McDonald's is working to introduce a value meal in U.S. stores to help offset an increasingly challenging environment for consumers, two people familiar with the matter told CNBC.The people said the $5 meal could include four items: a McChicken or McDouble, four-piece chicken nuggets, fries and a drink. The value meal was first reported by Bloomberg News.The potential new offering comes at a time when low-income consumers are beginning to pull back on spending, particularly at fast-food brands. Mentions of ...

(Kitco News) - Financial markets are about to witness one of the most epic migrations of capital in history as investors rush into hard assets, warned Larry McDonald, Founder of The Bear Traps Report and New York Times bestselling author of 'How to Listen when Markets Speak' and 'Colossal Failure of Common Sense.'With the national debt approaching $35 trillion, there are only two ways out of the situation — defaults or printing more money, McDonald told Michelle Makori, Lead Anchor and Editor-in-Chief at Ki ...

McDonald's U.S. franchisees will start paying into a digital marketing fund next year as the fast-food giant looks to expand its booming digital business, according to a memo viewed by CNBC on Thursday.The change is meant to modernize the company's marketing strategy and widen its competitive advantage, according to the memo, which was written by U.S. Customer Experience Officer Tariq Hassan and Chief Investment Officer Whitney McGinnis. The memo also said that McDonald's plans to invest hundreds of million ...

Investors want stability as much as prosperity in the constantly shifting stock market. The investment philosophy of renowned investor Ray Dalio is highly respected. Because of his emphasis on stability, his method is especially applicable in market turbulence. Three enduring companies stand below.The first one leads in the consumer staple market. Due to its recession-proof business model, the company aligns with legendary investors’ principles and fits the all-weather portfolio. The second one demonstrates ...

Financial Performance - Net income for the quarter ended March 31, 2024, was $1,929 million, an increase of 7.0% compared to $1,802 million for the same quarter in 2023[9] - The company reported total revenues of $6,169 million for the quarter ended March 31, 2024, up from $5,898 million in the same quarter of 2023, representing a year-over-year increase of approximately 4.6%[9] - Operating income increased to $2,736 million for the quarter ended March 31, 2024, up from $2,532 million in the same quarter of 2023, reflecting a growth of 8.1%[49] - Diluted earnings per share increased by 9% to $2.66, with an adjusted EPS of $2.70 after excluding restructuring charges[73] - Comprehensive income for the quarter was $1,852 million, compared to $1,799 million in the same quarter of 2023, reflecting an increase of about 2.9%[9] Assets and Liabilities - Total assets decreased from $56,147 million on December 31, 2023, to $53,513 million on March 31, 2024, representing a decline of approximately 4.6%[6] - Total current liabilities decreased from $6,859 million to $4,886 million, a reduction of approximately 28.7%[6] - Long-term debt decreased slightly from $37,153 million to $36,764 million, a reduction of about 1.0%[6] - The company’s total liabilities decreased from $56,147 million to $53,513 million, a decline of approximately 4.6%[6] - Shareholders' equity showed a slight decline from $(4,707) million to $(4,833) million, indicating a worsening of the equity position[6] Restaurant Operations - The company operated 3,723 restaurants in the quarter ended March 31, 2024, compared to 3,588 in the same quarter of 2023, reflecting a growth of approximately 3.8%[7] - The total number of systemwide restaurants as of March 31, 2024, was 42,018, with 39,865 franchised and 2,153 company-owned[22] - The company plans to open more than 2,100 new restaurants globally in 2024, contributing to nearly 4% new unit growth[61] - Total revenues from franchised restaurants reached $3,723 million, compared to $3,588 million in the previous year, reflecting a growth of 3.8%[47] Cash Flow and Capital Expenditures - Cash provided by operations decreased slightly to $2,390 million in Q1 2024 from $2,420 million in Q1 2023, a decline of 1.2%[12] - Capital expenditures for the quarter were $547 million, compared to $503 million in the same quarter of 2023, indicating an increase of 8.7%[12] - Cash and equivalents dropped significantly from $4,579 million to $838 million, a decrease of about 81.7%[6] - Cash used for financing activities totaled $3.7 billion, an increase of $3.1 billion compared to the previous year[99] Market and Economic Conditions - Global comparable sales increased by 1.9%, with U.S. comparable sales up 2.5% and International Operated Markets up 2.7%[64] - The war in the Middle East has negatively impacted systemwide sales and revenue, particularly in the International Developmental Licensed Markets segment[70] - Economic conditions, including inflationary pressures, can significantly affect consumer disposable income levels and spending habits, potentially harming business performance[126] - Supply chain interruptions have previously led to increased costs and reduced revenues, with potential future impacts from inflation, demand spikes, and geopolitical tensions[113] Strategic Initiatives - The company incurred $44 million in charges related to the "Accelerating the Organization" initiative during Q1 2024, aimed at enhancing operational efficiency[26] - The company aims to increase its 90-day active loyalty users to 250 million by 2027, with a target of $45 billion in annual Systemwide sales to loyalty members by the same year[61] - The company is investing in three technology-enabled platforms to enhance customer engagement and operational efficiency[63] - The "Best Burger" initiative aims to deliver improved burger quality across nearly all markets by the end of 2026[60] Risks and Challenges - Labor challenges, including availability and cost, have negatively impacted operations, affecting service speed and customer satisfaction[116] - The regulatory environment is becoming more complex, increasing compliance costs and exposure to litigation, which could adversely affect financial results[122] - Increasing reliance on technology systems poses risks, including potential failures or security breaches that could disrupt operations[119] - Changes in tax laws and unanticipated tax liabilities could adversely affect profitability, with potential significant increases in income tax rates impacting financial results[125]

A Texas lawyer was shot and killed outside a McDonald's after trying to calm down an angry customer, police say.Jeffrey Limmer, 46, died after the incident in Houston on Saturday evening and his attacker fled the scene in a pickup truck. The customer was upset with employees over his order and demanded a refund. Mr Limmer tried to calm them down, according to local news outlet ABC13.Police say the fight went outside and Mr Limmer pushed the customer to the ground.The customer then went to his car and pulled ...

The topics include what an aging American population means for stocks and how natural gas companies benefit from a growing global middle class.Lawrence McDonald is a risk consultant, the founder of The Bear Traps Report, and the co-author of How to Listen When Markets Speak: Risks, Myths, and Investment Opportunities in a Radically Reshaped Economy.In this podcast, Motley Fool host Deidre Woollard caught up with McDonald for a conversation about:What an aging American population means for stocks.How natural ...

Or could the stock face the same fate as Starbucks in coming quarters?Shares of McDonald's (MCD -1.08%) bounced between positive and negative territory following its first-quarter earnings report as investors digested what the fast-food operator had to say. While the stock ultimately finished nearly unchanged the day of its report, down -0.2%, there was nonetheless a lot to unpack from the company's earnings report and conference call that could shape where the stock heads over the next few years.Let's look ...

A Starbucks logo is seen as members and supporters of Starbucks Workers United protest outside of a Starbucks store in Dupont Circle, Washington, D.C., on Nov. 16, 2023.It's finally here: the long-predicted consumer pullback.Starbucks announced a surprise drop in same-store sales in its latest quarter, sending its shares down 17% on Wednesday. Pizza Hut and KFC also reported shrinking same-store sales. And even stalwart McDonald's said has adopted a "street-fighting mentality" to compete for value-minded di ...

McDonald's CEO Chris Kempczinski said Tuesday that the company expects wage inflation to impact restaurants nationwide, which he largely attributed to the higher minimum wage legislation recently implemented in California. "There is certainly labor inflation. Much of that is coming out of what happened in California," Kempczinski told analysts on the company's earnings call. Nationally,"we're expecting high single digit labor inflation. Again, much of that [is] from the bleed over of what California introdu ...