Tag Archive | VCR

Four ETFs Influenced By McDonalds

The world’s largest restaurant chain, McDonald’s Corp. (MCD) reported increases in revenues and net income for the fourth quarter, meeting analyst expectations and giving support to the Consumer Discret Select Sector SPDR (XLY), the iShares Dow Jones US Consumer Services (IYC), the Vanguard Consumer Discretionary (VCR) and the PowerShares Dynamic Food & Beverage (PBJ). 

Revenues for the Oak Brook, Ill-based company jumped 4 percent to $6.21 billion, of which $4.2 billion were generated through company-operated restaurants and nearly $2 billion from franchise-operated restaurants.    Furthermore, total operating income grew by 5 percent from the prior-year quarter to $1.16 per share helping push earning year over year up nearly 6 percent.    Read More…

Four ETFs Driven By Consumer Spending

The US economy grew at a faster than expected rate in the third quarter of this year, buoyed much by an increase in consumer spending, however, is still not growing at a rate to generate new jobs.  Despite this, a ray of light may shine on sectors driven by consumer spending enabling the Consumer Discretionary Select Sector SPDR (XLY), the Vanguard Consumer Discretionary (VCR), the PowerShares Dynamic Consumer Discretionary (PEZ) and the Retail HOLDRs (RTH) to reap the benefits.

According to the Commerce Department, consumer spending, this accounts for nearly 70 percent of US GDP, increased by 2.4 percent annually during the third quarter of this year.  Furthermore, retail sales rose in each of the three months in the third quarter with a further detail indicating that this rise is broad based.  Read More…

Four Fast Food ETFs That Are Tasty

Despite a rollercoaster ride in the stock market and uncertainty in the overall strength of the global economic recovery, some fast food stocks and exchange traded funds (ETFs) that hold them remain attractive.

First off, as long as the unemployment rate remains north of 9% and employers remain cautious about hiring, consumers will continue to seek discount alternatives, and when it comes to eating, fast food joints will likely be the benefactors of this trend. 

One such fast food chain positioned to reap the benefits of consumer’s penny pinching is McDonalds (MCD).  The Oak Brook, Illinois-based fast food giant’s emphasis on value contributed to the burger chain reporting double-digit percentage growth in first-quarter revenue and earnings, highlighted by robust sales returning to the U.S.  In the U.S., earnings rose 11% and revenue increased 10%.  Similar trends were seen internationally, as McDonald’s global same-store sales rose 4.2%, with the Asia/Pacific, Middle East and Africa segment gaining 5.7% and Europe increasing by 5.2%. Read More…

3 Reasons Retailers May Face Uphill Battle

 Although many retailers reported first-quarter earnings results which beat Wall Street’s expectations, an ambiguous recovery in consumer spending and confidence will likely put a strain on near term growth and profitability.

On one hand, retail giant Target (TGT) recently announced that in the month May its same-store sales jumped 1.3%, a hair ahead of expectations and witnessed a rise in credit card sales, suggesting consumers are more willing to extend themselves.  On the other hand, clothing retailers, which are a good indicator of consumer discretionary spending, Abercrombie & Fitch (ANF) and Hot Topic (HOTT), reported sales that fell short of expectations.  Additionally, warehouse giant Costco Wholesale (COST) recently saw an uptick in sales of food, an essential item, and a decrease in the volume of televisions sold in May.  Read More…

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