Tag: money

Real means of cash flow for McDonald is not hamburger

McDonald’s sells a lot of food. Like, a lot of food. We’re talking enough food to serve more than 70 million people every day, with more than 75 burgers sold every second.

That shouldn’t be too surprising, considering McDonald’s is one of the largest fast-food chains in the world. But their menu actually isn’t what generates the company’s multi-billion dollar profits. The real best-seller? Real estate.

McDonald’s sells a lot of food. Like, a lot of food. We’re talking enough food to serve more than 70 million people every day, with more than 75 burgers sold every second.

That shouldn’t be too surprising, considering McDonald’s is one of the largest fast-food chains in the world. But their menu actually isn’t what generates the company’s multi-billion dollar profits. The real best-seller? Real estate.

There are more than 36,000 McDonald’s locations worldwide, but only about 5 percent of them are company-owned. The rest are franchised out, meaning they’re run by individuals who McDonald’s has contracted to operate them. In those situations, the company only spends money on the real estate of that location. The franchisee is responsible for all the costs of running the restaurant while also paying McDonald’s for rent (which adds up to an average of 10.7 percent of their sales), a $45,000 franchisee fee, and a monthly service fee equal to 4 percent of gross sales, Business Insider reports. With multiple means of collecting revenue at relatively minimal costs, it’s no wonder McDonald’s relies so heavily on franchises.

‘We are not basically in the food business,’ former McDonald’s CFO Harry J. Sonneborn reportedly told investors. ‘We are in the real estate business. The only reason we sell 15 cent hamburgers is because they are the greatest producer of revenue from which our tenants can pay us rent.’

Being able to hand off the costs of running the restaurants is a primary key to McDonald’s success. According to Wall Street Survivor, in 2014, the company made $27.4 billion in revenue, with $9.2 billion coming from franchised locations and $18.2 from company-owned locations. But after you factor in the total costs of running those locations, McDonald’s kept only 16 percent of the revenue from locations it owned directly compared to the 82 percent of the franchise-generated revenue.

So while you may spend money at McDonald’s on a Big Mac and fries, McDonald’s is spending money on prime real estate—and they’re lovin’ it. 

There are more than 36,000 McDonald’s locations worldwide, but only about 5 percent of them are company-owned. The rest are franchised out, meaning they’re run by individuals who McDonald’s has contracted to operate them. In those situations, the company only spends money on the real estate of that location. The franchisee is responsible for all the costs of running the restaurant while also paying McDonald’s for rent (which adds up to an average of 10.7 percent of their sales), a $45,000 franchisee fee, and a monthly service fee equal to 4 percent of gross sales, Business Insider reports. With multiple means of collecting revenue at relatively minimal costs, it’s no wonder McDonald’s relies so heavily on franchises.

‘We are not basically in the food business,’ former McDonald’s CFO Harry J. Sonneborn reportedly told investors. ‘We are in the real estate business. The only reason we sell 15 cent hamburgers is because they are the greatest producer of revenue from which our tenants can pay us rent.’

Being able to hand off the costs of running the restaurants is a primary key to McDonald’s success. According to Wall Street Survivor, in 2014, the company made $27.4 billion in revenue, with $9.2 billion coming from franchised locations and $18.2 from company-owned locations. But after you factor in the total costs of running those locations, McDonald’s kept only 16 percent of the revenue from locations it owned directly compared to the 82 percent of the franchise-generated revenue.

So while you may spend money at McDonald’s on a Big Mac and fries, McDonald’s is spending money on prime real estate—and they’re lovin’ it. 

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Online store stock value touched $1 trillion and now close to Apple

Amazon is now not only synonymous with online shopping, but is also opening physical stores, owns the Whole Foods grocery franchise and runs a massively lucrative cloud-services business

Most advance warehouse in the World , Amazon takes the lead claiming advance warehouse in UK

According to a recent NPR/Marist poll, 92 percent of America’s online shoppers have bought something on Amazon. More than 40 percent said they buy something on Amazon once a month or more often. In fact, when people shop online, they’re most likely to start on Amazon, the poll found.

Amazon has said that more than 100 million people around the world pay for its Prime subscription.

By early afternoon on Tuesday, Amazon’s stock was trading at $2,030 per share, up less than 1 percent, putting its market cap at $990 billion

Amazon’s stock value briefly topped $1 trillion on Tuesday, a little over a month after Apple crossed the same milestone.

The tech and retail behemoth, founded as an online bookstore by CEO Jeff Bezos in 1994, has been consistently profitable only since 2015. In fact, Amazon profits have averaged $2 billion in each of the first two quarters of this year.

Amazon Go: first cashier free store to open in London

Amazon has opened its first cashier-free supermarket where customers simply grab items off the shelves. After testing artificial intelligence that powers the store for more than a year, the Amazon Go shop opened on Monday on Seventh Avenue in Seattle.

Nestled on the ground floor of the internet retail giant’s headquarters, the convenience shop offers ready-to-eat breakfasts, lunches, and dinners as well as milk, bread and Amazon’s own meal kits.

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A combination of computer vision, sensors and algorithms figure out what people have picked up from the shelves and charges customers’ accounts accordingly. The store opening was originally scheduled for 2017 but was delayed as the firm perfected the technology by testing it out with Amazon employees. At 1,800 square feet, the shop is the latest addition to the firm’s retail spaces after it acquired 470 Whole Foods outlets last year

It also has more than a dozen bookshops as well as some small stores in shopping centers.

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Amazon introduced the idea of the cashier-free shop back in December 2016

Credit cards age is ending soon. Will be replaced by peerless idea

It’s happening, and fast: The era of the credit card, in which plastic is the standard form of payment, is coming to an end. But it isn’t being replaced by cash. Instead, it’s being replaced by a new system, one that involves digital money transfers through smartphones and other devices.

Now, before you mourn the loss of the old system, you have to admit there are some problems inherent to credit cards. The most glaring of these is that credit cards often aren’t 100 percent secure. Users face issues ranging from hackers and fraud to lost and stolen cards.

The cards also aren’t without high fees from financial institutions, and they’re rarely accepted worldwide

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The convenience of digital options compared to both cash and cards is another reason credit cards are gradually being phased out. The ease of digitally exchanging money between friends, or from an employer to an employee, already gives digital transactions an advantage over both cash and cards.

These digital peer-to-peer, or P2P, payments are becoming increasingly popular because they can eliminate high transactions fees and processing or service fees, all while remaining secure. The most widely used platform for peer-to-peer payments is , with more than active accounts worldwide. , an app that allows for instant P2P payments, is another popular platform, while services like and are also taking advantage of the convenience of P2P transactions.

This points to an important truth: Even for most online payments, cards simply aren’t necessary.

Because of these challenges and ever-emerging payment alternatives, more and more people are opting to avoid credit cards altogether. The burgeoning growth of card-less transactions is particularly important in light of recent findings from the Federal Deposit Insurance Corporation: In 2015, the FDIC found that a significant portion of American households, 24.5 million, are. Many people, whether because they want to or because they have no choice, don’t own a credit card or have a bank account

FinTech is going cardless

Amazon helped the revolution along considerably with its announcement of in April 2017. This shift lets customers fill up their Amazon balances using cash when they present an Amazon barcode to participating stores. Its introduction of the “add cash” option has made the buying process accessible to more than a quarter of its customers.

As Amazon has, customers no longer need a credit card to make purchases and can instead buy products using their Amazon Balance.

Another alternative to credit cards is already being used as a payment option by major players like. Topping up your PayTM wallet lets you use net-banking, a cordless option that makes your smartphone the only thing you need to get around for the day.

Also getting in on the trend are start-ups like, which helps travelers who want to exchange currency without the additional fees charged by banks and other companies. Customers can buy foreign currency directly from the app and withdraw their cash at the closest CashDash ATM.

“Smartphones are emerging as the most promising alternative to credit cards.”

The app is helpful for unbanked individuals as well.

The common theme here is that smartphones are emerging as the most promising alternative to credit cards. Since so many people already use smartphones for day-to-day payments like ordering food or hailing an Uber, ditching wallets altogether seems like the logical next step.

Cryptocurrency as cardless technology

Another step towards a cardless society is the increasing popularity of cryptocurrency, which is also sometimes referred to as electronic currency and can be seen as an online version of cash. The first type of cryptocurrency is the widely popular but also controversial bitcoin, which started in 2009.

Bitcoins are essentially digital coins that people can buy and use to make and receive payments. Unlike credit cards, they have low transaction fees and don’t require sales tax. Also unlike credit cards, bitcoin lets users stay anonymous.

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Should you keep your credit card?

With the rise of cryptocurrencies and our increasing ability to use our smartphone to pay for basic services, it’s clear that credit cards are going out of fashion.

It’s still too early to leave your credit card behind since it’ll take some time before cards phase out altogether. Nonetheless, it can’t hurt to start adapting to digital alternatives.

After all, for consumers, the motivation to ditch the card is simple: lower fees, improved convenience, and increased financial independence.

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China’s largest cryptocurrency exchanges halt trading between Bitcoin & Yuan. Govt intervened

Many traders felt that China is becoming less of a market leader for bitcoin trading,” Greg Dwyer, head of business development at BitMEX, a bitcoin mercantile exchange, told Business Insider.

Dwyer said the market is strong, pointing to a recent milestone hit by the firm as proof.

“BitMEX, traded over $1 billion in notional in one day (was actually $1.1 billion) last Friday,” he said. “We are the first bitcoin exchange to ever have hit this milestone and represents the fact that there is an enormous interest in the trading of bitcoin.”

Cryptocurrency investors are shaking off reports of a regulatory crackdown on bitcoin in China.

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That’s because traders view recent news and rumors as peripheral to the digital coin’s future success and potentially temporary.

NEW YORK — The cryptocurrency market appears to be unconcerned about a Chinese crackdown on bitcoin, the largest digital coin by market cap.

On Thursday reports that Chinese regulators would force bitcoin exchanges to shut by the end of September triggered a sell-off of nearly $1,000, bringing the price of the coin below $3,000 for the first time in over a month. Within a couple hours, however, bitcoin recouped most of those losses.

Since then, some of China’s largest cryptocurrency exchanges, including OKCoin and Huobi, have announced they will voluntarily halt trading between bitcoin and yuan and reports of further government intervention have emerged.

Still, bitcoin has nudged up near .72% over the past week, as traders brush off recent headlines as peripheral to the future of the digital coin.

Josh Olszwicz, a bitcoin trader, told Business Insider the markets are ignoring news out of China because it has zero impact on the coin’s actual technology.

“If it doesn’t affect the protocol, then it’s not a real problem,” he told Business Insider.”The bitcoin cash shakeup was much more worrisome from my perspective, but even then the core bitcoin protocol remained unaffected.”

On August 1, bitcoin forked into two different cryptocurrencies: bitcoin and bitcoin cash.

“Countries can try and ban bitcoin all they want, but people will still use it if they need and want to – the protocol doesn’t need government acceptance.”

Sebastian Quinn-Watson, of Blockchain Global, a bitcoin exchange operator, said the crackdown is just a temporary reaction to the explosive growth of the cryptocurrency market this year. Initial coin offerings, a fundraising method in which companies can issue their own cryptocurrencies to raise millions of dollars, alarmed regulators and forced them to take action to reign in the markets to prevent a possible crash. On September 4 regulators deemed ICOs, which has raised over $2 billion this year, illegal.

“By stepping in so dramatically and not allowing what would have been an almost inevitable crash in the crypto market, the regulators acted to ensure that investors did not irrevocably lose trust,” he said.

Quinn-Watson, who speaks frequently with regulators through his position at Blockchain Global, said he expects the regulatory pendulum to swing the other way eventually. Here’s Quinn-Watson (emphasis added):

“We do not see this halt as being long term. Innovation is a significant pillar of China’s economic growth plan. Fintech as a subset of innovation is a very important part of this pillar. The blockchain is an important part of this mix. The PBOC has teams of developers building out use cases for blockchain.”

He thinks regulators will ultimately allow companies to run ICOs through a government-supervised pilot program.

Still, not everyone agrees with Quinn-Watson. Jim Stent, author of “China’s Banking Transformation” said China’s crackdown is permanent, according to reporting by CNBC.

“I see the crackdown on bitcoin as part of this larger multi-agency program to reduce financial sector risk, which will unfold over months and probably years,” Stent said.”I do not see risk reduction as something temporary, nor do I see the bitcoin crackdown as temporary.”

China’s not as important as it once was

The decline of Chinese dominance over the cryptocurrency market could also be playing into the muted reaction by the markets to recent regulatory news. According to data from CoinDesk, the cryptocurrency news site, bitcoin trading against the Chinese yuan dropped off from a near 90% at the end of 2016 to around 10% to 20% for much of 2017

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Few Submarine cables Go offline, makes Pakistan isolate from rest of the world

At least three submarine cables, connecting Pakistan with rest of the world, have gone offline due to faults, we have checked with sources.

According to details shared with ProPakistani, IMEWE cable went down earlier today due to a hardware fault near Jeddah, Saudi Arabia.

It must be mentioned that IMEWE submarine cable carries significant amount of Pakistani bandwidth and its downtime is going to hit local ISPs with very serious challenges

 

While SEAMEWE 4 and TW1 submarine cables were already offline — since last month — due to faults of similar nature. They are still being repaired.

With today’s fault in IMEWE, Pakistan’s majority of backhaul bandwidth is currently unavailable and all sorts of the internet in the country is currently operating under severe capacity.

This means that entire Pakistan is currently relying on SEMEWE 3, SEAMEWE 5 and AAE1 submarine cables, out of which SEAMEWE3 operates with very limited capacity.

Not to mention, remaining two submarine cables (SEAMEWE5 and AAE1) went into operations very recently; and Pakistan could very well go into the dark, if both of these cables were not operational at this point in time.

All major ISPs, including PTCL, have issued an advisory to their customers about degraded internet speeds. No ETA has been communicated on the resolution of the faults as of yet.

This is a wake-up call for Ministry of IT and Telecom and Pakistan Telecommunication Authority, as the imagination of entire Pakistan going offline is just inches away.

Update (Aug 6th, 2017 – 1:30 PM)

We are getting confirmations that fault in IMEWE has been identified and maintenance teams are on the way to rectify the cuts.

While no ETA has been communicated as of yet, experts say that issue will be resolved in less than 12 hours from now.