Tag: Visa

Positive revenue drives McDonald’s stock to soar while Visa plummets

MCD –  McDonald’s Corporation operates and franchises restaurants.

MCD – McDonald’s Corporation

Fundamentals Previously closed at 125.86
Day’s high 128.75
Day’s low 125.60
P/E ratio 26.18
EPS 4.81


Analysts opinion Today, MCD reported its Q1 earnings pre-market. MCD’s global sales has increased by 6.2% in Q1, outpacing most other restaurant chains. Its net income grew 35% to $1.098 billion in the first quarter from $811.5 million last year. Its earnings rose 46% to 1.23 per share. However, on the revenue front, MCD’s revenues were 1% lower YoY at $5.903 Billion for Q1. On the flip side, MCD faces a threat from the French authorities who are trying to collect $341Million as taxes. Also, the management is trying to move company owned stores into franchises. Though the precise structure of the deal is yet to be decided, MCD will supposedly get a one-time franchise payment and an ongoing royalty fees of 3-5% of annual turnover. This move may reduce revenues for MCD significantly. It may also result in more number of franchises.
Sentiments MCD reported that comparable sales grew 5.4%, the stock price rose 1.8% pre-market.
Social Media Pulse The stock has 100% higher chatter than usual.

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