August Was a Tasty Month for McDonald's
is reporting that August revenue was terrific, as the company posted a big rise in global same-store sales this morning.
The fast-food chain said its worldwide same-store sales, or sales at locations open at least a year, jumped 8.5% during the month. In Europe, same-store sales climbed 11.6%. Performance was particularly strong in the U.K., France, and Germany. Same-store sales rose 10% in the Asia-Pacific, Middle East and Africa division, as the company was able to benefit from strong Olympic sponsorship promotions.
We initiated coverage on June 9 with a recommendation, when the shares were trading at $56.95. We think MCD shares are a good buy on any pullbacks, as the company has been upping its dividend substantially the last four years. Besides that, the company is simply outperforming the rest of the food company chains. The company has a dividend yield of 2.40%, based on last night's closing stock price of $62.42.
McDonald's is a "Recommended" dividend stock, holding a Dividend.com Rating of 3.8 out of 5 stars.
Pfizer Suffers Drug Setback, but a Deal May be in the Works
announced today that it will globally withdraw all Dalbavancin marketing applications for the treatment of complicated skin and skin structure infections in adults, including the U.S. new drug application and the European marketing authorization application.
The company plans to conduct an additional Phase III clinical trial with the antibiotic drug Dalbavancin, used in the treatment of adults with complicated skin and skin structure infections caused by Gram-positive bacteria, including MRSA (methicillin resistant Staphylococcus aureus).
This news comes on top of rumors that the company may be considering an acquisition of German chemicals company Bayer. Most reactions on the Street indicate that Bayer's high price tag and cultural integration issues make the deal somewhat unlikely.
We long for the days of substantial growth with Pfizer, but we are content right now collecting its 6%+ dividend yield. We recommended the stock back on June 9 at a price of $17.96, and it will remain on our list unless we see some serious fundamental changes and/or dividend cuts (both of which are highly unlikely).
Pfizer is a "Recommended" dividend stock, holding a Dividend.com Rating of 3.7 out of 5 stars.
H.B. Fuller Slashes Outlook on Raw Material Cost Concerns
, worldwide manufacturer and marketer of adhesives, sealants and paints, is lowering its full-year EPS outlook due to rising raw material costs.
The company now expects earnings of $1.55 to $1.60 per share, down from a previous range of $1.76 to $1.86 per share. These estimates are significantly below Thomson Reuters consensus estimates of $1.80. Management believes that this earnings gaffe is a temporary problem, and that the company can recover its raw material cost increases over the next several quarters.
We have not been recommending the stock since we initiated coverage back in June. We do believe that commodity costs are coming down, as is certainly evidenced by the negative price action of the commodities themselves and commodity-related stocks.
The bigger question is whether demand for H.B. Fuller's products will rebound. That being said, we recommend remaining on the sidelines with this company, which has a low dividend yield of 0.95%, based on last night's closing stock price of $27.41.
H.B. Fuller is not a recommended dividend stock at this time, holding a Dividend.com rating of 3.4 out of 5 stars.
Avery Dennison Warns That Summer Blues Will Hit Earnings
Stationery and label maker
is warning on its next quarter results, after the company reviewed some intermediate summer results. It appears the company was 15 cents to 20 cents below its own forecast.
The company had previously cut its full-year forecast back in July to $3.75-$3.95 per share. Rising commodity costs and weal economic conditions were being cited as the main factors.
We had removed the stock from our "Recommended" list back on July 22, at the $45.24 level. It actually started to climb back up, as we were watching its price action closely. However, the stock appears headed back down to the levels where we downgraded it today. We would still avoid the shares at this point, but will watch to see if the stock can manage to climb up once again. If so, we'll keep readers posted of any potential rating change. The company has a 3.28% dividend yield based on last night's closing stock price of $50.
Avery Dennison is not a recommended dividend stock at this time, holding a Dividend.com rating of 3.4 out of 5 stars.
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At the time of publication, the author had no positions in stocks mentioned, although positions may change at any time.
Tom Reese and Paul Rubillo are senior editors of Dividend.com. Visit Dividend.com for more dividend stock ratings, picks, news, and analysis for long-term and income-seeking investors.