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Restaurant Brands Raises Dividend; McDonald’s Sales Beat Estimates; Cisco Shares Fall | Stock Movers

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Restaurant Brands Raises Dividend; McDonald’s Sales Beat Estimates; Cisco Shares Fall | Stock Movers

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118 segments

0:02

Bloomberg Audio Studios podcasts, radio,

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news.

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>> The Stock Movers Report, your roundup of

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companies making moves in the stock

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market, harnessing the power of

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Bloomberg data. Let's take a look at

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some stocks on the move today. I'm

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Nathan Hager, joined by Bloomberg's Dan

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Curtis on another morning where we're

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seeing earnings cross the Bloomberg

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terminal, including from the home of the

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Whopper. Good morning, Dan.

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>> Good morning. That's right. Uh the

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company itself is called Restaurant

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Brands, but uh ticker is QSR. The shares

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are up about 4/10en in pre-market, but

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that is the company behind Burger King,

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as you alluded to, and my personal

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favorite, Tim Hortons. Uh fourth quarter

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sales and earnings both beat estimates.

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Comparable sales rose 3% higher than

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estimates, and that was largely driven

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by international business. Domestically,

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Tim Horton's Burger King, Popeye's

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growth, all below estimates, but I got

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to give a shout out to your dad.

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Firehouse Subs did beat the expectation.

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So, uh, yeah, subs are going well. And I

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think that's one of your dad's

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favorites, so shout out to him.

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>> Yeah, that's what I keep hearing.

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>> Yep. Uh, and that also follows

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McDonald's, which reported after the

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bell. Those shares are up about 2/10 in

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the pre-market. Comparable sales for

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McDonald's were up nearly 7%, the

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fastest pace of growth in 2 years. Top

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bottom lines also beat estimates. That's

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being driven by a costconcious consumer.

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They're flocking to the value meals, the

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McVal menu, and they're also really

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going all in on McDonald's loyalty

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program,

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>> but not flocking as much to Popeyes.

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Interesting. Uh, big weight this morning

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to Cisco Systems after their earnings

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after the close, Dan.

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>> That's right. Cisco System shares are

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down 7% under ticker CSCO. Though,

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that's after weaker than expected

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forecast for the current quarter uh is

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weighing on investor appetite. The

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largest maker of networking equipment.

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So uh has uh has sees a gross margin

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around 66%. That's lighter than

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estimates and that's overshadowing uh

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the beat on the fiscal second quarter uh

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numbers and also the strong sales

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guidance. The CEO says the company has

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raised prices as it faces a memory

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crunch and it's trying to negotiate

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favorable terms with suppliers. Not

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quite enough to assuage the market. Uh

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but the stock still was up 11% year to

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date into those earnings. So we're still

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up on the year

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>> and we're still seeing some individual

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stocks getting hit by the AI disruption

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trade. Among the latest there is

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apploving.

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>> That's right. It's the mobile tech

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company. It has been facing the

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disruption as you said. So it beat

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fourth quarter earnings and sales

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estimates. First quarter revenue and

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adjusted IBIDA guidance was above but

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those shares are still down 5% and as

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you said this is about the AI concerns.

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There's been an expression, sell first,

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ask questions later. That seems to be

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what's going on here. Evercore ISI did

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note that the beat was more subdued than

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normal and expectations were likely more

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muted going into it because of this AI

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trade. So, it might just be they did

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clear the bar, but that bar had been

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lowered. So, the market's not really

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enjoying that. Down 5% in the pre.

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>> Now, very interesting here. Uh, coal

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related stocks are getting a lift this

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morning. What's going on?

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>> Yeah, so Peabuddy Energy, ticker BTU, is

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up 5%. that's leading the coal uh the

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coal charge today. Uh Trump the Trump

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administration ordered the Pentagon to

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purchase electricity directly from coal

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plants. This is something that uh Trump

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has been behind uh kind of the shift

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towards energy getting more electricity

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out of the US. He also announced that

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the energy department would give $175

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million in funding to upgrade coal

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plants. The Peabuddy CEO was at the

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event. He said the company was working

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with the administration to build new

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coal fueled power plants. We've talked a

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lot about uh power going into this AI

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trade. So, it looks like uh coal might

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be part of the new AI trade.

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>> The Stock Movers Report from Bloomberg

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Radio. Check back with us throughout the

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day for the latest roundup of companies

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making news on Wall Street. And for the

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latest market moving headlines, listen

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Interactive Summary

This video is a segment from the Stock Movers Report, discussing companies making significant moves in the stock market. It covers earnings reports from Restaurant Brands (QSR), which owns Burger King and Tim Hortons, noting that while international sales were strong, domestic growth for some brands was below estimates. McDonald's (MCD) also reported strong comparable sales growth, attributed to a cost-conscious consumer and its loyalty program. The report highlights Cisco Systems (CSCO) facing a significant drop due to weaker-than-expected forecasts and lower gross margins, despite a previous year-to-date gain. Apploving (AAPL), a mobile tech company, is also discussed as being impacted by AI disruption, with its stock falling despite beating earnings and sales estimates. Finally, coal-related stocks, particularly Peabody Energy (BTU), are seeing a lift due to a Trump administration order for the Pentagon to purchase electricity from coal plants and significant funding for coal plant upgrades, suggesting coal may play a role in the AI trade.

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