McDonald's is taking its biggest risk in history

• Hayley Peterson
 
•   

• 19h
• 20,715

Fresh beef patties will be available at McDonald's restaurants nationwide next year.Facebook/McDonald's

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McDonald's is taking one of the biggest risks in the company's history by adding fresh beef to its menu.

The fresh beef patties, which will be available at restaurants nationwide next year, have been slowing down customer service — something McDonald's has been struggling to speed up for years, Reuters reports.

The new patties take about one minute longer to prepare than the frozen patties that McDonald's has served for decades. That's because they are made to order, while McDonald's frozen patties are often made ahead of time and held in warming dishes until they are served.

Some customers are already complaining about longer waits at McDonald's restaurants that have started serving the fresh beef patties.

A customer in Dallas named Tracy Moore told Reuters that she's going to stop patronizing the fast-food chain, which she currently visits every day, if the wait time doesn't improve. 

"If it's going to be that long every time, I won't order it. I'd go" elsewhere, she said, after ordering the new fresh-beef Quarter Pounder at a McDonald's drive thru and being told to pull into a parking spot to wait several minutes until it was ready.

McDonald's can't afford to alienate any more customers, especially at the valuable drive thru, where the chain gets about 70% of its sales.

The company told investors earlier this year that it has lost 500 million US orders to competitors over the past five years.

Reuters

Improving service has been a primary goal of McDonald's CEO Steve Easterbrook over the last couple years. He has cut dozens of items from the fast-food chain's menu to try and simplify and speed up kitchen operations. 

But McDonald's customer service still lags its competitors. 

The chain ranked dead last among in terms of service for the third year in a row among all major fast-food chains in the American Customer Satisfaction Index's 2017 survey, which was released on Tuesday.

McDonald's got a customer satisfaction score of 69 out of 100 in the survey, compared to an average of 79 for all other fast-food chains. The survey was based on interviews with 5,557 customers.

McDonald's drive-thru wait time has also been slowing down in recent years. The average wait time at a McDonald's drive-thru was 208.16 seconds last year, according to QSR Magazine. That's about 25% slower than the average wait time 10 years ago.

But McDonald's — along with many analysts — are betting that any potential slowdowns in service will be offset by customers' affinity for fresh beef. 

The patties have been described by McDonald's executives as juicier and more flavorful than its frozen patties. Many McDonald's franchisees have also been supportive of the initiative, saying it will improve the brand's perception.

And three Dallas-area McDonald's managers told Reuters that their sales of Quarter Pounders have soared 20% to 50% since adding fresh beef.

If those sales trends continue, then this risky bet on fresh beef could be well worth McDonald's — and its customers' — time.

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More: Retail McDonald's Fast Food

Wall Street got something big from Paul Ryan's tax cut speech

• Bob Bryan
 

• 18h
• 5,130
 

Paul Ryan's tax speech gave Wall Street something big: hope.Mark Wilson/Getty Images

House Speaker Paul Ryan didn't confirm a whole lot about the coming Republican effort to slash taxes during what his team billed as a "major" speech Tuesday.

But the speech itself could be enough to placate investors that have been thirsting for any signs of progress on the tax reform front.

He kept to the rough outlines of his "Better Way" tax plan: cut corporate and personal taxes, simplify the tax code, and prioritize American-made products.

Ryan did not even confirm if he is still pushing for the border adjustment tax, a key part of his plan, only saying it was an "option."

But "the main story for the markets isn't the specific details," Greg Valliere, chief global strategist at Horizon Investments, told Business Insider. "Markets just want to know the process is still alive — and it is."

Wall Street targeted the tax cuts for corporations as their No. 1 policy priority following Trump's election, saying they would bring down the burden on companies and help raise profits.

But Republicans haven't made much progress on the cuts so far due to a variety of other issues — healthcare reform and the Russia investigations, for instance — eating up much of the congressional calendar. Now, with the Senate nearing a healthcare bill of their own, the sign of forward progress may be enough to whet investors' appetites.

"The key for investors is simple: the process is still plodding along, and the markets just want to see that tax reform and tax cuts aren't dead. And they're not," Valliere said in a note to clients Tuesday.

Still, there is no guarantee that the tax reform will get done this year, as Ryan promised, and many analysts remain skeptical.

"There is reason to be concerned that barriers to its passage may be too difficult to overcome, so it will be important to hear more on how Washington can address the policy and political obstacles standing in the way," Jon Traub, managing principle at Deloitte Tax and former staff director for the House Ways and Means Committee, said after the speech 

SEE ALSO: Paul Ryan will promise to take advantage of a 'once-in-a-generation moment' and pass tax reform this year

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Chinese stocks have just been admitted to an important global group

• David Scutt, Business Insider Australia

• 15h
• 1,835

STR/AFP/Getty Images

SYDNEY — After three failed attempts, Chinese mainland-traded stocks have finally been admitted to the MSCI’s Emerging Market Index, a significant step in further opening Chinese financial markets to the global investment community.

In a statement on Wednesday, the MSCI said it planned to add 222 China A Large Cap stocks beginning next year, representing approximately 0.73% of the weight of its Emerging Markets Index.

“This decision has broad support from international institutional investors with whom MSCI consulted, primarily as a result of the positive impact on the accessibility of the China A market of both the Stock Connect program and the loosening by the local Chinese stock exchanges of pre-approval requirements that can restrict the creation of index-linked investment vehicles globally,” the MSCI said.

The group said the admission to the index would be in two stages, beginning in May next year.

It added China’s weighting in the index could increase further should local regulators continue with market reforms.

“Further inclusion will be subject to a greater alignment of the China A shares market with international market accessibility standards, the resilience of Stock Connect, the relaxation of daily trading limits, continued progress on trading suspensions, and further loosening of restrictions on the creation of index-linked investment vehicles,” it said.

“MSCI will continue to monitor the situation and launch a public consultation to solicit feedback from investors once warranted.”

The MSCI Emerging Markets Index currently includes 830 stocks from 23 Emerging Markets, including global heavyweights such as Samsung, Tencent and Alibaba, along with several large Chinese banks.

A-shares, as they are known, are stocks traded in mainland China, and currently have a market capitalisation of $US6.9 trillion.

Offshore traded Chinese stocks, predominantly listed in Hong Kong, are already the largest component in the MSCI’s Emerging Market Index, accounting for 27.66% of its market weighting.

While the initial weighting of onshore-traded stocks will be significantly lower than their offshore-traded counterparts, the admission to the index could mark a significant turning point in opening up China’s financial markets to the world.

“Over the long term, assuming further liberalisation and regulatory reform of the mainland stock markets, the depth of China’s A-share market could mean China gains substantial weight within those broader indices,” Nick Beecroft, an Asian equity portfolio specialist at T. Rowe Price, told Bloomberg.

Others, such as David Loevinger, an analyst at fund manager TCW Group, suggest the small initial weighting could act as a catalyst to spur on further market reforms within China.

“More importantly it strengthens Chinese reformers that want to open China’s markets. The small index weight looks like a compromise between those asset managers that wanted China in and out,” he told Bloomberg.

Loevinger suggests that the decision today “will provide a modest boost to sentiment and flows into China”.

There’s likely to be plenty of eyes on Chinese stocks when they resume trade at 11.30am AEST.

You can read more here »

Read the original article on Business Insider Australia. Copyright 2017. Follow Business Insider Australia on Twitter.

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Fintech could be bigger than ATMs, PayPal, and Bitcoin combined

• BI Intelligence
 

• Aug. 26, 2016, 2:42 AM
• 160,477

A Bitcoin ATM is seen inside a bookstore in Acharnai in northern AthensThomson Reuters

This is a preview of a research report from BI Intelligence, Business Insider's premium research service. To learn more about BI Intelligence, click here.

We’ve entered the most profound era of change for financial services companies since the 1970s brought us index mutual funds, discount brokers and ATMs.

No firm is immune from the coming disruption and every company must have a strategy to harness the powerful advantages of the new fintech revolution.

The battle already underway will create surprising winners and stunned losers among some of the most powerful names in the financial world: The most contentious conflicts (and partnerships) will be between startups that are completely reengineering decades-old practices, traditional power players who are furiously trying to adapt with their own innovations, and total disruption of established technology & processes:

• Traditional Retail Banks vs. Online-Only Banks: Traditional retail banks provide a valuable service, but online-only banks can offer many of the same services with higher rates and lower fees

• Traditional Lenders vs. Peer-to-Peer Marketplaces: P2P lending marketplaces are growing much faster than traditional lenders—only time will tell if the banks strategy of creating their own small loan networks will be successful

• Traditional Asset Managers vs. Robo-Advisors: Robo-advisors like Betterment offer lower fees, lower minimums and solid returns to investors, but the much larger traditional asset managers are creating their own robo-products while providing the kind of handholding that high net worth clients are willing to pay handsomely for.

As you can see, this very fluid environment is creating winners and losers before your eyes…and it’s also creating the potential for new cost savings or growth opportunities for both you and your company.

After months of researching and reporting this important trend, Sarah Kocianski, senior research analyst for BI Intelligence, Business Insider's premium research service, has put together an essential report on the fintech ecosystem that explains the new landscape, identifies the ripest areas for disruption, and highlights the some of the most exciting new companies. These new players have the potential to become the next Visa, Paypal or Charles Schwab because they have the potential to transform important areas of the financial services industry like:

• Retail banking

• Lending and Financing

• Payments and Transfers
• 
Wealth and Asset Management

• Markets and Exchanges

• Insurance

• Blockchain Transactions


If you work in any of these sectors, it’s important for you to understand how the fintech revolution will change your business and possibly even your career. And if you’re employed in any part of the digital economy, you’ll want to know how you can exploit these new technologies to make your employer more efficient, flexible and profitable.

BII

Among the big picture insights you'll get from The Fintech Ecosystem Report: Measuring the effects of technology on the entire financial services industry:

• Fintech investment continues to grow. After landing at $19 billion in total in 2015, global fintech funding had already reached $15 billion by mid-August 2016.
• The areas of fintech attracting media and investor attention are changing. Insurtech, robo-advisors, and digital-only banks are only a few of the segments making waves. B2B fintechs are also playing an increasingly prominent role in the ecosystem. 
• It's not all good news for fintechs. Major hurdles, including customer acquisition and profitability, remain. As a result, many are becoming more willing to enter partnerships and adjust their business models. 
• Incumbents are enacting strategies to ensure they remain relevant. Many financial firms have woken up to the threat posed by fintechs and are implementing innovation strategies to stave off disruption. The majority of these strategies involve some interaction with fintech firms. 
• The relationship between incumbents and fintechs continues to evolve. Fintechs are no longer viewed exclusively as a threat, nor can they be ignored. They are increasingly viewed as partners, but that narrative alone is too simple — in reality, a more nuanced connection is taking hold. 

This exclusive report also:

• Assesses the state of the fintech industry. 
• Gives details on the drivers of its growth. 
• Explains which areas of fintech are gaining traction. 
• Outlines the range of current and potential models for fintech and incumbent interaction. 

The Fintech Ecosystem Report: Measuring the effects of technology on the entire financial services industry is how you get the full story on the fintech revolution.

To get your copy of this invaluable guide to the fintech revolution, choose one of these options:

1. Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
2. Purchase the report and download it immediately from our research store. >> BUY THE REPORT

The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the fast-moving world of financial technology.

Learn more:

• Credit Card Industry and Market
• Mobile Payment Technologies
• Mobile Payments Industry
• Mobile Payment Market, Trends and Adoption
• Credit Card Processing Industry
• List of Credit Card Processing Companies
• List of Credit Card Processing Networks
• List of Payment Gateway Providers
• M-Commerce: Mobile Shopping Trends
• E-Commerce Payment Technologies and Trends

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MORGAN STANLEY: Microsoft shares could jump 46% in the next year

• Seth Archer
 

• Jun. 19, 2017, 6:15 PM
• 432

Bill Gates (left) and Microsoft CEO Satya NadellaMicrosoft

Microsoft shares could be set for a huge bump, according to Keith Weiss, an analyst at Morgan Stanley.

In a note to clients on Monday, Weiss pointed to rising earnings and increased success of the company's cloud services as possible drivers of big growth. Weiss raised his price target for Microsoft from $72.00 to $80.00 but said it could go as high as $102, a 46% increase from its current price.

Weiss laid out three main reasons he thinks Microsoft's stock price could go up dramatically this year: cloud services, consumer-facing technologies, and the company's financials.

Microsoft is expanding its market share in cloud services, which could increase earnings, according to Weiss. More companies are adopting Azure, Microsoft's cloud computing platform, and the company is increasing monetization of its online Office 365 software and machine learning offerings. The increased cloud market share could eventually total $110 billion for Microsoft, Weiss said.

New consumer-focused technologies could also help drive growth at Microsoft. The company recently announced a new Xbox console and Surface laptop. The new laptop brings the company's Windows 10 S operating system to the market, which is designed to go head-to-head with Google's Chrome OS platform in the education market.

Weiss thinks the non-cloud parts of Microsoft's business should be worth more than the market is currently valuing them. Investors are currently pricing the non-cloud assets at eight times free cash flow, while Weiss thinks it should be closer to 12 times. If he's right, that would add about $115 billion in value for Microsoft.

Finally, Weiss said Microsoft's financials alone should justify a higher share price.

"Microsoft's current trading premium of 16% to the S&P 500 is in line with its premium over the last two years; however, its current total return profile (CY16 to CY18 EPS CAGR plus current dividend yield) is at a ~50% premium," Weiss wrote.

If Weiss is right, Microsoft could be one of the fastest growing stocks in the tech sector. The company is up 12.72% this year. It currently trades at $70.54.

Click here to watch Microsoft's share price live...

Markets Insider

Get the latest Microsoft stock price here.

Real Value (Video)

Real Value

2013

How do you determine the true value of a product or service? Is it solely based on the profit motive, or should its impact on the global good also play a major role in the equation? The feature-length documentary Real Value profiles business leaders who have seen their profits rise after taking measures to enhance their standards of sustainability.

The filmmakers focus on efforts currently taking place in North Carolina, but the lessons each subject imparts can be applied anywhere in the United States or around the world.

At Piedmont Biofuels, workers collect used fats, oils and greases and transform them into fuel. Demand for their product is at an all-time high, and they are blessedly free of the shackles and curses associated with the big oil industry.

In another segment, the president of a custom T-shirt wholesale business outlines the steps he took after the North American Free Trade Agreement essentially gutted his enterprise. He decided to place ethical responsibility above concerns for the bottom line, and integrated wind, solar and biofuel technologies into his business model. By embracing these sustainability measures, his business has grown both in profit and in its standing within the community.

The spirit of activism and environmental responsibility drives every facet of operations at Sow True Seed in Asheville. The owner of this small business fights for the rights of all people to know where their food comes from. She teaches interested parties in her community how to plant seeds, empowers others to grow their own healthy food, and donates leftover inventory to local schools and support groups.

These values also extend into workplace practices that promote a shared sense of respect, teamwork and purpose among each employee.

Interspersed between these personal profiles, viewers gain big-picture insights from panel of experts, including Dan Ariely, a Professor of Psychology & Behavioral Economics at Duke University and the founder of the Center for Advanced Hindsight.

The fascinating subjects of Real Value are relatable and inspiring entrepreneurs. Their means of driving profits through social responsibility are well within reach for the owners of all businesses large and small.

Directed by: Jesse Borkowski