NVDA - Wall Street Breakfast Podcast: CosMc's McDonald's Nostalgic Spinoff

2023-12-07 06:49:19 ET

Summary

• McDonald's tests new small store format called CosMc's, plans to open 10 restaurants by end of 2024.
• AMD unveils AI accelerator MI300, aims to compete with Nvidia in the data center.
• GameStop posts breakeven quarter.

Listen below or on the go on Apple Podcasts and Spotify

McDonald's ( MCD ) opens first restaurant of nostalgic spinoff chain CosMc's. (00:26) AMD takes wraps off Nvidia ( NVDA ) competitor, updates AI forecast. (01:43) GameStop ( GME ) posts breakeven quarter with Ryan Cohen at the helm. (03:24)

This is an abridged transcript of the podcast.

McDonald's (NYSE: MCD ) will begin testing a new small store format called CosMc's this week, earlier than it previously expected , with plans to open 10 such restaurants by the end of 2024.

"As part of a limited test, the first CosMc's location opens in Bolingbrook, Illinois, this month – with a handful of additional outposts planned in the coming months," the fast-food chain said in a statement .

Bolingbrook is a suburb of Chicago. According to Chicago media, that location will open on Friday.

The rest of the locations will open next year in Texas. The restaurants will be located across the Dallas-Fort Worth and San Antonio metro areas.

The limited test was announced during McDonald's investor conference on Wednesday, where it also introduced ambitious new growth targets .

CosMc's will feature customizable specialty beverages that will rival other popular chains such as Starbucks ( SBUX ) and Dunkin' Donuts. It will also serve snacks - including a few of its classic menu items.

CosMc's, which would be McDonald's ( MCD ) first new restaurant concept in the U.S., is named after a McDonaldland space alien character who appeared in ads in the 1980s.

AMD (NASDAQ: AMD ) shares fell on Wednesday as the semiconductor giant officially took the wraps off its AI accelerator, the MI300, which it hopes will compete with Nvidia (NASDAQ: NVDA ) in the data center.

At the event, AMD ( AMD ) CEO Lisa Su said the MI300 has three times higher performance for certain AI data types and seven times the intake performance. This comes as the company updated its forecast for the AI accelerator market, as it now sees the total addressable market of $400B by 2027, up from $150B this past August.

In October, AMD ( AMD ) said it expects the MI300 to generate more than $2B in sales in 2024.

The MI300x contains 153B transistors, a dozen 5 and 6 nanometer chiplets and has advanced packaging, all to aid performance, the company said.

Su called it the "most advanced accelerator" in the industry.

AMD ( AMD ) also said that the MI300 is much faster at running AI models than Nvidia's H100, due in part to the fact that the new chip has a higher memory bandwidth than the Nvidia offering.

At the event, AMD ( AMD ) also said the MI300 chips will be used by a number of partners, including Microsoft ( MSFT ), Oracle ( ORCL ), Dell ( DELL ) and IBM ( IBM ).

Meta Platforms ( META ) senior director engineer Ajit Mathews also said it would use the MI300x chips in its data centers.

Nvidia ( NVDA ) fell 2.28% on Wednesday.

GameStop Corp. (NYSE: GME ) is down more than 5% in premarket trading despite posting a breakeven quarter.

EPS was $0.00 for the quarter vs. -$0.31 a year ago and the consensus estimate of -$0.08.

Revenue fell 9.2% year-over-year during the quarter to $1.08B. Hardware and accessories sales accounted for 53.7% of total sales vs. 52.8% a year ago, while software sales rose to 29.8% of the mix from 29.7% last year.

The Texas-based company said selling, general and administrative expenses were 27.5% of sales, compared to 32.7% of sales a year ago.

GameStop ( GME ) recorded a net loss of $3.1M in Q3 vs. a net loss last year of $94.7M.

The company did not issue any comments from CEO Ryan Cohen and the retailer did not hold an earnings conference call.

Other articles to look out for on Seeking Alpha:

Formula One tapped as 2024 best idea at Cowen

Troika Media files for chapter 11 and sale to Blue Torch

Meta rolls out default end-to-end encryption on Messenger

On our catalyst watch for the day,

• There will be a hearing in the Tylenol autism case to determine whether the plaintiffs have enough expert evidence to prove their claims and to determine the admissibility of the evidence. Kenvue ( KVUE ) now owns the Tylenol brand.

U.S. stocks on Wednesday ended lower, as markets continued to take a breather after an astonishing November rally.

Meanwhile, crude oil slumped , falling below $70 a barrel for the first time since early July on concerns surrounding oversupply and weak demand.

The Nasdaq ( COMP.IND ) closed 0.58% lower. The S&P 500 ( SP500 ) slipped 0.39%. The Dow ( DJI ) retreated 0.19%.

Of the 11 S&P sectors, eight ended in the red. Utilities topped the three gainers. Energy was the top loser.

Treasury yields were mixed. The 10-year yield ( US10Y ) was down 5 basis points to 4.12%. The 2-year yield ( US2Y ) was up 2 basis points to 4.60%.

Before the opening bell, ADP's latest employment report showed that the private sector added 103K jobs in November, lower than the consensus figure of 123K and moderating from the 113K reading in October.

Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are mixed. The Dow is down 0.1%, the S & P 500 is up 0.02% and the Nasdaq is up 0.16%. Crude oil is down 1.2% at more than $70 per barrel. Bitcoin is down 1.5% and above $43,000.

In the world markets, the FTSE 100 is down 0.1% and the DAX is down 0.1%.

The biggest movers for the day premarket: Cerevel Therapeutics' (NASDAQ: CERE ) is up 13% after AbbVie ( ABBV ) agreed to acquire the neurological drug developer for $8.7B, offering a cash price of $45 per share, a 22% premium over the closing price on Wednesday. And Chewy (NYSE: CHWY ) is down 10% following mixed Q3 results and a downbeat Q4 sales outlook

On today’s economic calendar:

• 8:30am initial jobless claims

• 3pm consumer credit

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