Fast Food Giant Sizzles With Loyalty Play

Author

Adam Garcia
February 10, 2025

A fast food giant’s loyalty-driven sales surge is causing its stock to rise, an industrial automation leader is soaring 8% on a profit rebound, and a Swiss biotech firm is skyrocketing after announcing a major merger. Here’s what’s moving the markets today.

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Technology (Sponsored)

In 2005, early investors who recognized Nvidia’s potential saw gains of over 78,000%. Now, a similar opportunity might be unfolding.

AI is revolutionizing industries, and one small company is at the forefront of this seismic shift.

Dubbed the "backbone" of AI’s future, its potential impact could rival tech giants like Nvidia, Amazon, and Microsoft combined.

With AI driving a projected $17 trillion market, this could be the next big supercycle—and your chance to get in early.

Futures 📈

What to Watch

Earnings:

  • Vertex Pharmaceuticals Incorporated [VRTX]: Aftermarket

  • Arch Capital Group Ltd. [ACGL]: Aftermarket

  • Cincinnati Financial Corporation [CINF]: Aftermarket

  • Credicorp Ltd. [BAP]: Aftermarket

Economic Reports:

  • None scheduled

Fast Food

McDonald's Falls Short on Q4 Earnings But Growth in Loyalty Sales Is Causing Stock to Rise

McDonald's [MCD] wrapped up 2024 on a disappointing note. The fast food chain reported lower-than-expected earnings, sluggish sales, and the fallout from an E. coli outbreak today.

The company’s revenue for the fourth quarter is down 0.28% year-over-year to $6.39 billion, missing analyst expectations of $6.45 billion. Earnings per share are at $2.80, short of the anticipated $2.84.

Despite the weak performance, McDonald's is witnessing a surge in digital engagement.

Sales through its loyalty program are up 30% year-over-year to $30 billion, with 175 million active users across 60 markets.

The company aims to leverage this momentum by refining personalized promotions and optimizing its menu. The success in digital sales is causing its stock to rise 1.8% in premarket trade.

Global same-store sales are up 0.4%, defying forecasts of a 0.91% decline. However, U.S. same-store sales are down 1.4%, weighed down by the health crisis that hit in late October.

While foot traffic showed slight improvement, declining average spending per order remained a challenge.

Looking ahead, McDonald's is banking on its McValue platform to reinvigorate customer interest.

The lineup, expected to roll out in 2025, will feature affordable menu options like chicken tenders and snack wraps to attract budget-conscious diners.

Franchisees remain hopeful that higher customer volume will offset potential losses, though concerns persist over discount-driven business strategies.

Industrial Automation

Rockwell Automation Surging on Improved Profit Outlook as Orders Rebound

Source: a Rockwell Automation Employee, CC BY-SA 4.0, via Wikimedia Commons

Rockwell Automation’s [ROC] stock is soaring this morning, climbing over 8% on a stronger-than-expected earnings report for the first quarter of fiscal 2025.

The industrial automation leader’s adjusted earnings per share of $1.83 is better than analyst projections of $1.57.

However, revenue is slightly below expectations at $1.88 billion, reflecting an 8.4% decline from the previous year.

Despite the drop in revenue, Rockwell benefited from improved cost efficiency and operational discipline, leading to better-than-anticipated profit margins.

Orders increased approximately 10% year-over-year and saw mid-single-digit sequential growth, signaling a rebound in demand.

The company reaffirmed its adjusted earnings forecast for the fiscal year, maintaining a range of $8.60 to $9.80 per share, in line with market expectations.

However, projected sales growth is revised downward to reflect a greater impact from foreign currency fluctuations.

Annual Recurring Revenue (ARR) is up 11% compared to the previous year, demonstrating continued strength in Rockwell’s software and services division.

Positive order momentum is particularly notable in the U.S. market.

Although economic uncertainty continues to influence capital spending decisions, Rockwell is optimistic that its cost-cutting measures and focus on profitability will sustain earnings growth throughout 2025.

Tesla of the Sea (Sponsored)

Electric vehicles have transformed land and air travel, but there’s one market that’s quietly on the verge of a revolution—electric boating.

The global electric boat market is expected to surge to $22.31 billion by 2033, and one innovative company is poised to lead the charge.

With a game-changing 180+ horsepower powertrain boasting 97% efficiency and unmatched speed, this company’s technology is redefining marine travel.

And with strategic partnerships in place and scalable production already underway, this company is perfectly positioned to capitalize on the booming demand for sustainable marine travel.

Investors looking for the next big opportunity in the EV space shouldn’t overlook this hidden gem.

Retail

Loews' Q4 Earnings Down Due to Insurance Losses, Pipeline Business Gains

Source: Infrogmation of New Orleans, CC BY-SA 4.0, via Wikimedia Commons

Loews Corporation’s [L] stock is slipping today, down 1.81%, due to a significant drop in its fourth-quarter earnings.

The fall is driven by higher catastrophe-related losses and weaker investment performance at its insurance subsidiary, CNA Financial.

The company’s net income of $187 million, or $0.86 per share, for Q4 2024 is down sharply from $446 million, or $1.99 per share, in the same quarter last year.

Revenue, however, is up, reaching $4.55 billion from $4.26 billion year-over-year.

CNA Financial, Loews’ largest business unit, saw its net income shrink to $19 million from $336 million a year earlier, hurt by increased insurance claims and investment losses compared to prior gains.

A previously disclosed $265 million after-tax pension settlement charge also weighed on overall earnings.

Excluding this charge, Loews said that its net income would have been $452 million.

On a brighter note, Boardwalk Pipelines delivered stronger year-over-year results, benefiting from higher contract rates and completed expansion projects.

During the quarter, Loews repurchased 4.2 million shares for $349 million, bringing total buybacks for 2024 to 7.7 million shares worth $611 million.

Movers and Shakers

NLS Pharmaceutics Ltd. [NLSP] - Last Close: $1.87

NLS Pharmaceutics is a Swiss clinical-stage biotech company that develops therapies for neurological and metabolic disorders like narcolepsy, ADHD, and even diabetes.

Its shares are surging (50%+) in premarket after announcing a merger with Kadimastem to launch DOXA, a groundbreaking diabetes treatment platform.

My Take: DOXA is in a high-growth, high-competition market. If it delivers strong clinical results, it could redefine diabetes care. However, there are risks involved with clinical stage biotech firms which should not be ignored.

monday.com Ltd. [MNDY] - Last Close: $258.24

monday.com is a popular work management platform for businesses. Its shares are rising 23% in early trade after delivering strong Q4 results.

The firm’s revenue of $268 million is up 32% YoY. It also scored a record $40.3 million in operating income with a 15% margin.

Investors are also excited about the launch of its AI-powered Digital Workforce automation product.

My Take: monday.com’s AI push has the potential to position it for long-term growth. However its net margin fell to -4.8% in the third quarter which is a spot of concern. Keep a close eye on this stock.

Axsome Therapeutics, Inc. [AXSM] - Last Close: $105.76

Axsome Therapeutics is a biopharma company specializing in central nervous system (CNS) disorders.

Its stock is up 13% before the opening bell today on the announcement that it is settling a patent dispute related to its FDA-approved lead drug AUVELITY with Teva Pharmaceuticals.

The deal prevents a generic version of the drug from entering the market until at least 2038.

My Take: The settlement secures AUVELITY’s market dominance for over a decade, giving Axsome a stable revenue stream and making AXSM a good stock to keep your eye on for the future.

AI (Sponsored)

In 2005, Nvidia was an overlooked stock before soaring over 78,000%. Now, a similar opportunity is emerging in the AI space.

AI is revolutionizing industries, and one small company is being called the "backbone" of this technological shift. Its potential could rival the impact of Nvidia, Amazon, and Microsoft combined.

With AI driving a projected $17 trillion market, this stock could be positioned for massive growth.

Everything else

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

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