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.
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
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.
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.
(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.
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.
(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.
LOS ANGELES, July 15 (Reuters) – Early investors in Potbelly
Corp have seen their shares in the toasted sandwich
chain go cold.
Expectations were high ahead of Potbelly’s initial public
offering in October. The roughly 300-unit Chicago-based sandwich
chain was poised to grow, announcing plans to increase its
restaurant count by at least 10 percent per year. And it had
signed on Starbucks Corp Chief Executive Officer Howard
Schultz’s Maveron venture capital firm as its biggest investor.
LOS ANGELES, July 8 (Reuters) – Ousted American Apparel Inc
head Dov Charney supported workers in the clothing
industry with his stance in favor of immigration rights and
determination to keep jobs in the United States, but some
employees are not returning the favor.
Four of the six workers who would talk to a Reuters reporter
outside the company’s downtown Los Angeles factory said they
back the board’s decision to fire Charney, the company’s
outspoken founder who has been dogged by lawsuits and
allegations of sexual harassment.
By Lisa Baertlein and Shailaja Sharma
(Reuters) – Kroger Co said on Wednesday it would buy Vitacost.com Inc, a health products retailer, for about $280 million in a bid to expand its presence in the profitable health and wellness niche popularized by Whole Foods Market Inc.
A growing number of U.S. shoppers are willing to pay extra for products such as organic foods, local produce and specialty items such as vitamins and other supplements. Eyeing bigger profits, grocery sellers from Kroger to Wal-Mart Stores Inc and drugstore chain CVS Caremark Corp are hoping to cash in on the trend.