McDonald's Sales Rebound, Snap Tumbles, Lucid Lowers Production Outlook
On this edition of Stock Movers:- McDonald's (MCD) shares are up today after sales picked up in the latest quarter, suggesting that pop culture-focused collaborations and budget meals are helping to offset diners’ economic anxiety. Global sales at restaurants open at least 13 months rose 3.8% in the second quarter, the company said Wednesday. That’s higher than the average estimate of analysts polled by Bloomberg. International markets led the company’s growth, while the US was slightly ahead of expectations as Americans spent more per trip. The results ended four quarters of declining or tepid growth as the burger chain dealt with an E. coli outbreak, backlash against American brands in the Middle East and consumer unease about the economy in response to President Trump’s trade disputes. Total guest counts around the world rose, Chief Executive Officer Chris Kempczinski said on call with analysts.- Snap (SNAP) shares tumbled after the owner of the Snapchat photo-sharing app acknowledged a slowdown in advertising revenue growth, due in part to a technical issue with its ad-buying tools earlier this year. The company on Tuesday reported second-quarter sales that were shy of Wall Street’s average estimate, and on a call with investors later said that ad revenue, which rose by 9% in the first quarter, is now gaining at a rate of 3% to 4%. Snap shares, which have fallen 13% so far this year, slid more than 17% in premarket trading on Wednesday after closing at $9.39 in New York. Revenue in the June quarter was crimped when the company shipped an update to its advertising auction that inadvertently allowed marketers to buy ads at “substantially reduced prices,” Snap said. That issue has been fixed, and “advertising revenue growth has improved,” Snap said in a letter to shareholders Tuesday. The company, which gets about 90% of its revenue from advertising, forecast overall sales in the current period that will likely be higher than analysts projected. - Lucid (LCD) shares are down after the electric vehicle maker reported earnings on Tuesday and missed second quarter estimates. Lucid trimmed its full-year production outlook, making the electric vehicle manufacturer the latest carmaker to temper expectations for the year. The company now expects to produce between 18,000 and 20,000 EVs in 2025, down at the midpoint from its earlier forecast for 20,000 vehicles, Lucid said as it reported second-quarter earnings on Tuesday. Although it didn’t immediately detail the reason for the change, the company faced a “challenging macroeconomic backdrop” in the most recent quarter, Chief Financial Officer Taoufiq Boussaid said in the statement.See omnystudio.com/listener for privacy information.
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