Aussie hipsters a Maccas hope
Tabcorp owns up to cash laundering
GAMBLING company Tabcorp Holdings has admitted it failed to report suspicious financial transactions to the Government’s anti-terrorism and money laundering regulator.
The company yesterday confirmed its Victorian and NSW gaming organisations did not report the transactions to the Australian Transaction Reports and Analysis Centre as required by law.
The admission follows Federal Court action by AUSTRAC against the company earlier this week which alleged long-term compliance issues and more than 100 separate breaches of anti-money laundering laws by Tabcorp.
The action carries penalties of up to $17 million. The company yesterday said it had been aware of AUSTRAC’s concerns for an “extended period” and has been trying to resolve the issues.
Tabcorp shares closed steady at $4.77 yesterday after falling from a high of $4.98 before the action was revealed. WOULD you like kale fries with that?
McDonald’s, the world’s biggest restaurant chain, is suffering a slump in the US but a turnaround may be found in the revamped “hipster” Australian operation.
In June, McDonald’s Australia posted 10 consecutive months of positive sales numbers following a year in which it rolled out expanded menu offerings and cafe redesigns.
“The business has turned in Australia and the market is focused on sustaining positive performance,” said CEO Steve Easterbrook at the company’s second quarterly earnings call this week.
He highlighted the initiatives taken by the Australian team including the rollout of a DIY burger menu service and the relaunch of a loose change value menu and barista-quality coffee at its restaurants.
“We are going to learn a lot of how that works,” Mr Easterbrook said on the Australian model.
“And when something works we can then transport it from market to market at pace.”
The Australian McDonald’s business is a bright spot against the dismal US market which has faced three years of slumping sales.
The US market accounts for 40 per cent of business but has suffered against competitors such as Chipotle and ShakeShack which are viewed as healthier or up-market alternatives.
Yesterday’s second-quarter results showed revenue down 10 per cent to $6.5 billion and the US share price at 97¢, an improvement on the 88¢ nadir in 2014.
A turnaround plan was announced in May and the Australian strategy has been closely watched.
“It does appear that they’re very in tune to what customers want and that’s a good sign,” said an analyst.