There is no any rest for the weary investor.
So if you were planning to enjoy a day by the pool this week after the climactic May employment report, think again. This week is an oddly busy one for corporate presentations at investment banks. We could get some small peeks into how the second quarter is trending for companies, and a bit more clarity on how execs are attacking inventory allocation and marketing later in the year. It's important to be on the lookout for comments on these fronts considering the disappointing growth rate logged in the first quarter in the U.S.
Here are five events worth tracking.
Is Anything Good Happening at McDonald's?
Eat this sales report up today -- it's the Golden Arches' last as it will no longer disclose monthly sales going forward. Meaning, investors won't hear anything from the struggling fast-food pioneer until earnings are released in July. Today, the market will be locked into sales from McDonald's (MCD) U.S., which have been under constant pressure for over a year. U.S. sales were sour again last month; talking with McDonald's franchisees, the mood is that turnaround initiatives, like a streamlined menu and enhanced drive-thru experience, won't be felt until 2016. Further, Wendy's (WEN) and Burger King continue to put up solid sales in the U.S. Should McDonald's positively surprise on its U.S. sales, however, it could be reason to trade the name long as the market tosses support behind new CEO Steve Easterbrook. A bad report from McDonald's emboldens the case to own Chipotle (CMG).
What Does Fossil Say About the Watch Market?
Fossil (FOSL) execs will present at Piper Jaffrey on Tuesday. I don't follow Fossil as closely as in the past, but its presentation is of interest from two perspectives. First, Michael Kors (KORS) had a sluggish quarter in watches, in large part, I believe, due to people saving up to buy the Apple (AAPL) Watch. The company also guided to a continued sales deceleration this year in fashion watches, where it's a leader along with Coach (COH). Cautious comments from Fossil on watch demand keeps Michael Kors in play as a short. Second, if there are measured comments from Fossil execs, it would strengthen the view on Apple as having the likely holiday toy/accessory in the Apple Watch. That may spark buying of Apple shares.
Is Macy's Really Going to Sell Real Estate?
Macy's (M) execs will present at Nomura on Tuesday. I would expect Macy's to field a question or two on recent rumors of it exploring a sale of portions of its real estate. Although Macy's may downplay the rumors, there is reason to gamble on the stock going into the event. Any hint of real estate sales by Macy's would be viewed favorably by the market, mirroring what happened when news broke on this front last week.
Donut Sales in America Remain Strong
Krispy Kreme (KKD) shares were clobbered in March, when it reported earnings. I believe it was an overreaction that could be somewhat corrected with the latest batch of earnings this week. The company has managed to pass along price increases on donuts -- no small feat given the tough competition. And, in talking with Dunkin' Brands (DNKN) CEO Nigel Travis on Friday, my sense was that donut sales for the industry continue to be strong due to the introduction of premium options. Crazy to say it, but the donut industry is on an innovation streak, with new indulgent toppings causing excitement among consumers.
Welcome to the Public Market, Bojangle's
The newly minted fried chicken and biscuit joint Bojangle's (BOJA) will release its first earnings report and hold its first earnings call this week, since going public last month. Same-store sales, based on the company's revised prospectus, started the quarter on a good foot, rising nicely ahead of competing fast food chains. But, the name is too risky a play for me. Instead, could look at Yum! Brands (YUM) long off Bojangle's numbers for two reasons. One, Taco Bell's major push into breakfast would be seen as a share gainer should Bojangle's sales slow since its last update. Breakfast sales are Bojangle's most important business. Second, any slowdown in sales at Bojangle's may be linked to a budding revival of KFC following the return of Colonel Sanders in TV and online marketing. KFC, even before the return of the Colonel, was seeing strong sales due to new fill-up bowls.