Feb 13 (Reuters) – Penny-pinching U.S. diners plan to eat
out more this year and spend less on each meal, according to a
new forecast released by consulting firm AlixPartners on
Those intentions threaten to squeeze restaurant operators,
who are grappling with rising costs for beef and other popular
ingredients as they increase spending on advertising and special
deals to stay ahead of rivals in a brutally competitive
Feb 5 (Reuters) – Chipotle Mexican Grill Inc
reported higher quarterly profit on Tuesday, despite higher
costs for beef and other ingredients that took a bite out of
The results from the popular burrito chain come as U.S.
restaurant companies virtually across the board are bracing for
higher food prices due to last summer’s historic U.S. drought.
(Reuters) – KFC parent Yum Brands Inc (YUM.N: Quote, Profile, Research, Stock Buzz) on Tuesday said time, not ad spending, is the cure for a steep sales decline at its restaurants in China that was sparked by a food safety scare late last year.
The fast-food operator makes more than half of its overall sales in China, and customers there began shunning Yum’s restaurants in December after news reports and government investigations focused on chemical residue found in a small portion of its chicken supply.
Feb 5 (Reuters) – KFC parent Yum Brands Inc on
Tuesday said time, not more advertising spending, is the cure
for a steep sales decline at its restaurants in China sparked by
a food safety scare in the country that accounts for more than
half of the fast-food operator’s overall sales.
“We totally underestimated the impact of this incident,” Yum
Chief Executive David Novak said on a conference call with
Feb 4 (Reuters) – KFC parent Yum Brands Inc warned
on Monday that it expects 2013 earnings to shrink rather than
grow as it struggles to manage a food safety scare in China, and
sees no return to growth in restaurant sales there until the
Yum shares fell 5.6 percent in after-hours trading, as Wall
Street analysts and investors digested the disappointing news
from the company that is widely seen as a model for how to do
business in the complex Chinese market.
(Reuters) – KFC parent Yum Brands Inc (YUM.N: Quote, Profile, Research) on Monday warned that it expects 2013 earnings to shrink rather than grow, as it grapples with a food safety scare in China where it makes more than half of its overall revenue.
Yum shares fell 6 percent in after-hours trading, as the news was even worse than expected by the analysts, who have largely stuck by the company in recent months.
(Reuters) – KFC parent Yum Brands Inc (YUM.N: Quote, Profile, Research, Stock Buzz) on Monday warned that it expects 2013 earnings to shrink rather than grow, as it grapples with a food safety scare that ensnared some of its chicken suppliers in its top market, and shares fell more than 6 percent.
The company, which gets more than half of its overall sales and operating profit from China, reported a 6 percent drop in fourth-quarter sales at established restaurants in China due to “adverse publicity” regarding its poultry supply.
Feb 1 (Reuters) – It is getting harder for restaurant chains
to lock in long-term prices for hamburger and other beef cuts as
the impact of last summer’s historic drought sends prices
Such purchasing contracts help companies predict their food
costs over time, and if done well, can save them significant
money in times of rising prices.
Feb 1 (Reuters) – Tyson Foods Inc, the largest U.S.
meat company, raised its full-year revenue forecast above
analysts’ average estimate as strong beef and chicken prices
help offset grain costs pushed higher by last summer’s historic
Tyson shares climbed 3 percent on Friday after the company
also reported better-than-expected earnings for its fiscal first
(Reuters) – McDonald’s popular $1 McDouble cheeseburger, which has lured customers to the Golden Arches since 2008, is getting hard to sustain as rising beef prices threaten the company’s profit margin.
The world’s biggest restaurant chain launched a competing $1 Grilled Onion Cheddar Burger in December. It also made the new sandwich – with one beef patty rather than the McDouble’s two – a star of current television commercials, a status it shares with the McDouble.