Cowen believes McDonald’s digital ordering upgrades will drive the fast-food chain’s sales higher.
McDonald’s shares hit an all-time high on Tuesday as Wall Street expects sales to increase from new digital ordering kiosks that will replace cashiers in 2,500 restaurants.
Cowen raised its rating on McDonald’s shares to outperform from market perform because of the technology upgrades, which are slated for the fast-food chain’s restaurants this year.
McDonald’s shares rallied 26 percent this year through Monday compared to the S&P 500’s 10 percent return.
Andrew Charles from Cowen cited plans for the restaurant chain to roll out mobile ordering across 14,000 U.S. locations by the end of 2017. The technology upgrades, part of what McDonald’s calls “Experience of the Future,” includes digital ordering kiosks that will be offered in 2,500 restaurants by the end of the year and table delivery.
“MCD is cultivating a digital platform through mobile ordering and Experience of the Future (EOTF), an in-store technological overhaul most conspicuous through kiosk ordering and table delivery,” Charles wrote in a note to clients Tuesday. “Our analysis suggests efforts should bear fruit in 2018 with a combined 130 bps [basis points] contribution to U.S. comps [comparable sales].” Read the rest of this entry »
’We have seen a significant drop of U.S. companies going to China…On the contrary, they are coming back here,’ says market expert.
For a long time, a lot of American companies saw China as the world’s biggest business opportunity. But that time may be over.
“If you’re waiting for the booming Chinese consumer…it’s just not on the way. The upside is just not what some consumer firms were hoping for.”
— Derek Scissors, chief economist at China Beige Book International, which regularly surveys Chinese businesses
This week, McDonald’s was reportedly in talks to sell its China unit and license its name to a Chinese company instead, following Yum Brands ‘ decision to do something similar and spin off its China operations into a new firm called Yum China last month.
“The trend is that opening retail business on the ground in China as a foreigner is difficult and expensive.”
Coca-Cola announced plans to sell its China bottling business in November, and International Paper said in March that it’s spinning off its China and Southeast Asia corrugated packaging business.
“We have for years tried to push a lot of our clients not to do that, but instead do what McDonald’s and Yum Brands are doing, which is…monetise your name and your knowledge without actually being the one who does all the work to make it work in China. China is a tough, tough market.”
— Dan Harris, lawyer at Harris Bricken and author of the China Law Blog
“The trend is that opening retail business on the ground in China as a foreigner is difficult and expensive,” said Dan Harris, lawyer at Harris Bricken and author of the China Law Blog.
“We have for years tried to push a lot of our clients not to do that, but instead do what McDonald’s and Yum Brands are doing, which is … monetise your name and your knowledge without actually being the one who does all the work to make it work in China,” Harris said. “China is a tough, tough market.”
McDonald’s said in March it was looking for “strategic partners” for key Asia markets. Last year, Yum Brands said its decision to spin off its China unit followed a “rigorous review of strategic options.”
Fast food companies were early major entrants to China nearly three decades ago. As individual Chinese grew wealthier, the opportunities for tapping the Chinese consumer market appeared to grow exponentially. But roadblocks appeared: U.S. fast food chains struggled with food safety scandals in China, and other companies have had intellectual property such as trademarks stolen.
“We have seen a lot of U.S companies struggling [with] their China” operations, said Siva Yam, president of the Chicago-based U.S.-China Chamber of Commerce. “The market is much more mature. We have seen a significant drop of U.S. companies going to China. … On the contrary, they are coming back here.”
An annual report from the American Chamber of Commerce in China found last year that 32 per cent of member companies surveyed do not plan to expand investments in China, a percentage that’s higher than during the financial crisis in 2009. Read the rest of this entry »
A man slashed a policewoman’s face with a machete and shouted ‘Allahu Akbar’ before her fellow officer gunned him down in a chilling ‘terror’ attack.
The attacker reportedly walked up to two policewomen at the entrance of the police station in the Belgian city of Charleroi just before 4pm, pulled a machete from his bag and hacked at the officer.
After slamming the machete into the face of one officer, he then turned to another and began swinging the massive blade at her.
A third female officer raced to the front desk and then blasted the attacker in the chest and leg – knocking him to the ground.
Emergency crews then raced to the scene and began treating the policewomen – one of who was left with massive, deep cuts to her face.
Her colleague was only slightly injured but the attacker, who has not been named, died later in hospital. Read the rest of this entry »
A.1. sauce gives bun its color
Burger King is bringing it to the U.S. just in time for Halloween. “Something wicked is coming,” announced the burger chain on Twitter, with a brief promo video featuring thunder and lightning and a lunar eclipse, with a burger standing in for the moon…
And the Red Samurai Burger…
Hanauer is now at the center of a lawsuit filed by the International Franchise Association.
Radical venture capitalist Nick Hanauer served on a city advisory committee that eventually produced the legislation boosting minimum wages to $15 per hour. The legislation takes special aim at franchisees, forcing them to adopt higher wages than other small businesses under a shorter timeframe.
“The truth is that franchises like Subway and McDonald’s really are not very good for our local economy. They are economically extractive, civically corrosive and culturally dilutive.”
— Hanauer, in an email obtained by the association
Hanauer, a private-jet-owning multi-millionaire who once had a speech scrubbed from the TED conference website for being “too political,” is a member of the Democracy Alliance, a shadowy collection of liberal millionaires and billionaires that funnels money into Democratic causes.
The group has pumped hundreds of millions of dollars into various liberal foundations, Media Matters, and Democratic super PAC Priorities USA. The group is secretive and does not divulge membership rolls, fundraising goals, or allow reporters at its annual meetings.
“Franchising has been under intense scrutiny by union activists and hostile labor regulators in recent weeks.”
Hanauer is now at the center of a lawsuit filed by the International Franchise Association to overturn the law, according to the Seattle Times.
Wealth Destruction: Target Franchises.
“The truth is that franchises like Subway and McDonald’s really are not very good for our local economy. They are economically extractive, civically corrosive and culturally dilutive,” Hanauer wrote in an email obtained by the association.
The business group claims that the law is discriminatory because many franchisees are themselves small business owners akin to mom and pop shops. Franchisees pay licensing and other fees to large corporations to operate under the company umbrella, but the vast majority are independently owned and manage their own affairs. Read the rest of this entry »
McDonald’s Corp. and Yum Brands Inc. are looking to add digital options in China that will make their fast-food sales even faster and win back business after a rough year in the critical Chinese market. As WSJ’s Laurie Burkitt reports:
McDonald’s will start testing mobile ordering and mobile payment in China under a pilot program in the current third quarter, said a spokeswoman. The aim is to speed payment and meet consumer demands, she said. “Given Chinese consumers being so digital—we are now preparing,” she added.
Yum said its KFC business teamed up with technology giant Alibaba Group Holding Ltd. in late June to launch mobile-payment services for 700 of its 4,500-plus stores in China. Customers can pay for their in-store orders of fried chicken in a few seconds by scanning bar codes generated by Alibaba’s mobile-payment application Alipay….(read more)
The legal shakedown is right out of her dad’s pay-to-playbook
Kathianne Boniello She learned at the feet of a master.
Shakedown artist Al Sharpton’s eldest child wants $5 million from city taxpayers after she fell in the street and sprained her ankle, court records show.
“I sprained my ankle real bad lol.”
— Dominique Sharpton, on Instagram
Dominique Sharpton, 28, says she was “severely injured, bruised and wounded” when she stumbled over uneven pavement at the corner of Broome Street and Broadway downtown last year, according to a lawsuit.
Currently on vacation in Bali, the membership director for her gadfly dad’s National Action Network claims she “still suffers and will continue to suffer for some time physical pain and bodily injuries,” according to the suit filed against the city departments of Transportation and Environmental Protection.
“I sprained my ankle real bad lol,” she wrote in a post to Instagram after the Oct. 2 fall.
She was pictured in a walking boot in the weeks following the tumble, but by December, Dominique was good to go for NAN’s Justice for All march in Washington, DC, and for a New Year’s Eve jaunt to Miami Beach.
And despite claiming “permanent physical pain” in a breathless notice of claim, there are social-media shots of her in high heels, and another of her climbing a ladder to decorate a Christmas tree.
The legal shakedown is right out of her dad’s pay-to-playbook.
Al Sharpton has used threats of protests and boycotts against large companies as a way to generate huge corporate donations, his critics charge.
Everyone from McDonald’s, Verizon, Macy’s, General Motors, Chrysler and Pfizer have forked over cash to the elder Sharpton.
The Rev on Saturday said he didn’t know the status of his daughter’s legal claim. “She’s 29 years old. Why would she have to talk to me about that?” he said of Dominique, whose mother is Sharpton’s ex-wife, Kathy. “I just know that she was hurt and that she got a lawyer and she’s a grown woman. [Where] she goes from there, I have no idea.” Read the rest of this entry »
Students, Faculty Invited To Freely Express Single Viewpoint
“Whether it’s a discussion of a national political issue or a concern here on campus, an open forum in which one argument is uniformly reinforced is crucial for maintaining the exceptional learning environment we have cultivated here.”
BOSTON—Saying that such a dialogue was essential to the college’s academic mission, Trescott University president Kevin Abrams confirmed Monday that the school encourages a lively exchange of one idea.
“As an institution of higher learning, we recognize that it’s inevitable that certain contentious topics will come up from time to time, and when they do, we want to create an atmosphere where both students and faculty feel comfortable voicing a single homogeneous opinion.”
“As an institution of higher learning, we recognize that it’s inevitable that certain contentious topics will come up from time to time Read the rest of this entry »
UPDATE: Starbucks Executive Deletes Twitter Account after #RaceTogether Campaign’s Predictable Humor BacklashPosted: March 17, 2015
UPDATE: Business Insider reports that a Starbucks executive has deleted his Twitter account after backlash about the campaign.
WNEW spoke with an employee at the M St. SE location who says he has not heard of the campaign.
There’s no word yet on whether any other locations in the D.C. area are participating…. (read more)
“As usual, the hype surrounding the ads turned many into a super-bust, suggesting that the folks on Madison Avenue are either bereft of ideas or, in some instances, taking too much advantage of liberalized pot laws.”
There was some excitement going into the game about an influx of relatively new advertisers, offering the promise of new blood. But just as a wave of newcomers in 2000 preceded the dot-com meltdown, this year’s crop of novice sponsors merely exposed a lot of not-ready-for-primetime players in the marketing world.
Of course, the criticism isn’t limited to the new guys. Car companies in general had a bad day. And Budweiser– which traditionally wields the biggest stick during the game – didn’t so much come up with new creative as recycle it, going back to the cross-species love affair between puppies and Clydesdales and erecting a giant Pac-Man maze to prove that, um, what was the point of that Bud Light spot again? (Admittedly, the puppy ad will no doubt be one of the day’s most popular in snap polls.)
“There was also a surplus of poorly utilized celebrities, including Mindy Kaling for Nationwide; Kim Kardashian for T-Mobile, along with Chelsea Handler and Sarah Silverman; and Pierce Brosnan for Kia. And while Liam Neeson was great, can anybody remember what the product was?”
The overall mix once again seemed to careen from the hopelessly schmaltzy (“Care makes a man stronger,” says Dove) to the simply goofy (Doritos strapping a rocket to a pig) to the borderline bizarre, such as Snickers dropping Danny Trejo and Steve Buscemi into an old “The Brady Bunch” episode.
There was also a surplus of poorly utilized celebrities, including Mindy Kaling for Nationwide; Kim Kardashian for T-Mobile, along with Chelsea Handler and Sarah Silverman; and Pierce Brosnan for Kia. And while Liam Neeson was great, can anybody remember what the product was?
Another subcategory would be the overproduced extravaganza, such as Mercedes’ CGI “Tortoise & the Hare” retelling or Bud Light’s aforementioned Pac-Man spot. Some of these fare well in audience surveys, but the link between creative and advertiser is so tenuous the benefits often seem exaggerated. And while it’s not necessarily fair, both Microsoft and Toyota’s ads featuring people walking thanks to prosthetic blades were undermined in part by the specter of Olympic runner Oscar Pistorius, who was found guilty of murder last year.
“Finally, there were the public-service announcements, with the sobering NoMore.org domestic violence spot – which resonated in light of the NFL’s Ray Rice fiasco – and Always’ ‘Like a Girl’ campaign. Yet as compelling as those spots were, they almost have to be broken out separately from more directly commercial advertising.”
So what were the principal highlights and lowlights? Separating out movies (which are essentially their own animal), public-service announcements and NBC’s promos for its midseason lineup, they loosely breakdown as follows:
ESurance: Tapping Bryan Cranston in “Breaking Bad” mode was a genius move, mostly because of the instant cool the association creates in the mind of the show’s fans. In this case, they really did have a lot of us at hello.
Fiat: Look, we all know car ads are essentially about sex. Fiat made the connection overt by dropping a Viagra tablet into one of its cars. If not the best ad of the day, it was the most truthful, since it’s hard to think of any other reason to drive a Fiat.
Carnival Cruises: Wedding John F. Kennedy’s voice discussing man’s love affair with the ocean to beautiful imagery of ships at sea accomplished the near-impossible: It almost made me forget Kathie Lee Gifford and think, at least momentarily, about taking a Carnival Cruise. Plus, in practical terms, the Kennedy-era contingent probably a big part of the company’s target demo.
Coca-Cola: While it’s unlikely spilling Coke on the Internet will sap the venom out of Web comments and our political discourse, it’s hard not to applaud the underlying sentiment and idealism. Notably, McDonald’s went for a similar uplifting spiel with its “Pay With Lovin’” ad, which is probably effective from a marketing standpoint but felt cloying as a commercial. Read the rest of this entry »
by Don Terry
By day, Ayo Kimathi works for the Department of Homeland Security (DHS) as a small business specialist in a unit that buys such items as handcuffs, ammunition and guns.
Off-duty, he calls himself “the Irritated Genie.” He’s a gay-bashing, revenge-seeking black nationalist who advocates on his website – War on the Horizon – the mass murder of whites and the “ethnic cleansing” of “black-skinned Uncle Tom race traitors.”
“Warfare is eminent,” the website declares, “and in order for Black people to survive the 21st century, we are going to have to kill a lot of whites – more than our Christian hearts can possibly count.”
A former supervisor of Kimathi’s at the DHS told Hatewatch, “Everybody in the office is afraid of him.”