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Interesting Tidbit: Mentions of "Value" in McD's Conference Call
Hi scott, What does this graph represent? Side note: We held FDLSX, but sold in May; as some of the numbers of companies in the holdings were looking a bit weak. Not that one could use this fund or the holdings as a proxy about overall conditions related to the consumer, etc.; but we did place weigh into this thinking. This also lead us to sell this fund; as well as our other equity holdings in May, as the holdings within this fund and overall indicators for some global markets in general continued to look a bit on the poopy side of life. We all have our guages that we use to help obtain an overview of our investments and market conditions in general; FDLSX its holdings helped define our recent sell period. I did become more concerned finding problems with McD's earnings in all global market areas from the 1Q period.
---Top 10 holdings of FDLSX:
STARBUCKS CORP MCDONALDS CORP LAS VEGAS SANDS CORP WYNDHAM WORLDWIDE CORP YUM BRANDS INC CHIPOTLE MEXICAN GRILL INC PANERA BREAD CO CL A STEINER LEISURE LTD TEXAS ROADHOUSE INC DOLLAR GENERAL CORP
Overall, this has been an excellent fund over the years. SIDENOTE: not related to McD's or others; but I really suspect the earnings reports of many companies have to really be picked apart to find what is real and what is modern accounting math. IBM recently reported and had some earnings; but digging into everything else indicates that going forward may not be so great with sales/service revenues. The positive report from them had to do with a special tax function related to Brazil or other latin country; which allowed for a positive offset against otherwise negative numbers. I do believe there are smoke and mirrors with many reports and one had better check carefully as to door 1, 2 or 3 before selecting. Take care, Catch
My guess is that it represents a push, and possibly a strained one, to try to find ways to push "value" to a consumer (or a particular segment) that isn't doing well. Chipotle's earnings also weren't great and that dropped nearly 25% the other day. I've had Chipotle, liked it, but never thought it was THAT great. People like it because they think it's "better for you" - it reminds me of the "frozen yogurt" episode of "Seinfeld" where they all thought the new frozen yogurt place in the neighborhood was "low fat" - Chipotle may be better quality, but it ain't "good for you." McDonald's also may be having trouble in Europe, but doubtful they're the only one.
Starbucks is really interesting because it strongly appears to be starting to evolve into a different creature, but that's really for those who can be long-term believers in Howard Schultz (who is - I think - one of the country's best CEOs), as even with Schultz it's going to be a bumpy ride. Starbucks is branching out into a new bakery chain (whose products I believe will replace much of/all of Starbucks food products and whose coffee will likely be featured in the bakeries), a juice bar chain and a tea/chocolate chain. The bakery chain - I think - could take on Panera.
Comments
I do remember simpler times:
http://screencast.com/t/vd06eAqpt
What does this graph represent?
Side note: We held FDLSX, but sold in May; as some of the numbers of companies in the holdings were looking a bit weak. Not that one could use this fund or the holdings as a proxy about overall conditions related to the consumer, etc.; but we did place weigh into this thinking. This also lead us to sell this fund; as well as our other equity holdings in May, as the holdings within this fund and overall indicators for some global markets in general continued to look a bit on the poopy side of life.
We all have our guages that we use to help obtain an overview of our investments and market conditions in general; FDLSX its holdings helped define our recent sell period. I did become more concerned finding problems with McD's earnings in all global market areas from the 1Q period.
---Top 10 holdings of FDLSX:
STARBUCKS CORP
MCDONALDS CORP
LAS VEGAS SANDS CORP
WYNDHAM WORLDWIDE CORP
YUM BRANDS INC
CHIPOTLE MEXICAN GRILL INC
PANERA BREAD CO CL A
STEINER LEISURE LTD
TEXAS ROADHOUSE INC
DOLLAR GENERAL CORP
Overall, this has been an excellent fund over the years.
SIDENOTE: not related to McD's or others; but I really suspect the earnings reports of many companies have to really be picked apart to find what is real and what is modern accounting math. IBM recently reported and had some earnings; but digging into everything else indicates that going forward may not be so great with sales/service revenues. The positive report from them had to do with a special tax function related to Brazil or other latin country; which allowed for a positive offset against otherwise negative numbers. I do believe there are smoke and mirrors with many reports and one had better check carefully as to door 1, 2 or 3 before selecting.
Take care,
Catch
Starbucks is really interesting because it strongly appears to be starting to evolve into a different creature, but that's really for those who can be long-term believers in Howard Schultz (who is - I think - one of the country's best CEOs), as even with Schultz it's going to be a bumpy ride. Starbucks is branching out into a new bakery chain (whose products I believe will replace much of/all of Starbucks food products and whose coffee will likely be featured in the bakeries), a juice bar chain and a tea/chocolate chain. The bakery chain - I think - could take on Panera.
But, again, it's going to be a bumpy ride.