Bill Baruch joined CNBC’s Halftime Report to talk about the headwinds McDonald’s has been facing from Eli Lilly’s and Novo Nordisk’s obesity drugs despite a strong business model. Bill also spoke about Target’s place in portfolios and why a catch-up trade to Walmart might play out over the coming quarters.
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A comment from Wal-Mart say was the deciding factor that I like talked about deflation. They’re going to be restocking inventory. That’s actually going to be a tailwind to profit margins in the coming quarters.
That’s what Stephanie Linke was thinking, too, who who took away from the report cost cutting, margins holding. And that’s the principal reason why you like this. Despite the fundamental slowdown in the consumer that that they cited.
Yeah, I agree with the fundamental slowdown in the consumer. I’m actually really worried for Ford in November and December and the data that we get in January and February. But I think that once we get through that and so this isn’t the bottom ten of of our of our portfolio of 30 names, I’d like to be able to add to it.
But when I’m looking at names to start building a position in there from positioning standpoint, I hope there’s a tailwind here and I’m able to build it and really make some good gains. Okay.
So if you’re concerned a little bit about the consumer going into November, you know, December, why did you sell McDonald’s?
Well, see, McDonald’s sold off pretty sharply with with the undertow of the weight loss. Drug is epic. And, you know, although they’re saying that it’s not going to affect them, it’s not going to affect Pepsi and others. But here’s the thing. I mean, it’s sold off sharply is about 20 down 20%.
And it’s a lot of other things sold. It sold down.
Too, and it’s rebounded a bit. And I think here’s a good a good point. I don’t like the chart as much as I was once they did. I love the franchise model. I love that you can start to see, you know, consumers trade down to McDonald’s. But if if the market if if a stock sells off like this and has a rebound, it’s sometimes a good point to just take a step back and watch a few routes.
I like the stock, I like the name, and I may add it back in a couple of quarters. Whatever. I’m just I’m just.
Going to get Josh’s take on it just because, you know, you can
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