- GRIT
- Posts
- Big Mac, Small Growth
Good Morning!
Happy Tuesday! Let’s see what is moving markets:
👉 McDonald’s earnings are in
👉 Walmart launches new brand
👉Eurozone exits recession territory
🚨 Announcement! 🚨
Did you hear? We are dropping a NEW email course!
Discover the keys to diversified investing with our dynamic email course designed for all investors seeking to broaden their portfolio horizons. While the tech sector continues to thrive (up 114% in the last five years as of April 10, 2024), our course offers a refreshing shift in focus, guiding you through the intricacies of investing across various stock market sectors.
📥 Get ready to enroll!
EARNINGS: McDonald’s
McDonald’s reported weaker-than-expected results in the first quarter, with U.S. growth slowing and impacts from the Israel-Hamas conflict. Comparable sales increased by only 1.9%, missing expectations. The company faces challenges despite its expansion efforts, and executives have noted potential ongoing revenue impacts from the Middle East conflict.
Source: McDonald’s
In the U.S., McDonald’s noted that low-income customers are spending less, unlike at Domino’s Pizza, where visits from this group increased. McDonald's is introducing new products and promoting its loyalty program to attract more customers, but does not anticipate a significant increase in traffic for the first half of the year.
Earnings:
Earnings per share: $2.70 adjusted vs. $2.72 expected
Revenue: $6.17 billion vs. $6.16 billion expected
🎯 GRIT TAKE: McDonald’s has historically been…upgrade to VIP now to read the full GRIT Take!
WALMART: Launches New Brand
Walmart is launching a new grocery brand, BetterGoods, to keep the customers it gained during high inflation. This private label will offer trendy and chef-inspired foods, mostly under $5. As the nation's top grocer by revenue, Walmart has seen a nearly 7% increase in grocery sales, reaching $264.2 billion last year. The company aims to expand its private label offerings, which have grown in popularity as shoppers look for more affordable and unique options.
Source: Walmart
The new brand will feature items across various categories like frozen foods, dairy, and snacks, with prices from under $2 to $15. BetterGoods will include culinary-focused products, plant-based options, and items free from certain ingredients, enhancing Walmart’s existing grocery brands like Great Value.
EUROZONE: Exits Recession Territory
The Eurozone has exited recession territory, with its four largest economies driving unexpected growth, however inflation's decline has paused. The region's GDP grew 0.3% in the first quarter, the strongest in 18 months, while inflation held at 2.4% annually in April.
Source: FlyTrippers
Economic prospects are looking up thanks to improving global demand, with Germany leading the recovery. The European Central Bank is expected to start easing monetary policies in June, which should help the economy. Despite recent economic challenges, the first quarter showed growth with major countries like Germany, France, Italy, and Spain performing better than expected. The ECB predicts steady recovery this year, with growth forecasts at 0.6% for 2024 and 1.5% for 2025.
Headlines You Need To Know: 🎙
Chart of the Day
📊 China E-Commerce Market
Source: Statista
GRIT Meme of the Day 😂
Tag GRIT Capital on social media for a chance to be featured in our meme or Tweet of the day in our GRIT daily newsletter! 👇
Source: @wallstmemes
The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Grit is a publisher of financial information, not an investment advisor. Grit does not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient. Grit does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author or paid advertiser.
THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN. INVESTORS SHOULD OBTAIN INDIVIDUAL INVESTMENT ADVICE BASED ON THEIR OWN CIRCUMSTANCES BEFORE MAKING AN INVESTMENT DECISION
No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.
The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and Grit undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.
Grit does not accept any liability whatsoever for any direct or consequential loss, however arising, directly or indirectly, from any use of the information contained herein.
By using the Site or any related social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.
Please read: Terms of Use, Privacy Policy, Disclosure Policy and Disclaimer Policy
If you have any questions please contact us at info@gritcap.io
Reply