Stocks

Today’s Stocks to Watch: McDonald’s and Starbucks

October 23, 2024 OnEquity

Key points:

  • McDonald’s shares fell 7% due to an E. coli outbreak
  • Starbucks reported substantial quarterly declines in key markets
  • Enphase Energy dropped 12% due to decreased demand in Europe

McDonald’s (MCD) Faces Serious Trouble from E. coli Outbreak

McDonald’s shares were down 7% at the close of market trading due to a deadly E. coli outbreak linked to its Quarter Pounder burgers. This incident has raised concerns about food safety, impacting investor confidence in the company. As of now, McDonald’s has not released an official statement on the matter, but investors are hoping for a swift response to help mitigate the impact.

Starbucks (SBUX) Posts Significant Declines in Key Markets

Starbucks suffered a 5% drop in its shares during pre-market trading following the release of quarterly results that showed steep declines in key markets, including the U.S. and China. Starbucks’ new CEO has called for a substantial restructuring to address these challenges, focusing on improving global operations and implementing strategies to restore growth. Analysts are closely monitoring these changes, which could reshape the company’s trajectory in the coming months.

Enphase Energy (ENPH) Experiences a Decline Due to Lower Demand in Europe

Enphase Energy shares fell more than 12% in pre-market trading. The solar energy and battery storage company announced a decline in revenue and earnings, citing lower demand in Europe as one of the main factors impacting its results. The company remains confident in a recovery as renewable energy projects in the region stabilize, though investors are concerned about volatility in the European market.

Spirit Airlines (SAVE) Rises After Possible Merger with Frontier

Spirit Airlines shares rose more than 15% in pre-market trading following a report from The Wall Street Journal that Frontier Airlines is exploring a renewed offer to merge with Spirit. This deal, which failed previously due to regulatory opposition, could result in a stronger, more competitive airline, sparking investor interest.

Qualcomm (QCOM) Hit by Arm Decision

Qualcomm shares were down more than 4% in pre-market trading after a Bloomberg report indicated that Arm (ARM) was canceling a license that allows Qualcomm to use its intellectual property for chip development. This move could hinder Qualcomm’s ability to continue developing key products in its semiconductor portfolio.

Boeing (BA) and Coca-Cola (KO) Set to Report Their Results

Both Boeing and Coca-Cola are set to release their earnings results before the market opens. Investors are watching Boeing’s results closely, as they may reflect the impact of recent production problems, while Coca-Cola’s performance in international markets is expected to be a key highlight. Both reports are likely to influence stock movements throughout the day.

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