Business
McDonald’s Says Middle East Turmoil Is Hurting Its Business
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 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 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)
Innovation
NASA Astronauts Arrive For Boeing’s First Human Spaceflight
The location is Cape Canaveral, Florida. On Thursday, the two NASA astronauts designated for Boeing’s inaugural manned space mission arrived at the launch site approximately one week before their planned departure.
Butch Wilmore and Suni Williams have been selected as test pilots for Boeing’s Starliner capsule, marking its inaugural crewed mission following significant delays. On Thursday, they traveled by air from Houston to Kennedy Space Center.
NASA Astronauts Arrive For Boeing’s First Human Spaceflight
Scheduled for launch on May 6 using an Atlas rocket, the Starliner spacecraft will go to the International Space Station for a week-long test mission. Boeing is endeavoring to close the gap with SpaceX, which has been conducting manned space missions for NASA since 2020.
Boeing’s two earlier Starliner test flights were unmanned. The initial launch in 2019 was unsuccessful in reaching the space station due to software malfunctions and other technical issues. Boeing replicated the demonstration in 2022. In more recent times, the capsule encountered problems with its parachutes and had to address the issue of flammable tape that needed to be eliminated.
Wilmore emphasized that this is a test flight intended to uncover any anomalies.
NASA Astronauts Arrive For Boeing’s First Human Spaceflight
Do we anticipate flawless execution? “This is the inaugural manned voyage of the spacecraft,” he informed the press. “I am confident that we will discover information.” This is the reason why we engage in this activity.
NASA enlisted the services of SpaceX and Boeing ten years ago, allocating billions of dollars to facilitate the transportation of personnel to and from the space station. Despite the space station’s planned closure by 2030, the space agency remains enthusiastic about procuring capsules from two rival businesses to transport its astronauts.
“That is of utmost importance,” Wilmore remarked.
NASA Astronauts Arrive For Boeing’s First Human Spaceflight
Wilmore and Williams are set to become the inaugural astronauts to embark aboard an Atlas rocket since NASA’s Project Mercury in the early 1960s.
SOURCE – (AP)
Business
The TikTok Law Kicks Off A New Showdown Between Beijing And Washington. What’s Coming Next?
WASHINGTON – TikTok is preparing to engage in a legal battle against a U.S. legislation that would compel the social media platform to sever its connections with its China-based parent company. Chinese authorities likely support this action, as the intense rivalry between the United States and China jeopardizes the future of a highly popular online platform for young Americans to connect.
Beijing has indicated that TikTok should resist what it perceives as a “robbers” move by U.S. politicians who aim to seize all the valuable assets possessed by others. If a judicial challenge is unsuccessful, experts believe that Chinese authorities are unlikely to permit a sale, as this may be interpreted as yielding to Washington.
The TikTok Law Kicks Off A New Showdown Between Beijing And Washington. What’s Coming Next?
Alex Capri, a senior lecturer at the National University of Singapore and research fellow at Hinrich Foundation, suggests that Beijing is concerned about the negative implications that the U.S. action against the popular short-form video platform could have, as it may establish an undesirable precedent. “If Beijing surrenders to the United States, what will be the ultimate outcome?”
Parent firm ByteDance issued its first formal comment on the new rule in a post on Toutiao, a Chinese news app owned by the company. The statement explicitly mentioned that ByteDance has no intention of selling TikTok. In response to media reports, the firm based in Beijing addressed the speculation around exploring potential possibilities for selling TikTok’s U.S. business.
The legislation that U.S. President Joe Biden signed this week may allow Washington to extend its reach to target other China-related apps, such as the well-known e-commerce platform Temu, according to Hu Xijin, a former editor-in-chief for the party-run newspaper Global Times. Furthermore, it could encourage U.S. allies to take similar actions.
According to Hu, a political commentator, TikTok, with its 170 million American users, should display more courage and determination by refusing to give up and fighting until the very end.
TikTok has pledged to contest the recently enacted U.S. legislation that mandates ByteDance to sell off its ownership interests within a one-year timeframe in order to prevent a ban. The corporation has described the regulation as a violation of the freedom of expression of its users, the majority of whom utilize the program for amusement purposes.
The company expressed confidence in its position, stating that it firmly thinks the facts and the law support its case, and they are confident in its ultimate victory.
The dispute around TikTok has escalated the tensions between the United States and China, as both countries have pledged to safeguard their economic and national security concerns. U.S. legislators are apprehensive about the Chinese ownership of the application, as it may potentially enable Beijing to exercise undesirable influence on the United States, particularly on the impressionable minds of young individuals.
Washington has achieved a series of triumphs in reducing the influence of Chinese corporations through bans, export controls, and forced divestitures. This has led to protests from Beijing, who believe that the U.S. is intentionally trying to suppress China’s economic growth through coercion.
The TikTok Law Kicks Off A New Showdown Between Beijing And Washington. What’s Coming Next?
The United States has previously compelled Chinese corporations to sell off their assets. For instance, in 2020, Beijing Kunlun, a Chinese mobile video game company, agreed to divest itself of the gay dating app Grindr following a directive from the federal government. However, TikTok, which was developed by a Chinese corporation exclusively for the international market, serves as a prominent example of China’s technological prowess on a worldwide scale. Beijing is determined not to relinquish control over this influential platform.
Gabriel Wildau, managing director of Teneo, a consultancy and advisory firm based in New York, stated that national dignity is at risk and may be prioritized over the financial interests of ByteDance investors, especially global investors with a 60% stake in the company.
The corporation is anticipated to mount a legal battle that will heavily rely on First Amendment considerations and has the potential to be protracted for several years. Analysts assert that Beijing is relying on a favorable legal outcome.
The course of action to be taken if TikTok fails to succeed is currently under discussion with the Chinese authorities, according to Dominic Chiu, an analyst with Eurasia Group. Chiu stated that President Xi Jinping, who has the authority to approve or disallow the transaction, has likely yet to make the definitive choice.
Fortunately for Xi, Beijing does not face any immediate pressure to decide, according to Sun Yun, the director of the China program at the Stimson Center in Washington. “There is a possibility for numerous alterations,” she stated.
If lawmakers’ desire for a sale of TikTok is fulfilled, the procedure is expected to be complicated for the company. TikTok would need to separate its activities in the United States from all other aspects of its business.
Firstly, the cost of acquiring TikTok’s U.S. operations, although undisclosed, is anticipated to be substantial enough to significantly restrict the number of potential investors and companies capable of affording it. Several investors, including former Treasury Secretary Steve Mnuchin, have already positioned themselves as potential purchasers of a U.S. iteration of TikTok. According to market tracker Pitchbook, ByteDance, a privately held company, has a valuation of $220 billion.
There is now a lack of clarity on the fate of the TikTok algorithm, which is the secret formula responsible for delivering personalized short videos to users depending on their preferences. This algorithm has played a significant role in establishing TikTok as a dominant force in popular culture.
ByteDance would be prohibited from having control over the algorithm of a U.S. subsidiary of TikTok. According to many experts, Chinese authorities are likely to prohibit the sale of the technology that appears in people’s TikTok feeds, based on the amended export regulations of 2020. After the federal courts blocked former President Donald Trump’s attempt to outlaw TikTok through an executive order, this revision took place.
The TikTok Law Kicks Off A New Showdown Between Beijing And Washington. What’s Coming Next?
According to certain individuals, including Mnuchin, it is necessary to reconstruct TikTok in the United States by employing novel technology. However, it is uncertain how this will manifest or how effectively it will replicate the kind of video suggestions that viewers have become accustomed to.
According to Robin Burke, a professor of information science at the University of Colorado Boulder, certain elements of the algorithm might potentially be duplicated by individuals within the company. However, he also observed that TikTok has certain areas where it outperforms its competition, making it difficult to replicate.
“TikTok possesses extensive experience and a wealth of data,” Burke stated. “I believe it is improbable for a U.S. company, without inheriting the technology from its parent company, to construct something of equal caliber.” Definitely not immediately.
SOURCE – (AP)
Electronics
FTC Sends $5.6 Million In Refunds To Ring Customers As Part Of Video Privacy Settlement
The backslash character – escapes special characters in programming languages and other contexts. The following information is from a news article published by the Associated Press: Due to a settlement with Amazon-owned Ring, the Federal Trade Commission is giving consumers over $5.6 million in reimbursements. Ring was accused of neglecting to safeguard private video data against unauthorized access.
FTC Sends $5.6 Million In Refunds To Ring Customers As Part Of Video Privacy Settlement
The FTC complained in 2023, alleging that the doorbell camera and home security provider permitted its employees and contractors to gain access to consumers’ confidential videos. Ring purportedly utilized this film for algorithmic training without obtaining authorization, among other objectives.
Ring was additionally accused of neglecting to install crucial security measures, thereby allowing hackers to get control over customers’ accounts, cameras, and footage. The FTC observed that this resulted in severe breaches of users’ privacy.
The final settlement necessitated Ring to remove unlawfully acquired content, implement enhanced security measures, and pay a substantial penalty. The FTC is currently utilizing a significant portion of the funds to provide refunds to qualifying Ring customers.
FTC Sends $5.6 Million In Refunds To Ring Customers As Part Of Video Privacy Settlement
As per a notice issued on Tuesday, the FTC will be delivering 117,044 PayPal payments to consumers who were affected and owned specific types of Ring devices, such as interior cameras, during the periods when unlawful access is claimed to have occurred.
Customers who meet the requirements must claim these payouts within 30 days, as stated by the FTC. The FTC also mentioned that consumers can reach out to Rust Consulting, the refund administrator for this case, or refer to the FTC’s FAQ page on refunds for further details regarding the procedure.
Ring has stated that unauthorized individuals used stolen email addresses and passwords from other companies to gain unlawful access to certain customers’ Ring accounts in 2019. This occurred because these customers used the same login credentials on multiple websites. Upon discovering this breach, Ring promptly notified the affected customers and took measures to safeguard their accounts.
Ring did not promptly respond to the FTC’s accusations regarding employees and contractors inappropriately viewing footage.
FTC Sends $5.6 Million In Refunds To Ring Customers As Part Of Video Privacy Settlement
In a recent announcement, the California-based company confirmed that it will no longer accept requests from police agencies to access doorbell camera footage from its users. This decision effectively terminates a controversial function that had faced scrutiny from privacy advocates.
SOURCE – (AP)
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