Market Minute: Investors Won't Love McDonald's Earnings

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McDonald's falls short, warns of a tough year
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McDonald's is hungry for customers, and there's growing concern that tech stocks may have peaked.

The Dow Industrials and the S&P 500 rose by less than one percent last week, while the Nasdaq edged 0.3 of a percent lower.

McDonald's (MCD) quarterly earnings fell a few Big Macs short of expectations. A key measure of sales rose by just one percent, and the company says its market outlook remains challenging.

Toymakers are not having much fun either. Hasbro's (HAS) net fell well short of expectations, with sales of boys' toys especially weak. Last week, rival Mattel (MAT) also posted disappointing numbers.

This is one of the biggest weeks of the quarterly earnings season, with about one-third of S&P 500 companies due to report.

After the close we'll hear from Netflix (NFLX). Last week it received 14 Emmy nominations for its original series, including best drama for "House of Cards." Now investors want to see if it can turn those nominations into new subscribers.

Some investors are concerned that technology stocks may have peaked. Microsoft (MSFT) tumbled 11 percent on Friday following its disappointing earnings report, and there's growing worry that others could follow suit.

The Wall Street Journal reports that Apple (AAPL) has held talks with Samsung to settle their patent lawsuits against each other. The talks are still going on, even though there's no indication that a deal is near.

GlaxoSmithKline (GSK) acknowledges that some senior executives may have violated Chinese laws. The pharmaceutical giant is under investigation for bribing doctors, hospitals and government officials.

Radio Shack (RSH) has reportedly retained an investment banker to help it raise new capital. The Journal says the company has been bleeding money as it tries to reverse a trend of falling sales.

And Superman, meet Batman. Batman, this is Superman. Time Warner's (TWX) Warner Bros. studio is teaming the two superheroes for a movie due out in the summer of 2015. The Superman movie now in theaters, "Man of Steel", has grossed $285 million in its first six weeks.

-Produced by Drew Trachtenberg

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43 Comments

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queencatfish2

jrponics: 2 Thumbs up! Very well said and spot on!
MichelleW

July 22 2013 at 9:36 PM Report abuse +1 rate up rate down Reply
orlbells

more good jobs! thanks barry soetoro!

July 22 2013 at 9:02 PM Report abuse -1 rate up rate down Reply
emoore2927

It takes a strong middle class making a living wage to buy fast food and toys.

July 22 2013 at 8:58 PM Report abuse +1 rate up rate down Reply
jrponics

Maybe they would do better if they served food, instead of the garbage they peddle as food.

People are starting to wise up, you can tell by looking at McDonalds falling profits.

the "great" tasting and "value" priced meals McDonalds thought would keep them rolling in the money (Due mostly to the fact that their over processed food costs almost nothing to make), has seemingly become their doom.

This "food" is without nutrients, vitamins or minerals. Their food contains little if any resemblance to the food group to which they are claiming it comes from.

The ingredients are most certainly 90% plus GMO (genetically modified organism) laden and include horrible things that no animal including humans should ever put into their bodies.

After eating McDonalds most people feel sick, tired and suffer because of the toxic waste they tried making their body accept as nutrition.

You can fool the eyes, the ears, the nose and even the taste buds. You can fool the brain too into thinking this is ok but eventually we all get sick enough to know better because you can't fool the cells. Afterall, aren't they eventually the very thing we are trying/dying to feed?

Eating McDonalds is akin to poisoning ones self with toxic chemicals, and you pay for it in more than one way.

Eventually the body requires real food and eventually the instinct becomes strong enough (out of desperation to survive), to seek wholesome good food.

This is why McDonalds profits suck. Cause their food sucks. This isn't isolated to McDonalds either, every single chain restaurant lives by the same code... profits, profits, PROFITS!

A novel idea is to turn this around and have McDonalds become the first and biggest chain to offer an exclusively organic and non GMO food menu. The prices would rise and I'd gladly pay twice as much for anything they have on their menu... ORGANIC.

July 22 2013 at 8:06 PM Report abuse +1 rate up rate down Reply
1 reply to jrponics's comment
walters474

The Big Mac does contain the 4 main food groups. Oh well, I tried.

July 22 2013 at 10:04 PM Report abuse -1 rate up rate down Reply
tim0730

So much for McDonalds paying their workers more then minimum wage

July 22 2013 at 6:57 PM Report abuse +1 rate up rate down Reply
KeyLemPi

Maybe if they invested in supplying customers with good service and a CLEAN restaurant like they did in the '60's they'd have a chance. Can't stand to go into one these days... especially without a fly swatter!

July 22 2013 at 6:53 PM Report abuse +2 rate up rate down Reply
bking555

So many large companies posted weak earnings but yet the market is rallying?? I dont buy it !

July 22 2013 at 5:25 PM Report abuse +1 rate up rate down Reply
jim

I remember several years ago when McDonlds was playing the Monoply game & it was found out that the much needed 1 or 2 pieces were only sent to a particular location. What about how they hired illegals not that long ago & gave them fake names & ss # 's to work at many of the locations from Las Vegas to Reno, Nv & what about the giant ROACH found in 1 of their breakfast potato patties & on the internet. Doesn't that just want to make you run down there & eat your fill ? Well doesn't it ?

July 22 2013 at 4:53 PM Report abuse -1 rate up rate down Reply
hazel

they will have to change their ATTITUDE and stop making so many mistakes.

July 22 2013 at 4:46 PM Report abuse rate up rate down Reply
Alan Wallace

Note to McDonald's: Try selling something worth buying. Try paying your employees a wage that will take them off the welfare and food stamp subsidies for which your "wages" make them eligible.
The taxpayers are getting tired of having to support your company. If you can't do the lousy job you do providing lousy food without the taxpayers having to cover what you refuse to contribute, close your doors.

July 22 2013 at 2:31 PM Report abuse +1 rate up rate down Reply
1 reply to Alan Wallace's comment
gbaker9916

How does paying the employees more increase profits? Did you even read the article?

July 22 2013 at 6:35 PM Report abuse -1 rate up rate down Reply
1 reply to gbaker9916's comment
jelun

If you pay your help, train them well, give them good product to sell... try looking up good companies like Trader Joes and Costco. I don't mean to make that an order. LOL, I have a cramp in my hand.

July 22 2013 at 6:49 PM Report abuse +1 rate up rate down