partnered with Doordash to expand new sales in the direct delivery market. A direct attack on Uber Technologies’ Uber Eats.

McDonald`s is the largest food restaurant in the world and their move to adopt plant-based protein patties for Beyond Meat can give McDonald`s a boost. This is a pilot project and it doesn`t mean that fast food chains will stick to keeping plant based products on the menu.

Beyond Meat is a huge success and partnered with McDonald`s across 28 locations in Canada, but at the same time the company`s burgers were pulled from locations in another big regional Canadian fast food chain called Tim Hortons.

The demand for alternative proteins continues to skyrocket and analysts expect that the plant based products will take a huge bite of the traditional meat industry over the next decade. Barclays believe the market for alternative proteins could hit $140 billion by 2029.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Leave a comment

Filed under Stocks, Uncategorized

Tagged as , , , , , , , ,

by | May 7, 2019 · 8:15 pm

Uber is offering 180 million shares for $44 and $50 and that will value the company at about $84 billion

The stock market is declining while the IPO market is hotter than ever this week. At least 15 IPO deals are expected to be priced this week and this is the biggest week since 2015. What most investors are focusing on now is Uber which is the biggest U.S company deal since Facebook in 2012.

Uber is finish with its roadshow in London, Boston and San Francisco, and the company is expected to price the sale on Thursday this week. The demand for the stock is strong and investors have put in orders for at least three times the amount of stock on offer.

Uber can raise as much as $9 billion and if that happen it will be the largest this year. It`s not clear what the price for stock will be but I think that the turmoil in the market at the moment will have an impact of the price range.

Uber is offering 180 million shares for $44 and $50 and that will value the company at about $84 billion. They have $11 billion in revenue and about $50 billion in gross bookings. Like Lyft, they have big operating losses.

Last year, Uber lost $3,03 billion in the 12 months through March. This is the largest loss ever for a U.S startup in the year before an IPO, and they have a lot of challenges.

More than 82% of the revenue comes from ridesharing while 13% comes from food delivery. Uber has a deal with McDonalds and used to get a 20% commission on deliveries. McDonalds renegotiatied the deal, and now Uber gets a 15% commission.

Chief Executive Dara Khosrowshahi is trying to sell Wall Street his vision that Uber will become the dominant force in all forms of transportation. But the competition is intense in many places around the globe.

China have its own Didi Chuxing while India has Zomato and Swiggy for food delivery. Didi is also in Latin America where they compete with Doordash, and all of them in the food delivery business.

Uber and Lyft drivers are planning a strike from 7 am to 9 am on Wednesday to protest their wages, their treatment as independent contractors rather than employees, and the lack of regulation governing the new sector.

Drivers have challenged the ride-sharing companies many times for refusing to deem them employees, which means they are responsible for maintenance of their own vehicles as well as gas and insurance, which greatly reduces the amount they can earn per hour.

Their competitor Lyft went public in April this year and entered the market with its IPO price of $72 per share. The stock soared on their debut but it came down again as IPO`s usually does, and now the stock is trading about 16 percent below its IPO price.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Leave a comment

Filed under Stocks

Tagged as , , , , , , , , , ,

by | January 23, 2015 · 3:28 pm

Taco vs Burger

McDonald`s have underperformed for some time now, and the chain have also had some problems lately. Some of the critics have been that their menu is expansive and confusing. The employees at McDonald`s say their menu is too long which is leading to slower turnover times and longer lines resulting in lost business during meal rushes.

The latest problem is racism. Some black people were fired at McDonald`s being told that there were too many black people at work, lawsuit claims. A previous manager at McDonald`s said she was fired because she was black. She said one of her supervisors would regularly make inflammatory comments to her, such as “We need to get the ghetto out of the store.”

Another problem they have is people sitting there for hours. It could be unemployed people or poor people paying for their cheap burgers, and all this is not good news for McDonald`s Corporation. In addition; people tend to think that McDonald`s do have unhealthy food.

The company has seen declining company wide sales since the summer last year. Last month McDonald`s announced a menu overhaul to address its lackluster performance. The fast food joint also launched a massive marketing campaign to enhance its image.

U.S comparable sales were down 4,6% YoY in November and in October U.S comps dropped by 1% YOY. The past few monthly sales numbers have led to lower estimates for the upcoming quarter.

As the demand for McDonald`s is declining others are rising, and McDonald`s saw that many years ago. That`s why they bought shares at Chipotle Mexican Grill. Folks are flocking to the restaurant with their mexican taco food on the menu.

CMG 2015

As you can see on the chart above, the stock price has skyrocketed. I can understand why McDonald`s bought shares in that company. CMG`s stock price was $40 in 2008, and now it is $719,21. Up about 1000% in a few years.

People tend to think that Sushi is healthy food, but it isn`t. It is too much rice and sugar and that will make you fat. Rice and sugar are «No-food». Mexican food is «Yes-food». People want healthy food and that`s why they like CMG. That`s also why McDonald`s started to sell salad. Among the best thing you can eat on this planet, but McDonald`s is not a salad chain. Do they have an image problem?

CMG will report FQ4 results in Feb 03, and the conference call is scheduled to begin at 04:30 pm ET. Consensus view is EPS of $3,77 on revenue of $1,07B.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

Leave a comment

Filed under Stocks

Tagged as , ,

by | June 11, 2014 · 1:46 pm

McDonald`s is growing

McDonald`s (MCD) is growing but that is slowly. It`s share price moved only 8% in 2013, and McDonald`s rewarded its shareholders with a 10% increase to its dividend. The surged 4% YTD. They delivered a high return on equity and their growth in its top and bottom lines was decent.

MCD

McDonald`s holds a market share of 31% in the fast food industry. How can McDonald`s continue to grow? Because the domestic market is saturated, they are now expanding in emerging markets, particularly China, where they have a great opportunity.

The U.S fast food industry is expected to grow 10% during the period of 2013 – 2018. Emerging markets are attractive to fast food players due to their large populations, fast population growth, concentration of younger consumers and growing demand for Western diets.

China is important for McDonald`s and it is the third largest market for the company after the U.S and Japan. They holds a 15% market share of China`s fast food market. They experience a strong growth in the region.

China`s fast food & takeaway market grew 80% from 2007 – 2012 to RMB 1 trillion ($162 billion). The market is expected to hit RMB 1,8 trillion ($292 billion) by 2017. All this is driven by economic growth in China, and McDonald`s is investing heavily in China to benefit from this growing market.

McDonald`s will open 1,600 new restaurants around the globe and spend $3 billion this year. China will get one of the biggest shares. They will open 300 locations in China, and that`s up from 250 last year and quadruple the number in 2004. Their goal is to have more than 2,000 restaurants in China by the end of 2014.

McDonald`s share price and earnings have underperformed relative to the S&P 500 and restaurants peers over the last 12 months. Have a look at the chart below. I have compared McDonald`s and S&P 500 so you could see by yourself.

MCD vs SPX

(Picture: McDonald`s vs S&P 500)

In my opinion; both McDonald’s and Burger King is now trying to be everything for everyone. Can you imagine Burger King selling you a salad? Or a wrap? Come on; what`s next? For all I know, they will start to sell sushi next week. In-N-Out Burger, Chick-fil-A and Five Guys haven`t changed their menu in years. A big menu is making McDonald`s slower.

Many switch to restaurants perceived as more natural, simple and healthy, like Chipotle Mexican Grill (CMG) or Taco Bell which is built on this trend. McDonald’s franchisees lose out and this will be a slowly process as franchisee satisfaction is driven so largely by cash flow. McDonald’s need to take drastic action on their meny complexity and food integrity. Before that I expect the share price to languish.

Reports today:

10:30 a.m EST Crude Oil Inventories
01:01 a.m EST 10-y Bond Auction
02:00 a.m EST Fedral Budget Balance

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

 

Leave a comment

Filed under Stocks

Tagged as , ,