For Immediate Release
Chicago, IL – October 23, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: McDonald’s Corporation (MCD), Burger King Holdings (BKC), Yum! Brands (YUM), Chipotle Mexican Grill (CMG) and Starwood Hotels and Resorts Worldwide Inc. (HOT).
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Here are highlights from Thursday’s AnalystBlog:
McDonald’s Exceeds Zacks Numbers
McDonald’s Corporation (MCD) recently reported third-quarter 2009 results that topped the Zacks Consensus Estimate, driven by effective cost control and rise in comparable sales across all regions. McDonald’s quarterly earnings came in at $1.15 per share, up 10% from $1.05 reported in the prior-year quarter, and surpassed the Zacks Consensus Estimate of $1.11 per share.
The strong U.S. dollar continues to moderate results, trimming the earnings by 5 cents a share. Excluding foreign currency translation and gains, earnings increased 14% to $1.20 per share.
Revenue for the quarter declined 4% to $6,046.7 million, but increased 2% in constant currencies. Revenue from company-operated restaurants declined 7% to $4,093.6 million, whereas revenue from franchise-operated restaurants increased by 5% to $1,953.1 million. Total operating income rose 6% to $1,932.8 million, but jumped 11% in constant currencies.
Despite a sinking global economy, McDonald’s continues to grow same-store sales while maintaining healthy margins by expanding market share. Global same-store sales rose 3.8% with the U.S. sales up 2.5%, Europe up 5.8% and Asia/Pacific, Middle East and Africa up 2.2%. New menu products, including Angus Third Pounders and McCafe premium coffee line-up, boosted U.S. comps.
Recently, the company announced a 10% increase in its quarterly dividend, bringing the total quarterly dividend to 55 cents per share. McDonald’s has returned $1.3 billion to shareholders through dividends and share repurchases during the quarter.
McDonald’s and other fast-food chains, like Burger King Holdings (BKC), Yum! Brands (YUM) and Chipotle Mexican Grill (CMG) are faring better than casual and upscale dining restaurants, as budget-constrained consumers are trending towards lower-priced dining options.
Starwood Reports Mixed Results
Starwood Hotels and Resorts Worldwide Inc. (HOT) has reported third quarter earnings from continuing operations of 22 cents per share. Excluding special items, the company has earned 14 cents per share. Results are ahead of the Zacks Consensus Estimate of 10 cents. While revenues were down in the quarter, the company continued to benefit from the implementation of the cost reduction initiatives.
However, results were well below the prior-year quarter when the company had earned 71 cents per share, excluding special items.
Income from continuing operations, excluding special items, was $26 million, versus $129 million in the prior-year period. Adjusted EBITDA was $179 million, versus $330 million the year-ago period.
Starwood’s net income was $40 million or 22 cents per share compared to $113 million or 62 cents in the prior-year period.
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