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Time of India
2 days ago
- Business
- Time of India
McDonald's downgraded amid Ozempic craze - investors worry fast food losing charm, stock under pressure
McDonald's stock was downgraded by analysts following concerns that weight-loss drugs like Ozempic could curb fast-food demand. Analysts suggested that these drugs, which reduce appetite, might lead to a significant drop in customer visits, potentially costing the company millions in revenue. Tired of too many ads? Remove Ads Equity Firm Downgrades McDonald's Stock How GLP-1 Medications Could Disrupt Fast Food Demand McDonald's Potential Revenue Losses and Customer Visit Declines Tired of too many ads? Remove Ads Inflation Adds Fuel to McDonald's Challenges Not Many Americans Are Using These Drugs Yet FAQs McDonald's faced a rough day on Wall Street Tuesday as shares dipped 1.7%, shaken by growing concerns that popular weight-loss drugs like Ozempic could seriously cut into the fast food giant's business, as per a analysis firm Redburn Atlantic lowered its rating on McDonald's stock by two notches from 'buy' to 'sell,' warning that the widespread use of GLP-1 drugs, which curb appetite and help regulate blood sugar, may change how Americans eat, potentially leading to a drop in millions of visits to McDonald's every year, as per CBS Redburn analysis described GLP-1 drugs like Ozempic and Wegovy as "demand disruptors" for restaurants like McDonald's , as they reduce consumers' appetites and limit the number of calories they consume each day, reported CBS News. Analysts wrote that, "These features of the drugs could have serious implications for the restaurant industry," according to the READ: YouTube loosens content rules, says freedom of expression can outweigh harm—controversial videos may return Analysts Chris Luyckx and Edward Lewis estimated that McDonald's could lose up to 28 million customer visits annually, resulting in nearly $482 million in lost revenue, roughly 0.9% of the company's sales, according to the concern is that GLP-1 drugs may shift eating habits, especially among lower-income consumers, who are the fast food chain's target market and who might cut back on dining out and keep those new habits long-term, as per CBS analysts pointed out that the "Behaviour changes extend beyond the individual user — reshaping group dining, influencing household routines and softening habitual demand. A 1% drag today could easily build to 10% or more over time, particularly for brands skewed toward lower income consumers or group occasions," quoted CBS to the pressure, rising prices and inflation might make it even harder for McDonald's to maintain its appeal to its customers, as per the report. The analysts highlighted that, "Consumers are showing clear signs of pricing fatigue after years of aggressive menu inflation," adding, "Although the gap between eating out and at home has narrowed, it remains historically wide, reinforcing value concerns," quoted CBS the adoption of the GLP-1 drugs has yet to reach a wider audience, as only 12% of Americans have tried the drugs, and currently just 6% of the adult population uses them, as per the the managing director and restaurant and food distributors analyst at BTIG global financial services, Peter Saleh said, "I don't think there would be a meaningful GLP-1 impact on McDonald's right now, but that's not to say that in three or four years that won't be the case," adding, "I just don't think we are there yet," quoted CBS medications that help regulate blood sugar and suppress appetite, often used for weight loss, as per to $482 million a year, according to some analysts.
Economic Times
24-05-2025
- Business
- Economic Times
Pennies become history in U.S. as Treasury Department places final order, expected to run out by 2026
The US Treasury Department will cease penny production after its final penny blank order runs out in early 2026. This decision comes as the cost to manufacture each penny, primarily due to rising zinc prices, now exceeds its face value, costing 3.7 cents to produce. Tired of too many ads? Remove Ads Penny's Long Run Nears Its End Cost to Make a Penny Now Outweighs Its Value US Mint to Save $56 Million Annually Zinc Drives Up Costs Trump Administration Accelerated the Decision Tired of too many ads? Remove Ads FAQs After more than two centuries in Americans' pockets, the penny will finally be on its way out, as US Treasury Department has confirmed it placed its last order for penny blanks this month, with the United States Mint aiming to stop manufacturing the penny when the latest order runs out, as per a Wall Street Journal predicted that the last batch of the blanks, which are flat, metal discs that the US Mint converts into coins, will run out in early 2026, reported CBS decision was made because now the cost of making a penny is more than its own value. According to CBS News, the penny, which had been launched during the early days of the US Mint after its establishment in 1792, as of 2024, cost around 3.7 cents to manufacture and distribute, as per the US Mint's 2024 annual US Treasury revealed that, by ending production of the penny, it would save the Mint around $56 million in annual savings, as per CBS penny is made of zinc, with its distinctive appearance coming from a copper overlay, Zinc's cost per metric tonne had more than doubled from its price in 2000, as per the Federal Reserve Bank of St. Louis data, reported CBS comes after the Trump administration had recently indicated that it planned to stop making the 1-cent coin, as per the report. Even billionaire Elon Musk's Department of Government Efficiency said in January that the penny was too expensive to produce and in February, US president Trump wrote on his social media site Truth Social, "For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!" adding "I have instructed my Secretary of the US Treasury to stop producing new pennies," as quoted in the the Treasury Department has confirmed that once the final supply of penny blanks runs out in 2026, production will each penny now costs more than 3.5 cents to make, mainly due to rising material costs, especially zinc.
Yahoo
15-05-2025
- Business
- Yahoo
Public Drinking 'Entertainment Zone' to Come to Santa Monica's Third Street Promenade
Santa Monica officials are aiming to revitalize Third Street Promenade with a new proposal that allows public alcohol consumption within a designated "Entertainment Zone." The measure, passed Tuesday night, permits adults over 21 to consume alcohol as they stroll downtown with drinks purchased from licensed, participating businesses.'If we want to bring our tourists and regional visitors back downtown, I think we need to make it worth their while,' Santa Monica Mayor Pro Tem Caroline Torosis told CBS once-bustling, car-free Promenade has struggled in recent years, particularly after the economic downturn caused by the COVID-19 pandemic. According to SFGATE, the area's overall vacancy rate is around 25%, with 38% of storefronts on the 1200 block currently unoccupied. City leaders hope the new initiative will help draw foot traffic back to the pedestrian Entertainment Zone will span the 1200 to 1400 blocks of the Promenade, from Wilshire Boulevard to Broadway. According to a city council spokesperson, the program will launch in June and operate on weekends (Fridays through Sundays) from 6 p.m. to 2 will be required to wear designated wristbands, and the city will increase security patrols to promote safe and responsible drinking, officials said.
Yahoo
28-01-2025
- Politics
- Yahoo
Trump administration fires justice department lawyers who investigated him
US President Donald Trump's administration has fired more than a dozen justice department lawyers who worked on two criminal cases against him. They were fired after Acting Attorney General James McHenry concluded they could not "be trusted to faithfully implement the president's agenda because of their significant role in prosecuting the president", a department official told the BBC's US partner CBS News. The lawyers were part of former special counsel Jack Smith's team which investigated Trump's alleged mishandling of classified documents and his alleged attempt to overturn his 2020 election defeat. The firings on Monday are effective immediately. Mr Smith was appointed as special counsel in 2022 to oversee the two justice department cases into Trump. The president had vowed to fire him "within two seconds" of taking office, but he quit before his inauguration. Both cases resulted in criminal charges against Trump, who pleaded not guilty. But the cases were closed following his November election win. Prosecutors wrote that justice department regulations do not allow the prosecution of a sitting president. It was not immediately clear which members of Mr Smith's team were fired. Many of those who worked on Mr Smith's teams were career corruption and national security prosecutors who had worked across various administrations and were appointed to the cases. They reportedly received a letter on Monday which said their role in investigating and prosecuting the president made them unsuitable to work in the department. "Firing prosecutors because of cases they were assigned to work on is just unacceptable," former US Attorney Joyce Vance told NBC News. "It's anti-rule of law; it's anti-democracy." The firings follow a major reassignment of some of the justice department's top officials with expertise in a wide range of fields including national security and public corruption. On Monday, one of them, the chief of the public integrity section, reportedly resigned. Trump and his team have accused the justice department of pursuing politically motivated cases against him, his associates and Republicans. Trump vowed an immediate overhaul of the department, which he says has been "weaponised" against him, while campaigning for re-election. His nominee to lead the justice department, Pam Bondi, has echoed Trump's view that federal prosecutions against him were political persecution, saying the department "had been weaponised for years and years and years". Mr Smith has publicly defended his work. In a letter accompanying the final draft of his report into Trump's actions after the 2020 election, he wrote: "The claim from [Trump] that my decisions as a prosecutor were influenced or directed by the Biden administration or other political actors is, in a word, laughable." Also on Monday, Washington DC's top federal prosecutor announced the launch of an internal review into the charging decisions behind hundreds of Capitol riot cases, according to CBS. Acting US Attorney Edward Martin, a Trump appointee, ordered prosecutors in his office to turn in documents, emails and other information related to the previous administration's decision to bring an obstruction charge against more than 200 Capitol attack defendants.
BBC News
27-01-2025
- Politics
- BBC News
Trump administration fires justice department lawyers who investigated him
US President Donald Trump's administration has fired more than a dozen justice department lawyers who worked on two criminal cases against were fired after Acting Attorney General James McHenry concluded they could not "be trusted to faithfully implement the president's agenda because of their significant role in prosecuting the president", a department official told the BBC's US partner CBS lawyers were part of former special counsel Jack Smith's team which investigated Trump's alleged mishandling of classified documents and his alleged attempt to overturn his 2020 election firings on Monday are effective immediately. Mr Smith was appointed as special counsel in 2022 to oversee the two justice department cases into Trump. The president had vowed to fire him "within two seconds" of taking office, but he quit before his cases resulted in criminal charges against Trump, who pleaded not the cases were closed following his November election win. Prosecutors wrote that justice department regulations do not allow the prosecution of a sitting was not immediately clear which members of Mr Smith's team were fired. Many of those who worked on Mr Smith's teams were career corruption and national security prosecutors who had worked across various administrations and were appointed to the reportedly received a letter on Monday which said their role in investigating and prosecuting the president made them unsuitable to work in the department."Firing prosecutors because of cases they were assigned to work on is just unacceptable," former US Attorney Joyce Vance told NBC News. "It's anti-rule of law; it's anti-democracy."The firings follow a major reassignment of some of the justice department's top officials with expertise in a wide range of fields including national security and public corruption. On Monday, one of them, the chief of the public integrity section, reportedly and his team have accused the justice department of pursuing politically motivated cases against him, his associates and Republicans. Trump vowed an immediate overhaul of the department, which he says has been "weaponised" against him, while campaigning for re-election. His nominee to lead the justice department, Pam Bondi, has echoed Trump's view that federal prosecutions against him were political persecution, saying the department "had been weaponised for years and years and years".Mr Smith has publicly defended his work. In a letter accompanying the final draft of his report into Trump's actions after the 2020 election, he wrote: "The claim from [Trump] that my decisions as a prosecutor were influenced or directed by the Biden administration or other political actors is, in a word, laughable."Also on Monday, Washington DC's top federal prosecutor announced the launch of an internal review into the charging decisions behind hundreds of Capitol riot cases, according to US Attorney Edward Martin, a Trump appointee, ordered prosecutors in his office to turn in documents, emails and other information related to the previous administration's decision to bring an obstruction charge against more than 200 Capitol attack defendants.
