AP The hungry will get some new value-priced dining options at McDonald's (MCD) next month as the world's largest restaurant chain breaks the buck to offer a broader Dollar Menu. Facing what it foresees will be a challenging holiday quarter, McDonald's is going national with the Dollar Menu & More menu that it has been testing in five markets. The rollout will officially kick off on Nov. 4, but may be available at an eatery near you before that. McDonald's will make sure that you hear all about it. A national advertising campaign will kick off a week after its debut. Bucking the Trend The premise of Dollar Menu & More is simple. Instead of simple sandwiches, side salads, and dessert treats for a dollar, the new offerings will be slightly more robust and sell for $2. There will also be shareable items available for $5. Franchisees are on board with the shift -- indeed, they'd been pushing for it, and it's easy to see why. The profit on a $1 McDouble sandwich is far less than what they can earn by merely adding bacon to the same burger and charging $2 for it. With labor and operating costs on the rise, the burger beast probably didn't have much of a choice. Pricing flexibility is a big reason why rival Wendy's (WEN) moved away from a value menu where everything set patrons back just 99 cents. It now has more wiggle room under its "Right Price Right Size" signage. If poultry or beef prices shoot higher, it can adjust accordingly. McDonald's now feels that it can offer different value items at dollar intervals. This would make it seem as if customers will wind up paying more when they head out to the Golden Arches next month, but there's more to offering bargains than meets the eye. Too Much Gilding on the Golden Arches McDonald's knows it has a problem. After nearly a decade of consistently rising same-restaurant sales, McDonald's has posted several negative months of unit-level activity since last October. The company concluded that trying to move away from its low-price roots -- emphasizing premium-priced coffee beverages, chicken-topped salads, and artisan sandwiches -- was actually resulting in lower sales by keeping penny-pinchers away. McDonald's put some more marketing muscle behind the Dollar Menu this year, and that's paid off with slightly positive store-level sales. It's undeniable. A lot of folks pulling up to the drive-thru order screen are drawn to the Dollar Menu. McDonald's revealed on Monday that while Dollar Menu items make up just 13 percent to 15 percent of its total sales, a third of its customers do order at least one of the buck bargains. The shift to Dollar Menu & More will be delicate. One of the test markets merely doubled the protein. The $1 Grilled Onion Cheddar Burger became a $2 offering with a second beef patty. But are customers that poor at math? Who wouldn't merely order two of the dollar sandwiches? McDonald's also risks seeing customers who would normally order higher-priced combo meals cherry-picking items off the expanded Dollar Menu & More slate and spending less. The last thing that franchisees want to do is lose out on orders for soft drinks and fries: That's where their largest markups can be found. Ronald McDonald may be grinning, but everyone knows that smile's painted on. A defining moment is coming, and McDonald's has to be feeling nervous.
Best Penny Companies To Buy For 2014: ENSCO plc(ESV)
Ensco plc, together with its subsidiaries, provides offshore contract drilling services to the oil and gas industry. The company engages in the drilling of offshore oil and natural gas wells by providing its drilling rigs and crews under contracts with international, government-owned, and independent oil and gas companies. As of February 15, 2010, it owned and operated 42 jackup rigs, 4 ultra-deepwater semisubmersible rigs, and 1 barge rig. The company also has 4 ultra-deepwater semisubmersible rigs under construction. It operates in Asia, the Middle East, Australia, New Zealand, Europe, Africa, and North and South America. The company was formerly known as Ensco International plc and changed its name to Ensco plc in March 2010. Ensco plc was founded in 1975 and is based in London, the United Kingdom.
Advisors' Opinion:- [By Marc Bastow]
Off-shore contact drilling service provider Ensco (ESV) raised its quarterly dividend 50% to 75 cents per share, payable on Dec. 20 to shareholders of record as of Dec. 9.
ESV Dividend Yield: 4.90%
- [By Travis Hoium]
The question for investors is if the industry can handle all of this new capacity over the long term. Transocean (NYSE: RIG ) �has seven new ultra-deepwater rigs under construction,�Ensco (NYSE: ESV ) �is building four, and Noble (NYSE: NE ) �will add five in coming years. Adding that much capacity means that $600,000 daily rates may not last forever, which would lower return on investment for everyone.�
Best Penny Companies To Buy For 2014: ChinaCast Education Corporation(CAST)
ChinaCast Education Corporation, together with its subsidiaries, provides post-secondary education and e-learning services in China. The company operates in two segments, E-learning and Training Service Group and Traditional University Group. The E-learning and Training Service Group provides post secondary education distance learning services that enable universities and other higher learning institutions to provide nationwide real-time distance learning services. It also provides K-12 educational services, such as broadcast multimedia educational content services to primary, middle, and high schools; and vocational/career training services. The Traditional University Group segment operates private residential universities that offer four-year bachelor?s degree and three-year diploma programs in finance, economics, trade, tourism, advertising, IT, music, foreign languages, tourism, hospitality, computer engineering, law, and art. The company also provides logistic service s. ChinaCast Education Corporation was founded in 1999 and is headquartered in Central, Hong Kong.
Hot Canadian Stocks For 2014: Investors Real Estate Trust(IRET)
Investors Real Estate Trust, a real estate investment trust (REIT), engages in the ownership and operation of income-producing real estate properties in the United States. It owns multi-family residential properties and commercial office, medical, industrial, and retail properties located primarily in the upper midwest states of Minnesota and North Dakota. As of April 30, 2008, the company operated a real estate portfolio of 72 multi-family residential; 65 office; 48 medical; 17 industrial; and 33 retail properties. Investors Real Estate Trust has elected to be taxed as a REIT under the Internal Revenue Code of 1986. As a REIT, the trust is not subject to federal corporate income taxes, if it distributes at least 90% of its taxable income to its shareholders. The company was founded in 1970 and is headquartered in Minot, North Dakota with additional offices in Minneapolis, Minnesota, and Omaha, Nebraska; and Kansas City, Kansas, and St. Louis, Missouri.
Best Penny Companies To Buy For 2014: SinoCoking Coal and Coke Chemical Industries Inc(SCOK)
SinoCoking Coal and Coke Chemical Industries, Inc. operates as a coal and coke producer in the People?s Republic of China. The company offers metallurgical coke primarily for use in steel manufacturing; and chemical coke primarily for use in the production of synthesis gas, as well as a fuel source or as an intermediate for the production of other chemicals, such as methanol, formaldehyde, and ammonia. It also provides medium coal for electricity generation, and domestic and industrial heating applications; and coal slurries for use as a fuel. The company mines and sells washed coal, as well as engages in the trading of coal. In addition, it produces electricity from its by product, coal tar and sells to the state-owned electricity grid. The company is based in Pingdingshan, the People's Republic of China.
Best Penny Companies To Buy For 2014: RAIT Financial Trust(RAS)
RAIT Financial Trust operates as a self-managed and self-advised real estate investment trust (REIT). The company, through its subsidiaries, invests in, manages, and services real estate-related assets with a focus on commercial real estate. It also offers a set of debt financing options to the commercial real estate industry along with fixed income trading and advisory services. In addition, RAIT Financial Trust owns and manages a portfolio of commercial real estate properties, and manages real estate-related assets for third parties. The company qualifies as a REIT for federal income tax purposes. As a REIT, it would not be subject to federal income tax to the extent that it distributes at least 90% of its taxable income to its shareholders. RAIT Investment Trust was founded in 1997 and is based in Philadelphia, Pennsylvania.
Advisors' Opinion:- [By Thomas Sobon]
Instead of expressing my thoughts in vague generalities, let me be specific and tell you what I am actually doing on a real time basis to cope with the market dynamics occurring right now: I have a core position in one stock, which is the RAIT Financial Trust (RAS). Its size is about 60% of what I would consider to be a "full" position. I also have a lot of cash that I intend to use for trading purposes. Last Friday I sold shares of RAS at $7.55 which I bought on Monday with a low-ball bid of $7.11, so my gain on the trade was 6.2%. In early trading yesterday (Monday July 1) RAS is priced at $7.67, up from where I sold on Friday. That's great news because I accomplished what I wanted to do with the trade and now paper profit on the core shares in my portfolio is increasing.
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