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McDonald’s Says Middle East Turmoil Is Hurting Its Business

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McDonald’s stated rising Middle Eastern tensions hurt its operations.

The burger restaurant, which reported increased overall sales and earnings in the fourth quarter, stated that foreign tensions were weighing on regional sales and that the business is watching the situation.

The Middle East accounts for only a small portion of its total business. McDonald’s mostly licences its brand to independent enterprises in the region, and the company stated that it provides some financial support in the form of royalty relief or deferred cash collection.

McDonald's sales hit over Middle East conflict | Fox Business

McDonald’s Says Middle East Turmoil Is Hurting Its Business

McDonald’s noted that it provided modest financial support to franchisees affected by the Middle East conflict. However, due to the tensions, sales in its licenced markets sector, which includes most Middle Eastern corporations, increased by only 0.7% in the latest quarter. This was far poorer than the more than 4% growth in the United States and other overseas enterprises.

The licenced markets business was its best-performing unit last year, with sales increasing by more than 16%.

Overall, global sales at McDonald’s outlets open for at least a year increased 3.4% in the fourth quarter, lower than analysts predicted, as protests against the firm in the Middle East took their toll. That also hurt company sales, which increased to $6.41 billion but fell slightly short of estimates.

McDonald’s Says Middle East Turmoil Is Hurting Its Business

McDonald’s (MCD) stock declined marginally in premarket trade.

Last month, McDonald’s stated that the battle between Israel and Hamas is having a “meaningful business impact” in the Middle East, following Starbucks in publishing public remarks to dispel misconceptions and boycotts impacting the brands.

Following the October 7 Hamas strikes on Israel, McDonald’s Israel distributed thousands of complimentary dinners, according to social media reports. Many regional McDonald’s operators soon distanced themselves from the Israeli franchisee’s activities. Franchise groups in Kuwait, Pakistan, and other countries published statements claiming they did not share ownership of the Israeli franchise.

Local franchise owners operate the great majority of McDonald’s restaurants. These operators operate in many respects, like independent enterprises, setting wages and prices and making statements or donations as they see fit. That approach has helped McDonald’s become a global phenomenon, with over 40,000 locations worldwide, including approximately 27,000 outside the United States, as of 2022.

Price increases, an increase in delivery and digital orders, and creative marketing of some of its menu items, such as the Grimace milkshake, which went viral, all helped McDonald’s largest market, the United States, see a 4.3% increase in sales.McDonald's posts rare sales miss as Middle East hit weakens overseas  business | Reuters

McDonald’s Says Middle East Turmoil Is Hurting Its Business

Although US sales were broadly in line with estimates, fourth-quarter sales were lower than the 8.1% recorded for the prior quarter in October.

Overall revenue for 2023 increased 10% over the previous year, with McDonald’s reporting $25.49 billion over $23.18 billion in 2022.

CEO Chris Kempczinski stated that the company remains “confident in the resilience of our business amid macroeconomic challenges that will persist in 2024.”

SOURCE – (CNN)

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Kiara Grace
Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics. Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

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Chewy Slides After Filing Shows 3rd-Biggest Shareholder, ‘Roaring Kitty,’ Sold His Stake

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Washington — Chewy shares fell about 2% overnight Wednesday after a regulatory filing showed that Roaring Kitty, a meme stock trader, sold his interest in the online pet retailer.

According to a beneficial ownership document filed with the Securities and Exchange Commission on Tuesday, Roaring Kitty, whose legal name is Keith Gill, sold all his Chewy shares, totaling 6.6% of the company.

chewy

Chewy Slides After Filing Shows Third-Biggest Shareholder, ‘Roaring Kitty,’ Sold His Stake

Plantation, Florida-based Chewy dropped 1.9% after hours to $26.19 per share.

Gill, an investor at the core of the meme stock craze, bought more than 9 million shares of Chewy in July, making him the company’s third-largest stakeholder.

Gill built a name for himself in 2021 by rallying ordinary investors around GameStop. At the time, the video game shop was fighting to stay in business, and major Wall Street hedge funds and investors were betting against it or shorting the stock. But Gill and those who agreed with him altered GameStop’s direction by purchasing thousands of shares despite practically all acknowledged criteria indicating that the firm was in deep peril.

chewyChewy Slides After Filing Shows Third-Biggest Shareholder, ‘Roaring Kitty,’ Sold His Stake

That triggered what is known as a “short squeeze,” in which large investors who had bet on GameStop were obliged to buy its swiftly increasing stock to offset significant losses.

Gill has expressed confidence in GameStop Chairman and CEO Ryan Cohen’s ability to revamp the company following his success at Chewy. Cohen cofounded Chewy in 2011 and stepped down as CEO in 2018.

SOURCE | AP

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Kiara Grace
Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics. Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.
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Canada CBC News CEO Catherine Tait Recalled to Parliamentary Committee

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Canada CBC News CEO Catherine Tait
Catherine Tait won't rule out taking bonus once she leaves CBC/Radio-Canada

Canada CBC News reports that MPs have voted to recall CBC CEO Catherine Tait to a Commons committee for questioning, only a week after her last appearance, over the awarding of $18 million in bonuses to Canada CBC news executives.

The Conservatives, the Bloc Québécois, and the NDP joined forces to re-invite Ms. Tait, her successor Marie-Philippe Bouchard, and Heritage Minister Pascale St-Onge to appear before the Commons Heritage Committee.

Ms. Tait, who will relinquish her position as CEO and president of CBC/Radio Canada in January, addressed the committee last week. The House of Commons has passed a motion recalling her before the conclusion of her term, and she is now subject to an additional two hours of interrogation, which includes inquiries regarding bonuses.

MPs also resolved to summon Quebec broadcasting executive Marie-Philippe Bouchard, appointed as the new chief of CBC/Radio-Canada last week, to appear before she begins her new job following a House of Commons chamber debate.

Catherine Tait Exit Package

Catherine Tait rejected the Conservatives’ requests to deny an exit package, including bonuses, when she departed the position in January during last week’s committee hearing.

She also defended the award of $18.4 million in incentives to 1,194 staff members for the 2023-2024 fiscal year, which concluded in March, following the broadcaster’s achievement of performance indicators.

Kevin Waugh, a Conservative committee member who introduced the motion, stated that his party aimed to ensure Ms. Tait was “accountable to taxpayers” before her departure in January.

He informed The Globe and Mail that “Canadians are dissatisfied with the bonuses” and that Catherine Tait‘s exit package, which will not be disclosed, is a cause for concern.

“I am apprehensive that she has not received her bonuses in over two years, and that the Minister of Heritage or Privy Council will lavish her with bonuses when she departs in January,” he stated.

The Liberals opposed a portion of the motion that claimed that “the Liberal threat to cut funding” had resulted in the elimination of hundreds of jobs at CBC/Radio-Canada.

Defunding CBC News Canada

The Heritage Minister informed The Globe that the claim was “hypocritical,” as the Conservatives intended to completely defund CBC.

“The Conservatives’ actions today are a clear example of hypocrisy.” Ms. St-Onge stated that performance bonuses increased by 65% during the Harper Conservatives’ tenure, while CBC News Atlantic Canada experienced substantial budget cutbacks.

“As a government, we do not require any lessons from a party that has pledged to reduce the funding of CBC/Radio-Canada and the 8,000 jobs associated with it during its campaign.”

During the Tuesday debate, NDP MP Niki Ashton stated that her party endorses the “banning of executive bonuses” at CBC News Atlantic Canada but is opposed to “the Conservatives’ full frontal attack” on the broadcaster.

She stated, “We require a robust public broadcaster, but not one that distributes executive bonuses and eliminates positions.”

If the Conservatives establish the next government, they intend to deprive the CBC of public funding while maintaining French services.

Catherine Tait defended CBC and rebuffed MPs’ assaults during last week’s committee hearing. “It is evident that the members of this committee are making a concerted effort to discredit the organization and vilify me,” she stated.

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Canada’s Income Inequality Rises to its Highest Level Ever Under Trudeau

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Boeing, In Need Of Cash, Looking To Raise Up To Approximately $19B In Offering

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Boeing plans to raise $19 billion in stock offering as the aerospace giant deals with a controversial strike, confronts liquidity concerns, and seeks to raise funds.

Boeing Co. announced Monday that it will issue 90 million ordinary stock and $5 billion in depositary shares. The company’s stock finished at $155.01 on Friday.

The business stated that the net proceeds will be used for general corporate purposes, such as debt repayment, working capital expansion, capital expenditures, and finance and investments in its subsidiaries.

boeing

Boeing, In Need Of Cash, Looking To Raise Up To Approximately $19B In Offering

Fitch Ratings said on Monday that the sale promotes debt repayment and increases financial flexibility, lowering the likelihood of a downgrade. The agency continued to assess Boeing’s capacity to resolve labor disputes and regain operational momentum. It gives Boeing a “BBB-,” the lowest investment-grade rating.

Last week, Boeing plant workers rejected the company’s latest contract offer and extended a six-week strike that halted production of its best-selling jetliners.

According to local union leaders in Seattle, 64% of members of the International Association of Machinists and Aerospace Workers voted opposed to accepting the proposal.

The labor impasse comes amid an already difficult year for Boeing, which was the subject of various federal probes when a door panel blew off a 737 Max plane during an Alaska Airlines flight in January.

boeing

Boeing, In Need Of Cash, Looking To Raise Up To Approximately $19B In Offering

The walkout has deprived the corporation of much-needed revenue from delivering new planes to airlines. On Wednesday, the business announced a third-quarter loss of more than $6 billion. Boeing has not had a profitable year since 2018, and Wednesday’s results were the second-worst quarter in the company’s history.

The corporation burnt roughly $2 billion in cash in the quarter, weakening its balance sheet, burdened with $58 billion in debt. Chief Financial Officer Brian West stated that the company will not achieve positive cash flow until the second part of next year.

Boeing shares fell marginally in noon trade. They’ve lost 40% of their worth so far this year.

SOURCE | AP

author avatar
Kiara Grace
Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics. Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.
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