Americans now say they approve of free trade by 64%-27%, a margin of better than two to one. That's up from 57%-37% early in Trump's presidency, and 51%-41% near the end of...Politicsread more
Kudlow pointed to strong retail sales and low unemployment as signs that the U.S. economy remained strong.Marketsread more
The yield on the benchmark 10-year Treasury note briefly fell below the 2-year rate on Wednesday, a phenomenon in the bond market known as yield curve inversion, which is...Marketsread more
The MacBook Pro recall and its subsequent ban from flights underscores the increasing brand risk from problems with lithium-ion batteries.Technologyread more
Experts say the timing of Amazon executives' contributions to Rep. David Cicilline likely reflect the company's heightened urgency over growing regulatory scrutiny.Technologyread more
Despite aggressive strides, Waymo needs one thing before their self-driving cars become a seriously useful transportation system: people. We talked to the ones closest to it.Technologyread more
CNBC combed through Wall Street research to see which stocks are still a buy after their earnings reports.Marketsread more
Coinbase security chief Philip Martin explains, "Possession of a key is possession of your currency. What that means is that you can't revoke a cryptocurrency key, if that key...Technologyread more
Fraud investigator Harry Markopolos' accusations extended beyond GE's management to actuaries, auditors and analysts who he claims overlooked billions in liabilities.Marketsread more
The Supreme Court could strike down the constitutionality of the Consumer Financial Protection Bureau, an agency Elizabeth Warren has likened to her child and which Justice...2020 Electionsread more
Bianco Research's James Bianco suggests Wall Street is desperately looking for a signal that a 50 basis point cut is coming next month.Trading Nationread more
After months of sluggish results, McDonald's reported a 1.9 percent increase in global sales at established restaurants in August.
Although same-store sales came in just 0.2 percent higher in the U.S. (compared with a 1.6 percent rise in July); the big jump came from Europe. The world's biggest fast-food chain said comparable sales in Europe rose 3.3 percent in August, helped by new blended-ice beverages.
Bryan Elliott, senior restaurant analyst at Raymond James, said menu innovations, such as its new Mighty Wings, might pop sales for a while but will not fundamentally alter customer demand.
McDonald's is depending on consumer purchasing power to help lift sales and revenue, according to Elliott.
"Every restaurant chain has aspirational customers, someone who wants to go there but for whom it's an economic decision," said Elliott. He said McDonald's aspirational customers are in the lower and middle-income bracket, and what they need now are meaningful wage increases or a reduced cost of living.
Fifteen to 20 percent of consumers are feeling the "wealth effect" but that isn't the McDonald's customer, according to Elliott. "Consumers are not eating a second Big Mac because they have extra money, they're spending elsewhere," he said.
Elliott said in order for McDonald's stock price to rise, it requires a better customer demand environment in the U.S. and Europe. McDonald's outlook is good as long as it maintains the broad position of good-quality low-priced food. In the meantime, McDonald's dividend yield will protect on the downside.
Disclosure: Elliott does not own shares of McDonald's.
By Christina Medici Scolaro
Comments, Questions, Suggestions? Tweet Us @BigDataDownload.