Bilibala: yeah!! McDonald's!! I'm loving it!!
http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201003101021dowjonesdjonline000443&title=mcdonalds-us-sales-getting-boost-from-breakfastsnacking
By Paul Ziobro, Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- McDonald's Corp.'s (MCD) domestic same-store sales are getting the biggest boost from breakfast and snacking items, helped by recent launches of a $1 breakfast menu and the Mac Snack Wrap, McDonald's Chief Financial Officer Pete Bensen said Wednesday.
Otherwise, the fast-food giant isn't seeing anything "dramatically different" in consumer behavior during the last several months in the U.S., where McDonald's recently reported a slight increase in same-store sales in February, outperforming its competitors.
McDonald's average sale has also been "relatively stable" this year, but has taken "a little bit of a hit" during breakfast due to the new bargain menu.
Bensen, speaking at a Bank of America/Merrill Lynch conference, also said McDonald's expects price increases in 2010 to be below historical levels.
McDonald's typically raises prices between 2% and 3% each year to help keep pace with inflation in food and other costs, but Bensen said that any increase this year "will probably be less than that." The fast-food chain has spoken of diminished pricing power in recent months, though it comes at a time when commodity costs are expected to be benign.
"Right now as we sit, we don't see a tremendous opportunity to take price," Bensen said. "But the fact that our cost environment is so good, that's not troubling to us."
The Mac Snack Wrap, priced at $1.49, is also proving an attractive lure to get customers to trade up from the Dollar Menu. Bensen said 40% of Mac Snack Wraps sold are to customers who would have otherwise bought an item for $1.
McDonald's focus for the upcoming year lies in menu innovation, with beverages like frappes and smoothies planned for launch in the coming months, and improving service with new cash-register systems and double drive-through lanes with screens that display orders.
It's also renovating more than 2,000 restaurants this year. In the U.S., Bensen said McDonald's contribution to store remodels will likely be similar to the amount it spent during the installation of McCafe, when McDonald's paid for 40% of the costs needed to upgrade buildings.
McDonald's shares, flat in recent trading at $65.10, are up 24% over the past year.
-By Paul Ziobro, Dow Jones Newswires; 212-416-2194;
Showing posts with label Sector-Food. Show all posts
Showing posts with label Sector-Food. Show all posts
3.01.2010
Pepsi Co 2010 Outlook
Bilibala: I like Coca Cola much more than Pepsi. But in terms of doing business & investment, I like Pepsi more than Coke. Pepsi is much more deversify (other than soda carbonated drinks, its juice, snack and healthy food business are much stronger than Coke), plus its management to me, act more proactively than Coke.
http://www.reuters.com/article/idUSTRE62024U20100301?feedType=nl&feedName=usbeforethebell
NEW YORK (Reuters) - PepsiCo Inc (PEP.N) backed its outlook for 2010 and said it expects earnings per share to rise at a low-double-digit rate on an constant-currency basis in 2011 and 2012.
The soft-drink maker, which just closed its purchase of bottlers Pepsi Bottling Group and PepsiAmericas Inc, said it expects earnings per share to grow 11 percent to 13 percent this year on a constant-currency basis.
Pepsi archrival Coca-Cola Co (KO.N) surprised Wall Street last week with a similar move to buy the North American operations of bottler Coca-Cola Enterprises Inc (CCE.N).
In an interview with CNBC on Monday, Pepsi Chief Executive Indra Nooyi said the old model of having bottlers separate from the main syrup company was a "relic of the past."
Combining bottlers with the main franchise will help the companies compete better in a U.S. beverage industry where "the profit pool is not growing enough to feed the companies," Nooyi told the business news channel.
The new model will also give the beverage makers more flexibility while distributing new products, she said.
Nooyi said she was optimistic about Pepsi's prospects following the completion of the bottler deals, but added she was worried about the next 12 to 18 months, considering weak U.S. consumer confidence levels amid high jobless rates.
Pepsi shares were up 1 percent at $63.18 in early trade.
(Reporting by Dhanya Skariachan; Editing by Lisa Von Ahn and John Wallace)
http://www.reuters.com/article/idUSTRE62024U20100301?feedType=nl&feedName=usbeforethebell
NEW YORK (Reuters) - PepsiCo Inc (PEP.N) backed its outlook for 2010 and said it expects earnings per share to rise at a low-double-digit rate on an constant-currency basis in 2011 and 2012.
The soft-drink maker, which just closed its purchase of bottlers Pepsi Bottling Group and PepsiAmericas Inc, said it expects earnings per share to grow 11 percent to 13 percent this year on a constant-currency basis.
Pepsi archrival Coca-Cola Co (KO.N) surprised Wall Street last week with a similar move to buy the North American operations of bottler Coca-Cola Enterprises Inc (CCE.N).
In an interview with CNBC on Monday, Pepsi Chief Executive Indra Nooyi said the old model of having bottlers separate from the main syrup company was a "relic of the past."
Combining bottlers with the main franchise will help the companies compete better in a U.S. beverage industry where "the profit pool is not growing enough to feed the companies," Nooyi told the business news channel.
The new model will also give the beverage makers more flexibility while distributing new products, she said.
Nooyi said she was optimistic about Pepsi's prospects following the completion of the bottler deals, but added she was worried about the next 12 to 18 months, considering weak U.S. consumer confidence levels amid high jobless rates.
Pepsi shares were up 1 percent at $63.18 in early trade.
(Reporting by Dhanya Skariachan; Editing by Lisa Von Ahn and John Wallace)
1.06.2010
Warren against Kraft's deal
Bilibala: When you go to supermarket, u wish u will receive discount on things u need and u want to buy, same apply to investment. Value is your choice. You can invest or acquire something for the purpose of just keep expanding. You need to growth in the better and smart way!!
By Andrew Frye
Jan. 5 (Bloomberg) -- Warren Buffett, who worked behind the scenes to undermine Coca-Cola Co.’s bid for Quaker Oats 10 years ago, has gone public to rein in Kraft Foods Inc.’s Irene Rosenfeld in her quest to acquire Cadbury Plc.
Buffett’s Berkshire Hathaway Inc., Kraft’s biggest shareholder, said today that Rosenfeld was seeking a “blank check” and urged fellow investors to oppose her plan to authorize the issuance as many as 370 million shares. Northfield, Illinois-based Kraft, which has bid 10.6 billion pounds ($17 billion) for Cadbury, first announced its intention in September to buy the company.
“It’s unusual for Berkshire to put out any sort of comment like this publicly,” said Glenn Tongue, a partner at T2 Partners LLC, which holds investments in Omaha, Nebraska-based Berkshire and Kraft and doesn’t want the foodmaker to increase its bid. “As a shareholder I love seeing this because at the current offer this deal makes plenty of sense.”
Buffett, who has said shareholders need to act like owners, is calling for caution in negotiations after Cadbury said Kraft’s offer was insufficient. In publicly urging investors to join him, the 79-year-old Berkshire chairman is drawing on his power as a 9.4-percent owner of Kraft and the standing he’s gained in financial markets as the world’s preeminent investor.
“If he says no, everybody else is going to pile on and say no too,” said Justin Fuller, a partner at Midway Capital Research & Management who runs the buffettologist.com Web site.
Berkshire said it may support a Cadbury takeover if it concludes this month that the final offer “does not destroy value for Kraft shareholders.” Buffett didn’t immediately respond to a request for comment on what terms he would endorse.
‘Expensive Proposition’
“I don’t think that he’s opposed to the acquisition, I think he’s opposed to the use of stock,” said Gerald Martin, a finance professor at American University’s Kogod School of Business in Washington. “He feels that the shares are so undervalued that it would be an expensive proposition.”
Buffett won a global following as the “Oracle of Omaha” by profiting from investments in out-of-favor stocks and businesses. Berkshire, the biggest shareholder in Coca-Cola, American Express Co. and Wells Fargo & Co., used profits last year to buy stock in some of the world’s biggest companies, including Exxon Mobil Corp. and Kraft rival Nestle SA.
Buffett was the most vocal dissenter on Atlanta-based Coca- Cola’s board when directors met in 2000 to discuss a $15.3 billion bid by then-Chief Executive Officer Douglas Daft for Quaker Oats, the maker of Gatorade, Cap’n Crunch cereal and Rice-A-Roni. Buffett argued the price was too high because a stock swap proposed as part of the deal would give up more than 10 percent of Coca-Cola, board member James Williams said in a 2004 interview.
‘Very Scarce’
The board voted against the acquisition and PepsiCo Inc. bought Quaker Oats instead, completing the purchase in August 2001 for $14 billion.
“I’m not surprised that Berkshire would resist issuing shares,” said Tom Russo, partner at Gardner Russo & Gardner, which holds Berkshire, Cadbury and Vevey, Switzerland-based Nestle. Buffett “has had the longstanding belief that equity capital is very scarce.”
Rosenfeld, CEO at Kraft since 2006, is seeking to buy the U.K.-based maker of Creme Eggs and Trident gum to expand its business outside the U.S. Kraft raised the cash portion of the Cadbury bid today after agreeing to sell pizza brands including DiGiorno and Tombstone to Nestle, the world’s largest food company.
Cadbury fell 3.2 percent to 779 pence in London, the biggest drop in eight months. Kraft added 91 cents, or 3.3 percent, to $28.34 at 3:11 p.m. in New York Stock Exchange composite trading. That values Berkshire’s stake at more than $3.9 billion.
‘Very Expensive Currency’
Buffett said Kraft shares were “very expensive ‘currency’” after falling about 17 percent in the two years ended last week, and he criticized management for seeking to issue stock at current prices after repurchasing shares at $33 in 2007. Kraft executives “have to do a lot of things right to justify this price,” Buffett said in a September interview on CNBC.
“We agree that Kraft Foods shares are deeply undervalued,” the foodmaker said in a statement. “We intend to remain disciplined in this process.”
NEW YORK/LONDON (Reuters) - Warren Buffett came out against Kraft's (KFT.N) $16.8 billion hostile offer for Britain's Cadbury (CBRY.L) as a threat to shareholder value, undermining the U.S. foodmaker's attempt to woo investors with a sweeter bid.
Deals
Kraft Chief Executive Irene Rosenfeld had sought to grab Cadbury investors' attention by raising the cash portion of its bid on Tuesday. But the rare intervention by Buffett a few hours later showed she has yet to win over Kraft's largest shareholder and one of the world's most admired investors, as well as giving Cadbury new ammunition in its defense.
Buffett's Berkshire Hathaway (BRKa.N) said in a statement it was voting against Kraft's proposal to float 370 million shares to fund the Cadbury bid while the company's stock remains undervalued, calling it a request for a blank check from shareholders. The company holds 9.4 percent of Kraft.
Berkshire said it could reconsider its vote if convinced the bid does not destroy shareholder value. Kraft could also ultimately offer fewer shares.
"It's very unusual for Buffett to speak out like this," said Justin Fuller, an analyst who follows Berkshire for Midway Capital Research & Management and publishes the Buffettologist.com blog.
"Cadbury doesn't want to do a deal at this price and this resistance from Kraft's largest shareholder hurts the deal's chances of getting done."
Cadbury Chairman Roger Carr quickly seized on the Berkshire statement as a sign that Rosenfeld was being squeezed in her most ambitious gambit yet as CEO.
"Kraft talks about discipline in making their derisory offer but it's really about management weakness," Carr said in a statement. "Their offer is limited by powerful Kraft shareholders restricting the stock content and constrained by Kraft's rating agencies limiting the cash content."
A source familiar with the situation said Kraft had been in constant communication with its largest shareholder throughout the Cadbury bid process, and that Buffett was apprised of Kraft's position before the Tuesday announcement.
But it appeared that the two sides did not see eye-to-eye, prompting the Berkshire statement.
"If Buffett votes against something -- that carries a great deal of weight with other shareholders .... When he says no, no is what he says and means," said Jerry Bruni, CEO and portfolio manager of J.V. Bruni and Co, based in Colorado Springs, Co.
Kraft shares were up 3.5 percent Tuesday afternoon while Cadbury slipped 3.2 percent. Cadbury shares are trading about 3 percent higher than Kraft's current offer, down from a spread of about 10 percent on Monday.
NESTLE DEAL FUNDS REVISED KRAFT OFFER
Earlier, Kraft revised its 10.4 billion pound ($16.8 billion) bid, offering shareholders the option of an additional 60 pence cash per share for the maker of Dairy Milk chocolate and Trident gum.
The extra cash brings the cash portion to 360p and is funded from a deal whereby Switzerland's Nestle (NESN.VX) will buy Kraft's North American frozen pizza business for $3.7 billion. Nestle also ruled itself out of any bid war for Cadbury.
Rosenfeld has stuck to her guns since her initial approach to Cadbury late last summer, determined not to overpay and convinced that a rival bidder would not emerge. Some Buffett watchers believe she could yet bring the Sage of Omaha on board.
"I don't think he's throwing a monkey wrench in the deal. This is Warren Buffett 101," said Frank Betz, a principal at Carret/Zane Capital Management LLP and an owner of Berkshire shares who has played bridge with Buffett.
A Kraft spokeswoman said the company agrees its shares are "deeply undervalued," would remain disciplined and would not do anything that hurts shareholder value.
"He is our largest investor and one of the most respected investors in the world, so of course we take his opinion seriously," she said of Buffett.
Cadbury shares fell to 779p on Tuesday, compared with Kraft's cash-and-share bid value of about 758p. Many analysts and investors still expect Kraft will need to pay 800 pence per share or above to win over Cadbury.
KRAFT STILL A FRONT-RUNNER
Buffett's surprise announcement overshadowed news that a key rival to Kraft took itself, and possibly other suitors, out of the running.
"Nestle's decision effectively leaves Kraft as the overwhelming front-runner .... Nestle's decision effectively removes Ferrero and Hershey from the field as competitive forces," said analyst Jeremy Batstone-Carr at Charles Stanley.
U.S.-based Hershey (HSY.N) and Italy's Ferrero expressed interest in bidding for Cadbury in November, but they need to come up with fully financed bids by January 23 to succeed under British rules. Analysts had expected Nestle might team up with Hershey, while Ferrero was seen as needing financial help.
Kraft said it would give detailed terms of the alternative cash offer by a January 19 deadline under British takeover rules. The U.S. food maker also extended its deadline for Cadbury shareholders to accept its offer to February 2.
(Additional reporting by Raji Menon, Victoria Howley, Jessica Hall, Michael Erman, Sam Cage, Jessica Wohl and Aaron Pressman; Editing by Richard Chang)
By Andrew Frye
Jan. 5 (Bloomberg) -- Warren Buffett, who worked behind the scenes to undermine Coca-Cola Co.’s bid for Quaker Oats 10 years ago, has gone public to rein in Kraft Foods Inc.’s Irene Rosenfeld in her quest to acquire Cadbury Plc.
Buffett’s Berkshire Hathaway Inc., Kraft’s biggest shareholder, said today that Rosenfeld was seeking a “blank check” and urged fellow investors to oppose her plan to authorize the issuance as many as 370 million shares. Northfield, Illinois-based Kraft, which has bid 10.6 billion pounds ($17 billion) for Cadbury, first announced its intention in September to buy the company.
“It’s unusual for Berkshire to put out any sort of comment like this publicly,” said Glenn Tongue, a partner at T2 Partners LLC, which holds investments in Omaha, Nebraska-based Berkshire and Kraft and doesn’t want the foodmaker to increase its bid. “As a shareholder I love seeing this because at the current offer this deal makes plenty of sense.”
Buffett, who has said shareholders need to act like owners, is calling for caution in negotiations after Cadbury said Kraft’s offer was insufficient. In publicly urging investors to join him, the 79-year-old Berkshire chairman is drawing on his power as a 9.4-percent owner of Kraft and the standing he’s gained in financial markets as the world’s preeminent investor.
“If he says no, everybody else is going to pile on and say no too,” said Justin Fuller, a partner at Midway Capital Research & Management who runs the buffettologist.com Web site.
Berkshire said it may support a Cadbury takeover if it concludes this month that the final offer “does not destroy value for Kraft shareholders.” Buffett didn’t immediately respond to a request for comment on what terms he would endorse.
‘Expensive Proposition’
“I don’t think that he’s opposed to the acquisition, I think he’s opposed to the use of stock,” said Gerald Martin, a finance professor at American University’s Kogod School of Business in Washington. “He feels that the shares are so undervalued that it would be an expensive proposition.”
Buffett won a global following as the “Oracle of Omaha” by profiting from investments in out-of-favor stocks and businesses. Berkshire, the biggest shareholder in Coca-Cola, American Express Co. and Wells Fargo & Co., used profits last year to buy stock in some of the world’s biggest companies, including Exxon Mobil Corp. and Kraft rival Nestle SA.
Buffett was the most vocal dissenter on Atlanta-based Coca- Cola’s board when directors met in 2000 to discuss a $15.3 billion bid by then-Chief Executive Officer Douglas Daft for Quaker Oats, the maker of Gatorade, Cap’n Crunch cereal and Rice-A-Roni. Buffett argued the price was too high because a stock swap proposed as part of the deal would give up more than 10 percent of Coca-Cola, board member James Williams said in a 2004 interview.
‘Very Scarce’
The board voted against the acquisition and PepsiCo Inc. bought Quaker Oats instead, completing the purchase in August 2001 for $14 billion.
“I’m not surprised that Berkshire would resist issuing shares,” said Tom Russo, partner at Gardner Russo & Gardner, which holds Berkshire, Cadbury and Vevey, Switzerland-based Nestle. Buffett “has had the longstanding belief that equity capital is very scarce.”
Rosenfeld, CEO at Kraft since 2006, is seeking to buy the U.K.-based maker of Creme Eggs and Trident gum to expand its business outside the U.S. Kraft raised the cash portion of the Cadbury bid today after agreeing to sell pizza brands including DiGiorno and Tombstone to Nestle, the world’s largest food company.
Cadbury fell 3.2 percent to 779 pence in London, the biggest drop in eight months. Kraft added 91 cents, or 3.3 percent, to $28.34 at 3:11 p.m. in New York Stock Exchange composite trading. That values Berkshire’s stake at more than $3.9 billion.
‘Very Expensive Currency’
Buffett said Kraft shares were “very expensive ‘currency’” after falling about 17 percent in the two years ended last week, and he criticized management for seeking to issue stock at current prices after repurchasing shares at $33 in 2007. Kraft executives “have to do a lot of things right to justify this price,” Buffett said in a September interview on CNBC.
“We agree that Kraft Foods shares are deeply undervalued,” the foodmaker said in a statement. “We intend to remain disciplined in this process.”
NEW YORK/LONDON (Reuters) - Warren Buffett came out against Kraft's (KFT.N) $16.8 billion hostile offer for Britain's Cadbury (CBRY.L) as a threat to shareholder value, undermining the U.S. foodmaker's attempt to woo investors with a sweeter bid.
Deals
Kraft Chief Executive Irene Rosenfeld had sought to grab Cadbury investors' attention by raising the cash portion of its bid on Tuesday. But the rare intervention by Buffett a few hours later showed she has yet to win over Kraft's largest shareholder and one of the world's most admired investors, as well as giving Cadbury new ammunition in its defense.
Buffett's Berkshire Hathaway (BRKa.N) said in a statement it was voting against Kraft's proposal to float 370 million shares to fund the Cadbury bid while the company's stock remains undervalued, calling it a request for a blank check from shareholders. The company holds 9.4 percent of Kraft.
Berkshire said it could reconsider its vote if convinced the bid does not destroy shareholder value. Kraft could also ultimately offer fewer shares.
"It's very unusual for Buffett to speak out like this," said Justin Fuller, an analyst who follows Berkshire for Midway Capital Research & Management and publishes the Buffettologist.com blog.
"Cadbury doesn't want to do a deal at this price and this resistance from Kraft's largest shareholder hurts the deal's chances of getting done."
Cadbury Chairman Roger Carr quickly seized on the Berkshire statement as a sign that Rosenfeld was being squeezed in her most ambitious gambit yet as CEO.
"Kraft talks about discipline in making their derisory offer but it's really about management weakness," Carr said in a statement. "Their offer is limited by powerful Kraft shareholders restricting the stock content and constrained by Kraft's rating agencies limiting the cash content."
A source familiar with the situation said Kraft had been in constant communication with its largest shareholder throughout the Cadbury bid process, and that Buffett was apprised of Kraft's position before the Tuesday announcement.
But it appeared that the two sides did not see eye-to-eye, prompting the Berkshire statement.
"If Buffett votes against something -- that carries a great deal of weight with other shareholders .... When he says no, no is what he says and means," said Jerry Bruni, CEO and portfolio manager of J.V. Bruni and Co, based in Colorado Springs, Co.
Kraft shares were up 3.5 percent Tuesday afternoon while Cadbury slipped 3.2 percent. Cadbury shares are trading about 3 percent higher than Kraft's current offer, down from a spread of about 10 percent on Monday.
NESTLE DEAL FUNDS REVISED KRAFT OFFER
Earlier, Kraft revised its 10.4 billion pound ($16.8 billion) bid, offering shareholders the option of an additional 60 pence cash per share for the maker of Dairy Milk chocolate and Trident gum.
The extra cash brings the cash portion to 360p and is funded from a deal whereby Switzerland's Nestle (NESN.VX) will buy Kraft's North American frozen pizza business for $3.7 billion. Nestle also ruled itself out of any bid war for Cadbury.
Rosenfeld has stuck to her guns since her initial approach to Cadbury late last summer, determined not to overpay and convinced that a rival bidder would not emerge. Some Buffett watchers believe she could yet bring the Sage of Omaha on board.
"I don't think he's throwing a monkey wrench in the deal. This is Warren Buffett 101," said Frank Betz, a principal at Carret/Zane Capital Management LLP and an owner of Berkshire shares who has played bridge with Buffett.
A Kraft spokeswoman said the company agrees its shares are "deeply undervalued," would remain disciplined and would not do anything that hurts shareholder value.
"He is our largest investor and one of the most respected investors in the world, so of course we take his opinion seriously," she said of Buffett.
Cadbury shares fell to 779p on Tuesday, compared with Kraft's cash-and-share bid value of about 758p. Many analysts and investors still expect Kraft will need to pay 800 pence per share or above to win over Cadbury.
KRAFT STILL A FRONT-RUNNER
Buffett's surprise announcement overshadowed news that a key rival to Kraft took itself, and possibly other suitors, out of the running.
"Nestle's decision effectively leaves Kraft as the overwhelming front-runner .... Nestle's decision effectively removes Ferrero and Hershey from the field as competitive forces," said analyst Jeremy Batstone-Carr at Charles Stanley.
U.S.-based Hershey (HSY.N) and Italy's Ferrero expressed interest in bidding for Cadbury in November, but they need to come up with fully financed bids by January 23 to succeed under British rules. Analysts had expected Nestle might team up with Hershey, while Ferrero was seen as needing financial help.
Kraft said it would give detailed terms of the alternative cash offer by a January 19 deadline under British takeover rules. The U.S. food maker also extended its deadline for Cadbury shareholders to accept its offer to February 2.
(Additional reporting by Raji Menon, Victoria Howley, Jessica Hall, Michael Erman, Sam Cage, Jessica Wohl and Aaron Pressman; Editing by Richard Chang)
10.23.2009
McDonald's 3q09 press release
McDonald's Third Quarter Earnings Rise on Strong Global Results
OAK BROOK, Ill., Oct 22, 2009 /PRNewswire-FirstCall via COMTEX/ -- McDonald's Corporation today announced strong results for the third quarter ended September 30, 2009, fueled by positive comparable sales in every area of the world. In constant currencies, the Company posted higher revenues, operating income and earnings per share compared with the prior year.
"Alignment behind McDonald's long-term business strategy, the Plan to Win, is clear as our growth continues to be a systemwide effort with each area of the world contributing," said McDonald's Chief Executive Officer, Jim Skinner. "McDonald's global results demonstrate the resilience of our strategies and our ability to execute successfully."
=> yea, the growth is amazing, for all this years
McDonald's reported the following third quarter highlights:
-- Global comparable sales increased 3.8% with the U.S. up 2.5%, Europe up 5.8% and Asia/Pacific, Middle East and Africa up 2.2%
-- Consolidated operating income increased 6% (11% in constant currencies) over the prior year
-- Earnings per share of $1.15, a 10% increase (14% in constant currencies) over the prior year
-- The quarterly cash dividend increased 10% to $0.55 per share - the equivalent of $2.20 per share annually - effective fourth quarter 2009
-- Approximately $1.3 billion returned to shareholders through share repurchases and dividends
=> great!! Cash dividend up is another plus
Jim Skinner continued, "The consistent strength of McDonald's business is the result of our commitment to the customer. We are keeping the McDonald's brand in demand and growing market share around the world by serving great tasting food at an outstanding value in a way that's convenient to today's consumers."
For the quarter, the U.S. generated solid comparable sales and drove an operating income increase of 6%. The ongoing appeal of McDonald's core menu along with favorable consumer response to the new premium Angus Third Pounders and McCafe espresso-based coffees fueled the U.S. results.
McDonald's Europe delivered strong third quarter comparable sales driving a 10% increase in operating income in constant currencies. Locally relevant premium products and promotions combined with compelling value drove the segment's quarterly performance.
In Asia/Pacific, Middle East and Africa (APMEA), operating income for the quarter rose 21% in constant currencies with Australia and China leading the segment. Emphasis on convenience, value, operations excellence and core menu are enhancing consumer appeal and driving growth across APMEA.
Jim Skinner concluded, "We begin the fourth quarter from a position of strength, and I am confident that our focus on the customer and commitment to financial discipline will continue to deliver long-term profitable growth for our System and our shareholders. For October, despite a declining informal eating out market around the world, we expect consolidated comparable sales to remain positive."
In addition, the following items impacted the comparison of growth in diluted earnings per share for the nine months ended September 30, 2009 compared with 2008. In the aggregate, these items negatively impacted the comparison by 1 percentage point (2 percentage points in constant currencies):
For the nine months ended September 30, 2009:
- $0.05 per share after tax gain related to the sale of the Company's minority interest in Redbox Automated Retail, LLC
For the nine months ended September 30, 2008:
- $0.09 per share after tax gain on the sale of the Company's minority interest in Pret A Manger
OAK BROOK, Ill., Oct 22, 2009 /PRNewswire-FirstCall via COMTEX/ -- McDonald's Corporation today announced strong results for the third quarter ended September 30, 2009, fueled by positive comparable sales in every area of the world. In constant currencies, the Company posted higher revenues, operating income and earnings per share compared with the prior year.
"Alignment behind McDonald's long-term business strategy, the Plan to Win, is clear as our growth continues to be a systemwide effort with each area of the world contributing," said McDonald's Chief Executive Officer, Jim Skinner. "McDonald's global results demonstrate the resilience of our strategies and our ability to execute successfully."
=> yea, the growth is amazing, for all this years
McDonald's reported the following third quarter highlights:
-- Global comparable sales increased 3.8% with the U.S. up 2.5%, Europe up 5.8% and Asia/Pacific, Middle East and Africa up 2.2%
-- Consolidated operating income increased 6% (11% in constant currencies) over the prior year
-- Earnings per share of $1.15, a 10% increase (14% in constant currencies) over the prior year
-- The quarterly cash dividend increased 10% to $0.55 per share - the equivalent of $2.20 per share annually - effective fourth quarter 2009
-- Approximately $1.3 billion returned to shareholders through share repurchases and dividends
=> great!! Cash dividend up is another plus
Jim Skinner continued, "The consistent strength of McDonald's business is the result of our commitment to the customer. We are keeping the McDonald's brand in demand and growing market share around the world by serving great tasting food at an outstanding value in a way that's convenient to today's consumers."
For the quarter, the U.S. generated solid comparable sales and drove an operating income increase of 6%. The ongoing appeal of McDonald's core menu along with favorable consumer response to the new premium Angus Third Pounders and McCafe espresso-based coffees fueled the U.S. results.
McDonald's Europe delivered strong third quarter comparable sales driving a 10% increase in operating income in constant currencies. Locally relevant premium products and promotions combined with compelling value drove the segment's quarterly performance.
In Asia/Pacific, Middle East and Africa (APMEA), operating income for the quarter rose 21% in constant currencies with Australia and China leading the segment. Emphasis on convenience, value, operations excellence and core menu are enhancing consumer appeal and driving growth across APMEA.
Jim Skinner concluded, "We begin the fourth quarter from a position of strength, and I am confident that our focus on the customer and commitment to financial discipline will continue to deliver long-term profitable growth for our System and our shareholders. For October, despite a declining informal eating out market around the world, we expect consolidated comparable sales to remain positive."
In addition, the following items impacted the comparison of growth in diluted earnings per share for the nine months ended September 30, 2009 compared with 2008. In the aggregate, these items negatively impacted the comparison by 1 percentage point (2 percentage points in constant currencies):
For the nine months ended September 30, 2009:
- $0.05 per share after tax gain related to the sale of the Company's minority interest in Redbox Automated Retail, LLC
For the nine months ended September 30, 2008:
- $0.09 per share after tax gain on the sale of the Company's minority interest in Pret A Manger
10.05.2009
Kraft's value
The legendary investor has been accumulating shares of Kraft[KFT] ever since it was spun-off from Altria. It now represents over 7% of his portfolio and with the stock down since the Oracle purchased his stake, is it time for value investors to take a bite?
Kraft is the largest U.S. food company and the second largest after Nestle. With food and beverage brands including Kraft, Nabisco, Oscar Meyer, Post, Maxwell House, Philadelphia, Jello, and Oreo, Kraft has strong customer loyalty as evidenced by its #1 market share position in over 70% of its categories. Kraft has marketing and/or distribution channels in over 155 countries and is the second largest food producer in the world behind Nestle. In early September, Kraft offered $17 billion for Cadbury, the British confectionary giant.
Kraft stock has fallen over 8% since the announcement as the markets are anticipating that Kraft will overpay for Cadbury. The proposed consideration price reflects a 1.9x multiple on the consensus FY10 sales estimate and 11.5x the consensus FY10 EBITDA. The 11.5x forward EBITDA multiple pales in comparison to the roughly 16-17x that Mars paid for Wrigley. Kraft wants to buy Cadbury to have greater access to the global confectionary markets which are fast growing and offer higher margins.
Furthermore, the transaction would buttress Kraft’s presence in emerging markets. Buffett, who has a 10% stake in Kraft, has stated that the company had already offered a “full price” for the British chocolate maker. He raised doubts over whether Kraft had enough shareholder support to raise its bid significantly. Speaking recently about the takeover battle, Buffett said: “Any time you’re in a takeover, the animal spirits run high and all of that, but Kraft has the disadvantage of using an undervalued stock.”
So how undervalued is Kraft? At current prices, Kraft is trading around 12x 2010 earnings, 8.6x 2010 EBITDA and pays a 4.5% dividend. Additionally the company should generate over $2 billion in free cash flow and offers a solid 12.4% return on equity, something that Buffett has cited time and time again in his shareholder letters as the right metric to judge a business.
Buffett bought his stake in Kraft as he expects it to benefit from the current environment and recent actions of its turnaround plan. Top line growth is expected to improve over time as Kraft increases its marketing spend as well as reaps benefits from its R&D. Furthermore, margins will benefit from declining commodity costs. At the current offered price, the transaction is expected to result in an 8% increase EPS by 2012. If Kraft were to increase the price by an additional 25% and use cash to finance the majority of the deal, the transaction could be as much as 9% accretive. Of course, there is a possibility that Nestle and/or Hershey make an offer for Cadbury. Earlier in the decade, Cadbury and Nestle offered to buy Hershey but were rebuffed as the Hershey did not want to cede control of the American brand. If Kraft is successful in its bid, expect the stock to remain under near term pressure, however this could offer patient investors a sweet deal.
Given the revenue and cost synergies, Kraft management sees a successful acquisition accelerating its growth prospects. Management argues that a successful acquisition, at the proposed price, would increase its long-term annual EPS growth potential to 9-11% from 7-9% and organic revenue growth to 5%+ from 4%+.
Furthermore, as Buffett has consistently argued, investors should look at the private market value of the business and take the long term view. With its consistent cash flow generation, strong brand presence, attractive valuation and growth prospects, Kraft offers value investors a tasty treat.
=> Kraft is a strong brand and one of the corporation that can benefit in recession because more people prefer dining at home instead of eat out. On the other hand, its historical sales growth trend is around 5% which may not be attractive.
=> Bilibala do agree that Kraft is under value. Its "normal" price should be about $37, plus 5% growth every year since 2007, one should expect it to rise close to $50 in 2012 (assume no dividend pay out), 92% return in 3 years, not a bad deal.
Kraft is the largest U.S. food company and the second largest after Nestle. With food and beverage brands including Kraft, Nabisco, Oscar Meyer, Post, Maxwell House, Philadelphia, Jello, and Oreo, Kraft has strong customer loyalty as evidenced by its #1 market share position in over 70% of its categories. Kraft has marketing and/or distribution channels in over 155 countries and is the second largest food producer in the world behind Nestle. In early September, Kraft offered $17 billion for Cadbury, the British confectionary giant.
Kraft stock has fallen over 8% since the announcement as the markets are anticipating that Kraft will overpay for Cadbury. The proposed consideration price reflects a 1.9x multiple on the consensus FY10 sales estimate and 11.5x the consensus FY10 EBITDA. The 11.5x forward EBITDA multiple pales in comparison to the roughly 16-17x that Mars paid for Wrigley. Kraft wants to buy Cadbury to have greater access to the global confectionary markets which are fast growing and offer higher margins.
Furthermore, the transaction would buttress Kraft’s presence in emerging markets. Buffett, who has a 10% stake in Kraft, has stated that the company had already offered a “full price” for the British chocolate maker. He raised doubts over whether Kraft had enough shareholder support to raise its bid significantly. Speaking recently about the takeover battle, Buffett said: “Any time you’re in a takeover, the animal spirits run high and all of that, but Kraft has the disadvantage of using an undervalued stock.”
So how undervalued is Kraft? At current prices, Kraft is trading around 12x 2010 earnings, 8.6x 2010 EBITDA and pays a 4.5% dividend. Additionally the company should generate over $2 billion in free cash flow and offers a solid 12.4% return on equity, something that Buffett has cited time and time again in his shareholder letters as the right metric to judge a business.
Buffett bought his stake in Kraft as he expects it to benefit from the current environment and recent actions of its turnaround plan. Top line growth is expected to improve over time as Kraft increases its marketing spend as well as reaps benefits from its R&D. Furthermore, margins will benefit from declining commodity costs. At the current offered price, the transaction is expected to result in an 8% increase EPS by 2012. If Kraft were to increase the price by an additional 25% and use cash to finance the majority of the deal, the transaction could be as much as 9% accretive. Of course, there is a possibility that Nestle and/or Hershey make an offer for Cadbury. Earlier in the decade, Cadbury and Nestle offered to buy Hershey but were rebuffed as the Hershey did not want to cede control of the American brand. If Kraft is successful in its bid, expect the stock to remain under near term pressure, however this could offer patient investors a sweet deal.
Given the revenue and cost synergies, Kraft management sees a successful acquisition accelerating its growth prospects. Management argues that a successful acquisition, at the proposed price, would increase its long-term annual EPS growth potential to 9-11% from 7-9% and organic revenue growth to 5%+ from 4%+.
Furthermore, as Buffett has consistently argued, investors should look at the private market value of the business and take the long term view. With its consistent cash flow generation, strong brand presence, attractive valuation and growth prospects, Kraft offers value investors a tasty treat.
=> Kraft is a strong brand and one of the corporation that can benefit in recession because more people prefer dining at home instead of eat out. On the other hand, its historical sales growth trend is around 5% which may not be attractive.
=> Bilibala do agree that Kraft is under value. Its "normal" price should be about $37, plus 5% growth every year since 2007, one should expect it to rise close to $50 in 2012 (assume no dividend pay out), 92% return in 3 years, not a bad deal.
9.16.2009
McDonald's vs. McCurry's: Tasty victory for little guy
http://www.tri-cityherald.com/opinions/story/718521.html
Let's just say, we're loving it.
Last week, McDonald's Corp. lost a trademark infringement lawsuit against McCurry's, a family-run restaurant in Kuala Lumpur, Malaysia.
The judge ruled that the American fast-food mega-chain doesn't own the "Mc" prefix, at least not in Malaysia.
Looks like the court determined McCurry's deserved a break that day.
With all the money McDonald's spends on marketing, attempts to protect the brand are understandable.
But going after the little guy is rarely a great public relations move for corporate giants. After all, rooting for the underdog is as American as a hamburger and fries.
And it's apparently as Malaysian as curried rice. After all the publicity brought on by the lawsuit, McCurry's is ready to open a string of franchises.
If there was some danger of people confusing McCurry's with McDonald's, the massive restaurant chain might have a case.
But with billions of burgers sold, McDonald's surely is a recognizable brand the world over, even when another restaurant uses some of the same letters in its name.
It's not like anyone will confuse a Big Mac for any of the traditional Malaysian dishes on McCurry's menu.
One of the little upstart's popular dishes is the fish-head curry. You won't find that on the dollar value menu.
The Wall Street Journal reports that McDonald's has 32,000 restaurants worldwide and annual sales of $70.6 billion.
We couldn't help but grin a bit when heard about the Malaysian judge handing this multi-billion dollar McBully its comeuppance.
Good thing McDonald's loves to see us smile.
9.03.2009
McDonald's is gaining market shares
http://www.bloomberg.com/apps/news?pid=20601103&sid=axO6NoVmrbqw
By Courtney Dentch
Sept. 3 (Bloomberg) -- McDonald’s Corp. has accelerated its U.S. market share growth by selling new products and promoting old standbys through the recession, even as consumers eat out less, said Chief Financial Officer Peter Bensen.
“It’s a constant struggle to balance new products that will create excitement with our existing menu items,” Bensen, 47, said in an Aug. 19 interview. “The eating-out market is shrinking in the recession and we’re grabbing an even bigger part of the market.”
The world’s largest restaurant chain introduced iced coffees and a larger $3.99 Angus beef burger, and advertised its Big Macs to win sales. McDonald’s accounted for 46.8 percent of the U.S. hamburger market last year, up 10 basis points from 2007, according to food-industry researcher Technomic Inc. Burger King Holdings Inc. was second with 14.2 percent.
“No one in the restaurant industry can introduce and promote new products the way McDonald’s can,” said Steve West, an analyst with Stifel Nicolaus & Co. in St. Louis. “They’ve been taking market share for so long, they could give some back,” he said, adding he doesn’t expect any reversal until 2010.
West is among the 12 analysts who recommend buying the stock, according to Bloomberg data. Nine recommend holding the shares and none advises selling them.
McDonald’s, based in Oak Brook, Illinois, fell 24 cents to $55.13 at 10:03 a.m. in New York Stock Exchange composite trading. The shares had lost 11 percent this year before today.
Rising Share
The company has raised its share of the U.S. fast-food market by 20 basis points in 2007, 30 basis points last year and 50 basis points this year through May, said Heidi Barker, a McDonald’s spokeswoman. She declined to provide more detailed figures or to comment on Technomic’s data.
Burger King added 30 basis point last year, while the Wendy’s chain lost 10 basis points for a 12.6 percent market share, according to Chicago-based Technomic.
Miami-based Burger King uses NPD Group’s Crest data, which estimates its 2008 market share rose to 14.5 percent from 14.3 percent, said Michelle Miguelez, a Burger King spokeswoman. Wendy’s representatives didn’t return calls seeking comment.
Eighty percent of sales at McDonald’s 14,000 U.S. stores come from the chain’s main fare, and advertising campaigns in the past year promoting the Big Mac, Quarterpounder and Chicken McNuggets have lifted sales across the menu, Bensen said.
‘Huge Increase’
“We saw huge increases in Big Mac sales” after national commercials aired last year, he said. “We’ve got a lot of brand equity in the core menu items and in these times that’s really resonating with our consumers.”
McDonald’s spent $822.7 million on U.S. ad campaigns last year, about $5 million more than in 2007, according to data from market-research firm TNS Media Intelligence. It spent $184.5 million in the first quarter, New York-based TNS said.
The hamburger seller also introduced lattes, going after coffee chains such as Seattle-based Starbucks Corp.
McDonald’s sales at U.S. stores open at least 13 months gained 3.5 percent in the second quarter, the only growth among the largest fast-food chains. Burger King’s same-store sales fell 3.2 percent in the U.S. and Canada in the same period, and Wendy’s fell 0.4 percent in North America. Starbucks’s U.S. sales declined 6 percent.
To contact the reporter on this story: Courtney Dentch in New York at cdentch1@bloomberg.net. Last Updated: September 3, 2009 10:27 EDT
Bilibala comments:
To me, McDonald's is strong in market research, they know what the customers love and able to provide the product and service just in time.
With McCafe, I don't think it will beat Starbuck nor Tim Horton in terms of its taste or quality. But for sure it will take some market shares from those competitors, for people who will drink coffees everyday, but not a big fans in coffee.
By Courtney Dentch
Sept. 3 (Bloomberg) -- McDonald’s Corp. has accelerated its U.S. market share growth by selling new products and promoting old standbys through the recession, even as consumers eat out less, said Chief Financial Officer Peter Bensen.
“It’s a constant struggle to balance new products that will create excitement with our existing menu items,” Bensen, 47, said in an Aug. 19 interview. “The eating-out market is shrinking in the recession and we’re grabbing an even bigger part of the market.”
The world’s largest restaurant chain introduced iced coffees and a larger $3.99 Angus beef burger, and advertised its Big Macs to win sales. McDonald’s accounted for 46.8 percent of the U.S. hamburger market last year, up 10 basis points from 2007, according to food-industry researcher Technomic Inc. Burger King Holdings Inc. was second with 14.2 percent.
“No one in the restaurant industry can introduce and promote new products the way McDonald’s can,” said Steve West, an analyst with Stifel Nicolaus & Co. in St. Louis. “They’ve been taking market share for so long, they could give some back,” he said, adding he doesn’t expect any reversal until 2010.
West is among the 12 analysts who recommend buying the stock, according to Bloomberg data. Nine recommend holding the shares and none advises selling them.
McDonald’s, based in Oak Brook, Illinois, fell 24 cents to $55.13 at 10:03 a.m. in New York Stock Exchange composite trading. The shares had lost 11 percent this year before today.
Rising Share
The company has raised its share of the U.S. fast-food market by 20 basis points in 2007, 30 basis points last year and 50 basis points this year through May, said Heidi Barker, a McDonald’s spokeswoman. She declined to provide more detailed figures or to comment on Technomic’s data.
Burger King added 30 basis point last year, while the Wendy’s chain lost 10 basis points for a 12.6 percent market share, according to Chicago-based Technomic.
Miami-based Burger King uses NPD Group’s Crest data, which estimates its 2008 market share rose to 14.5 percent from 14.3 percent, said Michelle Miguelez, a Burger King spokeswoman. Wendy’s representatives didn’t return calls seeking comment.
Eighty percent of sales at McDonald’s 14,000 U.S. stores come from the chain’s main fare, and advertising campaigns in the past year promoting the Big Mac, Quarterpounder and Chicken McNuggets have lifted sales across the menu, Bensen said.
‘Huge Increase’
“We saw huge increases in Big Mac sales” after national commercials aired last year, he said. “We’ve got a lot of brand equity in the core menu items and in these times that’s really resonating with our consumers.”
McDonald’s spent $822.7 million on U.S. ad campaigns last year, about $5 million more than in 2007, according to data from market-research firm TNS Media Intelligence. It spent $184.5 million in the first quarter, New York-based TNS said.
The hamburger seller also introduced lattes, going after coffee chains such as Seattle-based Starbucks Corp.
McDonald’s sales at U.S. stores open at least 13 months gained 3.5 percent in the second quarter, the only growth among the largest fast-food chains. Burger King’s same-store sales fell 3.2 percent in the U.S. and Canada in the same period, and Wendy’s fell 0.4 percent in North America. Starbucks’s U.S. sales declined 6 percent.
To contact the reporter on this story: Courtney Dentch in New York at cdentch1@bloomberg.net. Last Updated: September 3, 2009 10:27 EDT
Bilibala comments:
To me, McDonald's is strong in market research, they know what the customers love and able to provide the product and service just in time.
With McCafe, I don't think it will beat Starbuck nor Tim Horton in terms of its taste or quality. But for sure it will take some market shares from those competitors, for people who will drink coffees everyday, but not a big fans in coffee.
8.31.2009
The big cheese at McDonald's
An very interesting article:
Manawatu Standard Last updated 12:00 31/08/2009
I had the best cheeseburger ever at McDonald's global headquarters - shame about the art.
The food at the "working McDonald's restaurant" was hot, great tasting, and fresh. But the paintings and sculptures throughout the huge 50 hectare campus were bad - hideous, in fact.
The head office of the global conglomerate has 300 employees and no offices.
It is all open plan, except for a few meeting rooms, where the secret-squirrel stuff on ingredients for the mega-giant takes place.
There are also eight test kitchens and sensory evaluation booths, so the company can test product response.
McDonald's Heidi Barker, from the communication team, showed a group of New Zealand journalists around the head office and Hamburger university.
Each year, 5000 students come from around the world to learn management and business-development skills.
They are franchise owners, crew members, restaurant managers and executives.
Company head office employees, depending on their status, have to work in a McDonald's as part of their training. Even the top executives do their time behind the counter of their local McDonald's.
The chain earns an estimated US$23 billion a year, which equates to 58 million people eating McDonald's food every day and consumption is still growing.
A public company, it is listed on the sharemarket.
The company said if you bought and held 100 shares in 1965, it would have cost US$2250.
Today you would have almost 75,000 shares worth about US$4m.
There are two distinct buildings on the site the university and the global headquarters.
But the whole place is scarily sterile and quiet. In fact, it has a sort of Stepford Wives feel about it.
When it came time to sit on the seat with the Ronald McDonald plastic character, she got really close to him. Very close.
There was the usual hooping and shrieking from the Kiwis. We got the big hush, finger to the lips, from the McDonald's people.
New Zealand's Fonterra supplies cheese slices to Asia, the Pacific, the Middle East and Africa.
It's the big time, worth many millions of dollars.
It also puts pastry through its Pastry House into McCafes in Australia and New Zealand.
The company has looked at the pastry model to see if it can be applied elsewhere in the world.
In 2008 McDonald's New Zealand used:
4.7 million kg beef
2.2 million kg chicken
1.37 million kg of lettuce
288,000 kg of tomatoes
66 million buns
13 million eggs
200,000 kg of hoki
From dairy:
1.5 million litres of milk
1 million kg of cheese
* Jill Galloway's trip to the United States was sponsored by Fonterra.
Manawatu Standard Last updated 12:00 31/08/2009
I had the best cheeseburger ever at McDonald's global headquarters - shame about the art.
The food at the "working McDonald's restaurant" was hot, great tasting, and fresh. But the paintings and sculptures throughout the huge 50 hectare campus were bad - hideous, in fact.
The head office of the global conglomerate has 300 employees and no offices.
It is all open plan, except for a few meeting rooms, where the secret-squirrel stuff on ingredients for the mega-giant takes place.
There are also eight test kitchens and sensory evaluation booths, so the company can test product response.
McDonald's Heidi Barker, from the communication team, showed a group of New Zealand journalists around the head office and Hamburger university.
Each year, 5000 students come from around the world to learn management and business-development skills.
They are franchise owners, crew members, restaurant managers and executives.
Company head office employees, depending on their status, have to work in a McDonald's as part of their training. Even the top executives do their time behind the counter of their local McDonald's.
The chain earns an estimated US$23 billion a year, which equates to 58 million people eating McDonald's food every day and consumption is still growing.
A public company, it is listed on the sharemarket.
The company said if you bought and held 100 shares in 1965, it would have cost US$2250.
Today you would have almost 75,000 shares worth about US$4m.
There are two distinct buildings on the site the university and the global headquarters.
But the whole place is scarily sterile and quiet. In fact, it has a sort of Stepford Wives feel about it.
When it came time to sit on the seat with the Ronald McDonald plastic character, she got really close to him. Very close.
There was the usual hooping and shrieking from the Kiwis. We got the big hush, finger to the lips, from the McDonald's people.
New Zealand's Fonterra supplies cheese slices to Asia, the Pacific, the Middle East and Africa.
It's the big time, worth many millions of dollars.
It also puts pastry through its Pastry House into McCafes in Australia and New Zealand.
The company has looked at the pastry model to see if it can be applied elsewhere in the world.
In 2008 McDonald's New Zealand used:
4.7 million kg beef
2.2 million kg chicken
1.37 million kg of lettuce
288,000 kg of tomatoes
66 million buns
13 million eggs
200,000 kg of hoki
From dairy:
1.5 million litres of milk
1 million kg of cheese
* Jill Galloway's trip to the United States was sponsored by Fonterra.
7.23.2009
McDonald’s (MCD) quarterly profit fell 8 percent, the #1 burger chain said Thursday, to $1.09 billion, or 98 cents per share, vs. $1.08 per share a year ago.
The Golden Arches blamed a stronger dollar and a one-time gain last year for the weaker results.
Revenue was down 7 percent to $5.65 billion on foreign exchange translation.
Mickey D’s shares trading down nearly four percent Thursday.
Bilibala's comments:
McDonald's Corp is one of the few corporations that able to immuse the recession impact. I agree, most of the fall came from stronger dollars. I think the result will look better in 3Q.
The Golden Arches blamed a stronger dollar and a one-time gain last year for the weaker results.
Revenue was down 7 percent to $5.65 billion on foreign exchange translation.
Mickey D’s shares trading down nearly four percent Thursday.
Bilibala's comments:
McDonald's Corp is one of the few corporations that able to immuse the recession impact. I agree, most of the fall came from stronger dollars. I think the result will look better in 3Q.
2.13.2009
Corp info: Pepsi Co 2008 results
2nd largest beverage company in the world, and the largest snack company in North America, with popular brand name such as: Pepsi, Tropicana, Quaker and Frito-Lay etc.
- Good, 4q08 revenue up 3%, net income down 43%, exclude special adjustment, net income up 11%
- Good, 2008 revenue up 10%, net income down 9%, exclude special adjustment, net income up 9%
- Fair, 2008 sales volume, North America flat in snack, fall 3% in beverage and International up 8% in snack and 13% in beverage.
I think Pepsi will continue to perform well even under today's weak economy.
Pepsi's share price currently is 30% lower than peak, for a conservative investor, it is good buy.
2.06.2009
Corp info: Kraft Food 2008 results
4q08 net revenue up 6.2%, EPS down 71.1%, exclude cost restructure, EPS up 6.8%
2008 net revenue up 16.8%, EPS up 18.5%, exclude cost restructure, EPS up 31.9%
In 2009, sales will continue to get pressure from strong US$. But weak economy will encourage more household to cook at home which should benefit Kraft's sales.
2008 net revenue up 16.8%, EPS up 18.5%, exclude cost restructure, EPS up 31.9%
In 2009, sales will continue to get pressure from strong US$. But weak economy will encourage more household to cook at home which should benefit Kraft's sales.
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