The Rundown | McDonald’s Sales Surge, Kraft Heinz Pauses Split

Host: Zaid Admani
Date: February 12, 2026
Duration: ~10 minutes

Episode Overview

In this fast-paced episode of The Rundown, host Zaid Admani breaks down significant movements in the stock market, focusing on standout company updates from McDonald’s and Kraft Heinz. Additional quick insights cover biotech and tech stocks, along with a fun statistical exploration of Americans’ sedentary work habits.

Key Discussion Points & Insights

1. Market Movement Overview (00:20–01:50)

• Stagnant Indices:
  Stocks closed mostly flat; S&P was unchanged, and NASDAQ dipped slightly (-0.2%).

• Impact of Jobs Report:
  Strong jobs numbers prompted initial optimism, but markets fizzled.

  “With the latest jobs report coming in strong, it probably means the Federal Reserve will wait to cut interest rates.” (00:43)

  • Traders now expect next Fed rate cut in June or July, beyond Jerome Powell’s tenure as Fed Chair (ends in May).
  • Next Fed meeting is a month away, plenty can change by then.

• Current Market Themes:

  • AI fears are causing more volatility, with financial, real estate, and software stocks suffering.
  • The previous trend—AI hype causing rallies—has reversed.
  • “It would cause stocks to rally. But now the exact opposite is happening.” (01:30)
  • Gold and silver prices are rising; Bitcoin remains under $70K despite continued accumulation by Michael Saylor.

• Upcoming Catalyst:
  January CPI inflation report drops tomorrow, could move markets.

2. McDonald's: Best Growth in Two Years (01:55–04:44)

• Earnings Recap:

  • Both revenue and profit exceeded Wall Street’s expectations.
  • Global same-store sales up 5.7%.
  • U.S. same-store sales surged 6.8%—fastest growth in over two years.

• What’s Driving the Comeback:

  • Focus on value and promotional deals, especially the $5 meal.
  • Response to negative buzz on high prices (e.g., $18 Big Mac meals).
  • Holiday-themed promos (the “Grinch meal”) led to record high sales days.

  “McDonald's is making a comeback because of cheaper prices. Who would have thought?” (04:14)

• Cautions and Future Outlook:

  • Q1 may show slower growth due to January winter storms leading to temporary closures.
  • The stock’s muted response may reflect these short-term concerns.

• Expansion Plans:

  • Opening 2,600 new locations this year.
  • Doubling down on higher-margin beverage offerings (energy drinks, “refreshers,” specialty sodas).

• Industry Implication:

  • Other fast-food chains, like Chipotle, might follow McDonald’s in lowering prices.

3. Kraft Heinz: Pausing the Split (04:50–06:20)

• Recent History:

  • Previously announced split to separate high-growth brands (e.g., Heinz Ketchup, Kraft Mac & Cheese) from legacy ones.

• Strategic Shift:

  • Newly hired CEO Steve K. Lane (joined in January to execute the split) is pausing the move, aiming to turn around the company without breaking it up.
  • Kraft Heinz is investing $600 million in marketing, product development, and pricing moves.

• Underlying Problems:

  • Nine consecutive quarters of declining sales.
  • Q4 revenues down 3.4%.
  • Losing market share to agile competitors.
  • CEO says priority is to “earn back customer trust by actually offering better value and cutting prices.” (05:55)

• Trend Insight:

  • Zaid sees a pattern: “Some of these companies went too far on raising prices following the pandemic… Consumers just stopped buying their stuff.” (06:06)

• Stock Snapshot:

  • Down ~12% over the last year; off 70% from its 2017 peak.
  • Lighthearted comment: “I do feel like 2017 was like the peak of Mac and cheese.” (06:18)

4. Other Stocks Making Big Moves (06:25–08:10)

Viking Therapeutics (VTGN)

• Positive News:

  • Stock surging 10%+ after announcing plans to move its obesity drug to late-stage trials.
  • Previous trial showed 12.2% weight loss—short of Wall Street’s 15% hope, causing older price drop (-40%).

• Industry Backdrop:

  • Novo Nordisk’s Wegovy pill already leading in GLP-1 weight loss drugs.
  • 36% of early users hadn’t used injectables before: broadening the market.
  • Eli Lilly’s pill likely approved by April.

  “The race for GLP1 pills is heating up fast.” (07:12)

Cisco (CSCO)

• Mixed Signals:

  • Despite beating on earnings (revenue +10%, net income +31% Q4), Cisco shares down ~9% due to underwhelming Q1 guidance and margin pressure.

• AI Data Center Demand:

  • Strong orders ($2.1B) from hyperscalers; expected acceleration from AI-cloud firms in the second half.

  “Market was expecting a faster AI ramp up and as a result, Cisco stock is down this morning.” (08:09)

5. Fun Fact – Americans Sitting More at Work (08:15–09:22)

• Bureau of Labor Statistics Data:

  • In 2025, average American spent 45% of the workday sitting (up from 39% in 2016).
  • White-collar (‘desk’) jobs sit 95%+ of the time, earning six figures; manual/service jobs stand 90%+ of the time, earning less.
  • Exceptions: Pharmacists ($137k, 28% sitting); Nurses (low sitting, good pay).

• Societal Implications:

  • Desk jobs currently pay more, but the rise of AI might shift this.

  “Obvious white collar jobs are going to get replaced before blue collar jobs. You know, AI can write software and do financial analysis. They’re probably not replacing construction workers and nurses anytime soon.” (09:09)

Notable Quotes & Memorable Moments

• “McDonald's had their highest sales day ever because of [the Grinch meal].” (04:13)
• On post-pandemic pricing: “They raised prices and under-invested, and that finally caught up to them. Consumers just stopped buying their stuff.” (06:06)
• “AI can write software and do financial analysis. They’re probably not replacing construction workers and nurses anytime soon.” (09:09)

Timestamps for Important Segments

• Market overview & rate cut speculation: 00:20–01:50
• McDonald’s earnings and turnaround: 01:55–04:44
• Kraft Heinz split pause & strategy: 04:50–06:20
• Viking Therapeutics obesity drug news: 06:25–07:40
• Cisco earnings and AI buildout: 07:41–08:10
• Fun fact – Sitting at work: 08:15–09:22

Episode Tone

Upbeat, analytical, with a clear, conversational delivery and light, witty asides (“Chipotle, if you’re listening, think about it.”). The host provides succinct context for complex topics and ties together individual business stories with larger trends affecting markets and society.