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President Donald Trump’s pick to lead the Department of Labor, former Rep. Lori Chavez-DeRemer, R-Ore., has left Republicans in the Senate with some questions over her pro-union stances, but at the same time, she has generated some interest from pro-labor Democrats. 

In particular, the moderate Republican will need to explain to Republicans her support for the Protecting the Right to Organize Act (PRO Act), a controversial piece of legislation that was proposed a few years ago. 

Senate Majority Leader John Thune, R-S.D., told reporters that ‘support for the PRO Act is not something that most Republicans have tolerated in the past, but I think she’s attempted to address that, and my hope is that she can further clarify her position on some of those issues when she goes through the hearing process.’

The Protecting the Right to Organize Act was championed by Democrats and the International Brotherhood of Teamsters upon introduction. But others, such as most Republicans and the U.S. Chamber of Commerce, opposed it. 

The legislation would effectively kill state-level laws that prohibit employers and unions from requiring workers to pay union dues as a condition of their employment. 

Chavez-DeRemer will have her hearing in front of the Senate Committee on Health, Education, Labor and Pensions (HELP) on Wednesday. 

One committee member she’ll have to answer to is Sen. Rand Paul, R-Ky., who has already said he doesn’t plan to support her. 

‘Her support for the Pro Act, which would not only oppose national right to work, but it would preempt state law on right to work. I think it’s not a good thing, and it’d be sort of hard for me since it’s a big issue for me to support her. So I won’t support her,’ the senator previously told reporters. 

This puts Chavez-DeRemer in a difficult position, as she will need to rely on Democrats to help her advance out of the HELP committee favorably if Paul follows through on his commitment to voting against her. 

Sen. Markwayne Mullin, R-Okla., who is far from the most pro-union Republican in the upper chamber, is full speed ahead in favor of Trump’s pick as Chavez-DeRemer gears up for her hearing and eventual committee vote. 

In a phone interview with Fox News Digital, he explained that he and Teamsters President Sean O’Brien were involved in Trump’s selection of her for the key Cabinet role. Mullin further detailed the significance of union members in Trump’s winning 2024 election coalition. 

He claimed Democrats have ‘come to us and actually said this is actually a really good pick’ because it puts them in a difficult position and is hard to vote against with her support among labor unions. 

The senator didn’t give away any names of Democrats that might see her appeal, however. 

Paul previously predicted he wouldn’t be the only one unwilling to back her in the Republican conference.

‘I think she’ll lose 15 Republicans and she’ll get 25 Democrats. She’s very pro-labor, she might get all the Democrats. Who knows? So, we’ll see,’ he said. 

If his vote leaves her nomination tied at the committee level, it could still be reported and scheduled for a floor vote, but without a favorable recommendation. In this case, she would need to amass 60 votes in the full Senate to move on to confirmation. 

With her appeal among labor groups, Chavez-DeRemer may manage to put together a 60-plus bipartisan coalition to be confirmed. 

While Paul predicted more than a dozen GOP defectors, Mullin said the real number is likely much smaller.

‘I haven’t heard from any other Republicans that are a ‘no.’ Rand is the only one,’ he said. 

‘I don’t think his numbers are accurate, even close,’ the Oklahoma Republican added. 

A representative for Chavez-DeRemer did not provide comment to Fox News Digital.

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The United States Agency for International Development (USAID) provided millions of dollars in funding to extremist groups tied to designated terrorist organizations and their allies, according to a report published by Middle East Forum, a U.S. think tank.

‘The Middle East Forum’s multi-year study of USAID and State Department spending has uncovered $164 million of approved grants to radical organizations, with at least $122 million going to groups aligned with designated terrorists and their supporters,’ the conservative think tank wrote in its report published Feb. 4. 

‘Billions more of federal dollars have been given to leading American aid charities which have consistently failed to vet their terror-tied local partners, and show little interest in improving their practices, to the apparent indifference of the federal government.’

The Middle East Forum’s report focuses specifically on funds from USAID and the State Department that wound up in the hands of radical groups and organizations tied to terrorism.  

The think tank reported that among its top findings, USAID was found to have given more than $900,000 to a ‘Gaza-based terror charity’ called Bayader Association for Environment and Development. The funding began in 2016, and its most recent allocation was made just days before Hamas attacked Israel on Oct. 7, 2023. 

Bayader describes itself as a nongovernmental organization (NGO) that works ‘to build a civil society’ on the Gaza Strip. 

‘Founded in 2007, shortly after Hamas’s takeover of the Gaza Strip, Bayader operates in close cooperation with the Hamas regime. Its 2021 annual report notes ‘coordination’ and ‘meetings’ with Hamas’s Ministry of Interior, Ministry of Works, Ministry of Social Affairs and Ministry of Agriculture,’ the report found. 

The funds were secured through other NGOs, such as Catholic Relief Services and medical groups. 

‘​​But USAID coordinates directly with Bayader as well,’ according to the report. ‘USAID officials have praised Bayader’s work on social media, and even visited Bayader’s offices, where one senior USAID official, Jonathan Kamin, received an award from the terror-linked charity.’ 

The report also found that USAID approved a $12.5 million grant in 2024 to the American Near East Refugee Agency, which is also ‘a long-standing partner’ of Bayader. The American Near East Refugee Agency is an NGO that was established in 1968 in an effort to assist refugees following the Arab-Israeli War. 

The report found staffers with the NGO have repeatedly and publicly posted ‘violent ideas, without apparent censure from top charity officials.’ The comments on social media posted by employees include: calling on God to ‘erase the Jews,’ expressing support for the ‘brave prisoners’ in Israeli jails during the Hamas-Israel war, and describing Oct. 7, 2023, as a ‘beautiful morning.’

Sam Westrop, the director of the Middle East Forum’s counter-extremism project, Islamist Watch, posted a highlight thread on X of the report’s findings, describing the examples as ‘horrifying.’

‘USAID won’t even tell us how much they gave the Unlimited Friends Association, a Gaza terror charity which operates with help from Hamas. The head of the charity promises to ‘cleanse’ their land of ‘impure Jews,’’ Westrop posted in the thread of an example. 

‘USAID gave millions to Islamic Relief, whose Gaza branch openly works with senior terrorist officials in Gaza, including Hamas politburo member Ghazi Hamad. who promised that Hamas would repeat Oct 7 attacks ‘time and again until Israel is annihilated,’’ he posted in another example from the report. 

USAID funds totaling $125,000 were found in the hands of the Islamic Relief Agency (ISRA) in 2015, despite the U.S. Treasury designating the group a global terrorist organization in 2004 due to its ties to Osama bin Laden. 

The report continued that USAID ‘undoubtedly knew of ISRA’s terrorism activities. In 2010, the executive director of ISRA’s U.S. branch (IARA-USA) and a board member pleaded guilty to money-laundering, theft of public funds, conspiracy, and several other charges. The plea was listed on USAID’s own website,’ the report found. IARA-USA stands for the Islamic American Relief Agency.

The funds were directed to ISRA via an evangelical charity called World Vision that works to provide clean water to areas of Sudan, according to the report. 

A World Vision official told Fox News Digital when asked about the report that the charity earned approval to work in Sudan ‘to help build a better world for the most vulnerable children and their families’ and that it takes ‘compliance obligations seriously.’

‘As soon as we became aware that a local partner, Islamic Relief Agency, might be on the list of organizations banned from transactions by the United States, we suspended the grant and asked the US Government to confirm its status,’ the official said. ‘We would never knowingly put those we serve or our staff at risk by working with a partner on the list of banned organizations. We exist to help build a better world for children and their families, serving in the name of Jesus Christ. We have no evidence that any of our funds have been used for anything other than urgent humanitarian work.’ 

‘As a Christian humanitarian organization, we do not compromise our beliefs nor commitment to integrity as we work with governments throughout the world,’ the official said. ‘It is not easy to operate in fragile contexts, yet this is where the Lord is calling us.  We remain committed to our vision of bringing life in all its fullness to vulnerable children around the world.’ 

Fox News Digital reached out to Bayader, the American Near East Refugee Agency and Catholic Relief Services but did not receive replies. 

USAID is under fire from the Trump administration as the Department of Government Efficiency (DOGE) and its chair, Elon Musk, investigate the agency’s spending practices and prepare to revamp and potentially shutter the agency. USAID is currently led by interim director Secretary of State Marco Rubio. 

The agency announced on its website on Tuesday, Feb. 4, that nearly all personnel would be placed on leave by Friday, making a few exceptions for those in roles related to ‘mission-critical functions, core leadership and specially designated programs.’ Its overseas missions reportedly also had been told to shut down.

Lawmakers, news outlets and think tanks have dug into past reports related to USAID spending amid the apparent dismantling of the agency, finding countless examples of money channeled to questionable organizations or programs, such as creating a version of ‘Sesame Street’ in Iraq or funding pottery classes in Morocco. 

USAID was established in 1961 under the Kennedy administration, operating as an independent agency that works closely with the State Department to allocate civilian foreign aid. Under Rubio, the agency could be abolished after its reorganization over the coming days, he said in a letter to bipartisan lawmakers on Feb. 3. 

‘In consultation with Congress, USAID may move, reorganize, and integrate certain missions, bureaus, and offices into the Department of State, and the remainder of the Agency may be abolished consistent with applicable law,’ Rubio wrote.

Musk, meanwhile, has posted on X that USAID is a ‘criminal organization’ and that it is ‘time for it to die.’

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FBI records from the Mar-a-Lago classified documents probe will soon be released despite the dismissal of the case against President Donald Trump and his presidential immunity, according to a federal judge’s ruling Monday.

In a court filing first obtained by Politico, U.S. District Judge Beryl Howell found that the FBI must disclose more information related to the case by Feb. 20. 

The decision concerned a Freedom of Information Act (FOIA) case brought by journalist Jason Leopold.

Leopold filed a request with the FBI in 2022 after reports that Trump during his first term ‘allegedly flushed some presidential records down the toilet when he was still in the White House and brought presidential records, including sensitive classified documents, to his personal residence in Florida,’ according to the filing.

The FBI asked the court to authorize withholding the records under Exemption 7A, which concerns ‘records or information compiled for law enforcement purposes, but only to the extent that production of such law enforcement records or information…could reasonably be expected to interfere with enforcement proceedings.’

In light of the SCOTUS ruling on presidential immunity as well as Trump’s election win in November, Trump is exempt from criminal proceedings, but Howell found the documents could still be released because of that fact, as there are no law enforcement proceedings against him.

‘Somewhat ironically, the constitutional and procedural safeguards attached to the criminal process include significant confidentiality mechanisms…. with a parallel safeguard in Exemption 7(A) to help preserve the necessary confidentiality of ongoing criminal investigations leading to anticipated enforcement actions, but for an immune president, Exemption 7(A) may simply be unavailable, as it is here,’ Howell said.

‘Defendants’ motion for summary judgment seeking judgment in their favor as to the legality of relying on Exemption 7(A) to withhold entirely the FBI’s investigative files from the processing of the FOIA request at issue and to assert a Glomar response to the sixth category of requested information, must be denied, and plaintiff’s cross motion for summary judgment as to these legal issues is granted,’ the decision concluded. ‘The parties are directed to submit jointly, by February 20, 2025, a status report proposing a schedule to govern future proceedings to conclude this case expeditiously.’

Howell also noted that though Trump is immune from prosecution, anyone who may have helped to ‘aid, abet and execute criminal acts,’ is not.

‘Of course, while the Supreme Court has provided a protective and presumptive immunity cloak for a president’s conduct, that cloak is not so large to extend to those who aid, abet and execute criminal acts on behalf of a criminally immune president,’ Howell wrote in a footnote. ‘The excuse offered after World War II by enablers of the fascist Nazi regime of ‘just following orders’ has long been rejected in this country’s jurisprudence.’

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The hard-line conservative House Freedom Caucus has released its own proposal to enact President Donald Trump’s agenda via the budget reconciliation process.

The plan would pair a debt ceiling increase and increased border security funding with deep spending cuts through welfare work requirements and rollbacks on progressive Biden administration initiatives.

It’s a sign that House GOP leaders have still not found consensus within the conference on a path forward, despite ambitious plans to get a bill through the chamber at the end of the month.

House and Senate Republicans are aiming to use their congressional majorities to pass a massive conservative policy overhaul via the budget reconciliation process.

By reducing the Senate’s threshold for passage from one-third to a simple majority, where the House already operates, Republicans will be able to enact Trump’s plans while entirely skirting Democratic opposition, provided the items included relate to budgetary and other fiscal matters.

GOP lawmakers want to include a wide swath of Trump priorities from more funding for border security to eliminating taxes on tipped and overtime wages.

But fiscal hawks have also demanded the package be deficit-neutral or deficit-reducing. Congressional leaders can afford little dissent with their razor-thin majorities and guaranteed lack of Democratic support.

The Freedom Caucus’s plan would follow through on conservatives’ pleas for deep spending cuts, pairing $200 billion in annual new spending for the border and national defense with $486 billion in spending cuts for the same 10-year period.

It would also include a $4 trillion increase in the debt ceiling, something Trump demanded be part of Republicans’ fiscal negotiations.

Spending cuts would be found in codifying rollbacks to the Biden administration’s electric vehicle mandates and imposing Clinton administration-era work requirements for certain federal benefits, among other measures.

The legislation leaves out one critical component of Trump’s reconciliation goals – the extension of his 2017-era Tax Cuts and Jobs Act.

House GOP leaders and Republicans on the Ways & Means Committee had pushed for them to be included alongside border security, debt ceiling, defense and energy measures in one massive reconciliation bill. 

They argued that leaving them for a second bill, which the House Freedom Caucus plan would do, will allow Trump’s tax cuts to expire at the end of this year before Congress has time to act.

The two-track approach is also favored by Senate Republicans, who are moving forward with their own plan this week.

Conservatives on the House Budget Committee pushed back against GOP leaders’ initial proposals for baseline spending cuts to offset new spending in the reconciliation plan, forcing the House to punt on plans to advance a resolution through the House Budget Committee last week.

Senate Budget Committee Chair Lindsey Graham, R-S.C., later announced plans to advance his own proposal through his committee by Thursday.

”The biggest loser this weekend wasn’t at the Super Bowl, but rather the American people,’ Rep. Andy Ogles, R-Tenn., told Fox News Digital. ‘The clock is ticking, and we are no closer to a budget deal, which is why the House Freedom Caucus released our Emergency Border Control Resolution Budget to secure our border and address Trump’s America First Agenda.’

House Freedom Caucus Chair Andy Harris, R-Md., said in a statement, ‘Given the current delay in the House on moving a comprehensive reconciliation bill, moving a smaller targeted bill now makes the most sense to deliver a win for the President and the American people.’

Rep. Michael Cloud, R-Texas, said, ‘The American people voted for Donald Trump to see action – not for Congress to sit on its hands while our short window to pass his America-First agenda closes.’

Supporters of the two-bill approach have said it would secure early wins on issues Republicans agree most on while leaving more complex matters like tax cuts for the latter half of the year.

This post appeared first on FOX NEWS

President Donald Trump’s suggestion that Palestinians should leave Gaza to rebuild their lives after months of war has triggered a wave of reactions, exposing deep divisions within the enclave and across the Arab world.

Speaking alongside Israeli Prime Minister Benjamin Netanyahu at the White House last week, Trump outlined his vision for Gaza’s future, describing it as ‘the Riviera of the Middle East.’ His proposal to relocate 1.8 million Palestinians sparked outrage among Palestinian leaders and drew mixed reactions from Gazans.

While some Gazans have rejected emigration, others see it as their only hope.

‘I’m asking Donald Trump himself to relocate us as he suggested. And I’ll be the first one to go,’ one young man told the Center for Peace Communications team in Gaza during a camera interview. The man described his bleak reality, saying, ‘I want to leave because there’s no life left here. Life here is gone. I mean, just look around you.’

Another Gazan called on neighboring Arab countries to provide an escape route. ‘To our brotherly Egyptian and Jordanian people and King Abdullah—we hope they open the crossing for the youth who are leaving, for the wounded, for the sick, and the elderly who need treatment.’

Jordan’s King Abdullah is set to meet with President Trump on Tuesday, having rejected his plan for annexing Gaza and displacing Palestinians, Reuters reported.

The Palestinian Center for Policy and Survey Research poll conducted before the October 7 terror attacks found that 31% of Gazans were already considering emigration—44% among young people. The most popular countries were Turkey, followed by Germany, Canada, the United States and Qatar.

The poll’s authors said, ‘The main drivers seem economic, political, educational, security and concerns about corruption.’

Joseph Braude, founder and president of the Center for Peace Communications, told Fox News Digital that the number has grown significantly due to the ongoing devastation. ‘Through our daily contact with Gazans from all walks of life across the coastal strip, we have seen that proportion grow, amid the destruction of the present war, to a substantial majority of the population.’

Ayman Khaled, a Palestinian journalist, echoed similar sentiments, pointing to the grim prospects for rebuilding Gaza after months of relentless Israeli bombardment. ‘Gaza will need to go through a very long period of reconstruction. In that long period of time, where will the youth go? Where will the wounded go? We have more than 100,000 wounded. Even before the last war, a stream of people were leaving Gaza—workers, students, business people. That’s how it looked then. Now, those trends will double. There is no hope for the reconstruction of Gaza, not in a year nor 10 nor 15.’

He also warned that as long as Hamas remains in power, cycles of violence will continue, pushing more people to flee. ‘If Hamas remains on the scene, this will keep happening. Every day, we’ll have new killings. After every battle, they say they are victorious—but what is this victory? If we don’t seriously address the issue of Hamas leaving the political scene, we cannot talk about anything else. If Hamas remains, people will emigrate, whether willingly or unwillingly.’

Hamas described Trump’s plan as a ‘recipe for creating chaos and tension in the region,’ and for many Gazans, leaving is unthinkable. Speaking to The Associated Press, Mustafa al-Gazzar, a displaced Gazan, dismissed the idea of leaving. ‘You think you’ll expel me abroad and bring other people in my place? I would rather live in my tent, under rubble. I won’t leave. Put that in your brain.’

Amna Omar, 71, who has been sheltering in central Gaza, was equally defiant. ‘Gaza is our land, our home. We as Gazans… I don’t want to die in Egypt.’

Another woman in Deir al-Balah told Israeli news agency TPS-IL, ‘We clung to our destroyed homes and we clung to the soil of Palestine.’ While voluntary emigration has been quietly discussed for years, Trump’s endorsement has turned it into a divisive issue. Arab governments, wary of being seen as complicit in Palestinian displacement, have been quick to condemn it.

However, with Gaza in ruins and no reconstruction in sight, the debate over emigration is no longer theoretical. The question is not whether Gazans want to leave, but whether they will have the opportunity to do so.

A Gazan man interviewed on-camera by the Center for Peace Communications said ‘In the end, people will accept reality. They’ll emigrate because they want to live. They want to live in a country that protects and supports them. A country where you can hold your head up high. If our country isn’t looking out for us, where should we go?’

Reuters and The Associated Press contributed to this article.

This post appeared first on FOX NEWS

McDonald’s on Monday reported disappointing quarterly revenue, dragged down by weaker-than-expected sales at its U.S. restaurants following an E. coli outbreak just weeks into the quarter.

But shares of the company rose more than 4% in morning trading as executives predicted sales would improve in 2025.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

Net sales of $6.39 billion were roughly flat compared with the year-ago period. The company’s overall same-store sales growth of 0.4% outperformed Wall Street’s expectations of same-store sales declines of 1%, according to StreetAccount estimates.

But McDonald’s U.S. business reported a steeper-than-expected drop in its same-store sales. Same-store sales at the company’s domestic restaurants fell 1.4% in the quarter; Wall Street was projecting same-store sales declines of 0.6%.

McDonald’s said traffic was slightly positive, but customers spent less than usual during the quarter. Over the summer, the chain rolled out a $5 combo meal to bring back price-conscious diners and reverse sluggish sales. The strategy worked, helping McDonald’s U.S. same-store sales tick up in the third quarter.

However, analysts have warned that value meals only work if customers also add menu items that aren’t discounted to their orders. McDonald’s executives downplayed those concerns Monday, saying the average check on the $5 meal deal is more than $10.

The biggest hit to McDonald’s U.S. sales came in late October, when the Centers for Disease Control and Prevention linked a fatal E. coli outbreak to its Quarter Pounder burgers. McDonald’s switched suppliers for its slivered onions, the ingredient fingered as the likely culprit for the outbreak. In early December, the CDC declared the outbreak officially over.

However, in the days following the news of the outbreak, traffic at McDonald’s U.S. restaurants fell steeply, particularly in the states affected.

U.S. sales hit their nadir in early November, but began rising again after that. In particular, demand for the Quarter Pounder, a popular core menu item with high margins, fell quickly in the wake of the crisis.

McDonald’s expects its U.S. sales to recover by the beginning of the second quarter, executives said.

“I think right now what we’re seeing is that the E. coli impact is now just localized to the areas that had the biggest impact,” CEO Chris Kempczinski said on the company’s conference call. “So think about that as sort of the Rocky Mountain region that was really the epicenter of the issue.”

The company hopes value deals, along with key menu additions, will help to fuel the recovery this year. In 2025, the burger chain plans to bring back its popular snack wraps, which vanished from menus during pandemic lockdowns, and to introduce a new chicken strip menu item.

Outside the U.S., sales were stronger. Both of McDonald’s international divisions reported same-store sales increases, bolstering the company’s overall performance.

The company’s international developmental licensed markets segment, which includes the Middle East and Japan, reported same-store sales growth of 4.1%.

McDonald’s international operated markets division, which includes some of its biggest markets, reported same-store sales growth of 0.1%. The company said most markets reported same-store sales increases, but the United Kingdom and some other markets saw same-store sales shrink in the quarter. One bright spot was France, which saw its same-store sales turn positive during the quarter after months of weak demand.

McDonald’s reported fourth-quarter net income of $2.02 billion, or $2.80 per share, down from $2.04 billion, or $2.80 per share, a year earlier.

Excluding gains tied to the sale of its South Korean business, transaction costs for buying its Israeli franchise and other items, McDonald’s earned $2.83 per share.

Looking to 2025, the first quarter is expected to be the low point for McDonald’s same-store sales, CFO Ian Borden said, citing a weak start to the year in the U.S., among other factors. Winter storms and wildfires in California weighed on restaurant traffic across the industry in January.

For the full year, McDonald’s plans to open roughly 2,200 restaurants. About a quarter of those locations will be in the U.S. and its international operated markets. The rest will be in the company’s international developmental licensed markets, including about 1,000 new restaurants in China.

Including its investments in restaurant openings, McDonald’s plans to spend between $3 billion and $3.2 billion this year on capital expenditures.

The company is also projecting a headwind of 20 cents to 30 cents per share to its full-year earnings due to foreign currency exchange rates.

This post appeared first on NBC NEWS

Shares of GameStop and MicroStrategy were on the rise Monday after Ryan Cohen, CEO of the video game retailer, posted a photo with Michael Saylor, co-founder and chairman of the largest corporate holder of bitcoin.

GameStop, day traders’ favorite meme stock, climbed more than 7%, while MicroStrategy, which recently rebranded as “Strategy,” saw shares rising as much as 4%. Cohen uploaded the photo over the weekend on X, sparking speculation that GameStop is plotting another strategy around crypto. MicroStrategy shares last traded up 1%.

The video game company had expanded into digital services in recent years by offering crypto wallets that let users manage their crypto and nonfungible tokens. However, the firm shut the service down in 2023, citing “regulatory uncertainty.”

Cohen, co-founder of Chewy, bought shares in GameStop in 2020 and joined the board in 2021 as GameStop became one of the key stocks in the WallStreetBets meme trading mania.

His e-commerce experience fueled hopes that he could help modernize the brick-and-mortar retailer, but the company still struggles to adapt to changing spending habits by gamers. Trading in the stock remains highly volatile and speculative as meme stock personality “Roaring Kitty” continues to spur buying from retail investors.

Saylor’s Strategy also has a fan base of retail investors as the firm touted its aggressive bitcoin-buying strategy. In the past year, the firm has raised billions of dollars through the sale of stock or convertible bonds for the sole purpose of purchasing more bitcoin.

Last week, Strategy said it’s almost halfway to its ambitious capital-raising goal as it went on a buying spree throughout the postelection rally. As of Monday, Strategy holds roughly $47 billion worth of bitcoins on its balance sheet, about 2.5% of the total supply.

This post appeared first on NBC NEWS

McDonald’s on Monday reported disappointing quarterly revenue, dragged down by weaker-than-expected sales at its U.S. restaurants following an E. coli outbreak just weeks into the quarter.

But shares of the company rose more than 4% in morning trading as executives predicted sales would improve in 2025.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

Net sales of $6.39 billion were roughly flat compared with the year-ago period. The company’s overall same-store sales growth of 0.4% outperformed Wall Street’s expectations of same-store sales declines of 1%, according to StreetAccount estimates.

But McDonald’s U.S. business reported a steeper-than-expected drop in its same-store sales. Same-store sales at the company’s domestic restaurants fell 1.4% in the quarter; Wall Street was projecting same-store sales declines of 0.6%.

McDonald’s said traffic was slightly positive, but customers spent less than usual during the quarter. Over the summer, the chain rolled out a $5 combo meal to bring back price-conscious diners and reverse sluggish sales. The strategy worked, helping McDonald’s U.S. same-store sales tick up in the third quarter.

However, analysts have warned that value meals only work if customers also add menu items that aren’t discounted to their orders. McDonald’s executives downplayed those concerns Monday, saying the average check on the $5 meal deal is more than $10.

The biggest hit to McDonald’s U.S. sales came in late October, when the Centers for Disease Control and Prevention linked a fatal E. coli outbreak to its Quarter Pounder burgers. McDonald’s switched suppliers for its slivered onions, the ingredient fingered as the likely culprit for the outbreak. In early December, the CDC declared the outbreak officially over.

However, in the days following the news of the outbreak, traffic at McDonald’s U.S. restaurants fell steeply, particularly in the states affected.

U.S. sales hit their nadir in early November, but began rising again after that. In particular, demand for the Quarter Pounder, a popular core menu item with high margins, fell quickly in the wake of the crisis.

McDonald’s expects its U.S. sales to recover by the beginning of the second quarter, executives said.

“I think right now what we’re seeing is that the E. coli impact is now just localized to the areas that had the biggest impact,” CEO Chris Kempczinski said on the company’s conference call. “So think about that as sort of the Rocky Mountain region that was really the epicenter of the issue.”

The company hopes value deals, along with key menu additions, will help to fuel the recovery this year. In 2025, the burger chain plans to bring back its popular snack wraps, which vanished from menus during pandemic lockdowns, and to introduce a new chicken strip menu item.

Outside the U.S., sales were stronger. Both of McDonald’s international divisions reported same-store sales increases, bolstering the company’s overall performance.

The company’s international developmental licensed markets segment, which includes the Middle East and Japan, reported same-store sales growth of 4.1%.

McDonald’s international operated markets division, which includes some of its biggest markets, reported same-store sales growth of 0.1%. The company said most markets reported same-store sales increases, but the United Kingdom and some other markets saw same-store sales shrink in the quarter. One bright spot was France, which saw its same-store sales turn positive during the quarter after months of weak demand.

McDonald’s reported fourth-quarter net income of $2.02 billion, or $2.80 per share, down from $2.04 billion, or $2.80 per share, a year earlier.

Excluding gains tied to the sale of its South Korean business, transaction costs for buying its Israeli franchise and other items, McDonald’s earned $2.83 per share.

Looking to 2025, the first quarter is expected to be the low point for McDonald’s same-store sales, CFO Ian Borden said, citing a weak start to the year in the U.S., among other factors. Winter storms and wildfires in California weighed on restaurant traffic across the industry in January.

For the full year, McDonald’s plans to open roughly 2,200 restaurants. About a quarter of those locations will be in the U.S. and its international operated markets. The rest will be in the company’s international developmental licensed markets, including about 1,000 new restaurants in China.

Including its investments in restaurant openings, McDonald’s plans to spend between $3 billion and $3.2 billion this year on capital expenditures.

The company is also projecting a headwind of 20 cents to 30 cents per share to its full-year earnings due to foreign currency exchange rates.

This post appeared first on NBC NEWS

Vilnius, Lithuania (REUTERS) – Estonia, Latvia and Lithuania said on Sunday they had successfully synchronized their electricity systems to the European continental power grid, one day after severing decades-old energy ties to Russia and Belarus

Planned for many years, the complex switch away from the grid of their former Soviet imperial overlord is designed to integrate the three Baltic nations more closely with the European Union and to boost the region’s energy security.

“We did it!,” Latvian President Edgars Rinkevics said in a post on social media X.

After disconnecting on Saturday from the IPS/UPS network, established by the Soviet Union in the 1950s and now run by Russia, the Baltic nations cut cross-border high-voltage transmission lines in eastern Latvia, some 100 meters (328 feet) from the Russian border, handing out pieces of chopped wire to enthusiastic bystanders as keepsakes.

EU foreign policy chief Kaja Kallas, herself an Estonian, earlier this week called the switch “a victory for freedom and European unity.”

The Baltic Sea region is on high alert after power cable, telecom links and gas pipeline outages between the Baltics and Sweden or Finland. All were believed to have been caused by ships dragging anchors along the seabed following Russia’s invasion of Ukraine. Russia has denied any involvement.

Poland and the Baltics deployed navy assets, elite police units and helicopters after an undersea power link from Finland to Estonia was damaged in December, while Lithuania’s military began drills to protect the overland connection to Poland.

Analysts say more damage to links could push power prices in the Baltics to levels not seen since the invasion of Ukraine, when energy prices soared.

The IPS/UPS grid was the final remaining link to Russia for the three countries, which re-emerged as independent nations in the early 1990s at the fall of the Soviet Union, and joined the European Union and NATO in 2004.

The three staunch supporters of Kyiv stopped purchases of power from Russia following Moscow’s invasion of Ukraine in 2022, but have relied on the Russian grid to control frequencies and stabilize networks to avoid outages.

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Israel completed its withdrawal from the Netzarim Corridor on Sunday, a key road that splits Gaza in half, as part of its commitments under a ceasefire agreement with Hamas.

Palestinians have been filing through the area by foot, car and in some cases, by donkeys video footage showed, although those traveling must navigate a checkpoint and the destruction wrought by months of fighting in Gaza.

“I was displaced a long time ago. I have seen people arriving on this road, sometimes even sleeping on it while waiting for the Israeli army to withdraw,” said Osama Saleem, who was waiting for his vehicle to be inspected.

“I hope the Israeli army withdraws from all of Gaza and that life returns to normal,” he added.

Hamas said in a statement that Israeli forces had fully withdrawn from the corridor, a six-kilometer strip of land that separates the north of the strip from its south and stretches from the Israel-Gaza border to the Mediterranean Sea.

The Israel Defense Forces (IDF) had occupied the corridor since the early days of its war in Gaza.

“The withdrawal of the Zionist occupation army from the Netzarim axis is a victory for the will of our people,” a Hamas statement issued Sunday said.

Israel had used the corridor as a zone of occupation during its 15-month assault on the strip. Its troops began withdrawing from Netzarim Corridor two weeks ago as part of the ceasefire agreement with Hamas. Since then, hundreds of thousands of Palestinians displaced in the south have been able to cross Netzarim to return to their homes in the heavily bombarded north of Gaza.

Israel retains its presence along Gaza’s borders with Egypt and Israel.

A checkpoint run by Egyptian and Qatari officials – countries which play a mediator role between the warring sides – remains at Netzarim.

Israel’s complete withdrawal from Netzarim is part of its commitment to the fragile ceasefire and hostage agreement, which on Saturday saw the release of another three hostages – bringing the number released so far to 16 out of a total of 33 people promised to be released at staggered intervals during this stage.

Ohad Ben Ami, Eli Sharabi and Or Levy – all taken captive during the Hamas-led October 7 attack – were freed in return for 183 Palestinian prisoners, although their frail and gaunt appearances drew condemnation from Israel.

Negotiations on the agreement’s second and third phases are still in doubt.

Israeli Prime Minister Benjamin Netanyahu has been deeply wary of phase two of the deal, which would see the full withdrawal of Israeli troops from Gaza and the return of the remaining hostages there. His finance minister, Bezalel Smotrich, has pledged to quit the government if the ceasefire continues.

Khader Al-Za’anoun of Wafa, the official Palestinian news agency, contributed reporting.

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