More for less at McDonald’s.
McDonald’s all-day breakfast and McPick 2 promotion might be too good to be true for the fast-food giant. After adding the low-cost options to their menu, McDonald’s hoped it would bring more customers to its restaurants. Business Insider reports that the plan worked and U.S. same-store sales rose 5.4 percent in the first quarter of the year. The flip side? Sales growth is slowing, down to 1.8 percent in the second quarter. The belief is that customers “exploit” the promotions and trade down to cheaper menu items instead of buying more expensive meals like the Big Mac and Double Quarter Pounder with Cheese.
Eye on interest.
The Federal Reserve isn’t expected to change interest rates this week, according to Reuters. The next possible increase could come in September or December if policymakers find evidence of a pickup in inflation. The Fed’s policy meeting will center around “how to reconcile upbeat U.S. economic data … with a global growth slowdown and other headwinds threatening the inflation trajectory.” The meeting began Tuesday morning and the central bank is scheduled to issue its statement at 2 p.m. EDT on Wednesday.
Home prices continue pace.
The numbers continue to show just how strong the housing market was across the country this spring. The Wall Street Journal reports that the S&P/Case-Shiller Home Price Index increased 5 percent in the 12 months ended in May which was identical to the increase in April. The West Coast held some of the hottest markets in the country with a number of double-digit price gains. Portland had a 12.5 percent year-over-year gain, Seattle had 10.7 percent and Denver finished with 9.5 percent.
Apple beats expectations.
Apple flew past expectations when it announced quarterly earning and revenue after markets closed on Tuesday. The company reported earnings of $1.42 per share on revenues of $42.4 billion, according to CNBC. Still, that’s down from the comparable year-ago figure of $1.85 per share on $49.61 billion in revenue, but it’s welcomed news after concerns over how often consumers are upgrading their iPhones. Apple shipped 40.4 million iPhones in the third fiscal quarter.
iPhone photo via Pixabay CC0 Public Domain