Stocks soared the week before the US presidential election approached. Both Dow Jones Industrial Average (DJINDICES: ^ DJI) and S&P 500 index (SNPINDEX: ^ GSPC) up more than 7% in five trading days. The Dow is now nearly flat for the year, while the S&P is up 9%.
Some companies followed by many people will publish earnings results in the next few trading days, incl In addition to meat (NASDAQ: BYND), McDonald’s (NYSE: MCD)and DraftKings (NASDAQ: DKNG). Below, we will look at the key trends that could cause the shares of these three companies to move this week.
1. In addition to Meat’s competitive outlook
Investors are bullish on Beyond Meat’s Monday earnings report. The meat substitute maker posted strong sales growth in the early days of the pandemic, revealing in August that second-quarter sales were up 69 percent year-on-year due to sales. for retailers to offset reduced demand from restaurant chains.
Since then, its growth prospects have remained impressive. Beyond Meat recently announced the distribution expansion of its core products through Walmart, for a. It also added Beyond’s branded sausage links to its portfolio, linking up with plant-based sausages and meatballs at its popular launch in 2020.
Those actions lead investors to predict strong sales growth for the rest of the year. But Beyond Meat will also face additional competition from traditional meat manufacturers such as Tyson Foods and retailers like Kroger because it seeks to maintain its leading position in this lucrative food market.
2. McDonald’s operating profit margin
Investors already know that McDonald’s will have some good working news to announce on Monday. In a mid-quarter update, the fast-food giant said it had returned to sales growth in its core US market in recent weeks after falling 9% year-on-year. advance in the financial quarter 2.
But this week’s report adds important context to that revenue figure, including an analysis between reduced customer traffic and increasing average order spend.
While, Starbucks reported in late October that margins fell due to a shift in demand for delivery services and the active use of promotions to keep customers engaged with the brand even when they were closer to home . McDonald’s is likely to announce some similar margin pressures as they expect a potential full growth recovery in late 2020 or early 2021.
3. DraftKings demand trends
Investors had to go through a roller coaster ride with DraftKings shares to be included in Friday’s earnings report. The volatility is likely to continue for this unproven discretionary consumer stock.
In addition to the rise in stock prices for most of the year, major investor concerns include a surprising drop in viewership of sporting events in recent months and the possibility of a pause. followed by outbreaks of COVID-19. And DraftKings’ business will be hit hard by the recession, if one can hold on to the US market.
Executives won’t have much clear information to offer on the broader economic environment on Friday, but look to CEO Jason Robins and his team to explain how they see the demand. Watching sports and increasing market access, impacting business as early as 2021. Management should also keep investors up to date on their plans to use the money they raised from the wave. The recent stock offering is part of DraftKings’ big image strategy to build a profitable sports betting business.