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Oct 30, 2013

Starbucks 2014 profit forecast falls short, shares drop

Oct 30 (Reuters) – Starbucks Corp forecast 2014
profit below Wall Street’s view, despite fourth quarter profits
that jumped 34 percent on strong traffic gains and a rise in
spending by its customers.

Shares in the world’s biggest coffee chain, one of the
economy-defying growth companies such as burrito chain Chipotle
Mexican Grill and upscale grocer Whole Foods Market Inc
, fell 2.4 percent to $78.90.

Oct 30, 2013

Cut in food stamps to hit low-income Americans this week

WASHINGTON/LOS ANGELES (Reuters) – One of every seven Americans will take a hit on Friday when a $5 billion cut in food stamps, the first across-the-board reduction in the history of the decades-old federal program, takes effect.

But if conservative Republicans in Congress get their way, this week’s pullback may be just a taste of what’s to come for some of the almost 48 million Americans who receive benefits under the Supplemental Nutrition Assistance Program.

Oct 25, 2013

Ketchup changeup: McDonald’s dropping Heinz after CEO change

Oct 25 (Reuters) – World’s biggest fast-food chain seeks new
ketchup for its famous french fries.

McDonald’s Corp on Friday said it plans to end its
40-year relationship with ketchup maker H.J. Heinz Co, since
that company is now led by Bernardo Hees, the former chief
executive of hamburger rival Burger King Worldwide Inc.

Oct 25, 2013

Ketchup changeup: New Heinz CEO prompts McDonald’s to switch

Oct 25 (Reuters) – World’s biggest fast-food chain seeks new
ketchup for its famous french fries.

McDonald’s Corp on Friday said it plans to end its
40-year relationship with ketchup maker H.J. Heinz Co, since
that company is now led by Bernardo Hees, the former chief
executive of hamburger rival Burger King Worldwide Inc.

Oct 23, 2013

Manhattan to get first Teavana tea bar since Starbucks deal

NEW YORK (Reuters) – Coffee pot, meet tea kettle.

Starbucks Corp, which has doubled down on its tea bet, is opening its first Teavana tea bar in New York City this week, aiming to do for tea, the world’s second most popular beverage after water, what it has done for coffee.

“This is not your mother’s Lipton tea, just as Starbucks wasn’t Folgers. The difference between the quality of tea at Teavana is the difference between fresh squeezed juice and concentrate,” Starbucks Chief Executive Howard Schultz said on Wednesday at a press preview at the new store on Manhattan’s Upper East Side.

Oct 21, 2013

McDonald’s forecasts tough fourth quarter

Oct 21 (Reuters) – McDonald’s Corp warned on Monday
that global sales at established restaurants would be relatively
flat in October and signaled that weakness would continue in the
fourth quarter, heaping pressure on its chief executive.

CEO Don Thompson, at the helm for more than a year, has
switched top management and shaken up menus to boost sales and
profits as the chain remained dogged by lackluster economic
growth and intense competition. Now, analysts are asking if
McDonald’s woes are due to execution.

Oct 17, 2013

Chipotle profits get a boost from increased traffic

Oct 17 (Reuters) – Chipotle Mexican Grill Inc on
Thursday said better-than-expected sales at established
restaurants boosted quarterly profits and signaled it may raise
prices in the middle of 2014 to offset higher food costs,
sending shares up 7.7 percent.

The fast-growing burrito chain has been reluctant to
increase menu prices despite higher costs for ingredients such
as California avocados and salsa. Executives said they first
want to secure ample supplies of natural meats and switch to
cooking oil and tortillas that do not contain genetically
modified organisms (GMOs).

Oct 9, 2013

KFC parent Yum warns of delay in China sales recovery

By Lisa Baertlein

(Reuters) – KFC parent Yum Brands Inc (YUM.N: Quote, Profile, Research, Stock Buzz) on Tuesday warned that it will take longer than expected for its China restaurant sales to rebound, delaying a recovery in the market that accounts for more than half of the company’s overall operating profit.

Shares fell 7.5 percent as investors digested the news, which came after months of Yum executives reassuring investors that China restaurant sales would return to growth in the fourth quarter.

Oct 9, 2013

Yum CEO says KFC China needs more time to recover

By Lisa Baertlein

(Reuters) – Yum Brands Inc’s (YUM.N: Quote, Profile, Research, Stock Buzz) chief executive said on Wednesday the company still must fully convince diners in its top market of China that food at its KFC restaurants is safe, following a pair of safety scares, and predicted 2014 would be a “strong bounce back year.”

Shares in Yum tumbled 7.8 percent to $65.75 on the New York Stock exchange on Wednesday.

Oct 8, 2013

Yum warns its China sales unlikely to rise in fourth quarter

By Lisa Baertlein

(Reuters) – KFC parent Yum Brands Inc (YUM.N: Quote, Profile, Research, Stock Buzz) on Tuesday warned that sales at established restaurants in China, its top market, are unlikely to rebound in the fourth quarter, as it had expected, and its shares fell almost 7 percent in extended trading.

Yum operates more restaurants in China than any other U.S. brand and said it remains confident in its business in the world’s fastest-growing major economy that accounts for more than half of the company’s overall operating profit.

    • 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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