For a while, markets gave up on McDonald’s (MCD). Starbucks (SBUX) led the restaurant stock lower. But when the coffee giant hired Chipotle’s (CMG) CEO, SBUX stock jumped higher.
Disappointment in McDonald’s ended after the firm said its $5 meal deal is showing signs of working. Despite posting a 12% drop in net income, to $2 billion, in Q2, investors are betting on a rebound.
Skeptics keep dismissing the unhealthiness of McD’s, yet customers often return.
Struggling media streaming firm Paramount Global (PARA) may trade higher. Edgar Bronfman is reportedly willing to offer $6 billion. This would beat Skydance’s offer. In addition, CNBC reported that Bronfman would consider letting Shari Redstone stay involved.
PARA stock would collapse if either offer fell through. The firm has bears placing an 8.52% short interest against the stock.
In the retail sector, Advance Auto Parts (AAP) is worth watching but not buying for now. Shares fell by over $10 to close at $49.15 last week. The firm lowered its EPS and revenue guidance. It also expects comparable sales to fall by 1.0%.
Investors may also watch Dollar Tree (DLTR). The stock peaked at $151.22, stuck in a downtrend. The stock is cheap for a reason. Customers prefer to shop at Walmart (WMT) and Costco (COST). Still, DLTR stock is cheap compared to its peers.