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Canaccord Genuity on Apple, McDonald's, and Nike


Apple apologizes for its maps, McDonald's gets downgraded, and Nike was helped by better sales and gross margin.

The following are excerpts from Canaccord Genuity analysts' commentaries.

Apple (NASDAQ:AAPL): So Berlin Isn't Actually in Antarctica?

On Friday, Apple said that the company is "extremely sorry" for the frustration that its maps application has caused and it's doing everything it can to make it better. In a letter posted online, CEO Tim Cook said Apple "fell short" in its commitment to make the best possible products for its customers. Cook recommends that people try alternatives by downloading map apps from competitor firms from the App Store while Apple works on its own maps products, suggesting Microsoft's (NASDAQ:MSFT) Bing, MapQuest, and Waze, or using Google (NASDAQ:GOOG) or even Nokia (NYSE:NOK) maps by going to their websites and creating an icon on your home screen to their web apps.

As you've probably heard, Apple released an update to its iPhone and iPad operating system last week that replaced Google Maps with its own maps application. But users complained that the new maps have fewer details, lack public transit directions, and misplace landmarks, among other problems. Cook hinted at the rumored reason for the rupture with Google, writing: "As time progressed, we wanted to provide our customers with even better Maps including features such as turn-by-turn directions, voice integration, Flyover and vector-based maps. In order to do this, we had to create a new version of Maps from the ground up." Start digging.

(See also: A Walk With iOS 6 Maps: Apple's (NASDAQ:AAPL) Horribly Revamped App Does New York.)

McDonald's (NYSE:MCD): Like Running Out of Sweet 'n' Sour Sauce After Just Three McNuggets.

Shares of McDonald's were under pressure after Janney downgraded the stock to a neutral rating. The brokerage firm says its sources have said that the first two to three weeks of September saw same-store sales at a pace that would make it the weakest month thus far in 2012. The report read, "Given that McDonald's is the largest player…by quite a wide margin, this is a pretty good hint that" US sales "are going so-so, at best."

The brokerage also said that it is concerned that Wall Street is overestimating what the restaurant will be able to generate in US same-store sales over the next nine months, suggesting that some may decrease their forecasts in the near future in the face of tough year-over-year comparisons. The downgrade weighed on the rest of the fast food sector, with YUM Brands (NYSE:YUM), Burger King Worldwide (NYSE:BKW), and Wendy's (NASDAQ:WEN) trading lower.
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No positions in stocks mentioned.
Canaccord Financial and its affiliated companies may have a Corporate Finance or other relationship with the companies mentioned and may trade in any of the Designated  Investments mentioned herein either for their own account or the accounts of their customers, in good faith and in the normal course of market making. The authors have not received, and will not receive, compensation that is directly based upon or linked to one or more specific Corporate Finance activities, or to coverage herein.
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