- Forget McDonald’s. The Value Menu Isn’t Working and This Steakhouse Chain Is Taking Its Customers
May 13, 2026
Quick Read
McDonald’s (MCD) posted Q1 revenue of $6.52B (+9.4% YoY) but only 3.72% FY2025 organic growth after stripping a $313M currency tailwind, while carrying -$1.791B in shareholders’ equity from debt-funded buybacks. Texas Roadhouse (TXRH) delivered Q1 comparable sales growth of 7.1% with average weekly sales jumping to $174,151, backed by genuine unit expansion of 22 locations under construction and a positive book value of $22.15 per share. McDonald’s value-menu strategy is vulnerable to rising gas prices and tariffs while trading at 23x P/E for low-single-digit growth, while Texas Roadhouse’s traffic-driven expansion with a clean balance sheet and growing dividend demonstrates sustainable momentum. The analyst who called NVIDIA in 2010 just named his top 10 stocks and McDonald's wasn't one of them. Get them here FREE.
McDonald's (NYSE:MCD) is dominating restaurant-sector headlines after a Q1 beat that pushed global comparable sales back to +3.8% and validated CEO Chris Kempczinski's value-menu reset.
But here's what you should actually be watching.
The Hot Trade Is Already Cooling
The pullback has already started. Shares are down more than 10% in the past month and nearly as much year to date. The bull thesis, durable value leadership in a tough consumer environment, depends on three things that do not hold up.
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First, the headline growth was flattered by currency. Q1 revenue of $6.52 billion (+9.4% YoY) included a $313 million favorable FX tailwind from a stronger Euro. Strip that out and the company looks like what it actually is: a low-single-digit grower. FY2025 revenue rose just 3.72%.
Second, the balance sheet is not what a retirement investor assumes. Shareholders' equity sits at -$1.791 billion, a deficit produced by years of debt-funded buybacks. Interest expense is guided to rise 4-6% in 2026, even as management commits to $3.70 to $3.90 billion in capex and roughly 2,600 new restaurants.
Third, the value-menu pivot that revived U.S. traffic is exquisitely sensitive to gas prices. The McDonald's customer drives to the drive-thru, and rising fuel costs eat directly into the spare change that fills the $5 Meal Deal lane. Management has already flagged tariffs and commodity price volatility as risks. A 23x trailing P/E for a 3-4% organic grower with negative equity prices in a crowded defensive trade rerating in slow motion.
The Redirect: Texas Roadhouse
Move your attention to Texas Roadhouse (NASDAQ:TXRH), up 11.05% YTD and 17.74% in the past week alone after its Q1 report. Three reasons it deserves the seat McDonald's is being asked to give up.
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1. Comp sales nearly double McDonald's. Q1 comparable restaurant sales grew 7.1%, and the first five weeks of Q2 are already tracking +6.5%. Average weekly sales climbed to $174,151 from $163,071. Traffic is driving the gains; the menu price increase was a modest 1.9% implemented in April.
2. Real unit growth backed by operations. The system stands at 822 restaurants with seven company stores opened YTD, 22 under construction, and five franchise acquisitions for $71.8 million in Q1. McDonald's is opening stores into a market it already saturated.
3. A clean balance sheet funding rising returns. Book value sits at $22.15 per share, positive and growing. The board just raised the quarterly dividend to $0.75, payable June 30, 2026, on top of $150 million in FY2025 buybacks. CEO Jerry Morgan said it plainly: "Our strong traffic trends continue to fuel sales growth."
Even Nike (NYSE:NKE), the other consumer-discretionary redemption story analysts are pushing, is down 33.02% YTD with net income falling 35% last quarter. Texas Roadhouse is already working, no "middle innings" explanation required.
The takeaway: On the current data, Texas Roadhouse screens as the stronger fundamental story heading into the next quarter, while McDonald's valuation reflects a defensive trade that is already unwinding.
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- Which of These 5 Companies Benefits Most From Easing China Tariffs?
May 13, 2026 · 247wallst.com
Washington is signaling renewed engagement with Beijing, and investors are trying to figure out which stocks would benefit if tariffs ease, export controls loosen, and Chinese consumer demand stabilizes.
- Nike's Profit Margins Fell 34%. Here's What Investors Need to Know Before Buying the Dip.
May 13, 2026
Nike(NYSE: NKE) stock has been going through an extended rough patch. Sales and earnings have been under pressure, and industry dynamics have also called into question the extent of the company's brand strength.
In addition to softer demand in key geographic markets, the company has also seen its profit margins eroded. The company posted a net income margin of just 4.6% in the third quarter of its current fiscal year -- which ended Feb. 28. For comparison, the business had recorded a net income margin of 7% in last year's quarter. For another point of comparison, the business posted a net income margin of roughly 9.7% in fiscal Q3 of 2024. Revenue was up just 0.3% year over year in fiscal Q3.
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Nike stock is actually down roughly 28% over the last decade. For reference, the S&P 500's level has increased roughly 256% over the same stretch. With the company dramatically underperforming the market and still having some of the greatest overall brand strength in the footwear and apparel sector, the potential is there for a massive recovery if business performance improves -- but investors should understand the overall picture before going all-in on Nike stock.
Nike is not a growth company right now
Nike's business is struggling. The company's margins have been pressured by a combination of rising costs and weaker pricing power in a weaker-demand environment, driven by consumers' greater cost-consciousness and the rise of competitors in key product categories. Some of the footwear and apparel giant's most important growth bets have also underperformed in big ways.
Crucially, Nike is facing some big challenges in the Chinese market. While the company once positioned its Greater China geographic segment as central to its long-term growth strategy, performance in the region has been disappointing in recent years. Instead of the turnaround moment that investors have been hoping for, the outlook has actually been worsening recently.
Nike expects that sales in the Greater China segment could decline roughly 20% year over year in the current quarter. In addition to tariff-related pressures, customers in the Chinese market have been showing increasing preference for domestic brands.
The company's focus on direct-to-consumer sales has also had some adverse impacts. While the company's focus on direct-to-consumer sales seemed like a sensible move because it would cut out middleman retailers and hypothetically allow the company to command stronger margins, it hasn't played out that way. It's also seemingly weakened the business' sales stream.
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Nike's business may have been more reliant on support from third-party retailers than management expected. With the company prioritizing its own direct-to-consumer sales, retailers had more incentive to build relationships with other companies and promote alternative brands.
As a result of compounding pressures, Nike's share price is down roughly 70% over the last five years. On the other hand, the stock is still trading at roughly 28 times this year's expected earnings -- a level that looks pricey given the business's weak profit outlook. The market is still giving Nike significant credit for its brand strength, and some level of valuation premium is likely justified -- but the stock could continue to struggle in the absence of meaningful turnaround indicators.
Should you buy stock in Nike right now?
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Nike's Profit Margins Fell 34%. Here's What Investors Need to Know Before Buying the Dip. was originally published by The Motley Fool
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- State Street Takes 5% Nike Stake As Tariff Lawsuits Cloud Outlook
May 13, 2026
Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St.
State Street Corp has disclosed a passive 5% stake in NIKE (NYSE:NKE), signaling a significant holding by a major institutional investor. Nike is facing ongoing and escalating consumer lawsuits tied to tariff-related price increases, following a Supreme Court ruling that invalidated certain tariffs. Plaintiffs claim Nike did not refund tariff-linked price increases after the ruling, creating potential legal, operational, and brand challenges.
Nike, through its NIKE and Jordan brands, is a major player in athletic footwear and apparel, with a global reach across retail, wholesale, and digital channels. The new 5% passive stake from State Street highlights how large institutions are positioning around NYSE:NKE at a time when the company is dealing with complex legal questions. For investors, this combination of ownership news and legal exposure is important context for understanding risk and sentiment around the stock.
The consumer lawsuits over tariff-related pricing and refunds could affect Nike's costs, management focus, and brand perception, depending on how they evolve. In addition, the presence of a large passive institutional holder may influence trading liquidity and voting outcomes on governance issues. Investors following NYSE:NKE may want to track both the legal proceedings and any future disclosures from major shareholders to monitor how the overall risk picture develops.
Stay updated on the most important news stories for NIKE by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on NIKE.NYSE:NKE 1-Year Stock Price Chart
See which insiders are buying and buying and selling NIKE following this latest news.
Quick Assessment
✅ Price vs Analyst Target: At US$42.35, NIKE trades roughly 30% below the US$60.78 analyst target. ⚖️ Simply Wall St Valuation: The stock is described as trading close to estimated fair value, so do not assume a large valuation gap here. ❌ Recent Momentum: The share price has slipped 0.6% over the last 30 days, which is a mild negative short term signal.
There is only one way to know the right time to buy, sell or hold NIKE: head to Simply Wall St's company report for the latest analysis of NIKE's Fair Value.
Key Considerations
📊 State Street's passive 5% holding may support liquidity and signals large institutional interest, but it does not remove company specific risks. 📊 Monitor how the share price trades relative to the US$60.78 analyst target and any changes to forecasts following legal updates. ⚠️ The consumer lawsuits over tariff related pricing, combined with already thinner profit margins at 4.8% versus 9.4% last year, are key risks to watch.
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Dig Deeper
For the full picture including more risks and rewards, check out the complete NIKE analysis. Alternatively, you can visit the community page for NIKE to see how other investors believe this latest news will impact the company's narrative.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include NKE.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- Nike's Profit Margins Fell 34%. Here's What Investors Need to Know Before Buying the Dip.
May 13, 2026 · fool.com
In addition to weak sales performance, Nike has suffered a big margin contraction. Nike is facing big challenges in China, and some direct-to-consumer initiatives have underperformed.
- a.k.a. Brands Sees Q1 Sales Growth, Raises 2026 Guidance
May 12, 2026
By Karen Roman
a.k.a. Brands Holding Corp. (NYSE: AKA) said first quarter net sales rose 3% to $132.5 million compared to $128.7 million the year prior
Adjusted EBITDA was $5.1 million, or 3.9% of net sales, compared to $2.7 million, or 2.1% of net sales the previous year, the company stated.
a.k.a. Brands updated its 2026 fiscal outlook and now expects adjusted EBITDA between $30 million- $32 million, up from $27 million – $29 million, maintaining net sales at $625 – $635 million, it said.
“Over the past three years, we have fundamentally repositioned the business to improve profitability and durability,” said Ciaran Long, a.k.a. Brands CEO. “Our first quarter results demonstrate that this strategic work is translating into our financials, and we believe 2026 will be a meaningful proof point in our trajectory.”
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- Saucony® Appoints Wendy Kula as Chief Marketing Officer
May 12, 2026
Saucony Logo
Experienced brand leader brings deep running and digital expertise to guide Saucony’s next chapter
W. Kula, Saucony CMOSaucony® Appoints Wendy Kula as Chief Marketing Officer·GlobeNewswire Inc.
Rockford, MI, May 12, 2026 (GLOBE NEWSWIRE) -- Saucony, a global performance running and lifestyle brand, named Wendy Kula as chief marketing officer. In this role, Kula will lead Saucony’s global marketing organization and shape how the brand shows up across performance running, lifestyle, and culture as it continues to deepen its connection with runners worldwide.
Kula joins Saucony with more than two decades of experience building influential sport and consumer brands through consumer-led strategy and modern marketing. Most recently, she served as vice president of women’s brand marketing, North America, at Nike, where she led campaigns across sport, running, and training that helped inspire a new generation of athletes while supporting meaningful business growth.
“Wendy is a modern brand leader who understands how to build relevance with today’s runner while honoring what makes a performance brand credible,” said Rob Griffiths, President of Saucony. “She brings a strong point of view on culture, community, and storytelling, along with the ability to translate insight into action. Her leadership will be instrumental as we continue to evolve Saucony while staying rooted in running.”
At Saucony, Kula will oversee global brand marketing, digital marketing, creative, and go-to-market strategy. She will partner closely with product, sales, and direct-to-consumer teams to strengthen brand clarity, elevate storytelling, and support growth across key performance and lifestyle franchises.
Earlier in her career, Kula held senior marketing roles at Aerie and MISSION, where she helped build brand relevance through inclusive storytelling and community engagement. A former Stanford University lacrosse player, she brings a lifelong connection to sport and movement.
For more information, visit saucony.com.
###
ABOUT SAUCONY
Saucony, the 'Original Running Brand' and a division of Wolverine World Wide, Inc. (NYSE:
WWW), is a leading global performance running brand that fuses innovation, style and
culture. Widely recognized for award-winning technologies including PWRRUNTM PB,
PWRRUN+TM, and SPEEDROLLTM, Saucony creates innovative technical and lifestyle footwear and apparel across Road, Trail and Originals. Founded in 1898, Saucony exists to inspire and enable people to live a better life through running culture, self-expression and their impact on the world. For more information, visit www.saucony.com.
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ABOUT WOLVERINE WORLDWIDE
Founded in 1883, Wolverine World Wide, Inc. (NYSE:WWW) is one of the world’s leading designers, marketers, and licensors of branded casual footwear and apparel, performance outdoor and athletic footwear and apparel, kids’ footwear, industrial work boots and apparel, and uniform footwear. The Company’s portfolio includes Merrell®, Saucony®, Sweaty Betty®, Hush Puppies®, Wolverine®, Chaco®, Bates®, HYTEST®, and Stride Rite®. Wolverine Worldwide is also the global footwear licensee of the popular brands Cat® and Harley-Davidson®. Based in Rockford, Michigan, for more than 140 years, the Company's products are carried by leading retailers in the U.S. and globally in approximately 170 countries and territories. Wolverine Worldwide is a Great Place to Work® Certified™ company. For additional information, please visit our website, www.wolverineworldwide.com.
Contact Info
Abby Drapeau
abigail.drapeau@wwwinc.com
+1 978-500-7983
Attachment
W. Kula, Saucony CMO
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- Why Nike CEO said the company's turnaround needs more time
May 12, 2026
Nike (NKE) CEO Elliott Hill spoke about the company's turnaround on Monday, noting that Nike still has a long way to go.
Guggenheim Securities senior managing director Simeon Siegel joins Yahoo Finance to share his thoughts.
Video Transcript
00:00 Speaker A
Elliott Hill, the CEO of Nike, gave um an interview to NBC News and on the today show.
00:06 Speaker A
And one of the things I took away from it is that he says the street doesn't under or needs to understand it's going to take time to also turn Nike back in a more positive direction.
00:15 Speaker A
Um, do you think Nike is doing the right things to push it in that direction?
00:23 Speaker B
It's a big business. It's a big and complicated and nuanced business and historically that was a really good thing.
00:30 Speaker B
And right now, I think that is making it very clear. People are looking at a whack-mole as opposed to looking at a triage.
00:36 Speaker B
And so I think if Elliott, so far what we've been seeing, not what we've been hearing, what we've been seeing, is last year they made it seem like North America would never grow, this year it's growing.
00:46 Speaker B
Last year, everyone felt like Nike was losing in running, now they're winning.
00:51 Speaker B
A couple quarters ago, we felt like China was a never-ending black hole of revenue and profit declines.
00:58 Speaker B
This past quarter actually was meaningfully less bad on the revenues and and so profitability actually really improved. was up like 600 basis points or so.
01:03 Speaker B
So, there's a little bit of this, don't listen to what I say, watch what I do mentality because every everything we hear both from the company and from everyone who talks about the company is the house is on fire.
01:14 Speaker B
Look, North America was bad, then China was bad, now EMEA is bad.
01:17 Speaker B
And by the way, Converse isn't even worth the breath that it takes to speak about. And so people are thinking about it as, oh, it's just this falling Domino's whack-mole story.
01:24 Speaker B
But if you look at what's happening behind the scenes, it actually looks like North America has gotten meaningfully less bad than last year. China's working its way, even if they're not telling you that, and then we move on to the other two pieces.
01:35 Speaker B
So, it's hard to figure out what to make of it because they're being very vocal. They're not hiding behind the fact that this is hard. It's hard to turn the battleship.
01:43 Speaker B
But I actually think from a result, it would be easier if North America wasn't improving and China was just kind of continuing to worsen because then it would be, okay, they're saying things are bad, the numbers are showing things are bad, and there's no sign of anything improving. It's bad.
01:55 Speaker B
But the problem is I don't see that. I see from a data perspective the early signs of what you and I would look for in specific area turnarounds.
02:03 Speaker B
It's just a very large entity with a lot of different tentacles and each one is being focused on. So it's very easy to look at that and say, oh my God, what's what's going wrong next?
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- Nike (NKE) Valuation Check After Steep Share Price Slide And Mixed Market Signals
May 12, 2026
Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide.
Recent performance snapshot
NIKE (NKE) has been under pressure, with the stock down about 4% over the past day, 2% over the past week, and 33% year to date. Over the past 3 months, the stock has declined 33%.
See our latest analysis for NIKE.
These recent share price declines, including a 33% year to date share price return and a 30.6% fall in the 1 year total shareholder return, point to fading momentum as investors reassess NIKE's growth profile and risk.
If NIKE's pullback has you rethinking where you deploy capital next, it could be a good moment to scan the market for 19 top founder-led companies
So with NIKE stock down sharply in recent periods but analysts’ price targets and some intrinsic value estimates sitting above the current US$42.39 share price, is this a reset that creates opportunity, or is the market already discounting future growth?
Most Popular Narrative: 52% Undervalued
According to the most followed narrative by Unike, NIKE's fair value sits at $87.90, which is more than double the last close at $42.39, putting a very different spotlight on the recent share price slide.
Global Sports Events (Olympics, World Cup, NBA, etc.): Long-term sponsorship deals drive consistent brand visibility.
Further Expansion into Athleisure: Nike’s increasing focus on lifestyle and fashion collaborations could grow revenue beyond performance sportswear.
Read the complete narrative.
Curious what kind of revenue trajectory, margin lift, and future earnings multiple sit behind that near double fair value tag? The full narrative breaks down the specific growth mix, profitability assumptions, and valuation lens Unike used to reach $87.90.
Result: Fair Value of $87.90 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this depends on NIKE defending its market share against fast-growing rivals and avoiding prolonged weakness in China, which could weigh on its US$46,523m revenue base.
Find out about the key risks to this NIKE narrative.
Another angle on valuation
While Unike's narrative points to a fair value of $87.90 and labels NIKE as undervalued, the current P/E of 27.9x tells a tighter story. It sits slightly above peers at 27.4x and well above the US Luxury industry at 20.7x, yet below a fair ratio of 31.1x. Is the market pricing in enough execution risk here?
See what the numbers say about this price — find out in our valuation breakdown.
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NYSE:NKE P/E Ratio as at May 2026
Next Steps
With sentiment clearly mixed, with concerns but also genuine optimism in the numbers, take a closer look now and weigh the 1 key reward and 2 important warning signs
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include NKE.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- On Running Sees Record Q1 Net Sales on Asian Demand
May 12, 2026
By Daniella Parra
On Running (NYSE: ONON) said first quarter net sales increased by 14.5% from a year earlier, reaching CHF 831.9 million.
The company said sales in the Asia-Pacific region grew 44.4%, representing more than 20% of global net sales, supported by standout momentum in China and South Korea.
“On is becoming more global, more multi-dimensional and more deeply rooted in different communities around the world,” said Caspar Coppetti, Founder and Co-CEO of On.
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