McDonald’s to Spend $1 Billion In Store Facelifts and 2 Other Dow Movers to Watch
McDonald’s Corporation (NYSE:MCD): Current price $97.53
In 2013, the fast-food behemoth intends to spend about $1 billion of its $3.2 billion capital investment budget on store facelifts. The fact that McDonald’s can undertake such a gigantic investment shows one of its largest competitive advantages, as its competitor Yum! Brands comes nearest to McDonald’s yearly spending, but still only manages to invest a mere $1 billion in all. Actually, this year’s makeover rate is somewhat slower than in 2012, when the company remade 2,400 restaurants. However, McDonald’s has already upscaled the interiors for more than 60 percent of its 34,000 global locations. At a presentation for the world consumer conference this week, McDonald’s said that the new interiors can grow its sales by between 6 and 7 percent during the year after they are completed.
The Procter & Gamble Company (NYSE:PG) has entered into an arrangement with Alexander McQueen through which to make and sell fragrance products. The products will be produced by P&G Prestige, and will be marketed under the Alexander McQueen brand, which is popular in the world fashion market, and holds a large customer base. The debut of P&G’s fragrance products under such a popular brand as Alexander McQueen will reinforce its position in the luxury fragrance category. Also, P&G will benefit from McQueen’s current customer base; P&G Prestige already owns a number of the strongest beauty brands like Hugo Boss, Dolce&Gabbana, Gucci, Lacoste and Puma.
General Electric Company (NYSE:GE): Current price $23.44
The aircraft parts manufacturer TransDigm Group will pay roughly $150 million in cash for a business owned by the aviation division of General Electric Co. Cleveland-based TransDigm said it has agreed to purchase GE Aviation’s Electromechanical Actuation Division, which builds highly engineered aerospace electromechanical motion control subsystems, which include motors, high-power mechanical transmissions, and actuators for aircraft such as the Airbus 380, the Boeing 777, and Embraer regional jets. The buyer expects the deal to close around the end of the third quarter.
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