Latest news with #ChrisLuyckx
Yahoo
a day ago
- Business
- Yahoo
Yum! Brands Upgraded to Buy as Taco Bell Drives Global Growth
Yum! Brands Inc. (NYSE:YUM) ranks among the best consumer discretionary stocks to buy now. Redburn-Atlantic upgraded Yum! Brands Inc. (NYSE:YUM) from Neutral to Buy on June 10 while raising the stock's price target from $145 to $177. Jeramey Lende/ Chris Luyckx of Redburn-Atlantic cited Taco Bell's outstanding performance and Yum! Brands' strong global presence as major factors in the company's success. Luyckx claims that Yum! Brands Inc. (NYSE:YUM) stands out in the industry owing to its growth potential and defensive resiliency. The analyst also noted that Taco Bell US and KFC International make significant contributions to the company's EBIT. Furthermore, Luyckx cited Yum! Brands' strategic initiatives, which are expected to support the company's growth trajectory. These include its diverse restaurant formats, its robust master franchise system, and its digital acceleration program, Byte. Yum! Brands Inc. (NYSE:YUM) is an American multinational fast food corporation that operates well-known brands like KFC, Taco Bell, Pizza Hut, and The Habit Burger Grill. While we acknowledge the potential of YUM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. Read More: and Disclosure: None.
Yahoo
18-06-2025
- Business
- Yahoo
Redburn Atlantic Downgrades McDonald's (MCD) Stock, Cuts PT
McDonald's Corporation (NYSE:MCD) is one of the 10 stocks that Jim Cramer and analysts are watching. On June 10, Redburn Atlantic analyst Chris Luyckx double downgraded the stock from Buy to Sell and lowered the price target to $260 from $319. The firm believes weight-loss drugs like GLP-1 could hurt demand over time and sees this risk as not fully priced in. It warns that even a small hit to sales now could grow much larger, especially for chains that rely more on lower-income customers. Redburn expects lasting shifts in dining habits that go beyond individual users. A cook in a busy kitchen assembling cheeseburgers for orders. On June 9, Cramer discussed the recent analyst reports covering McDonald's Corporation (NYSE:MCD). He commented: 'It amazes me that analysts refuse to learn from their mistakes that some stocks should not be taken off the buy list. Today, Morgan Stanley downgraded the stock of McDonald's, saying it's arguably too expensive and that it will probably not be insulated from some structural pressures on fast food. Now, with the stock at 25 times earnings, consensus estimate's too high. Morgan Stanley moved [it] to Equal Weight or Hold. [The] stock dropped $2 and 58 cents or 0.84% on that. McDonald's (NYSE:MCD) operates and franchises restaurants under its brand, and it provides a range of food and beverages such as burgers, chicken items, fries, desserts, and breakfast options. The company runs its business through different franchise models. While we acknowledge the potential of MCD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Miami Herald
13-06-2025
- Business
- Miami Herald
McDonald's menu launches wild new drink
While there was a time when fast food was considered an inexpensive way to eat, that's hardly the case today. If you can believe it, a Quarter Pounder meal from McDonald's was only $5.39 back in 2014. Today, that same meal is more than $10 (it varies depending on what location you go to). Don't miss the move: Subscribe to TheStreet's free daily newsletter It's not just McDonald's that's charging more to cruise through the drive-thru. Popeyes, Jimmy John's, and Subway hiked their food prices 86%, 62%, and 39%, respectively, between 2014 and 2024, according to a FinanceBuzz study. With costs rising everywhere and customers feeling uncertain about the economy in reaction to President Trump's tariffs, many are pulling back from eating out and choosing to cook at home to save money. Related: McDonald's is facing a harsh new reality as customer behavior shifts Fast-food chains are feeling the bite of this shift in customer behavior. Even McDonald's is not immune, despite being the reigning king of the fast food world. It reported its biggest same-store sales decline since 2020 during its Q1 earnings call this year. Chains have responded by leaning into value menus and offering lower prices in their apps, encouraging loyal customers by offering them more deals. McDonald's is also working on new menu items that it hopes will bring in cost-weary customers, and it's just announced a new one. Image source: McDonald's McDonald's is hoping that the hype around the upcoming film "Jurassic World Rebirth" will help drum up some business. It's launching a new drink in the Japanese market in advance of the movie that is very Instagrammable. Called the McFizz, the drink is bright green and yellow and is served over ice or with a dollop of whipped cream on top. Related: McDonald's analyst grills new stock price target on McCrispy reaction The chain tweeted about the new drink on June 12, teasing that it will go on sale in its restaurants starting on June 18. This is not McDonald's first collaboration effort with the Jurassic Park franchise. In February of 2025, the chain announced that its Happy Meals would come packed with toys from the Netflix series "Jurassic World: Chaos Theory," with a total of 10 different toys for kids to collect. In addition to McDonald's concerning Q1 data, the fast-food chain took another blow this week when Redburn Atlantic downgraded McDonald's from a buy to a sell rating. Redburn analysts Chris Luyckx and Edward Lewis also predicted McDonald's could see its losses deepen this year as customer behavior continues to shift. "As more Americans turn to GLP-1 drugs like Ozempic to lose weight, McDonald's could see as much as a $428 million annual impact to revenue, representing about 1% of system sales," they wrote in a note. In the meantime, McDonald's is leaning into some unusual marketing in the U.S. market to make sure they stay on fans' minds. Its latest promotion to celebrate Grimace's birthday culminates June 12 in a free party in Chicago featuring musical talent Loud Luxury and Myles O'Neal. The invite encourages attendees to "come dressed to impress in your best purple fit." Related: McDonald's menu finally brings back most-wanted fan favorite The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Time of India
11-06-2025
- Business
- Time of India
McDonald's downgraded amid Ozempic craze - investors worry fast food losing charm, stock under pressure
McDonald's stock was downgraded by analysts following concerns that weight-loss drugs like Ozempic could curb fast-food demand. Analysts suggested that these drugs, which reduce appetite, might lead to a significant drop in customer visits, potentially costing the company millions in revenue. Tired of too many ads? Remove Ads Equity Firm Downgrades McDonald's Stock How GLP-1 Medications Could Disrupt Fast Food Demand McDonald's Potential Revenue Losses and Customer Visit Declines Tired of too many ads? Remove Ads Inflation Adds Fuel to McDonald's Challenges Not Many Americans Are Using These Drugs Yet FAQs McDonald's faced a rough day on Wall Street Tuesday as shares dipped 1.7%, shaken by growing concerns that popular weight-loss drugs like Ozempic could seriously cut into the fast food giant's business, as per a analysis firm Redburn Atlantic lowered its rating on McDonald's stock by two notches from 'buy' to 'sell,' warning that the widespread use of GLP-1 drugs, which curb appetite and help regulate blood sugar, may change how Americans eat, potentially leading to a drop in millions of visits to McDonald's every year, as per CBS Redburn analysis described GLP-1 drugs like Ozempic and Wegovy as "demand disruptors" for restaurants like McDonald's , as they reduce consumers' appetites and limit the number of calories they consume each day, reported CBS News. Analysts wrote that, "These features of the drugs could have serious implications for the restaurant industry," according to the READ: YouTube loosens content rules, says freedom of expression can outweigh harm—controversial videos may return Analysts Chris Luyckx and Edward Lewis estimated that McDonald's could lose up to 28 million customer visits annually, resulting in nearly $482 million in lost revenue, roughly 0.9% of the company's sales, according to the concern is that GLP-1 drugs may shift eating habits, especially among lower-income consumers, who are the fast food chain's target market and who might cut back on dining out and keep those new habits long-term, as per CBS analysts pointed out that the "Behaviour changes extend beyond the individual user — reshaping group dining, influencing household routines and softening habitual demand. A 1% drag today could easily build to 10% or more over time, particularly for brands skewed toward lower income consumers or group occasions," quoted CBS to the pressure, rising prices and inflation might make it even harder for McDonald's to maintain its appeal to its customers, as per the report. The analysts highlighted that, "Consumers are showing clear signs of pricing fatigue after years of aggressive menu inflation," adding, "Although the gap between eating out and at home has narrowed, it remains historically wide, reinforcing value concerns," quoted CBS the adoption of the GLP-1 drugs has yet to reach a wider audience, as only 12% of Americans have tried the drugs, and currently just 6% of the adult population uses them, as per the the managing director and restaurant and food distributors analyst at BTIG global financial services, Peter Saleh said, "I don't think there would be a meaningful GLP-1 impact on McDonald's right now, but that's not to say that in three or four years that won't be the case," adding, "I just don't think we are there yet," quoted CBS medications that help regulate blood sugar and suppress appetite, often used for weight loss, as per to $482 million a year, according to some analysts.
Yahoo
11-06-2025
- Business
- Yahoo
McDonald's Shares Slip as GLP-1 Risks Spur Rare Sell Rating
(Bloomberg) -- McDonald's Corp. shares slipped on Tuesday after Redburn Atlantic gave the burger chain its sole sell rating, saying shifting consumer patterns due to weight-loss drugs and inflation are cause for concern. Most Read from Bloomberg Shares of McDonald's fell as much as 1.8% to a March low on the downgrade, a two-notch cut from Redburn's previous buy rating. Redburn held a buy rating on the stock since initiating coverage in 2023. As more Americans turn to GLP-1 drugs like Ozempic to lose weight, McDonald's could see as much as a $428 million annual impact to revenue, representing about 1% of system sales, Redburn Atlantic analysts Chris Luyckx and Edward Lewis wrote. 'A 1% drag today could easily build to 10% or more over time, particularly for brands skewed toward lower-income consumers or group occasions.' The analysts also cut the price target on McDonald's to a Street-low $260, implying a more than 13% decline from where the stock closed on Tuesday. Shares have dropped for seven straight days, their longest losing streak in nearly 12 years, after closing just below a record high in mid-May. Redburn's lowered recommendation was just the latest downgrade for the fast-food giant, which was recently knocked down to hold-equivalent ratings at Morgan Stanley, Loop Capital and Erste Group. Analysts remain largely split on the stock, with 22 buy-equivalent ratings, 18 hold-equivalent ratings and an average price target of $332, according to data compiled by Bloomberg. McDonald's US same-stores sales fell 3.6% in the first-quarter of this year, marking the largest decline since 2020 when people were stuck at home during the pandemic. Fast-food restaurants like McDonald's have also seen a decline in traffic in 40 of the past 43 months, according to the analysts. In addition to the McDonald's call, Redburn also launched coverage of Domino's Pizza Inc. with a sell rating, while starting Chipotle Mexican Grill Inc. as a new neutral. YUM! Brands, Inc., which owns popular brands KFC, Taco Bell and Pizza Hut, was raised to buy from neutral given the stock's 'reasonable' valuation. Despite the slump, McDonald's has increased its average transaction amount through pricing, but lower-income consumers are now opting to eat more at home as the price difference between home and restaurant food increases, according to the report.
