 |
|
|
|||||
Ive read a lot of business memoirs. One I keep coming back to is Grinding It Out by Ray Krocthe man who built McDonalds into the global giant it is today. Kroc was 52 before he even heard of the McDonald brothers who originally started the company. That fact alone says a lot about how he thought: Success comes eventually, but only to those who keep showing up. Which brings me to McDonalds third-quarter earnings call Wednesday. McDonalds reported solid results: global comparable sales up 3.6 percent, U.S. sales up 2.4 percent, revenue of $7.08 billion. The company is outperforming most competitors, but in a brutal environment: Fast-food traffic is down 2.3 percent industry-wide this year, worse than the 1.6 percent drop across all restaurants, according to market-research firm Black Box Intelligence. McDonalds Extra Value Meals now account for about 30 percent of U.S. transactions, the company reported. And, McDonalds spent $40 million this quarter on marketing and expects to provide $90 million in total support to franchisees this year to discount those meals. Thats real money coming out of margins. Wall Street has noticed. But McDonalds CEO Chris Kempczinski said McDonalds will measure its success first by gaining share of lower-income consumer traffic, and second by improving value and affordability experience scores. Traffic first. Profits later. And why is that? Well, Ive written before about how McDonalds is the undisputed champion of nostalgia marketing. It brought back the Hamburglar. It made Grimaces birthday go viral. It launched Adult Happy Meals. It returned the Snack Wrap after fans petitioned for years. Every one of those campaigns was about unlocking core memories in customers. Its a strategy thats paid off, but you cant unlock core memories if they were never created in the first place. A 7-year-old who comes to McDonalds with her family today because they can afford the Extra Value Meal wont be profitable for decades. But 20 years from now, when shes shopping for her own kids and feeling nostalgic? Thats when the investment pays off. Brutal truth: The U.S. economy has split in two. Lower-income consumers are feeling pressure from rising rents, food bills, and childcare, Kempczinski explained. Add uncertainty around SNAP food assistance, and these customers will keep pulling back unless they feel their incomes begin to grow. Meanwhile, higher-income consumers are visiting quick-service restaurants much more often. So while McDonalds is gaining relative share with both groups, the lower-income segmentthe future nostalgia customersis disappearing from the industry. This is where Ray Krocs philosophy matters once more. Because grinding it out sometimes means having the resources to keep going when others cant. And McDonalds truly has advantages that most competitors dont. First, international markets are carrying their weight, and then some. Comparable sales rose 4.3 percent in International Operated Markets (led by Germany and Australia) and 4.7 percent in International Developmental Licensed Markets (led by Japan). Both outperformed the U.S. That geographic diversification gives McDonalds room to breathe while competitors suffocate. Heck, CFO Ian Borden said it directly: Our unique positioning is that weve got the financial strength to make these types of investments, when maybe others are gonna have to be a bit more defensive. Compare that to others in the industry: Chipotle just reported slowing sales. Yum Brands is exploring a sale of Pizza Hut. Investors took Dennys private after several quarters of declining sales. In his remarks during the McDonalds earnings call on Wednesday, Kempczinski brought it full circle back to Kroc: Thats a powerful 13-word sentiment, calling back to a nearly 50-year-old book. Sacrifice margin today to keep families coming through the doors. Bet that keeping kids visiting noweven at discounted priceswill pay off in 2045 when they bring their own kids back. Bet that you can outlast competitors who dont have the same international strength or financial reserves to weather years of pressure. Bet that, eventually, our bifurcated economy heals, anxiety eases, and families feel less squeezed. Theres something almost poetic about a company built on nostalgia thinking at least in part in decades rather than quarters. Thats how nostalgia actually worksits long-term. We look back at the past through rose-colored glasses and remember it better than it really was. Maybe someday, we hope, todays kids will look back fondly. Even if today doesnt always look so rose-colored while were living it. Bill Murphy Jr. This article originally appeared on Fast Companys sister publication, Inc. Inc. is the voice of the American entrepreneur. We inspire, inform, and document the most fascinating people in business: the risk-takers, the innovators, and the ultra-driven go-getters that represent the most dynamic force in the American economy.
Category:
E-Commerce
Wall Street was largely unchanged early Wednesday as markets hovered near record levels on a holiday-shortened trading day.The Dow Jones Industrial Average was up 0.1% as of 9:45 a.m. Eastern. The S&P 500 index was up less than 0.1% and the Nasdaq Composite was down 0.1%.Markets will close at 1 p.m. ET for Christmas Eve and are closed for Christmas. Markets will reopen for a full day of trading on Friday, however volumes are expected to be light this week with the holiday and most investors having closed out their positions for the year.Much of the focus remains on the state of the U.S. economy and where the Federal Reserve will move interest rates. Investors are betting the Fed will hold steady on interest rates at its January meeting.Recent reports show high inflation and shaky confidence among consumersworried about high prices. The labor market has been slowing and retail sales have weakened.The number of Americans applying for unemployment benefits fell last week and remain at historically healthy levels despite some signs that the labor market is weakening.U.S. applications for jobless claims for the week ending Dec. 20 fell by 10,000 to 214,000 from the previous week’s 224,000, the Labor Department reported Wednesday. That’s below the 232,000 new applications forecast of analysts surveyed by the data firm FactSet.Dynavax Technologies soared 38% after Sanofi said it was acquiring the California-based vaccine maker in a deal worth $2.2 billion. The French drugmaker will add Dynavax’s hepatitis B vaccines to its portfolio, as well as a shingles vaccine that is still in development. Sanofi shares were unchanged in the premarket.European markets were moving slightly between slight gains and losses. Asian markets were also quiet, with Hong Kong moving up 0.2% while Japan’s Nikkei 225 fell 0.1%.Both gold and silver futures were higher, with silver prices rising more than 1%. U.S. crude oil rose 0.4% to %58.61 a barrel. Associated Press
Category:
E-Commerce
Nike shares ticked up 2% in premarket trading on Wednesday after Apple CEO Tim Cook bought nearly $3 million worth of the sportswear maker’s stock. Cook, who has served on Nike’s board since 2005 and is its lead independent director, bought 50,000 shares at $58.97 each, according to a regulatory filing published on Tuesday. Nike shares were trading at $58.49 on Wednesday. The purchase comes just days after Nike reported weaker quarterly margins and sluggish sales in China. Its shares have slumped nearly 13% since it reported results on December 18. Cook now holds about 105,000 shares in Nike, as of December 22, the filing showed. Aishwarya Venugopal, Reuters
Category:
E-Commerce
During the week of Christmas, the Food and Drug Administration (FDA) has announced food recalls for several holiday treats. Before you begin enjoying your holiday snacks, its a good idea to check whether any of the goodies you have at home were recently recalled. Heres what you need to know. The following food products are part of recent food recalls: Atwaters cookie tins Choceur cookie butter holiday bark Choceur pecan, cranberry and cinnamon holiday park Troemner Family Farm Pfeffernusse Cookies You can find more details about each product recall below. Atwaters cookie tins On December 22, 2025, Baltimore-based Atwaters recalled 197 of its cookie tins because the cookies contain almond, pecan, and walnut allergens. People with an allergy or severe sensitivity to tree nuts, almonds, pecans, or walnuts are at risk of serious or life-threatening allergic reactions if they consume the recalled product. The recalled product is sold in a circular metal tin with a bow tied around it. The cookie tin has an Atwaters cookie tin label on the bottom of the package. However, the packaging failed to identify the nut allergen. The cookie tins were distributed from December 13 through December 22, 2025, in Baltimore, Towson, and Catonsville, Maryland. They were sold at retail stores and “gifted” to three wholesalers, the notice says. Consumers who have purchased the cookie tins are encouraged to return them to the place of purchase for a full refund. More information, including product images, can be found in the recall announcement on the FDA’s website. Choceur holiday barks On December 22, 2025, Silvestri Sweets of Illinois expanded its voluntary recall of Choceur-branded holiday barks to include additional lot numbers and best-by dates. The company recalled the following products for the following reasons: Choceur cookie butter holiday bark. This product may contain undeclared pecans, the notice states. Choceur pecan, cranberry and cinnamon holiday park. This product may contain undeclared wheat. The recalled items are sold in 5-ounce stand-up pouch bags. They were distributed nationwide at Aldi grocery stores. Products with the following lot numbers and best buy dates are affected: Cookie butter holiday bark: Lot #: 28525 Best By May 2026 Lot #: 29925 Best By May 2026 Lot #: 30625 Best By May 2026 Pecan, cranberry and cinnamon holiday bark: Lot #: 28525 Best By August 2026 Lot #: 29925 Best By August 2026 Lot #: 30625 Best By August 2026 To date, no illnesses have been reported. Consumers who have purchased the recalled products should throw them away. More information about these recalls, including images, can be found on the FDA’s website. Troemner Family Farm Pfeffernusse Cookies Troemner Farm of Atlantic Mine, Michigan, has recalled its Troemner Family Farm Pfeffernusse Cookies because they may contain undeclared milk, wheat, or soy. People with allergies or severe sensitivity to milk, wheat, or soy are at risk of serious or life-threatening allergic reactions if they consume these recalled products. The products were sold in 6-ounce and 12-ounce packages. They were distributed to retail locations in just two cities: Hancock and Calumet, Michigan A missing labeling was revealed during a routine inspection, according to the FDA’s notice. Consumers who have purchased Troemner Family Farm Pfeffernusse Cookies are encouraged to return them to Troemner Farm for a refund or replacement. More information, including product images, can be found on the FDA’s website.
Category:
E-Commerce
California officials and weather forecasters urged holiday travelers to avoid the roads and reconsider Christmas travel as a series of powerful winter storms brought relentless rains, heavy winds and mountain snow.Storms began to move in late Tuesday evening and were expected to intensify into Christmas Eve. Authorities said the millions of people expected to travel across the state will likely meet hazardous, if not impossible, conditions as several atmospheric rivers were forecast to make their way through the state, the National Weather Service warned.“If you’re planning to be on the roads for the Christmas holidays, please reconsider your plans,” said Ariel Cohen, a National Weather Service meteorologist in Los Angeles, during a Tuesday news conference.Forecasters said Southern California could see its wettest Christmas in years and warned about flash flooding, mudslides and debris flows in areas scorched by last January’s wildfires. Los Angeles County officials said they were knocking on the doors of some 380 particularly vulnerable households to order them to leave.Much of the Sacramento Valley and the San Francisco Bay Area were under a flood watch and a high wind warning through Friday. Forecasters warned heavy snow and gusts were expected to create “near white-out conditions” Wednesday in parts of the Sierra Nevada and make it “nearly impossible” to travel through the mountain passes.There’s also a risk of severe thunderstorms and a small chance of tornadoes along the northern coast.Heavy rain and flash flooding already led to water rescues and at least one death in Northern California, local officials said. Shasta County Sheriff Michael L. Johnson on Monday declared a state of emergency to prepare for more rain and allow the state to help with hazard mitigation and search and rescue operations.Southern California typically gets half an inch to 1 inch (1.3 to 2.5 centimeters) of rain this time of year, but this week many areas could see between 4 and 8 inches (10 to 20 centimeters), National Weather Service meteorologist Mike Wofford said. It could be even more in the mountains. Gusts could reach 60 to 80 mph (96.5 to 127.8 kph) in parts of the central coast.Officials expect multiple road closures and airport delays during the storms. Downed trees and power lines are also possible. Parts of Los Angeles are under evacuation warnings this week.The county put up K-rails, a type of barrier, around the burn scar to help catch sliding debris during rainstorms. Residents could also pick up free sandbags to protect their homes, said Kathryn Barger, a Los Angeles County supervisor representing Altadena.Many people in burn scar areas decided not to leave after receiving the evacuation notification, Los Angeles Police Department Chief Jim McDonnell said. He urged them to reconsider.“The threat posed by this storm is real and imminent,” he said.Local and state officials are gearing up to respond to emergencies through the week. The state has deployed resources and first responders to a number of counties along the coast and in Southern California. The California National Guard is also on standby to assist.An atmospheric river is a long, narrow band of water vapor that forms over an ocean and flows through the sky, transporting moisture from the tropics to northern latitudes. Associated Press writers Sophie Austin in Sacramento, California, and Jessica Hill in Las Vegas contributed to this report. Trân Nguyn, Associated Press
Category:
E-Commerce
Sites : [37] [38] [39] [40] [41] [42] [43] [44] [45] [46] [47] [48] [49] next »