Filed under: Company News, Market News, Investing
There were plenty of winners and losers this week, with the world’s largest burger chain posting its worst monthly performance in more than 11 years and a revitalized airline offering a rosy forecast as jet fuel prices continue to drop. Here’s a rundown of the week’s smartest moves and biggest blunders.
Adobe Systems (ADBE) — Winner
Adobe posted better-than-expected quarterly results on Thursday night, beating Wall Street’s top- and bottom-line targets. The desktop publishing software giant also made a smart acquisition, snapping up Fotolia in an $800 million transaction.
Fotolia operates a popular marketplace offering royalty-free snapshots, graphics and video. Its catalog contains up to 34 million images and videos, and Adobe plans to incorporate Fotolia into its subscription-based Creative Cloud platform, which currently has roughly 3.5 million subscribers.
McDonald’s (MCD) — Loser
Things just continue to get worse at McDonald’s. The world’s largest burger chain suffered a 4.6 percent plunge in comparable-store sales for its domestic restaurants for the month of November relative to the same month a year earlier. It’s the chain’s largest year-over-year slide in monthly comps in more than a decade.
There were plenty of things that could have worked in the struggling eatery’s favor. The food-prize redemption deadline for its popular Monopoly promotion ran into mid-November, and we can’t forget the seasonal appeal of the McRib in its regional rollout. November of last year was also a negative month, making it easier to post improvement this time around.
Delta (DAL) — Winner
One of the biggest plays on cheap oil is the airline industry. The economy’s improving to the point where business and leisure travel is on the rise, and that’s giving air carriers the flexibility to boost their fares at a time when lower fuel prices are improving flight costs.
Delta chimed in with encouraging insight on Thursday, pointing to improving profitability. It also sees $1.7 billion in savings next year on fuel costs alone if prices hold steady.
Abercrombie & Fitch (ANF) — Loser
Critics of Abercrombie & Fitch won’t have Mike Jeffries to criticize anymore. The struggling and once-trendy apparel retailer announced that Jeffries is leaving the company that he has helmed since 1992. He’s been a controversial figure, going by everything from disparaging comments that he has made about consumers to some of the controversial shirts that A&F has put out over the years.
The only real surprise — and the reason this move is listed as a loser — is that A&F took this long to do it. Brand-tarnishing controversy aside, A&F has posted 11 consecutive quarters of negative comparable-store sales. Customers are flocking to H&M, Forever 21,] and other chains. A change at the top should have been made a long time ago.
Streaming Video — Winner
The Golden Globe nominations came out this week, and it’s no longer just Netflix (NFLX) turning heads. Amazon.com (AMZN) received a pair of nominations for its original content, including a nod for Jeffrey Tambor in the Best Actor category for his work as a transgender father in Amazon’s “Transparent.”
Not to be outdone, Netflix walked away with seven nominations. However, with the two premium streaming video platforms now gobbling up award nods that used to go to traditional TV shows, it’s more validation for both companies.
Motley Fool contributor Rick Munarriz owns shares of Netflix. The Motley Fool recommends Adobe Systems, Amazon.com, McDonald’s, and Netflix. The Motley Fool owns shares of Amazon.com and Netflix. Try any of our Foolish newsletter services free for 30 days. Want to make 2015 a winning investment year? Check out The Motley Fool’s one great stock to buy for 2015 and beyond.
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Source: Investing
