American Airlines' Rebirth, Sysco Gets Hungry, and McDonald's Sales Taste Bad
1. McDonald's sales lose some bite
Ronald McDonald is a creepy clown dude, but it's McDonald's recent sales news that scares investors. Shares of McDonald's fell 1.12% Monday after sales at U.S. stores dropped by 0.8% in November when analysts expected a gain.
What's the problem? An extra-large serving of competition. Burger King recently rolled out a McRib alternative and Taco Bell introduced breakfast foods (where's the fajita lox?), and McD's has been forcing new food items down your throat that haven't stuck -- pumpkin lattes, chicken wings, and bacon cheddar McChicken sandwiches. The MarketSnacks team is satisfied with a Happy Meal toy.
The takeaway is that America has been unkind to the world's largest chain restaurant lately. U.S. fast-food sales rose nearly 1% in 2012 and McDonald's European sales gained 1.9% last month, but its U.S. same-store sales haven't gained more than 1% since July. Wall Street's starting to worry about the trend.
2. Biggest airline merger is official
Regulations, schmegulations. All regulatory hurdles have been cleared with the Department of Justice since the merger was proposed last spring -- and compromises on the "free peanuts vs. free pretzels" argument have been found (now both will come at a cost). The merger marks the end of decades of consolidation in the airline industry. The stock took off with a first-class 2.7% gain in its debut.
3. Sysco hungry for $3.5 billion acquisition
Investment bankers are calling this merger "the best thing since sliced bread." According to TheNew York Times, cost savings and synergies of the combined company are worth $4 billion in present value, so the heavy $3.5 billion price tag to Sysco looks cheap. Sysco's stock rose 10% on Monday on the tasty M&A news.
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The article American Airlines' Rebirth, Sysco Gets Hungry, and McDonald's Sales Taste Bad originally appeared on Fool.com.Fool contributor MarketSnacks has no position in any stocks mentioned. The Motley Fool recommends Sysco. It recommends and owns shares of McDonald's. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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