TheStreet's Caroline Woods brings the latest business headlines from the New York Stock Exchange as markets close for trading on Monday, April 30.
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FULL VIDEO TRANSCRIPT:
Investors await Wednesday's Federal Reserve decision and McDonald's may finally be feeling the cost of higher prices. I'm Caroline Woods from TheStreet, those stories are coming.
I'm Caroline Woods reporting from the New York Stock Exchange. This is what we are seeing today on TheStreet.
As investors digest high-profile tech wins from amazon and AMD, Wall Street is holding its breath ahead of the Federal Reserve's closely watched interest rate decision on Wednesday.
The central bank is all but guaranteed to keep rates steady and the CME FedWatch tool currently predicts a 97 percent chance they will do nothing at this meeting. But investors will listen to every word Fed Chair Jerome Powell says for clues about future decisions.
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On the earnings front, McDonald's reported mixed results as reorganization costs, boycotts in the Middle East and increasingly cash-strapped consumers weighed on profits.
McDonalds said comparable sales in the United States and around the world fell short of expectations for the quarter as consumers around the world increasingly reduced their spending at restaurants.
The chain's chief executive, Chris Kempczinski, said McDonald's must be “focused on affordability.” During the earnings conference call, he said, “Consumers continue to be even more demanding with every dollar they spend as they face high prices on their everyday spending, which is putting pressure on the (quick-service restaurant) industry.” ”
While the prices may have turned away some customers, the company said the higher prices helped increase the average check for each order.
McDonald's and its fast food competitors have consistently raised prices in response to inflation and rising material and labor costs.
The company came under fire in early 2024 after a Connecticut location sold its Big Mac Combo meal for $18.
McDonald's has consistently maintained that prices vary by location and individual franchisee, and the company strives to balance price and value.
That'll do it for your daily briefing: From the New York Stock Exchange, I'm Caroline Woods of TheStreet.
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