What does Starbucks, McDonalds and DoorDash bad guidance tell us about the state of the consumer

Hi All,
In this video I cover #mcdonalds, #starbucks and #doordash earnings this last week, and more importantly what they say about the health of the American consumer, and the international consumer. With volume sales declining for all three, its clear the consumer is done with eating price increases. We'll see if that leads to softer pricing in the next few quarters as they hope wages and spending catch up to their price raises. Might this spell the beginning of the end of the soft landing? Who knows. But its worth thinking about.
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[@darrendent8288]

@10:33 as a Major Airport employee this is indeed true. Our Airport recently as of last year approved plans to build a new terminal with more gates. Same thing with Denver Airport and United.

[@darrendent8288]

@11:36 I personally can attest to this as well 😂. Im going to Australia in January.

[@Dana-ee9pb]

The BKNG CEO did an interview on CNBC yesterday and the interviewer asked him about the consumer and he said that the travel industry is not seeing what other consumer industries are seeing. So that confirms what you are seeing now with travel. I bought a starter position in CMG a while back and am shocked I'm up 30%. I've was hoping for it to come down to buy at a better price. We'll see if that ever happens. Also been waiting on MCD to grab at a discount. SBUX I'm just not sure about. That was a really negative quarter.

[@sleepysol]

Ya them + expe reported solid travel numbers. Expe just had an issue with vrbo. But their valuation has collapsed.

[@markom001]

Hey Sleepy, excellent breakdown and very good points on SBUX. Many claimjng they are done, they are too expensive. But much more under the hood.
When speaking of the consumer and spending, could you maybe do a video on V and MA? They both had kinda shaky earnings this Q, not the big beat earnings as usual.

[@sleepysol]

I'll add it to the list. I'm going to do a para update for Sunday. And a ceg/vst/Emr preview for Monday. So maybe Wednesday?

[@markom001]

@@sleepysol whenever you catch the time! Thanks man! :)

[@darrendent8288]

Hmmm, that Doordash issue has me thinking that Uber can be tied up in there as well with the delivery orders on their side going down.

[@RoTelnCheese]

The CEO has bad lucks man. He doesn’t have the best track record, he suddenly quit his previous role at Reckit Benckiser after failing to turn it around. I’m not sure what the board saw in him, but they might have better luck elsewhere man. The only reason I have some hope is Cramer doesn’t like it anymore, normally a sign the bottom is close. I understand they’re pinning their hopes on China, but that gives me even less confidence given how weak Chinese sensitive stocks have been of late.

[@sleepysol]

Yes. But the value to China is basically japan. China is currently drinking 13 cups of coffee per person per year. Japan is at 260. If China goes to let's say 50 or 60 it won't matter how much share Starbucks maintains, their eps will explode.

[@RoTelnCheese]

@@sleepysol that’s a great point you make, I sincerely hope they can turn this around but I think it will take a couple of quarters. Apparently they’re introducing Boba tea into their stores soon, kids love that stuff and I’m sure that trend has impacted sales of their iced drinks. Also if the conflict ends, I can see a rebound in sales. The longer that drags on, the more people will continue to refrain from the great American brands like McDonalds and Starbucks. Let’s see how it plays out. Thanks for the update

[@sleepysol]

@@RoTelnCheese ya as I mentioned in the video I still think this is a 170/180ish stock in 26, maybe 27 now. When China starts drinking coffee it will be a violent swing to the upside. Who knows when that is though.

[@darrendent8288]

@11:24 also to account for the fact that Frontier tends to have the most deals domestically around the country. Not saying their services are the best tho. 😂

[@darrendent8288]

Speaking of Airports, I wonder jf $OSK looks like a play in terms of their Airport firefighting trucks. Their Forward P/E is showing at 9.73

[@mexitron]

Personally, I'm trying to avoid any ticker whose growth can only happen in gyna. Maybe it'll work and maybe it won't, but personally I'd rather invest elsewhere.

[@darrendent8288]

@9:22 I think people are simply not thinking of or caring that McDonalds has the app for their deals. You could literally get a mcmuffin for a $1.50 or a free hash brown with purchase. Or even get a bogo 10 piece mcnuggets for around $5 on the app. I know from experience 😂
Wendys has the same concept.