The virus has made the restaurant business unbearable. A sea of costs and losses due to the pandemic. Everyone sits at home and doesn’t go anywhere. Some restaurants had to close.
Everyone hopes for the invented vaccine and its effect. Thus, investors hope that the economy will revive again and everything will be the same. Restaurateurs keep their finger on the pulse and quite often monitor what consumers need. They do this in order to predict the request.
We used information about Starbucks and McDonald’s to understand better what stocks are and whether they will end costing more.
1. Starbucks case
After the pandemic began, coffee shops had a hard time. All people began to stay at home and buy much less coffee. The entire trading system has changed.
Sales fell 9%. All this time, the coffee chain has been losing money. They are declining for the third fiscal quarter in a row. Although the last week is not so gloomy.
The overall forecast includes the assumption that sales will grow by 18-23% in early 2021. At the same time, up to 32% is predicted in China. In the Americas, growth is reported at 17-22%. There are high hopes for 2021.
Starbucks CEO Kevin Johnson wrote in the email in which he has said that the planning has worked, and he knows that the virus will only bring them more experience and knowledge.
There are also researchers who fear that it may take longer to update the entire exchange process in a post-pandemic world. This is because some customers can completely change their taste preferences and get used to online delivery, so now is not the time to bet on the stock of the coffee chain.
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The shares of the coffee house chain fell 36% in March. The loss was reversed. They have now settled at $98.82. It`s up to 12%.
Even with these volatile numbers, Starbucks in Seattle is hard at work on a renewal strategy. A crisis is always an opportunity. The virus made Starbucks a service, forcing them to think over the entire concept of establishments that better fit the description of a neutral “third place” away from work and home, where customers can relax.
The cafes are planning to make progress in implementing their plan at this stage. Their main goal is to develop a self-pickup service. Because of this, they have to donate their 400 traditional cafes in urban areas.
2. McDonald’s case
McDonald’s, a leader among fast-food chains. These cafes, as well as Starbarks, are rapidly working on updating the process after the pandemic strike. Their position is up 75% since mid-March, beating the Dow Jones Restaurants & Bars Index.
It’s just that McDonald’s quickly reacted to the changes and took action immediately after the news of the terrible virus. Their sales did not fall but only increased. The consumer’s check got bigger as they ate McDonald’s for breakfast, lunch, and dinner.
The restaurant chain also did not lose its position due to the fact that they changed the entire flow of communication with their target audience. They immediately hooked up influencer Travis Scott and improved driver service times. Meanwhile, sales were on the rise.
Looking at all this from the outside and predicting something, you need to pay attention to the stability of wage payments. McDonald’s did it. With a current dividend yield of 2.31%, MCD shares are now paying out at $ 1.29 per share, following a 3% rise in October.
So, we do not give preference to any of these networks. Both are good business. Because this is a group that reacted quickly and did not lose anything. Although their profits will naturally also not return to normal until the introduction of the coronavirus drug.
Starbucks and McDonald’s stocks remain great bets, so drop by companies for USA Forex traders and come up with your plan to capture the market.