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What’s happening: Shares of McDonald’s Corp gained on Monday, after the company released results for its fourth quarter.
What happened: The fast-food chain reported in-line earnings for the latest quarter before the opening bell on Monday.
Despite a rise in footfall in the US and better comparable sales internationally, McDonald’s sales declined in the quarter.
How were the results: The Chicago, Illinois-based company reported a decline in sales in the three months ended December 31.
Why it matters: McDonald’s has been looking to increase guest count and sales, which were impacted by an E. coli outbreak infecting dozens of people last year.
The company managed to report a surprise rise in its global comparable sales during the fourth quarter, driven by demand for its cheaper and discounted offerings in the Middle East, China and Japan.
Although US customer traffic also rose slightly year-over-year in the fourth quarter, this was offset by a decline in average spending by customer per visit.
Global comparable sales rose 0.4% during the quarter, decelerating from the 3.4% growth recorded in the year-earlier quarter. The company’s business was negatively impacted by downbeat demand in the US, with comparable sales in the country declining by 1.4%.
Sales by McDonald’s-owned and operated restaurants contracted by 7% to $2.3 billion in the fourth quarter, while sales from franchised restaurants grew by 2% to $3.95 billion.
CEO Chris Kempczinski said that the company is focusing on growing its market share, with menu innovation and culturally relevant marketing.
How stock responded: McDonald’s shares climbed 4.8% to close at $308.42 on Monday, following the release of quarterly results. The stock gained around 9% over the past month.
What to watch: Investors will continue monitoring the company’s discounted offerings, which are expected to significantly impact its overall sales ahead.
Context: The CAD/USD forex pair fell this morning as investors monitored Trump’s latest tariff threats.
Details: Demand for the safe-haven US dollar surged after US President Donald Trump announced fresh tariffs on global steel and aluminium imports, in addition to higher metal duties that could be announced as early as this week.
Trump also announced to impose reciprocal tariffs, raising concerns over a trade war.
Strength in the US dollar exerted pressure on the CAD/USD pair on Tuesday. The US dollar index, which measures the greenback’s performance versus a basket of major peers, gained around 0.1% to 108.46 this morning.
Higher prices of crude oil, one of Canada’s major exports, lent some support to the loonie. WTI crude oil prices rose around 0.1% to $72.40 a barrel this morning.
The CAD/USD forex pair fell around 0.2% to 1.4341 this morning. The S&P/TSX Composite Index climbed 0.85% to settle at 25,658.86 on Monday, amid gains in commodity stocks.
What to watch: Investors await the release of economic data on Canada’s building permits (1730 UAE Time) today. The total value of building permits, which fell by 5.9% to $11.7 billion in November, is expected to increase by 2.3% in December.
Other Markets: European indices closed higher on Monday, with the FTSE 100, DAX 40, CAC 40 and STOXX Europe 600 Index up by 0.77%, 0.57%, 0.42% and 0.58%, respectively.
US President Donald Trump said he was confident of progress in peace talks between Russia and Ukraine without providing any details of his talks with Putin. The news sent the RUB/USD pair slightly lower in forex trading this morning.
Indonesia’s consumer confidence fell to 127.2 in January, from December’s reading of 127.7, exerting pressure on the IDR/USD forex pair.
Ireland’s BNP Paribas Real Estate Construction PMI declined to 48.2 in January, from 51.6 in the previous month. The region’s construction activity contracting for the fourth time in the last five months sent the EUR/USD pair lower in forex trading this morning.
Australia’s Westpac-Melbourne Institute Consumer Sentiment Index edged higher to 92.2 in February, from 92.1 in the previous month. However, consumers remaining cautious amid cost-of-living concerns exerted pressure on the AUD/USD forex pair.
UK’s retail sales grew by 2.5% year-over-year in January. However, this marked a deceleration from the 3.1% gain recorded in December, which sent the GBP/USD pair lower in forex trading this morning.
South Africa’s manufacturing production (1500 UAE Time), US NFIB business optimism index (1500 UAE Time), Redbook index (1755 UAE Time) and Fed Chair Powell testimony (1900 UAE Time), Brazil’s inflation rate (1600 UAE Time), Mexico’s industrial production (1600 UAE Time), as well as Russia’s balance of trade (1700 UAE Time).
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