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Dec 10, 2012

McDonald’s November restaurant sales rebound

Dec 10 (Reuters) – McDonald’s Corp’s sales at
established restaurants rose more than expected in November as a
renewed emphasis on low-priced food helped the company bounce
back from a rare decline in October, it said on Monday.

Still, analysts said it was too early to say that the
world’s biggest restaurant chain, known for its french fries and
Big Macs, had regained its strong lead over rivals.

Dec 6, 2012

Yum tweaks China growth plans, targets more Pizza Huts

NEW YORK, Dec 6 (Reuters) – KFC and Pizza Hut parent Yum
Brands Inc on Thursday said it is rethinking where it
opens new restaurants in China and accelerating openings of its
high-margin pizza chain in that country, where business has
slowed.

Yum said rents and labor costs have gone up in China’s
largest cities, hurting restaurant profitability.

Dec 5, 2012

Starbucks CEO says in talks on UK tax payment

By Lisa Baertlein

(Reuters) – Starbucks Corp (SBUX.O: Quote, Profile, Research, Stock Buzz) Chief Executive Howard Schultz on Wednesday said the coffee chain is in talks about paying income taxes in the UK, despite the fact the company has not made a profit in that market for many years.

“We are engaged in discussions to make a contribution – despite the fact that we have not made a profit – that would legally put us in a position to pay income taxes,” Schultz said in an interview with Reuters.

Dec 5, 2012

Analysis: China diners say more than economy hurting Yum’s KFC

NEW YORK (Reuters) – A slowdown in China’s economy is not the only strain on Kentucky Fried Chicken’s business in the country, where competition is getting tougher and customers are getting pickier.

KFC parent Yum Brands Inc warned last week that it expected sales at established restaurants in China to fall 4 percent in the fourth quarter, despite an improvement in economic indicators such as consumer confidence and retail sales. Yum shares are down more than 11 percent since the warning.

Dec 5, 2012

China diners say more than economy hurting Yum’s KFC

NEW YORK, Dec 5 (Reuters) – A slowdown in China’s economy is
not the only strain on Kentucky Fried Chicken’s business in the
country, where competition is getting tougher and customers are
getting pickier.

KFC parent Yum Brands Inc warned last week that it
expected sales at established restaurants in China to fall 4
percent in the fourth quarter, despite an improvement in
economic indicators such as consumer confidence and retail
sales. Yum shares are down more than 11 percent since the
warning.

Dec 5, 2012

Starbucks back on expansion path in Americas, China

NEW YORK, Dec 5 (Reuters) – Starbucks Corp plans to
open more than 3,000 new shops in the Americas in the next five
years, an increase of more than 20 percent, as it pushes a
growth strategy that relies on tea and juice as much as coffee,
the world’s largest coffee chain said on Wednesday.

The company is done with acquisitions for the time being,
after a spate of deals that added juice seller Evolution Fresh
and Bay Bread LLC’s La Boulange Bakery for $30 million and $100
million, respectively. The company has also agreed to buy tea
store chain Teavana Holdings Inc for $620 million.

Dec 5, 2012

Acquisitions in focus at Starbucks’ investor meeting

Dec 5 (Reuters) – Starbucks Corp is expected to
outline plans to turn recent juice, tea and bakery acquisitions
into bigger profits for its non-coffee operations at an investor
conference in New York on Wednesday.

The company could also announce changes to its UK tax
policies, after criticism from lawmakers and the media over
strategies that let it minimize payments.

Dec 4, 2012

Olive Garden parent cuts view on restaurant sales drop

Dec 4 (Reuters) – Darden Restaurants Inc reported a
steep fall-off in business at its Olive Garden, Red Lobster and
LongHorn Steakhouse chains on Tuesday and lowered financial
expectations for the year, sending shares down 10 percent.

The company said it would revamp promotions in a bid to
attract more customers, but Chief Executive Officer Clarence
Otis said he remained cautious about forecasts given recent
results and planned changes.

Dec 4, 2012

Darden warns on second quarter as promotions miss mark

Dec 4 (Reuters) – Darden Restaurants Inc warned on
Tuesday that earnings for the latest quarter would miss
expectations after unsuccessful promotions led to a decline in
sales at its Olive Garden, Red Lobster and LongHorn Steakhouse
chains.

Shares in Orlando, Florida-based Darden tumbled 9.3 percent
to $47.57 in early trading on the New York Stock Exchange.

Nov 30, 2012

Yum’s shares tumble after China sales warning

LOS ANGELES (Reuters) – Shares of Yum Brands Inc (YUM.N: Quote, Profile, Research, Stock Buzz) tumbled 9.5 percent on Friday after the parent of the KFC, Pizza Hut and Taco Bell chains warned that sales at established restaurants in China, the company’s biggest market, would fall in the fourth quarter.

The company, which got more than half its third-quarter revenue and operating profit from China, now expects sales at restaurants open a least one year to fall 4 percent this quarter. Analysts were expecting a gain of around 2.5 percent and Yum previously had forecast sales to be flat to up in the low single-digit percentages.

    • 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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