Rob Black’s Winners and Losers: McDonald’s testing bigger, smaller Big Mac

SAN FRANCISCO (KRON) — On today’s edition of Rob Black’s Winners and Losers, our financial expert Rob Black and KRON 4’s Mark Danon to talk about McDonald’s, President Obama’s landmark Affordable Care Act and Facebook.

McDonald’s is testing bigger and smaller versions of its Big Mac as the world’s biggest hamburger chain pushes to revive its business. The company says it’s testing a “Grand Mac” and “Mac Jr.” in the central Ohio and the Dallas areas, and will see how they do before deciding on a national rollout.

President Obama’s landmark Affordable Care Act was seemingly dealt a huge blow Tuesday when the nation’s largest insurer by number of people covered, United Healthcare,announced it was leaving the state exchanges in all but a “handful” of states. Still, the vast majority of Marketplace enrollees would continue to have a choice of three or more insurers, even in the absence of United.

Two more “Facebooks” lurk inside, as the Messenger “chat feed” evolves to a news feed, and leads the way to native ads. As we have made modest changes to our estimates our price target for Facebook increases to $142 from $140 prior. Our $142 price target is based on discounted cash flow with a 10.5% weighted average cost of capital and a 3% terminal growth rate. We note that both Messenger and WhatsApp have surpassed 900 million and 1 billion users, respectively.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s