TheStreet’s Caroline Woods brings you the biggest news of the day, including what investors are watching and why McDonald’s posted mix results in Q1.
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00:00 I'm Caroline Woods reporting from the New York Stock Exchange. Here's what we're watching on
00:04 the street today. As investors digest the high-profile tech earnings from Amazon and AMD,
00:10 Wall Street is largely holding its breath ahead of Wednesday's closely watched Fed decision on
00:15 interest rates. It's all but guaranteed the central bank will hold rates steady,
00:19 with the CME FedWatch tool currently predicting a 97 percent chance that they will do nothing
00:24 this meeting. But investors will listen to every word Fed Chair Powell says for clues on future
00:30 decisions. On the earnings front, McDonald's reported mixed results as reorganization costs,
00:36 Middle East boycotts, and increasingly cash-strapped consumers weighed on profits.
00:41 McDonald's said same-store sales in the U.S. and globally fell short of expectations
00:45 for the quarter as consumers worldwide increasingly pulled back on restaurant spending.
00:50 The chain's CEO, Chris Kamchinsky, said McDonald's must be laser-focused on affordability.
00:57 During the earnings call, he said, "Consumers continue to be even more discriminating with
01:01 every dollar that they spend as they face elevated prices in their day-to-day spending,
01:06 which is putting pressure on the quick-service restaurant industry."
01:09 While pricing may have pushed some customers away,
01:12 the company said higher prices helped increase the average check per each order.
01:17 McDonald's and its fast food competitors have steadily increased prices in response to inflation
01:22 and rising material and labor costs. The company came under fire earlier in 2024
01:28 after a Connecticut location sold its Big Mac combo meal for $18.
01:32 McDonald's has consistently maintained that pricing varies based on location
01:37 and individual franchisee, and the company strives to balance pricing and value.
01:43 That'll do it for your daily briefing from the New York Stock Exchange. I'm Caroline Woods with The Street.
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