Restaurant Brands Raises Dividend; McDonald’s Sales Beat Estimates; Cisco Shares Fall | Stock Movers
118 segments
Bloomberg Audio Studios podcasts, radio,
news.
>> The Stock Movers Report, your roundup of
companies making moves in the stock
market, harnessing the power of
Bloomberg data. Let's take a look at
some stocks on the move today. I'm
Nathan Hager, joined by Bloomberg's Dan
Curtis on another morning where we're
seeing earnings cross the Bloomberg
terminal, including from the home of the
Whopper. Good morning, Dan.
>> Good morning. That's right. Uh the
company itself is called Restaurant
Brands, but uh ticker is QSR. The shares
are up about 4/10en in pre-market, but
that is the company behind Burger King,
as you alluded to, and my personal
favorite, Tim Hortons. Uh fourth quarter
sales and earnings both beat estimates.
Comparable sales rose 3% higher than
estimates, and that was largely driven
by international business. Domestically,
Tim Horton's Burger King, Popeye's
growth, all below estimates, but I got
to give a shout out to your dad.
Firehouse Subs did beat the expectation.
So, uh, yeah, subs are going well. And I
think that's one of your dad's
favorites, so shout out to him.
>> Yeah, that's what I keep hearing.
>> Yep. Uh, and that also follows
McDonald's, which reported after the
bell. Those shares are up about 2/10 in
the pre-market. Comparable sales for
McDonald's were up nearly 7%, the
fastest pace of growth in 2 years. Top
bottom lines also beat estimates. That's
being driven by a costconcious consumer.
They're flocking to the value meals, the
McVal menu, and they're also really
going all in on McDonald's loyalty
program,
>> but not flocking as much to Popeyes.
Interesting. Uh, big weight this morning
to Cisco Systems after their earnings
after the close, Dan.
>> That's right. Cisco System shares are
down 7% under ticker CSCO. Though,
that's after weaker than expected
forecast for the current quarter uh is
weighing on investor appetite. The
largest maker of networking equipment.
So uh has uh has sees a gross margin
around 66%. That's lighter than
estimates and that's overshadowing uh
the beat on the fiscal second quarter uh
numbers and also the strong sales
guidance. The CEO says the company has
raised prices as it faces a memory
crunch and it's trying to negotiate
favorable terms with suppliers. Not
quite enough to assuage the market. Uh
but the stock still was up 11% year to
date into those earnings. So we're still
up on the year
>> and we're still seeing some individual
stocks getting hit by the AI disruption
trade. Among the latest there is
apploving.
>> That's right. It's the mobile tech
company. It has been facing the
disruption as you said. So it beat
fourth quarter earnings and sales
estimates. First quarter revenue and
adjusted IBIDA guidance was above but
those shares are still down 5% and as
you said this is about the AI concerns.
There's been an expression, sell first,
ask questions later. That seems to be
what's going on here. Evercore ISI did
note that the beat was more subdued than
normal and expectations were likely more
muted going into it because of this AI
trade. So, it might just be they did
clear the bar, but that bar had been
lowered. So, the market's not really
enjoying that. Down 5% in the pre.
>> Now, very interesting here. Uh, coal
related stocks are getting a lift this
morning. What's going on?
>> Yeah, so Peabuddy Energy, ticker BTU, is
up 5%. that's leading the coal uh the
coal charge today. Uh Trump the Trump
administration ordered the Pentagon to
purchase electricity directly from coal
plants. This is something that uh Trump
has been behind uh kind of the shift
towards energy getting more electricity
out of the US. He also announced that
the energy department would give $175
million in funding to upgrade coal
plants. The Peabuddy CEO was at the
event. He said the company was working
with the administration to build new
coal fueled power plants. We've talked a
lot about uh power going into this AI
trade. So, it looks like uh coal might
be part of the new AI trade.
>> The Stock Movers Report from Bloomberg
Radio. Check back with us throughout the
day for the latest roundup of companies
making news on Wall Street. And for the
latest market moving headlines, listen
to Bloomberg Radio Live. Catch us on
YouTube, Bloomberg.com, and on Apple
CarPlay and Android Auto with the
Bloomberg Business App.
Ask follow-up questions or revisit key timestamps.
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.
Videos recently processed by our community