Closing Bell: McDonald's Growth Beats Estimates, Micron Gains, Lyft Sinks - podcast episode cover

Closing Bell: McDonald's Growth Beats Estimates, Micron Gains, Lyft Sinks

Feb 11, 20268 min
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Episode description

Today's biggest winners and losers in the stock market.
On this episode of Stock Movers:
Listen for comprehensive cross-platform coverage of the US market close as heard on Bloomberg Television, Bloomberg Radio, and YouTube with Katie Greifeld, Scarlet Fu, Carol Massar and Tim Stenovec.
- McDonald's (MCD) US sales grew at the fastest pace in more than two years in the fourth quarter as value meals continued to resonate with cost-conscious diners. Sales from established US restaurants jumped 6.8% in the period from a year ago when foot traffic was dented by an E. coli outbreak, ahead of expectations and the highest since 2023. Earnings, excluding one-time items, also outpaced the average of estimates compiled by Bloomberg, as did comparable sales at the company’s two international divisions. Shares of the fast food restaurant rose in afterhours trading.
- Micron (MU) shares rose as much as 9.9% after Chief Financial Officer Mark Murphy assured investors that the company is producing its new much-prized HBM4 memory chips in high volumes. The product line — the latest generation of Micron’s high-bandwidth memory — is now being delivered to customers, Murphy said during a Wolfe Research event. The chips are designed to help artificial intelligence computing systems handle the flood of data needed to develop and run AI models.
- Lyft (LYFT) shares fell by the most in a year after the rideshare firm issued a disappointing forecast that missed Wall Street expectations, a sign that its global expansion and new product offerings are not performing as quickly and as well as anticipated. Shares of Lyft fell as much as 16% after markets opened on Wednesday, their worst intraday decline since February 2025. The stock was already down 13% so far this year through Tuesday’s close.

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Transcript

Speaker 1

Bloomberg Audio Studios, podcasts, radio news.

Speaker 2

This is the closing bell on this stock movers report the company's making moves at the close of US trading with Carol Masser, Tim Stenebeck, Romain Bostik, and Katie Greifeler.

Speaker 3

Remember, in an environment where consumers are focused on value, that's exactly what McDonald's is leaning into and has been. The company's chairman and CEO Chris Kemsinski saying that McDonald's value leadership is working quote by listening to customers and taking action, we have improved traffic and strengthened our value and affordability scores. That focus helped increase global system wide sales by eight percent, delivered strong comp sales growth across

all segments this quarter. The momentum we've built reinforces the progress we've made with our strategy and has earned us the right to look forward together as a system.

Speaker 1

All right, So, just to rehash, we've got now McDonald's bouncing around here but up about two point seven percent here in the aftermarket again, US sales growing at the fastest pace in more than two years in the fourth quarter. Value meals continue to resonate with cost conscious diners companies focus on affordability helped improve traffic in the fourth quarter. Diners also spending more per visit in the United States due to successful marketing promotions. That's the words of the company,

and so our team kind of doing some analysis. Red Brown thank you so much at Bloomberg News, saying that the results suggests that McDonald's gaining markets share as consumers change their spending habits in response to higher costs, despite its decline in operating margin that did miss Wall Street expectations. Always keeping an eye on margins. All right, as we watch for some more earnings, including Cisco to report after the closing bell, let's go to some of the individual gainers.

This was the number one gainer in the S and P five hundred. We're talking about Generak holdings, this one finishing just off its highs of the day, but still good enough for gain of about eighteen percent in the Wednesday trade maker of Generators forecasting a twenty twenty six ebit of margin range with the midpoint above Alics consensus.

We should point out that net sales for the fourth quarter did miss analyst estimates, but Kibang coming out and saying that they do expect shares to trade higher on that twenty twenty six outlook and positive data center developments. Keep in mind the stocks up about sixty percent year to date, third best performer in the s and P five hundred. Here in twenty twenty six, we caught up with the company's CEO and they really entered big time in the fourth quarter into the AI world, and that's

by offering up some large megawatt generators. So that is a big play in big generator huh pun intended when it comes to their financials going forward, So some good stuff there. This is when we don't talk about tickers s w Smurfitt, West Rock and that one finishing with

a gain of just shy of ten percent. Stock is up about thirty percent year to date and again a top gainer in the SMP five hundred, up the most I think since around July of twenty twenty four, after the packaging company reported adj justa ibita for the fourth quarter that beat the average analyst estimate. So some outperformance there. And one more Micron Technology great reader when it comes to the semi space, up almost ten percent in today's session,

a top gainer in the Nasdaq one hundred. The company CFO Mark Murphy assuring investors at the company is producing it's new much prized HBM four memory chips in high volumes. That product line is the leadst generation of Micron's high bandwidth memory now being delivered to customers. Murphy coming out saying this during a research event put on by Wolf Research, and that stock is up about forty percent year to day.

Speaker 3

Tim All right, Well, Cisco just crossing second quarter adjusted earnings per share did beat estimates, second quarter adjusted gross margin, coming in shy of estimates at sixty seven point five percent. Second quarter services revenue. This is a look back three point seven one per billion dollars. That beat estimate. Second quarter adjusted EPs beat estimates at a dollar four. Second quarter product revenue beat estimates at eleven point six four

billion dollars. Second quarter revenue all in coming in just above estimates at fifteen point three billion dollars. Here's the red headline, though, and it's the outlook. Cisco sees fiscal You're adjusted earnings per share four dollars and thirteen cents to four dollars and seventeen cents. The company saw four dollars and eight cents to four dollars and fourteen cents after hours, Scarlett Cisco shares hired by about one point five percent.

Speaker 4

Yeah, you gave the bottom line outlook from Cisco. Here's the top line outlook from Cisco. Full your revenue sixty one point two billion to sixty one point seven billion. Previously it had seen sixty point two billion to sixty one billion, so raising the range of its revenue forecast. There you can see the stock currently up about one point three percent at the moment, all the company boosting.

Speaker 3

It's dived in two percent as well, to forty two cents per share. Just a little preview for what we got coming up in just a few minutes. Wou Jinho is senior Hardware, a networking analyst. He's on set with us right now. He's listening, he's looking at the Bloomberg. He's taken notes for what we're going to be talking about. Cisco shares hired by about one one point one percent in the after hours. Let's go to some of the

decliners on the day. Will we potentially await more earnings and analysis shares A Mattel look at this twenty five percent to the downside. This is the biggest plunge going back to nineteen ninety nine. Holiday results fell short of analysts estimates. The company issued a twenty twenty six forecast for lower profit. The stock was up six point one

percent through the year. For the close of regular trading yesterday, fourth quarter earnings excluding some items total thirty nine cents a share, that missed the fifty four cent average of analysts estimates. The company said that shortfall in December sales in the US that grew less than projected also shares of Robinhood taking tumble today. The company announcing earnings yesterday

after the close. Shares felt today by eight point eight percent lower fourth quarter profit due to sharp declines in bitcoin and other cryptocurrencies. But vlad Tenev he said that the companies at the beginning of a prediction market super psychicly aims to expand into several new markets later this year. I know you guys spoke with him a little about an hour ago. What did he tell you didn't? Yeah, what did he say?

Speaker 5

Talk a lot about prediction markets and that super cycle. We talked a bit about, you know, what kind of returns their customers are actually seeing when it comes to prediction monekets.

Speaker 3

Did you say returns in prediction markets?

Speaker 5

I did see you're talking.

Speaker 3

About returns like we're talking about returns on a stock, right, or when is that how we should be looking at prediction markets.

Speaker 5

Well, I'm not making that case, but I am talking about, you know, whether or not people are seeing money when they make bets on prediction markets or.

Speaker 3

I heard the house always win.

Speaker 5

A lot of market money. Well, you know that is the sneaking suspicion out there, Tim, And certainly there's been a lot of research, a lot of academic studies, and also just a lot of concern about, you know, whether people are getting their faces ripped off.

Speaker 3

So yeah, I mean I think and Carol brought this up a little early on our program. We were talking about this the regulators out there, right, if you're a sports gambling site or app, and you're regulated in a different way than than one of these apps than like a prediction market, it's up like, you know, we got to potentially see some regulatory changes down the line, or regulatory risk, I guess you could say. Finally, Shares of

Lift taking a hit today. The company fell after the shares fell after the company issued a disappointing forecast at miss Wall Street estimates down seventeen percent on the day.

Speaker 2

Today the Stock Movers Report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street and for the latest market moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg dot com, and on Applecarplay and Android Auto with the Bloomberg Business App.

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