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Jul 30, 2014

Yum says China food safety scare hurting KFC, Pizza Hut sales

July 30 (Reuters) – A television expose showing improper
meat handling by one of its Chinese suppliers caused
“significant, negative” damage to sales at its KFC and Pizza Hut
restaurants over the past 10 days, Yum Brands Inc said
on Wednesday.

“If the significant sales impact is sustained, it will have
a material effect on full-year earnings per share,” Yum said in
a regulatory filing.

Jul 29, 2014

U.S. food industry lobbying spikes amid GMO fight: report

NEW YORK (Reuters) – U.S. food companies spent almost as much lobbying Congress in the first quarter of 2014 as they did in the full year in 2013, a sign the industry may have intensified its fight against state labeling requirements for genetically engineered foods, according to a report released Tuesday.

The Grocery Manufacturers Association (GMA), along with companies such as PepsiCo Inc and Coca-Cola Co contributed to the $9 million in spending related to such lobbying efforts in the first quarter of 2014, according to an Environmental Working Group (EWG) report.

Jul 29, 2014

Darden CEO steps down amid food fight with investors

July 28 (Reuters) – Darden Restaurants Inc’s food
fight with activist investors Barington Capital Group LP and
Starboard Value LP entered a new phase on Monday, when the
company said Clarence Otis would step down as chairman and chief
executive officer.

In further concessions, Orlando-based Darden said it would
separate the chairman and chief executive roles, and clear the
way for some of Starboard’s proposed directors to be elected at
its annual meeting.

Jul 29, 2014

Darden CEO to step down amid investor pressure, stock jumps

By Lisa Baertlein

(Reuters) – Darden Restaurants Inc said on Monday that Clarence Otis would step down as chairman and chief executive officer, buckling under pressure from activist investors Barington Capital Group LP and Starboard Value LP.

Shares of Darden, which just closed the sale of its Red Lobster chain and is working to boost business at its flagship Olive Garden restaurants, jumped 5 percent in extended trading.

Jul 28, 2014

Darden CEO Clarence Otis to step down, stock jumps

July 28 (Reuters) – Darden Restaurants Inc said
Clarence Otis would step down as chairman and chief executive
officer, buckling under pressure from activist investors
Barington Capital Group LP and Starboard Value LP.

After the news, Darden shares jumped 5.4 percent in extended
trading.

Darden also said it would separate the chairman and chief
executive officer roles.

Jul 24, 2014

Dunkin’ Brands cuts 2014 forecast; shares fall

By Lisa Baertlein

(Reuters) – Dunkin’ Brands Group Inc DNKN.O cut its 2014 outlook on Thursday as its U.S. doughnut shops battled fast-food rivals like McDonald’s Corp MCD.N and high milk prices softened profits from its international Baskin-Robbins ice cream business.

Shares of the company, which also reported disappointing second-quarter sales at its established U.S. Dunkin’ Donuts franchises, dropped nearly 5 percent in morning trading.

Jul 24, 2014

McDonald’s feels “bit deceived” by audit results from China plant

July 22 (Reuters) – McDonald’s Corp Chief Executive
Don Thompson said the company feels “a bit deceived” by the
audit it received for China supplier Shanghai Husi Food Co Ltd,
which was shut down after a television report showed workers
mishandling meat and mixing fresh meat with product past its
expiration date.

“We are no longer serving product from the primary facility
there that has the challenges and the issues,” Thompson said on
a conference call following its quarterly report on Tuesday.

Jul 23, 2014

Yum China severs ties with owner of plant in meat scandal

July 23 (Reuters) – Yum Brands Inc’s China division
has stopped buying from OSI China, after Shanghai police
detained five people connected to the meat supplier’s factory at
the center of a new food safety scandal, Yum said on Wednesday.

“Yum China has decided to immediately terminate all
procurement from OSI China,” including Shanghai Husi Shanghai
Husi Food Co Ltd, Yum said in a statement.

Jul 22, 2014

McDonald’s CEO: ‘deceived’ by audit of China meat plant

July 22 (Reuters) – McDonald’s Corp feels “a bit
deceived” by the audit it received for Shanghai Husi Food Co
Ltd, a China supplier that was shut down this week after a TV
report showed workers mishandling meat, Chief Executive Don
Thompson said on Tuesday.

“We are no longer serving product from the primary facility
there that has the challenges and the issues,” Thompson said on
a conference call after McDonald’s reported lower-than-expected
quarterly earnings.

Jul 22, 2014

Chipotle customers shrug off price hike, flock to burrito chain

July 21 (Reuters) – Burrito chain Chipotle Mexican Grill Inc
last quarter achieved what many of its rivals could only
dream of: It raised prices, yet attracted more diners during a
period of sluggish economic growth.

The Denver-based chain on Monday reported a nearly 26
percent jump in second-quarter profit after sales at established
restaurants surged 17.3 percent.

    • About Lisa

      "Lisa writes about restaurants and grocery stores. She is based in Los Angeles and previously has covered computer software, Internet companies, video games, prescription drugs and municipal bonds."
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