Nov 8, 2012 Market Foolery Podcast

TL;DR

McDonald's sales dip, Activision Blizzard excels, Whole Foods moderates growth outlook.

Transcript

it's Thursday November 8th welcome to Market fullery I'm Chris Hill and joining me in studio today from mle Full options Jim Gillies and for mle full one Jason Moser we're wrapping up Canada week with Jim Gillies as long as we don't talk about hockey today I just don't really have much to offer there we're not we're not going to talk about hockey a... Read More

Key Insights

• 🙈 McDonald's sales dip not seen as concerning due to the company's global presence and scale.
• 💩 Activision Blizzard excels in profits despite market indifference and concerns over hit-dependency.
• 🙂 Whole Foods faces slight pullback post-earnings, focusing on moderate growth and efficiency in store expansion.
• 🎮 Concerns over hit-dependency in video game industry noted from Activision Blizzard's success.
• 📌 Whole Foods' deliberate growth strategy aims to ensure successful operations and avoid underperforming locations.
• ❓ Highly critical market indifference towards Activision Blizzard's consistent performance may impact stock valuation.
• 🤨 The impact of new store openings on Whole Foods' sales per square foot metric raises potential concerns for future profitability.

Questions & Answers

Q: Why is McDonald's same store sales drop not a significant red flag?

McDonald's scale and global operations mitigate the impact of the sales drop, indicating a non-critical issue due to temporary fluctuations.

Q: What concerns arise from Activision Blizzard's performance despite successful profits?

Activision Blizzard's dependency on hit games and market indifference pose risks in an industry with no guaranteed success for future releases.

Q: What factors contribute to Whole Foods seeing a slight pullback in share price?

Whole Foods' high valuation, slowing growth, and potential impact of new stores opening at lower sales per square foot levels are factors affecting the stock price.

Q: How does deliberate growth strategy benefit Whole Foods in expanding its store count?

Whole Foods aims for deliberate store growth to avoid underperforming locations, focusing on quality over quantity to maximize efficiency and profitability.

Summary & Key Takeaways

• McDonald's same store sales dropped nearly 2% in October, first time in a decade. Not a big concern due to the scale of the operation and global presence.

• Activision Blizzard's profits exceeded expectations, with consistent success and market indifference. Concerns about hit-dependent business model.

• Whole Foods sees slight pullback despite strong performance. Moderate growth outlook as new stores may impact sales per square foot.