Our road map begins with John Chambers stepping down from the ceo post at cisco by the end of july. Chuck robbins is going to take the reigns. Mcdonalds unveiling a brad new turn around plan this morning focusing on innovations such as delivering breakfast all day. Warren buffet issuing a word of warning about stock valuations and Interest Rates. Well get to that. First up cisco has chosen its future leader goble operations chief Chuck Robbins, effective july 26th. Chambers will assume the role of executive chairman and continue to serve as chairman of ciscos board. Chambers joined in 91, ceo in 95. Hes grown it to 48 billion in revenue. One of the longest running ceos of the billionaire companies. I think hes managed to navigate what no one else has. Hes leaving the ceo job at a high. The stock is only one point off its high. It happened to have the best european numbers. If you think the dollar has peaked a knew consensus is building. John will be staying with it. Develop a Good Relationship with john over the past year. Chuck robbins, joined since 97, the Senior Vice President of worldwide operations. This is important. Worldwide operations has done incredibly well. Good numbers in france and spain. John has tried to avoid what the investigations that a lot of these european organizations have done by creating a huge number of jobs including a big commitment to france. I think this will be seamless. This is a company thats very under valued. When you look at the way nasdaq values youll have social moo ya media and internet. This is not an expensive stock. He will still have an important influence on the direction of the company. Many often times you hear us talk about a chairman, its nonexecutive. In this case its executive chairman. He will remain chairman of the board of directors. Well keep our eyes on that see what he first heard from Chuck Robbins. John has been at it for a very long time. This is how old i am. Wo most of the companies in that industry have fallen by the wayside. I think we probably will miss some of the color of his Conference Calls which is generally one of the highlights of earning season. Lets hope that robbins does something similar. Mcdonald announcing some initial sfeps for the turn around strategy four new operating divisioning, selling franchises to franchisees. Heres what he had to say this morning. The business cannot ignore what customers are saying when the message is clear. Were not on our game. Like i said, the numbers dont lie. Well be faster with innovation smarter at taking risks. Try to localize decisionmaking, increase the franchise rate. They hope to save 300 million by the end of 17. Very few specific headlines. The thing people picked up the most is that theyre going to start delivery in new york today via post mates. Yeah. The man who has built post mates, this is his thirds big deal. I hinted on this but was not able to revul it. He has chipotle and starbucks. This is a company thats kind of one of these busy pricing companies. The cure yours areyouriers are able to get the stuff to you. Saying we have too much red tape we dont make good food and we have to refranchise. Maybe this is what is needed. Just a toet l recognition that perhaps things are gone wrong. But its almost as if theres just a hey, listen were a bad company. Funny listening to warren buffet talking about burger king a company thats vaulted in front of mcdonalds. Sg and a per store for mcdonald is far higher than burger king and that is the key, getting that down for each franchisee. This refranchising plan adding 3200 by 2018 certainly some will believe it will insentcent franchise sees to do better. 81 goes to 90 franchising. Theyve lost the franchise. What did in the previous ceo, the franchise sees have turned on the organization. And anything that brings them back is going to be meaningful. But we dont see the Real Estate Investment trust. This is about how we got to start somewhere. People will be saying you still overcapitalized. Still have to do something about in. The company said this is the beginning of several announcements theyll make. Not the entirety of the plan. They clarify the delivery test and the breakfast test. Theyre trying a bunch of Different Things and trying to avoid some confusion. Whenever it goes well, dont do a thing, when things go bad, change everything. Theyre changing everything. Mentime, a big day for buffet. Standing by his Investment Strategy when it comes to Core Holdings like ibm and cocacola. Early this morning berkshire ceo said he bought for shares of ibm during the first quarter. Take a listen. The market against normal Interest Rates is on the high side of valuation. Not dangerously high but on the high side. On the other hand if these Interest Rates were to continue for ten years, stocks would be extremely cheap by now. The one thing you can say is stocks are cheaper than bonds. Of course for a long time he said the low rates would lead to inflation. Hes been wrong. He admitted that. And he reiterated that it would be hard for the fed to raise here. If europe finds its legs that would perhaps imply that it is time. Stanley fisher has done a good job. Yellen obviously doing a good job. Major take away the buying of ibm. I believe theres a turn there in saying that since the last quarter, given the fact theyre moving aggressively into artificial intelligence. Yeah, they are. But frankly, this is a company that you could argue had 12 swing in currency. And if you believe that the change seems to be overcoming Portfolio Managers that the dollar has peaked ibm would be one you would want to buy. I think it is interesting that he had chosen to go that way. There had been some fear after the company of course did not meet earnings expectations a number of kwaushters back that would buffet even be this. And it was interesting because he did not lend his endorsement if you will at that point. But hes certainly lent it in the marketplace given hes continued to buy more as opposed to going the other way. Youre talking about big four, american express, cocacola, wells fargo. I come back and say it is an inexpensive stock if they deliver on their ability to be able to get the fast growing part, the watson part if you want to call it that. Its one of these things when warren buffet says its good i was watching the interview that rhonda shaft ner did with buffet. Saying hey, would you have felt better buying apple . No. Obviously you play this game. Would you feel better buying ra jet ron than pfizer . It does say he kind of bought the one he understands but it is not the one thats outperforming. One thing that all three of the gentlemen that becky was interviewing is negative Interest Rates. When she asked him about that gates, munger and buffet all saying we have no idea how long this can continue or why its going on. Not necessarily say but they shook their heads the same way we do. The one thing they dont want to do is predict anything. Theyre saying our businesses are good businesses, we buy them at the price we like and we own the business. Theyre trying to buy companies that are not at the, lets just say that theyre not blowing in the wind. And the macro obsession of the Hedge Fund Managers is something that refute in the same way they refute the notion of trading. They stick by their guns. Its impressive. There was a moment where warren buffet said were making minute own money on wind. We didnt get that call. There are things that company can do. You might want to imitate the company by what they buy in the big four. Imitate the company by buying shares in the company. Would you rank them wells, ibm, coke amex . Wells is the top. No fequestion. Theres some competition for last place. American express has lost its way. American express did not do social mobile. They had a great opportunity. They did not do expedia, priceline. These are the ways that people book now. Theyve been left hopelessly behind. The costco deal they didnt get that one. The difficult one for me is cocacola. At the same time youre dealing with cherry cola land. When you listen to buffet saying he sees people not smiling at whole foods like at dairry queen. I go to whole foods now, im 176, i think its a longevity issue, not a taste issue. I had quinoa last night on chicken. Didnt make you smile. Had to put something on that. Its like eating bounce you know the sheets you put in your washing machine. They both have crunch to them. I dont remember you at 210. That was the height of your hedge fund years. The height of my happiness period. Some people like brussel spouts and kale and broccoli but dont invite me for dinner. We use a lot of kale. It has no taste to it but it does make you less hungry for milky ways. I love mig milky ways. Are you a blizzard guy, gary . No. I keep my milk shake to shake shack vanilla. What a breakout there in that stock. Somebody likes it. Tomorrow 9 35 a. M. Eastern time on this show well talk to ciscos chairman, John Chambers as he gets ready to toss the ceo baton. How did i know that . How exciting. We like to keep kour surprises. Well talk with Venture Capital list fred wilson in a Rare Television appearance. One of the earliest investors in Companies Like twitter and tumblr. Take another look at the premarket after stocks lost ground last week. Factory orders up at 10 00 a. M. Well, a mortgage shouldnt be a problem your credit is in pretty good shape. Pretty good . I know i have a 798 fico score thanks to the tools and help on experian. Com. Kaboom. Well, i just have a few other questions. Chuck, the only other question you need to ask is, what else can you do for me . Ill just take a water. Get your credit swagger on. Become a member of experian credit tracker and find out your fico score powered by experian. Fico scores are used in 90 of credit decisions. Welcome back. Our Parent Company comcast reporting earnings this morning. After abandoning its plan to buy Time Warner Cable. And the numbers overall quite strong. Whats comcasts story . Todays q1 results are very strong across the board and strong case for best operator best assets. Dare we say the disney of cable . As for the numbers themselves operating cash flow flow of 9 consolidated revenue ahead by 2. 6 , operating cash flow up 7. 6 president 7. 6 . Couple of things that ill give you here in terms of interesting parts of the quarter. Theme parks, who knew theme parks would now represent 25 of the profitability of nbc universal. The Growth Numbers at theme parks were dramatic. Operating cash flew up 54. 6 . I mean they should tip their hat each time to j. K. Rowling. Now know heir pi potter has done wonders for that. Cable margins look good. They added a lot of high speed data subs. Xfinity does seem sob generating or getting new traction. Half all of video connects was x 1. That drives average revenue per user. Thats sort of seeing payback on a lot of the Capital Investments that have been made. And as i said buyback of 7 million this year. Youre returning about 9 billion to shareholders. So at two times, thats a lot lower than a lot of other Cable Operators might be. But this is one of the biggest debtors in the country. Im not saying that. I did talk to a number of people this morning who concur. I like to focus on Free Cash Flow per share, increased an astounding 16. 8 . Again, i also feel i have to say i work for comcast. But this is what the former cfo has always taught us. Look at the Free Cash Flow. Yes. Now what that means from here just to continue on that note because they say, all right, what is comcast now. Gone is the idea it will be the king of Enterprise Services gone is the chance that theyll launch a new wifi network. Gone is the idea that its going to be the biggest. At t direct will be bigger. Youre still 2 biggest player in broadband and you have a lot of things going for you, including the x 1 database. Once again you do get thats a good point. The thing thats impressed me is where are all of the new people coming from. Everybody added tremendous number this quarter. Thats high speed data. A lot of people dont have high speed data so youre adding. Do you regard that as that is over. Everybody is flat or losing. Other than time warner which did add some. And netflix, a driver . Just the need for speed in general . Need for speed. Think about how much youre watching or streaming. How much im streaming on my apple watch today. Broadband rev you is up highest in four years. These are amazing numbers. But it says if you were to get another operator that wasnt as skilled, you would be able to flood that with the tech. That was the argument for why they said the time warner deal would be a positive for consumers because you would bring them the latest iterations of the technology x1 whereby that platform not going to happen. Well see what does happen with time warner. A lot of different news out there. Almost all of which we told you last week. Namely theyll be meeting next week. Well see what charter choose to do here. How high it choose to go in terms of where its willing to meet the expectations of Time Warner Cable shareholders and management. Will it be 170 . Will it be 175 . Could they go that high . How much stock will they use . How much cash . As we watch the possibility of consolidation away from comcast certainly but within with industry. We do have some sad news to report to you this morning. Dave goldberg died suddenly over the weekend. He was a well known entrepreneur. Disney moved up its Earnings Release to before the bell tomorrow so Company Officials can attend his funeral. Dave golberg was 47 years old. Wow. Took your breath away. Ameritrade, they work hard. Wow, that was random. Random . No its all about understanding patterns like the mail guy at 3 12 every day or jerry, getting dumped every third tuesday. This happens every third tuesday. We have Pattern Recognition Technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. For all the confidence you need. Td ameritrade. You got this. At chase, we celebrate Small Businesses every day through programs like mission main street grants. Last years grant recipients are achieving amazing things. Carving a name for myself and creating local jobs. Creating more programs for these little bookworms. Bringing a taste of louisiana to the world. At chase, were proud to support our grant recipients and Small Businesses like yours. So you can take the next big step. A lot of ideas look good in theory. But the real question is how do you make them pay off for your business . At kpmg, we work with you, shouldertoshoulder to turn strategy into real results for your enterprise. Because while theory is great, we work exactly where you do in the real world. The pursuit of healthier. It begins from the second were born. After all, healthier doesnt happen all by itself. It needs to be earned. Every day. Using wellness to keep away illness. And believing that a single life can be made better by millions of others. Healthier takes somebody who can power modern health care. By connecting every single part of it. For as the world keeps on searching for healthier. Were here to make healthier happen. Optum. Healthier is here. All right. We got a mad dash for this monday. Six minutes before the opening bell. Were going back to a story of course of last week that being twitter. I keep going back to the unbelievable interview with dick costlo where it seems that there isnt as much as we thought and there was a previous meeting where we thought there was more. I think youre going to find people saying, you know what this is a level where maybe twitter can turn things. I keep coming back and saying you know what . Twitter is no monitor rye zags even on this weekends fight. People felt like the fight had a huge number of tweets but a hum number of tweets is not converting into a huge amount of money. This is tweets per fight or tweets per, you know nfl draft. Were struggling with how to grade this company. And i think thats part of the problem. Im being fa sheeshs in the tweets per fight but thats what people are saying. How could they not make more money. How could you got get a spike in advertising. Thats what i wanted to ask him, quite a gentleman. Yes. That being said this is a platform that continue to ma sure. You did start as an idea not necessarily an idea to sell advertising. Fred wilson at 10 00. Fred understands however it should be interest. Should be interesting. Have we got next. Heres a pattern were seeing, Research Firms reiterating buys. U. P. S. Reiterates disney. It has been the pattern that the stock does not spike on earnings. Just keep that in mind. Avengers avengers a remarkable number. I would not say that avengers would a weak performance. Theres still so much in the pipeline. Im so struck by the universal numbers for theme parks that i have to wonder whether it also wasnt just some sort of movement through theme parks because of lower gasoline. Will be interesting to see that disney. Star wars and then shanghai disney. Does that come with a mix . The air there i keep hearing over and over. When i was there in november it was horrible. You would not want to go out. Some of those rides take your breath away. I would hate to see it doubly take your breath away. Maybe they give you a little oxygen. Weve got the opening bell coming up four minutes from now. Stay with us. Squawk on the street. A lot mshore on this monday. My name is jamir dixon and im a locate and Mark Fieldman for pg e. I protect people. I protect our community. I protect our environment. When you call 811 i come out to your house and i come up to your dig site and i mark our gas lines and our electric lines to make sure you dont hit