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McDonald’s earnings beat; warns on weaker spending
McDonald’s reported earnings and revenue ahead of market expectations, but warned that consumer spending conditions may be deteriorating further as higher fuel prices linked to the Iran conflict place additional pressure on lower-income households. Adjusted earnings per share (EPS) came in at US$2.83, ahead of analyst estimates of $2.74, while revenue rose 9% to $6.52 billion, surpassing expectations of $6.47 billion. “McDonald's delivered this quarter. Our 6% global Systemwide sales growth shows how we executed with discipline, proving that we can drive results even in a challenging environment," said Chairman and CEO Chris Kempczinski in the company's earnings release. "And it’s our commitment to going three-for-three that sets McDonald’s apart. Our value leadership, breakthrough marketing, and menu innovation continue to serve up what customers want.” However, executives raised concerns about the current consumer environment. Kempczinski said rising fuel costs caused by the ongoing U.S. conflict with Iran were disproportionately affecting lower-income consumers, a key customer base for McDonald’s and other fast-food chains. Kempczinski noted during the company’s earnings conference call, “I think probably it’s
Food
Coca-Cola beats estimates, sales rise across regions
Coca-Cola beat earnings and revenue estimates last quarter as sales grew across regions, and has raised its full year guidance. Revenue was up 12% year-over-year to US$12.47 billion, above LSEG-compiled estimates of $12.24 billion. Earnings per share increased 18% to $0.86, above estimates of $0.81. “We’ve had a strong start to the year,” said CEO Henrique Braun. “Our performance this quarter reflects our unwavering focus on staying close to the consumer, executing locally and managing complexity.” “Yet there’s so much more we can do as we navigate a dynamic environment. Our team is motivated by the opportunity to build on the company’s great foundation.” Revenue climbed across all regions, with North America leading at 12% growth. Unit case volume also rose in all regions, and the Asia Pacific saw the largest percentage increase at 5%. Coca-Cola Zero Sugar posted 13% volume growth, the most of any product type, while juice, dairy, and plant-based beverages declined by 1%. Operating income was up 19% to $4.36 billion. The Asia Pacific was the only region to report a drop in operating income, with the company crediting the 17% decline to higher input costs, marketing investments, and currency tailwinds. Coca-Co
Food
Starbucks beats estimates, lifts outlook amid turnaround
Starbucks beat earnings and revenue estimates last quarter amid its turnaround efforts, and has raised its full-year guidance. Earnings per share were up 22% year-over-year to US$0.50, above LSEG-compiled estimates of $0.43. Revenue increased 9% to $9.53 billion, passing estimates of $9.16 billion. “Our second quarter marked the turn in our turnaround as our Back to Starbucks plan drove both top and bottom line growth,” said chair and CEO Brian Niccol. “This is the Starbucks our customers deserve and the Starbucks we believe will deliver long-term growth and value for our partners and shareholders as we execute consistently, at-scale.” Comparable store sales rose 6.2%, surpassing StreetAccount estimates of 4%. This is its third consecutive quarterly increase in comparable sales. The quarter’s growth was spurred by 3.8% growth in comparable transactions and a 2.3% increase in average ticket. North American comparable store sales were up 7.1%, while international sales climbed 2.6% amid slow growth in China. Starbucks raised its fiscal 2026 guidance to include global and United States comparable store sales growth of at least 5.0%, flat net revenue, and earnings per share of $2.25-2.45. It had projected sales growt
Food
Domino's shares fall on weaker earnings
Domino’s Pizza shares tumbled following weaker-than-expected earnings and same-store sales growth in the United States. Same-store sales for the pizza chain increased by only 0.9%, lower than the 2.3% expected by Wall Street analysts. Earnings per share came in at $4.13, down from $4.33 the same time last year and below expectations of $4.27. “We’re not happy with it,” CEO Russell Weiner told CNBC. The pizza chain also lowered its full-year U.S. same-store sales forecast to low-single digit growth, down from its prior projection that U.S. same-store sales would increase 3%. Domino’s kicked off the earnings season for restaurant chains, and Weiner said he expects more fast-food chains to report similar headwinds. He said this would likely be caused by winter weather and weak consumer sentiment, which took a dive last month due to spiking fuel prices caused by the U.S.-Israeli war with Iran. “One of the bad things about reporting first is you don’t get to hear about anybody else,” Weiner said. Dominos also faced tougher competition this quarter from rival pizza chains like Papa John’s and Pizza Hut, which both matched Dominos US$9.999 “Best Deal Ever” with promotions at the same price point. And Little Cae
Food
PepsiCo beats, NA foods arm returns to volume growth
PepsiCo surpassed revenue and earnings estimates last quarter as its North American foods segment posted its first volume growth in two years. Net revenue increased 8.5% year-over-year to US$19.44 billion, passing LSEG consensus estimates of $18.94 billion. Earnings per share rose 9% to $1.61, beating estimates of $1.55. “We are pleased with our first-quarter results, which featured an acceleration in both net revenue and organic revenue growth – with a notable improvement in convenient foods organic volume. An extensive commercial agenda, which includes the restaging of large global brands, innovation activity and certain affordability initiatives, is being executed well and business performance improved,” said chair and CEO Ramon Laguarta. “We are encouraged with the resilience of the International business while North America continued to make progress in the first quarter. As we look ahead, we aim to successfully execute our commercial plans and tightly manage costs to help fund investments to accelerate growth.” Its North American foods segment reported a 2% increase in volume. The company lowered prices on products like Lay’s, Doritos, and Cheetos in February. North American and international beverages also ea

Food
McCormick investors choke on Unilever foods buyout
McCormick & Company Inc shares fell after it announced the acquisition of Unilever plc's foods business in a cash and shares deal to create a company worth about US$65 billion (A$94.4 billion). McCormick will pay $15.7 billion in cash and $29.1 billion in shares, giving Unilever shareholders 55.1% of the combined company, Unilever 9.9% and McCormick shareholders the balance. The companies said the merged business would have leading brands including McCormick flavours and seasoning, Knorr meal bases and Hellmann’s mayonnaise and high potential brands including Cholula hot sauces and Maille and Frank’s condiments. “The combination of Unilever’s Foods business with McCormick will create a global flavour powerhouse anchored in a portfolio of iconic brands across herbs, spices, seasonings, cooking aids, sauces and condiments,” they said in a media release. London-based Unilever said the transition would position it as a leading pure-play home and personal care (HPC) company. Chief Executive Officer Fernando Fernandez said the transaction was another decisive step in sharpening its portfolio and accelerating its strategy towards high-growth categories. “We are unlocking trapped value through a growth-led separation of
Food
Sysco pays price for US$29bn restaurant deal bill
Sysco shares plunged after it announced the acquisition of Jetro Restaurant Depot in a US$29 billion (A$42.3 billion) deal to increase its access to independent restaurants in the United States. Sysco (NYSE: SYY) shares closed $12.50 (15.28%) lower at $69.30, capitalising the largest food distributor in the U.S. at $33.19 billion. Sysco said it would acquire the family-owned restaurant and food service provider for $21.6 billion in cash, funded by debt and 91.5 million Sysco shares. The acquisition will allow Sysco to build a close relationship with customers that turn to Jetro for supplies in the higher margin $60 billion to $70 billion per year ‘cash-and-carry wholesale’ channel. “We’re thrilled to combine two industry leaders to create a preeminent multi-channel food service distribution platform,” Sysco Chair and Chief Executive Officer Kevin Hourican said in a news release. He said Sysco and Jetro Restaurant Depot would give independent restaurants better access to more affordable, fresh food products and deliver more choice and convenience. Jetro would benefit from access to Sysco’s foodservice supply chain and logistics capabilities, and Sysco would benefit from new ways to serve local customers. The co
Food
Pernod Ricard merger talk lifts Brown-Forman spirits
Brown-Forman Corp stock jumped on reports it had held preliminary merger discussions with Pernod Ricard as the alcoholic beverages sector responds to the challenges of rising costs and falling demand. Brown-Forman Class B shares (NYSE: BF.B) closed US$2.26 (9.63%) higher at $25.74 on Thursday (Friday AEDT) after media outlets reported the two companies had talked about combining their businesses. This capitalised the American company that makes Jack Daniel’s whiskey at US$11.88 billion (A$17.2 billion), but earlier in the session the share price was up as much as 21%. However, shares in Pernod Record ended €3.64 (5.73%) lower at €59.94, capitalising the world’s second largest spirits producer at €15.25 billion (US$17.53 billion), due to worries about the cost and risks of such a large acquisition. The talks were first disclosed in this article by Bloomberg, which cited an anonymous source familiar with the matter. A merger makes strategic sense in that although the French company’s spirits portfolio includes Jameson Irish whiskey, Ballantine's and Chivas Regal Scotch whiskey and Absolut vodka it has relatively little exposure to American whiskey. Although a deal is not certain, the talks reflect a move toward con
Food
Campbell's earnings miss on low snack sales, shares fall
Food company Campbell’s fell below estimates last quarter as snack sales dropped, sending its shares down 7.1%. Net sales declined 5% year-over-year to US$2.56 billion in the quarter to 1 February, 1.63% below Zacks consensus estimates. Earnings per share were $0.51, down from $0.74 one year ago and missing estimates of $0.57. “Our core Meals & Beverages portfolio delivered in-market consumption growth in the second quarter, highlighted by the Rao’s brand surpassing $1 billion in trailing twelve-month net sales. Overall results, however, fell short of our expectations due to weaker-than-expected performance in Snacks and storm-related shipment disruptions,” said Campbell’s CEO Mick Beekhuizen. “To stabilise Snacks, we are taking decisive action, focused on sharpening our value, new product innovation and in-market execution. We are also accelerating cost saving initiatives to mitigate cost headwinds and support continued investment in our brands.” Meals & Beverages sales were $1.65 billion, falling from $1.68 billion one year ago. Snack sales dropped to $914 million, from $1.01 billion. The decrease in snack sales was largely driven by declining chips and pretzels sales, as well as supply constraints, the company sa