Analyst John Ivankoe lowered his estimate for same-store sales growth — a key metric for restaurants — to 5% from 6% and trimmed his full-year earnings expectations.
He says conversations with McDonald's management along with his team's checks "suggest 3Q trending softer than we thought."Teenagers at a McDonald's restaurant in Hong Kong.shares slid more 2% on Tuesday after an analyst at J.P. Morgan raised concern about the fast-food chain's third-quarter results.
Analyst John Ivankoe lowered his estimate for same-store sales growth — a key metric for restaurants — to 5% from 6% and trimmed his full-year earnings expectations. He said conversations with McDonald's management along with his team's checks "suggest 3Q trending softer than we thought." Ivankoe pointed to "less value attention" around McDonald's' buy-one-get-one for $1 relative to last year's 2-for-$5 deal and the chain's "uninteresting" Spicy BBQ chicken sandwiches that were released in the middle of the quarter as some of the reasons for the lowered estimate.
"The Summer of 2019 will be remembered for the premium chicken sandwich wars, led by Popeye's and publicly fought by Chick-Fil-A and Wendy's, and of course plant-based meats of which US McDonald's absence is notable vs Burger King's 'Impossible Whopper,'" Ivankoe said in a note.
Hey JP,
McDonald's stock is WAY BETTER than JP Morgan. JPM's money is STUCK is China which the CCP has REFUSED to let them repatriate. McDonalds is a FRANCHISE around the world and it sells FOOD for consumption without which EVEN DOGS cannot live.
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Source: CNBC - 🏆 12. / 72 Read more »