Browse by Tags
-
Posted
Feb 01 2008, 02:08 PM
by
Robert Walberg
Rating:
Money Blog: Top Stocks Blog - MSN Money
This weekend when you get up early, grab the newspaper and head over to Starbucks for some coffee and a breakfast sandwich, you better savor the flavor of the eggs and bacon, as management announced that it will be pulling its egg sandwiches from the menu. Apparently, management is under the impression that consumers aren't frequenting its stores as often as in the past because the odor from the eggs overpowers the aroma from the coffee, thereby destroying the whole Starbucks sensation.
Something stinks, but it's not the breakfast menu. Okay, so there is a faint smell of bacon and eggs from time to time, but so what. Are we really to believe that the average Starbucks consumers' sense of smell is so refined and/or delicate that they can't stand the odor wafting from the kitchen area while waiting a few minutes for their coffee? Seems to me people have been doing it for years at McDonalds, Dunkin Donuts, and the local diner. The two -- coffee and breakfast -- aren't incompatible. In fact, they seem to go together rather nicely.
Frankly, what I smell is a lot worse than eggs and bacon -- it's a management team trying to pull a fast one on investors. Traffic at Starbucks is down from the pace it enjoyed a couple of years ago, but that has less to do with the customer experience being scrambled by breakfast items and much more to do with ever higher coffee costs, a sluggish economy and increased competition. That's the three-headed monster depressing growth and until management starts to honestly address these problems, the stench coming out of Starbucks will be its quarterly financials.
Read More...
-
Posted
Mar 21 2008, 11:20 AM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
Conventional wisdom says McDonald’s should continue to have great success as the economy slows and consumers trade down restaurants just as they’ve been trading down to Wal-Mart for their shopping needs. Sounds great, except that the company's insiders beg to differ: Over the last six months, nearly 760,000 shares worth some $43 million have been sold.
A significant amount by any measure, this works out to roughly a 20% liquidation of the insiders according to Thomson Financial. CEO James Skinner sold 35% of his stake. Gloria Santona, the general counsel, parted with more than half of her shares. Jose Armario, responsible for Canada and Latin America, traded away 80% of his holdings.
My guess is that they’re less than confident about the big McCafé push. Better drip coffee is one thing, and McDonald’s definitely has good drip coffee. But going head-to-head with Starbucks is another. Don’t kid yourself: McDonald’s will never be Starbucks -- and by the look of things it probably doesn’t want to be Starbucks anyway. There just isn’t any synergy between burgers, fries, and cappuccinos.
Read More...
-
Posted
Mar 27 2008, 12:46 AM
by
Jon Markman
Rating:
Money Blog: Top Stocks Blog - MSN Money
If it seems like you are paying more for your cereal, beer and pizza lately, shake your fist in the direction of Pakistan, Uganda and Argentina, because a weird confluence of international events are combining to slash the world supply of wheat and boost prices. The downside of globalization is that a crop failure 10,000 miles away can lead to pricier brewskis here.
It's actually a lot more serious than that. The New Scientist magazine reports that a wheat disease that started in central Africa actually threatens to destroy most of the world wheat crop, leaving millions to starve. A fungus called Ug99 has already spread from Africa to Iran and is bearing down on Pakistan, according to the report. This is bad news because Pakistan and Punjab wheat is extremely important to the entire food chain of the densely populous plains of South Asia.
According to reports, scientists hope to slow the spread of Ug99 by spraying new forms of fungicide but the only real firebreak will come when agronomists are able to create Ug99-resistant strains of wheat over the next few years. The disease, which is said to be a super-strong strain of black stem rust, first came to light in Uganda in 1999 and has since ruined crops in Kenya, Ethiopia and Yemen. Now winds are expected to take the spores to Egypt, Turkey, Syria and Iran. Chinese scientists are said to be on a crash program to develop Ug99-resistant wheat strains before the disease ravages its already weakened croplands.
Read More...
-
Posted
Apr 10 2008, 09:44 AM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
Pity Howard Shultz. Even after retaking the reins of his global latté-brewing behemoth, vowing to return the company to its roots and launching a six-point plan of attack, his Starbucks shares continue their sickening slide. With this week's launch of the new Pike Place Roast, he's now busily touting efforts to "reinvent brewed coffee across America." Unfortunately, brewed coffee isn’t exciting, and with a much lower-selling price than Starbucks' espresso-based drinks, its promotion will surely erode margins.
The other growth initiatives are similarly lackluster: New coffee machines, a customer rewards program, a stronger focus on environmental initiatives, and a dedicated web portal to accept new ideas from anyone who cares. The last smacks of desperation. So, being a native Seattleite, I feel obligated to offer a simple, four-point rescue plan:
1. Stop focusing exclusively on coffee: Yes, Starbucks needs to do everything it can to improve its image as a purveyor of premium coffee. The move towards pre-ground beans and automatic espresso makers left it vulnerable. This is especially true now that McDonald’s and others are offering vastly improved and in some cases superior coffee, mitigating the company’s claims to quality.
Read More...
-
Posted
Jul 24 2008, 10:07 AM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
Rising food and energy prices are forcing McDonald's to take aim at its popular Dollar Menu. "In this current environment, we've got to make sure we're pricing smart, not just pricing low," COO Ralph Alvarez said as the chain reported better-than-expected quarterly results.
For hurried moms, nocturnal teens, lunch-run dads, and anyone who appreciated the food-inflation hedge of one dollar double cheeseburgers, the news comes as a super-sized disappointment.
Investors should be worried too.
Read More...
-
Posted
Jul 29 2008, 07:23 AM
by
Minyanville
Rating:
Money Blog: Top Stocks Blog - MSN Money
Government at various levels already says buckle your seatbelt, don't smoke and be sure to recycle, so it shouldn't be any surprise that the Los Angeles City Council is preparing to tell people to eat their peas.
Council members, concerned about the proliferation of fast food restaurants in a low-income area of South Los Angeles, are considering an area ban on additional fast food joints such as McDonald's, Burger King and Wendy's.
Libertarians and other cranks might ask: Is this a legitimate role for government and, by the way, where's the legal authority for such action?
Read More...
-
Posted
Aug 04 2008, 11:00 AM
by
Minyanville
Rating:
Money Blog: Top Stocks Blog - MSN Money
Fast food enthusiasts beware the coming catastrophe of McDonald's Dollar Menu, especially the $1 double cheeseburger.
McDonalds, purveyor of fine fast food, faces a basic problem to maintain its profit margins: Raise prices or slice portions. You can bet Burger King, Wendy's and Chipotle face a similar choice.
Read More...
-
Posted
Aug 21 2008, 09:58 AM
by
Kim Peterson
Rating:
Money Blog: Top Stocks Blog - MSN Money
The Financial Post has a good interview with David Ginther, who runs the $1.3 billion dividend income portfolio at Waddell & Reed Investment. Ginther's still worried about the subprime mortgage crisis, but he points to another concern: the high level of credit in this country. "This could be the next leg of the financial crisis," he says. Ginther focuses on income and growth, and is going back to basics with stock picks these days. Here are the stocks he likes:
Read More...
-
Posted
Oct 03 2008, 03:29 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
Ronald McDonald has just had a big meal and is picking his teeth. The stock market is telling him that McDonald's won't be hurt by the recession. At $62, the shares of the largest fast-food chain are not down much from their 52-week high. Over the last three months, the Dow is off 7% and MCD is up almost 10%.
It does not matter that the fatty food the company sells will kill some customers before they make it to the exit. Where can people get a full meal for under $2?
Several companies, perhaps so few that they can be counted on primate hands, have nearly nothing to fear from a recession. They are not gloating. That would look unseemly. Their fortunes do say a great deal about how products and certain businesses become even more necessary in tough times.
Read More...
-
Posted
Nov 11 2008, 09:22 AM
by
Minyanville
Rating:
Money Blog: Top Stocks Blog - MSN Money
Relax, the world isn't going to end just because Starbucks reported a 97% drop in fourth-quarter profits.
The company expects to make money in 2009 and plans to open new stores, though at a slower pace than in previous years. Customers are cutting back on their morning java jolt in the downbeat economy, but closing costs for about 600 US stores are largely responsible for the company's dismal fourth-quarter performance.
Starbucks said fourth-quarter profits fell to $5.4 million, or $0.01 per share, from $158.5 million, or $0.21 per share, for the same period last year. The company earned $0.10 per share, excluding the cost of store closings. Still, analysts expected Starbucks to earn $0.13 per share
Read More...
More Posts Next page »
|
