Trending restaurant stocks: McDonald’s (MCD), Starbucks (SBUX)

Summary

  • Both the restaurant stocks dropped when markets opened for Wednesday’s trading.
  • McDonald’s reported global comparable sales growth of 40.5 percent in the second quarter.
  • Starbucks’ global comparable-store sales rose 73 percent in its fiscal third quarter.

Stocks of McDonald’s Corporation (NYSE: MCD) and Starbucks Corporation (NASDAQ: SBUX) declined on Wednesday morning despite both the companies posting strong growth in their June quarter. McDonald’s stock declined by more than 1 percent, while Starbucks shares fell by around 3 percent.

McDonald’s Corporation

The fast-food restaurant chain on July 28 reported 40.5 percent comparable sales growth globally during the second quarter ended June 30. The company saw comparable sales rise 25.9 percent in the US market, while it jumped 75.1 percent in the international operated markets. In addition, the comparable sales at the international developmental licensed markets segment grew 32.3 percent.

McDonald’s consolidated revenues totaled US$5.89 billion, up 57 percent year over year. The company earned US$2.22 billion, or US$2.95 per share in net income, compared with US$483.8 million, or 65 cents per share in the year-ago quarter. Non-GAAP EPS came in at US$2.37, up from 66 cents.

McDonald’s currently has a market cap of US$180.29 billion. The stock returned 11.89 percent year to date. The shares traded between US$ 191.64 and US$247.05 in the last 52 weeks. It has a P/E ratio of 35.82. As of 9:45 am ET, McDonald’s shares were trading at US$241.62, down 1.92 percent.

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Source: Pixabay

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Starbucks Corporation

The coffee chain said on July 27 that its global comparable-store sales rose 73 percent in its fiscal third quarter ended June 27, fuelled by 84 percent growth in the Americas region. Comparable store sales in its international region increased by 41 percent. China comparable store sales were up by 19 percent.

Consolidated net revenues came in at US$7.5 billion, up 78 percent year over year. The company earned 97 cents per share, compared with a loss of 58 per share in the year-ago quarter. Non-GAAP EPS was US$1.01, compared with a loss of 46 cents per share in the second quarter last year.

However, Starbucks reduced its comparable sales outlook for fiscal 2021. It now expects comparable store sales to grow between 20 percent and 21 percent globally, compared to the previously estimated range of 18 percent to 23 percent.

Starbucks currently projects international comparable store sales growth of 15 percent to 17 percent as it dropped Chinese comparable store sales growth forecast to 18 percent to 20 percent.

For the fourth quarter, Starbucks’ global comparable store sales are expected to grow between 18 percent and 21 percent. However, in China, comparable store sales growth is anticipated to be roughly flat.

Starbucks now has a market cap of US$143.58 billion. The stock rose 14.47 percent year to date and traded in the range of US$74.76 to US$126.32. It has a P/E ratio of 150.95.

As of 9:46 am ET, Starbucks’ stock declined 3.39 percent to US$121.76.

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Please note: The above constitutes a preliminary view, and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view. 

The reference data in this article has been partly sourced from Refinitiv.

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