McDonald’s attracts customers with promotions
McDonald’s (MCD) reported mixed earnings ahead of the bell this morning, posting earnings per share of $1.76 on revenue of $5.8 billion. Analysts were expecting a profit of $1.77 on sales of $5.7 billion. US same-store sales growth of 4.1% topped Wall Street forecasts as promotions, including McDonald’s McPick 2 deal, dollar soft drinks and signature crafted premium sandwiches attracted more customers. In a note to clients, UBS analyst Dennis Geiger wrote McDonald’s strong third-quarter results will likely “support continued market optimism that recent momentum can continue.” McDonald’s shares are up nearly 36% since the start of the year.
Chipotle earnings on tap
Chipotle (CMG) is set to report earnings after the bell this afternoon, and Wall Street is bracing for lackluster results. The fast-casual restaurant is still struggling to turnaround its business following a series of health scares over the past couple of years. Analysts were initially bullish about Chipotle’s new queso dip which launched during the quarter, but reception from customers has been lukewarm at best. Chipotle is expected to post earnings per share of $1.63 on revenue of $1.14 billion. The stock has fallen about 5.9% over the past three months.
AT&T set to report earnings after the bell
AT&T (T) is scheduled to release third-quarter earnings results after the bell, and analysts will be looking for an update on its $85 billion deal to buy Time Warner. The telecom giant announced yesterday that it extended the deal deadline “for a short period of time” as the companies wait for regulatory approval. Another big thing to watch in today’s report will be the number of pay-TV subscribers. AT&T warned earlier this month that it had lost about 390,000 pay-TV customers during the third quarter.
Amazon launches Prime membership for businesses
Amazon (AMZN) has launched Business Prime Shipping, a membership for business customers in the U.S. and Germany. The account, which can accommodate multiple users, will include free two-day shipping for eligible items. Customers can test the new offering with a free 30-day trial.