Lisa's Feed
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.

Jul 21, 2014

Yum, McDonald’s apologize as new China food scandal hits

SHANGHAI/LOS ANGELES (Reuters) – Yum Brands Inc YUM.N and McDonald’s Corp MCD.N are facing a new food safety scare in China, denting the fast-food companies’ efforts to shore up reputations and businesses that were hurt by a 2012 safety scandal in one of their biggest markets.

McDonald’s and KFC parent Yum apologized to customers on Monday after Chinese regulators shut a local meat supplier following a TV report that showed workers picking up meat from a factory floor, as well as mixing meat beyond its expiration date with fresh meat.

Jul 17, 2014

Yum’s U.S. woes, other data, point to weakness at McDonald’s

By Lisa Baertlein

(Reuters) – Yum Brands Inc’s disappointing Pizza Hut and Taco Bell results, along with other data, suggested the U.S. fast-food business remained weak in the second quarter and that industry leader McDonald’s Corp continues to struggle.

The U.S. fast-food segment has lagged the broader restaurant sector, due to weak job growth and stagnant pay among the lower-wage diners who frequent such restaurants. The sector also is struggling to remain relevant as more consumers move away from decadent food like cheeseburgers and french fries to fresher, healthier fare.

Jul 16, 2014

Yum’s China rebound dimmed by India, Pizza Hut weakness

July 16 (Reuters) – Yum Brands Inc on Wednesday said
its KFC business bounced back in China, its No. 1 market, but
its stock fell more than 2 percent in extended-hours trading on
disappointing quarterly results from its India, Taco Bell and
Pizza Hut divisions.

Yum’s sales at established restaurants in China increased 15
percent in the second quarter, including a 21 percent jump at
KFC and flat results at Pizza Hut Casual Dining.

Jul 16, 2014

Starbucks opens in Colombia, home of Juan Valdez

By Lisa Baertlein

(Reuters) – Starbucks Corp opened its first shop in Colombia on Wednesday, 43 years after the world’s biggest coffee chain first started buying beans from the country famous for its premium arabica coffee named after fictional coffee farmer Juan Valdez.

The first of 50 Starbucks stores planned for the coming five years will be in Bogota’s Parque de la 93, one of the city’s most exclusive neighborhoods. This store and all other Starbucks locations in Colombia will be the Seattle-based company’s first to serve only locally sourced coffee.

    • 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."
    • Follow Lisa