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McDonald's (MCD) Halts Reopening of Dining Rooms for 21 Days
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McDonald's Corporation (MCD - Free Report) recently halted the reopening of additional dining rooms in the United States by 21 days on account of rising number of coronavirus cases. Over the last two weeks, the country has witnessed an increase of 65% in coronavirus cases. Following the news, the company’s shares declined nearly 1% in after-hour trading session. Year to date, the company’s shares have gained 6.5%, against the industry’s decline of 9%.
The company started reopening dine-in service in May. McDonald's has already reopened dining rooms in 2,200 restaurants out of 14,000 restaurants in the country. However, the restaurants continue to operate via off-premise.
Restaurants with reopened dining rooms are likely to consult local and state officials on whether to cease the dining rooms services again.
Coming to international markets, most of the restaurants in France, Italy, Spain, United Kingdom, Australia and Germany have resumed operations. Notably, the restaurants are operating with drive-thru and delivery services, and dining room access with limited capacity.
Comparable Sales Hurt by Pandemic
In the month of April, comparable sales in the U.S. and International Operated Markets were down 19.2% and 66.7%, respectively. However, for the month ended May 31, the metric fell only 5.1% and 40.5% at the U.S. and International Operated Markets, respectively.
Total comparable sales improved from a decline of 39% (for the month ended Apr 30) to a decrease of 20.9% (for the month ended May 31). Quarter to date ended May 31, total comparable sales declined 29.8%.
In a bid to recover business post coronavirus-induced shutdowns, McDonald's continues to follow regulatory guidelines amid store re-openings to ensure health and safety of customers and employees.
McDonald's currently carries a Zacks Rank #3 (Hold).
Jack in the Box’s 2021 earnings are expected to rise 22.8%.
Wingstop has a three-five year earnings per share growth rate of 11%.
Domino's beat the Zacks Consensus Estimate in each of the trailing four quarters, the average positive earnings surprise being 12.7%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
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McDonald's (MCD) Halts Reopening of Dining Rooms for 21 Days
McDonald's Corporation (MCD - Free Report) recently halted the reopening of additional dining rooms in the United States by 21 days on account of rising number of coronavirus cases. Over the last two weeks, the country has witnessed an increase of 65% in coronavirus cases. Following the news, the company’s shares declined nearly 1% in after-hour trading session. Year to date, the company’s shares have gained 6.5%, against the industry’s decline of 9%.
The company started reopening dine-in service in May. McDonald's has already reopened dining rooms in 2,200 restaurants out of 14,000 restaurants in the country. However, the restaurants continue to operate via off-premise.
Restaurants with reopened dining rooms are likely to consult local and state officials on whether to cease the dining rooms services again.
Coming to international markets, most of the restaurants in France, Italy, Spain, United Kingdom, Australia and Germany have resumed operations. Notably, the restaurants are operating with drive-thru and delivery services, and dining room access with limited capacity.
Comparable Sales Hurt by Pandemic
In the month of April, comparable sales in the U.S. and International Operated Markets were down 19.2% and 66.7%, respectively. However, for the month ended May 31, the metric fell only 5.1% and 40.5% at the U.S. and International Operated Markets, respectively.
Total comparable sales improved from a decline of 39% (for the month ended Apr 30) to a decrease of 20.9% (for the month ended May 31). Quarter to date ended May 31, total comparable sales declined 29.8%.
In a bid to recover business post coronavirus-induced shutdowns, McDonald's continues to follow regulatory guidelines amid store re-openings to ensure health and safety of customers and employees.
McDonald's currently carries a Zacks Rank #3 (Hold).
Key Picks
Other top-ranked stocks in the same space are Jack in the Box Inc. (JACK - Free Report) , Wingstop Inc. (WING - Free Report) and Domino's Pizza, Inc. (DPZ - Free Report) . Jack in the Box and Wingstop sport a Zacks Rank #1 (Strong Buy), while Domino's carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Jack in the Box’s 2021 earnings are expected to rise 22.8%.
Wingstop has a three-five year earnings per share growth rate of 11%.
Domino's beat the Zacks Consensus Estimate in each of the trailing four quarters, the average positive earnings surprise being 12.7%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>