Stock Performance and Equity Investment

Stock Performance from 24^th April to Date

On 24^th of June, the Starbucks Corporation stock was listed at $51.84 at NasdaqGS stock trade market. Immediately after that the stock price went down on 5^th may to $49.99 with the lowest instances being on 11^th and 13^th of May where the stock was listed at $49.59.  However, it started regaining its strength slowly since then.  On 15^th May, the stock was listed at $50.79 which continued to increase to $51.33 on 22^nd May. On 29^th May the stock was able to go beyond the point it was in during my first analysis, where it was listed at 51.96. On 5^th June, which is the most recent listing this stock was listed at $52.19. This stock can be said to demonstrate an irregular trend although it has never been below a mark of $50 after it managed to recover from the first drop, since the first reading (Yahoo finance, 2015d). Starbucks is considered a good investment since it has always managed to remain innovative and thus competitive in the market.

Dunkin’s Brands Group, Inc. has been irregular since the first reading on 24^th of April. It initially dropped from $54.03 on 24^th to $52.11 by the end of the month. By 5^th of May, the stock had gone down to $50.79 where it started demonstrating a positive trend increasing to $52.61 on 15^th May, to $53.47 on 19^th May before another negative trend. Since then the stock has been going down ranging between ranging from $ 53.47 to $52.20. The closing value on June 5^th was $52.47 (Yahoo finance, 2015b). Dunkin Brands is considered unstable with a negative trend in its stock and also low sales than predicted before the beginning of the year. Therefore, investors cannot be certain about its future.

McDonald’s Corp stock has also been demonstrating an irregular trend in the market where a negative trend dominates. On 24^th of April, the stock was listed at $98.74 in the NYSE stock market. On 27^th April, the stock had decreased to $96.44 on 29^th of April. Since then, the stock has been demonstrating an irregular trend that ranged between 96.10 and 98.01 from 30^th April to 18^th May. The stock hit $100 mark on May 19^th but a consistent negative trend was registered on the following day onwards to 5^th of June where the closing price was $95.54 which is much less than what was registered on 24^th April (Yahoo finance, 2015c). Although the company has a long history, McDonald is has been reported to has been struggling with its runway Menu. The irregular and common negative stock trend demonstrates that the brand is losing its initial market power and thus, this is not the right time for investors to think of investing with the company.

Darden Restaurants, Inc. stock has also demonstrated a negative trend since the first reading on 24^th of April where it was listed at $67.01. This is documented as the last highest point of this stock in the market. On 27^th April, the stock dropped to $65.84. On 5^th May the stock dropped to $61.75and later on May 11^th it increased to $64.16. Since then the stock has been demonstrating an irregular trend $65.54 to $62.70. The closing price on 5^th June was $64.84 which is far below the initial reading (Yahoo finance, 2015a). Darden’s share performance is not encouraging, and the company’s valuation in the market is far below its competitors. There is a considerable decrease in the company’s performance from 2010 and thus, it would not be advisable to invest with the company.

Yum! Brands, Inc. stock demonstrates a positive trend from $87.10 recorded on 24^th April. The company only experienced a slight to $86.28 on 30^th April which was followed by a drastic increase to $91.90. Since then, the stock has demonstrated an irregular trend with the highest value being $94.95 on 19^th May and the lowest value being $89.86 on 30^th May. The closing value on June 5^th was recorded as $90.79, which is higher than the initial value (Yahoo finance, 2015e). Yum is demonstrating its potential in the market. The company CEO has a great confidence with KFC, Pizza Hut and Taco Bell and expects that their positive growth will uplift the company’s position in the market. Therefore Yum could be a good investment project.

None of the five provided companies contains preferred stocks. Although they all had long term debts none of them allowed the debt conversation into equity and thus, the comparison between them and stock is not possible.   

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