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Aug 8, 2014

McDonald’s casts doubt on sales outlook after China food scare

By Lisa Baertlein and Sruthi Ramakrishnan

(Reuters) – McDonald’s Corp (MCD.N: Quote, Profile, Research, Stock Buzz) said on Friday that its global sales forecast for 2014 was at risk after a China food scandal drove away diners and forced the chain to scramble to find new suppliers of ingredients for Chicken McNuggets and Big Macs.

The warning could portend the company’s first full year of global sales declines at established restaurants since 2002, Janney Capital Markets analyst Mark Kalinowski said in a client note.

Aug 3, 2014

McDonald’s CEO Thompson ‘under siege’ at home and abroad

By Lisa Baertlein

(Reuters) – McDonald’s Corp CEO Don Thompson sure could use a break.

The head of the world’s biggest restaurant chain, who for much of his two years at the helm has been battling to spark sales growth in the United States and Europe, got battered by headline-grabbing bad news in late July.

Jul 31, 2014

Food scare driving away Yum, McDonald’s diners in China

By Lisa Baertlein

(Reuters) – A food safety scare in China is testing local consumers’ loyalty to foreign fast-food brands, including McDonald’s Corp and Yum Brands Inc, which owns the KFC and Pizza Hut chains.

Yum said on Wednesday that the scare, triggered by a TV report earlier this month showing improper meat handling by a supplier, Shanghai Husi Food, caused “significant, negative” damage to sales at KFC and Pizza Hut restaurants over the past 10 days. “If the significant sales impact is sustained, it will have a material effect on full-year earnings per share,” Yum said in a regulatory filing.

Jul 31, 2014

China diners test McDonald’s, Yum says food scare hurts KFC, Pizza Hut sales

By Lisa Baertlein

(Reuters) – A food safety scare in China is testing local consumers’ loyalty to foreign fast-food brands, including McDonald’s Corp and Yum Brands Inc, which owns the KFC and Pizza Hut chains.

Yum said on Wednesday that the scare, triggered by a TV report earlier this month showing improper meat handling by a supplier, Shanghai Husi Food, caused “significant, negative” damage to sales at KFC and Pizza Hut restaurants over the past 10 days. “If the significant sales impact is sustained, it will have a material effect on full-year earnings per share,” Yum said in a regulatory filing.

Jul 30, 2014

Yum says China food safety scare hurting KFC, Pizza Hut sales

July 30 (Reuters) – A television expose showing improper
meat handling by one of its Chinese suppliers caused
“significant, negative” damage to sales at its KFC and Pizza Hut
restaurants over the past 10 days, Yum Brands Inc said
on Wednesday.

“If the significant sales impact is sustained, it will have
a material effect on full-year earnings per share,” Yum said in
a regulatory filing.

Jul 29, 2014

U.S. food industry lobbying spikes amid GMO fight: report

NEW YORK (Reuters) – U.S. food companies spent almost as much lobbying Congress in the first quarter of 2014 as they did in the full year in 2013, a sign the industry may have intensified its fight against state labeling requirements for genetically engineered foods, according to a report released Tuesday.

The Grocery Manufacturers Association (GMA), along with companies such as PepsiCo Inc and Coca-Cola Co contributed to the $9 million in spending related to such lobbying efforts in the first quarter of 2014, according to an Environmental Working Group (EWG) report.

Jul 29, 2014

Darden CEO steps down amid food fight with investors

July 28 (Reuters) – Darden Restaurants Inc’s food
fight with activist investors Barington Capital Group LP and
Starboard Value LP entered a new phase on Monday, when the
company said Clarence Otis would step down as chairman and chief
executive officer.

In further concessions, Orlando-based Darden said it would
separate the chairman and chief executive roles, and clear the
way for some of Starboard’s proposed directors to be elected at
its annual meeting.

Jul 29, 2014

Darden CEO to step down amid investor pressure, stock jumps

By Lisa Baertlein

(Reuters) – Darden Restaurants Inc said on Monday that 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.

Shares of Darden, which just closed the sale of its Red Lobster chain and is working to boost business at its flagship Olive Garden restaurants, jumped 5 percent in extended trading.

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.

    • 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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