- August same-store sales grew 11.6% and 10% in Europe and APMEA, respectively. Even with this continued top-line momentum, one of my ongoing concerns stems from the company’s increasing foreign currency benefit, which will not be around forever. As I have said in the past, MCD Europe’s positive currency impact has grown rather steadily and has been beneficial to EBIT growth since 3Q06. Reported systemwide sales in Europe grew 21.5% in August, including an 8% currency benefit. This currency impact, although still significant, slowed from July when currency boosted systemwide sales growth by 13%. In APMEA, currency helped total sales growth by 6% in August (down from nearly 10% in July). Based on these results, MCD will still experience currency tailwinds in 3Q08, but we may have already seen the peak of the currency benefit.
Today, DIN announced that resignation of Thomas G. Conforti, its Chief Financial Officer, effective immediately. In the press release, Julia Stewart went to praise him for his service to the firm. Yet, taking a closer look that the 8K shows that he was more likely fired and did not resign.
Item (d) in the separation agreement states that;
The Company shall make available to Executive for a period of up to 18 months following the Effective Date, at the Company’s expense, executive-level outplacement assistance benefits through Right Management or another outplacement firm of Executive’s choice, provided that such benefits shall be capped at $12,000.00 and will be paid by the Company directly to the provider.
In the normal course of resigning voluntarily from a job you don’t get out-placement services!
Sweden’s economy is tied to commodities and global infrastructure – the WEF ranks them as the 4th most competitive economy. Yes, the Swedish Krona looks like it had quite a run alongside those 2 global investment "themes" since 2005 doesn't it!
Local CPI was reported today, a touch better than expectations. This stagflation tastes nothing like Swedish Fish.
Get The Macro Show and the Early Look now for only $29.95/month – a savings of 57% – with the Hedgeye Student Discount! In addition to those daily macro insights, you'll receive exclusive content tailor-made to augment what you learn in the classroom. Must be a current college or university student to qualify.
This is the immediate term "Trade" as I see it right now. Remember, my price models reset every 90 minutes. As the facts change, I will.
(picture courtesy of: http://www.robertcasumbal.com/blog/images/080207_bearish_beat_bullish_450px.jpg)
There are plenty of hedge fund managers pinging me that "housing has bottomed"... I definitely missed this "Trade" higher in the US Homebuilding stocks, but I am certainly not going to mistake my missing it for a "Trend".
Be careful chasing momentum stocks out there. They are starting to come down faster than they went up (see GOOG, POT, etc...).
daily macro intelligence
Relied upon by big institutional and individual investors across the world, this granular morning newsletter distills the latest and most vital market developments and insures that you are always in the know.