StudentGuiders
DB_12 What contributed to McDonald's falling stock prices Research the Internet and
Watch the two videos on the previous pages, "McDonald's Customers Not Lovin' It" and "GoPro Stock Fades After CEO Donates His Shares" to answer the discussion board questions.
"McDonald's Customers Not Lovin' It" - Mike Santoli, Senior Columnist for Yahoo! Finance, discusses why McDonald's has experienced declining store traffic, customer interest, and revenue for the last seven quarters.
"GoPro Stock Fades After CEO Donates His Shares" - Mike
Santoli of Yahoo! Finance discusses GoPro founder and CEO Nick Woodman’s donation of 5.8 million shares of his stock to a charitable foundation, which happened just four months after the IPO and within the lock-up restriction. On the day the donation was announced, GoPro stock prices dropped nearly 7 percent.
What contributed to McDonald's falling stock prices? Research the Internet and determine if they are higher or lower now than they were then. If so, by how much? Include in your discussion why GoPro stocks fell. Would it not be considered a good deed for a CEO to contribute his shares to a "charitable foundation?" What do you see happening here and why? Why did the owner of GoPro offer stock to begin with? Finally, what type of financing is stock and bonds, and what are the pros and cons of each?
McDonalds stock had been decreasing for 7 quarters at the time of the video. A lot of the fall is contributed to less traffic in the stores, less people want McDonalds, and the
US dollar is stronger now. Because the US dollar was doing well at the time it makes McDonalds more expensive overseas. Due to the drop at McDonalds it has started serving breakfast all day, and expanding their dollar menu. Despite the drop, McDonalds was only behind 3 other restaurants in monetary value [NA17].
GoPro’s stocks fell because they CEO donated 5.8 million dollars in shares to a charity he and his wife started. Because they are in a lockup restriction right now, other investors cannot sell their shares outside of the IPO. I think that the owner donated for tax purposes, even though it is a large chunk of money. Since there is no purpose named by the charity it seems elegit. I think after the lockup restriction is over they will sell the charities stocks and they will see a dip for a bit. Unless they can get the charity completely set up by then I think it could be a problem for a while. Companies tend to go public to create revenue for themselves. Doing what the CEO of GoPro did is not uncommon, it usually just happens a little further down the road.
Works Cited
N/A. Revenue of McDonald's Corporation worldwide from 2005 to 2016 (in billion U.S.
dollars)*. NA March 2017. 21 Nov. 2017
<https://www.statista.com/statistics/208917/revenue-of-the-mcdonaldscorporation-since-2005/>.