Spreadex Market Update
Big day for earnings as McDonald’s and Chipotle miss targets, Coca-Cola beats estimates
Yet there was some good news in the loosely titled ‘unhealthy foods’ sector, with Coca-Cola besting revenue and earnings per share estimates alike. However, this positive release could have been better if it wasn’t for that pesky dollar, which caused around a 6% hit to Coca-Cola’s earnings results.
However, McDonald’s missed its revenue forecasts yet again, seeing $5.96 billion compared to $6.7 billion this time last year. Earnings per share were just as bad, slipping from $1.21 to $1.01. It was tough first quarter for the company’s latest CEO Steve Easterbrook; however, his new plans, including an all-day breakfast menu, haven’t had a chance to impact these results, allowing investors to place their faith in the stock despite these weak earnings.
Chipotle, usually the example held up to counter the dismal performance of McDonald’s, suffered its own setback today, missing same-store sales and revenue forecasts, with the silver lining of better than expected earnings per share. Theses slips, a rare misstep for the fast-food success story, led the stock to over 6% in losses as the day went on.
The FTSE couldn’t escape the downward trend that set in this morning, as a marginal turnaround for Brent Crude failed to change the direction of its commodity stocks. The main story of the day, of course, was Tesco; after opening to mild gains, the stock has completely gone the other way, sliding to over 5% in declines as investors finally reflected the severity of £6.4 billion in losses.
The Eurozone, despite a slight break from the bombardment of negative reports from Athens and its creditors, failed to stall its losses this Wednesday. The region will be hoping that tomorrow’s flurry of flash manufacturing figures can help its indices back on the path they started on so promisingly at the beginning of the week.
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