This Analyst Now Favors Chevron Shares Over Exxon

Chevron’s cash at hand, Permian Basin assets and related growth opportunities are leading analysts to think the company is a better bet than Exxon Mobil, according to the investment banking company Jefferies. In the past, Jefferies analysts have preferred Exxon over Chevron for the purposes of estate planning and portfolio management, but at the close of February, the firm preferred the later instead. Both American companies are included in the S&P 500 – a benchmark index that has been up around six percent since the beginning of…

This Analyst Now Favors Chevron Shares Over Exxon

Chevron’s cash at hand, Permian Basin assets and related growth opportunities are leading analysts to think the company is a better bet than Exxon Mobil, according to the investment banking company Jefferies. In the past, Jefferies analysts have preferred Exxon over Chevron for the purposes of estate planning and portfolio management, but at the close of February, the firm preferred the later instead. Both American companies are included in the S&P 500 – a benchmark index that has been up around six percent since the beginning of…

Ireland Prioritizes Energy Projects As Brexit Looms

Ireland’s Energy Minister told reporters last week that ending the country’s dependence on Britain for virtually all of its energy needs had become a national priority as the technical negotiations regarding Brexit unfold. A power cable that connects Ireland to France and a liquefied natural gas terminal have been given new importance, Minister Denis Naughten told Reuters on Friday. “It has become a bigger priority for everyone on foot of Brexit…because we are so dependent on imports of energy, we need to have options available to…

Minimum Wage Massacre: Wendy’s Unleashes 1,000 Robots To Counter Higher Labor Costs

In yet another awkwardly rational response to government intervention in deciding what’s “fair”, the blowback from minimum wage demanding fast food workers has struck again. Wendy’s plans to install self-ordering kiosks in 1,000 of its stores – 16% of its locations nationwide.

“Last year was tough — 5 percent wage inflation,” said Bob Wright, Wendy’s chief operating officer, during his presentation to investors and analysts last week. He added that the company expects wages to rise 4 percent in 2017. “But the real question is what are we doing about it?”

 

Wright noted that over the past two years, Wendy’s has figured out how to eliminate 31 hours of labor per week from its restaurants and is now working to use technology, such as kiosks, to increase efficiency.

Wendy’s chief information officer, David Trimm, said the kiosks are intended to appeal to younger customers and reduce labor costs. Kiosks also allow customers of the fast food giant to circumvent long lines during peak dining hours while increasing kitchen production.

As Dispatch.com reports, the Dublin-based burger giant started offering kiosks last year, and demand for the technology has been high from both customers and franchise owners.

“There is a huge amount of pull from (franchisees) in order to get them,” David Trimm, Wendy’s chief information officer, said last week during the company’s investors’ day.

 

“With the demand we are seeing … we can absolutely see our way to having 1,000 or more restaurants live with kiosks by the end of the year.”

 

A typical store would get three kiosks for about $15,000. Trimm estimated the payback on those machines would be less than two years, thanks to labor savings and increased sales. Customers still could order at the counter.

 

Kiosks are where the industry is headed, but Wendy’s is ahead of the curve, said Darren Tristano, vice president with Technomic, a food-service research and consulting firm.

 

“They are looking to improve their automation and their labor costs, and this is a good way to do it,” he said.

Who could have seen that coming? As we noted previously, minimum wage laws – while advertised under the banner of social justice – do not live up to the claims made by those who tout them. They do not lift low wage earners to a so-called “social minimum”. Indeed, minimum wage laws — imposed at the levels employed in Europe — push a considerable number of people into unemployment. And, unless those newly unemployed qualify for government assistance (read: welfare), they will sink below, or further below, the social minimum.

As Nobelist Milton Friedman correctly quipped, “A minimum wage law is, in reality, a law that makes it illegal for an employer to hire a person with limited skills.”

Despite the piling up mountain of evidence on the harmful “unintended consequences” of artificially high minimum wages, we suspect we already know how this story ends.  After all, it’s much easier to win elections by promising people more stuff rather than less.  And, as an added bonus, when it all goes horribly wrong it’s very easy to lame the blame at the feet of the wealthy 1%’ers who are behind all the layoffs. Checkmate.

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The Biggest Winner Of The New U.S. Shale Boom

As Saudi Arabia cuts even more oil than promised, U.S. shale production is up by 176,000 barrels per day—but it’s the frac sand industry that will feel the real revolution, and micro-cap sand producers who have flown under the radar until now are about to come up for some very lucrative air. But the U.S. shale rebound started even before the historical OPEC deal—so we’re already running out of time to get in on the frac sand euphoria. Last week, the Saudis said they had cut production to below 10 million barrels per day,…