Latest news with #EdwardLewis
Yahoo
an hour ago
- Business
- Yahoo
McDonald's Shares Slip as GLP-1 Risks Spur Rare Sell Rating
(Bloomberg) -- McDonald's Corp. shares slipped on Tuesday after Redburn Atlantic gave the burger chain its sole sell rating, saying shifting consumer patterns due to weight-loss drugs and inflation are cause for concern. Most Read from Bloomberg Shares of McDonald's fell as much as 1.8% to a March low on the downgrade, a two-notch cut from Redburn's previous buy rating. Redburn held a buy rating on the stock since initiating coverage in 2023. As more Americans turn to GLP-1 drugs like Ozempic to lose weight, McDonald's could see as much as a $428 million annual impact to revenue, representing about 1% of system sales, Redburn Atlantic analysts Chris Luyckx and Edward Lewis wrote. 'A 1% drag today could easily build to 10% or more over time, particularly for brands skewed toward lower-income consumers or group occasions.' The analysts also cut the price target on McDonald's to a Street-low $260, implying a more than 13% decline from where the stock closed on Tuesday. Shares have dropped for seven straight days, their longest losing streak in nearly 12 years, after closing just below a record high in mid-May. Redburn's lowered recommendation was just the latest downgrade for the fast-food giant, which was recently knocked down to hold-equivalent ratings at Morgan Stanley, Loop Capital and Erste Group. Analysts remain largely split on the stock, with 22 buy-equivalent ratings, 18 hold-equivalent ratings and an average price target of $332, according to data compiled by Bloomberg. McDonald's US same-stores sales fell 3.6% in the first-quarter of this year, marking the largest decline since 2020 when people were stuck at home during the pandemic. Fast-food restaurants like McDonald's have also seen a decline in traffic in 40 of the past 43 months, according to the analysts. In addition to the McDonald's call, Redburn also launched coverage of Domino's Pizza Inc. with a sell rating, while starting Chipotle Mexican Grill Inc. as a new neutral. YUM! Brands, Inc., which owns popular brands KFC, Taco Bell and Pizza Hut, was raised to buy from neutral given the stock's 'reasonable' valuation. Despite the slump, McDonald's has increased its average transaction amount through pricing, but lower-income consumers are now opting to eat more at home as the price difference between home and restaurant food increases, according to the report.
CBS News
6 hours ago
- Business
- CBS News
McDonald's shares slip after downgrade spurred by weight-loss drug popularity
McDonald's shares dropped Tuesday as weight-loss drugs threaten to take a big bite out of the fast food chain's earnings. Shares were down by as much as 1.7% Tuesday, after equity analysis firm Redburn Atlantic downgraded the burger giant's stock rating two notches, from buy to sell. Changes in Americans' eating habits spurred by the use of the class of drugs known as GLP-1s, which are designed to help regulate users' blood sugar and appetite, pose an underappreciated threat to some food businesses, according to Redburn Atlantic analysts Chris Luyckx and Edward Lewis. As a result, McDonald's could lose up to 28 million customer visits, resulting in a revenue loss of $482 million per year — about 0.9% of the company's sales, according to the analysis. The appetite-suppressing drugs are expected to have a transformative effect on how Americans consume food. At particular risk are brands that cater to lower-income consumers — a category to which McDonald's belongs. That's because spending on food away from home among lower-income households who start using GLP-1 drugs declines and tends to remain depressed, according to the report, creating "material implications for chains with broad mass-market exposure." Higher-income users of the drugs, by contrast, decrease their spending before reverting to old spending patterns within one year, the analysis found. "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," the analysts said in a research note. Pricing fatigue Inflationary pressures and consumers' strained budgets only compound problems for McDonald's, according to the report. "Consumers are showing clear signs of pricing fatigue after years of aggressive menu inflation," the analysts wrote. "Although the gap between eating out and at home has narrowed, it remains historically wide, reinforcing value concerns." The Redburn analysis refers to GLP-1 drugs like Ozempic and Wegovy as "demand disruptors" for restaurants like McDonald's, because they reduce users' appetites and limit the number of calories they consume each day. These features of the drugs "could have serious implications for the restaurant industry," Redburn analysts wrote. To be sure, adoption of the drugs is not yet widespread, with just 12% of U.S. adults ever having tried the meds. Currently, only 6% of the adult population uses the drugs. Wider adoption of GLP-1 drugs for weight loss could ultimately lead to a broad-based reduction in Americans' caloric intake at restaurants, including fast food joints, reversing a decades-long trend. From 1977 to 2018, the total share of calories consumed at restaurants nearly tripled, according to Redburn Atlantic's analysis of U.S. Department of Agriculture data. Compared with other fast food brands, McDonald's is the most exposed to taking a hit from the increased usage of GLP-1 drugs, according to the research. More pressing challenges However, Peter Saleh, managing director and restaurant and food distributors analyst at BTIG global financial services, said McDonald's is facing other headwinds, and he wouldn't expect GLP-1s to meaningfully eat into its earnings, at least not in the near-term. For one, McDonald's core customer base consists of low- and middle-income consumers who are unlikely to be able to afford GLP-1 drugs, said Saleh, who doesn't foresee there being much overlap between the fast food giant's patrons and adopters of the drugs. "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," he said. "I just don't think we are there yet."
ITV News
9 hours ago
- Politics
- ITV News
Jersey becomes first non-member of United Nations to host humanitarian aid meeting
Jersey has become the first non-member of the United Nations (UN) to host international talks, addressing humanitarian aid for those in crisis. The island was selected to co-chair the UN Office for the Coordination of Humanitarian Affairs (OCHA) Pooled Fund Working Group (PFWG) to discuss how smaller donors can reach the most severely affected countries through a coordinated approach. Officials from across the globe have joined discussions which include key decisions on how taxpayers' money in Jersey can provide life-saving support. Edward Lewis, Executive Director of Jersey Overseas Aid, explains: "Jersey is seen in the international sector; they wouldn't come here if they didn't think we had something to say and something to contribute. "The whole idea is widening the donor base and getting a broader constituency, which is really important in terms of having an effective response. "And for the next couple of days at least, Jersey is going to play a leading role." Currently, the island allocates approximately 0.3% of its budget to overseas aid - more than £17 million. Jersey Overseas Aid has also sent more than £7 million of aid to countries including Sudan, Syria, and Ukraine since 2016. David Throp, Chief of the UN Office for the Coordination of Humanitarian Affairs (OCHA), says: "The system as a whole has been going through financial difficulties. "We have seen cuts from big players, such as the Americans and other big European countries; every pound helps us save another life. "By putting the money together, we can do something bigger, better, more thought-out, and more influential on the beneficiaries and populations we're trying to assist. "Jersey has been very good at bringing leadership to the discussions. The island has been punching above its weight in guiding us." Alice Armanni-Sequi, one of the senior UN officials, says she's enjoyed the talks in Jersey so far, adding that getting the pooled funds right is vital for those in need. She explains: "We cover a range from food, shelter, health services, water, which is so critical and nutrition. "The list goes on, but the formula will depend on the location, so the great thing about the pooled funds is that we can really come up with the right recipe at the local level that really represents what people need." David adds: "Most of the funds, in particular the larger funds, are located in some of the more protracted emergencies. "We do have countries like the democratic Republic of Congo, Sudan, South Sudan, Afghanistan, the occupied Palestinian territories, where it is not a sudden onset and a quick finish - a more fundamental structural problem in the society. "The good thing about the model is that we can put these funds in place and phase them out as and when needed, depending on the changes in the situation." Mazen Fadhl Maddi represents the Field Medical Foundation (FMF) Yemen, and knows first hand how overseas aid is a lifeline for those who need it. He explains: "It saves lives. I have seen it personally - I have gone to the camps. "We are also giving communities resilience. The money translates into a lot of sectors, a lot of assistance, such as food assistance and nutrition. We have huge numbers of acute malnutrition in Yemen." Chair of Jersey Overseas Aid Commission, Carolyn Labey, says that while Jersey's contribution increases in line with the island's GDP, contributions can go further. She says: "We have connected our budget to GDP, so when the economy grows, our budget grows. "Our budget is currently fixed at 0.3% of GDP, and that isn't quite the OECD average, which is 0.36%. "The overall aim is to reach 0.7%, but there is a way to go there." The States of Guernsey aims to allocated 0.2% of its budget to overseas aid by 2030, however it is not part of the Pooled Fund Working Group, hence why no officials are attending this weeks meeting.
CBS News
27-05-2025
- General
- CBS News
Suspect charged with beating south suburban Chicago man to death has violent record
Michael Protho, the man charged with beating and killing a man in the south Chicago suburb of Oak Forest last week, appeared in court for the first time on Tuesday. It also turns out that CBS News Chicago interviewed a victim of Protho's in the past. Protho, 30, stands charged with the murder of Edward Lewis, 53, this past Friday. Oak Forest police said around noon this past Friday, May 23, Lewis a man later identified as Lewis was found unresponsive in a home in the 15500 block of Long Avenue. A criminal complaint said Protho "made unlawful entry" into Lewis' residence, and "battered Lewis with an unknown object, resulting in his death by blunt force trauma." In court Tuesday, prosecutors detailed the narcotics found in the home — cannabis and mushrooms. They said the victim, Lewis — who had been living in the home for about a year — had a strong connection to narcotics sales, and Protho was seen leaving the home with large garbage bags. CBS News Chicago took a closer look at Protho's background, and found reporter Derrick Blakley interviewed a victim of his back in August 2012. World War II Navy veteran Porter B. Cross, at the time about to turn 88, was robbed and beaten and left on the pavement in Chicago's West Englewood neighborhood, while walking home from playing the Lottery. The robbers smashed his glasses, knocked out his hearing aid, and broke his dentures in the assault. They took Cross' wallet, but it had no money in it. He had about $27 in cash in his pocket, but the robbers did not get that money. "I don't know what happened," Cross said at the time. The aftermath of the robbery was caught on camera. "They hit from behind," Cross said at the time. Protho, then just 17, was one of two people charged in the attack. He pleaded guilty and received an eight-year prison sentence. CBS News Chicago found subsequent cases in Protho's record — felony possession of a firearm in 2018, and possession of a firearm with prior convictions and aggravated unlawful use of a weapon in 2019. But those charges were dropped. Protho will stay behind bars until his next court date. "There's an interesting legal word for a defendant like this; couple words, actually — career criminal and a recidivist — and he clearly is both," said CBS News Chicago Legal Analyst Irv Miller, "and when a judge is deciding whether to detain a gentleman like this, there's really no hesitation in the part of any judge to lock him up pending trial." Oak Forest Police Chief Scott Durano said his department has nothing else to share right now. Protho will be back in court on Friday, June 13.
CBS News
27-05-2025
- General
- CBS News
Chicago man charged after Edward Lewis found dead in Oak Forest, Illinois home
A Chicago man has been charged after a death investigation was launched when a man was found dead in a home in Oak Forest, Illinois. Oak Forest police said around noon on Friday, May 23, officers and fire officials were called to a home in the 15500-block of Long Avenue for a report of an unresponsive person. When they were there, they found a man dead inside a home. The man was identified as 53-year-old Edward Lewis of Elburn, Illinois. Police launched a death investigation and announced Monday the Cook County State's Attorney's Office had charged 30-year-old Michael Protho with one felony count of first-degree murder. Protho was due in court Tuesday. Cook County records show Protho had previously spent time incarcerated in 2012 and 2018. Police have given no further details about the incident that led to Protho's arrest, nor about him or the victim.
