Dec 10, 2012 Market Foolery Podcast

TL;DR

• McDonald's saw strong sales in November while FedEx faces challenges amid global economic slowdown.

Transcript

it's Monday December 10th welcome to Market fery I'm Chris Hill joining me in studio today from mle Full Asset Management Tim Hansen and Bill Barker it's an all mfam show finally thank you yes been clamoring for that been just bombing us with emails radio.com when when are we going to have can you explain what mfam is for the 100% of the people out... Read More

Key Insights

• 🙈 McDonald's saw a positive sales trend in November, following an initial decline, driven by new menu items like the CBO sandwich.
• 😮 FedEx faces challenges due to a slowdown in international shipping and rising fuel costs, impacting their financial performance.
• 👾 China's crackdown on the junket business in Macau affects gaming stocks like MGM and Las Vegas Sands, highlighting the regulatory risks in the industry.
• 📈 The comparison between McDonald's menu expansion and shifting market trends towards healthier options reflects strategic adaptability in response to changing consumer preferences.
• 🥳 FedEx and UPS are exploring new business models like same-day delivery services to enhance efficiency and meet evolving customer demands.
• 👨‍💼 The junket business in Macau reflects unique financing practices in the gambling industry, impacted by regulatory changes and government interventions.
• 🎲 MGM Resorts and other gaming companies are affected by regulatory crackdowns and market volatility, highlighting the risks associated with operating in the gambling sector.

Questions & Answers

Q: What factors led to McDonald's positive sales trend in November?

McDonald's positive sales trend in November was influenced by improved same-store sales, driven by factors like the introduction of new limited edition menu items such as the CBO sandwich.

Q: How is FedEx impacted by the global economic slowdown?

FedEx is facing challenges due to a slowdown in international and business-to-business shipping volumes, influenced by the sluggish global economy and rising fuel prices, impacting their overall performance.

Q: What is the junket business in Macau and how does it affect gaming stocks?

The junket business in Macau involves extending credit to Chinese gamblers for casino gambling activities, impacting gaming stocks like MGM, Las Vegas Sands, and Melco when Chinese authorities crack down on such operations.

Q: How does the crackdown on the junket business in Macau reflect broader trends in China?

China's crackdown on the junket business in Macau is part of a larger effort by the Chinese government to clean up corruption and bribery, signaling a shift towards ethical practices and transparency in the country's operations.

Summary & Key Takeaways

• McDonald's same-store sales for November increased by 2.4%, with a positive trend post the previous month's decline.

• FedEx faces challenges due to a slowdown in international and business-to-business shipping, impacted by rising fuel costs.

• China's crackdown on the junket business affects gaming stocks, with MGM, Las Vegas Sands, and others seeing a drop.