By Mihir Dalal and Martinne Geller

(Reuters) – Green Mountain Coffee Roasters Inc (GMCR.O: Quote, Profile, Research, Stock Buzz) independent director Douglas Daft resigned from its board this week at a time when concerns of slowing growth and allegations of accounting malpractices have hammered the stock.

Green Mountain, the maker of Keurig one-cup coffee brewers, reported the resignation of the former Coca-Cola Co (KO.N: Quote, Profile, Research, Stock Buzz) CEO on Thursday in a filing with the U.S. Securities and Exchange Commission.

Green Mountain’s board has been under scrutiny after the company’s founder and former chairman, Robert Stiller, and a senior director were demoted earlier this month for selling company shares when it was prohibited.

Daft, 69, resigned from the board on May 22 for personal reasons, including “extensive overseas and travel commitments,” and not because of any disagreement over the running of the company, Green Mountain said in the filing.

But some said the resignation would be seen as another blow to the company.

“Markets get spooked when board members resign, for whatever reason. If a company is in trouble, having a named director departing very often signals that something is more wrong than we anticipated,” Bevmark Consulting CEO Tom Pirko said.

May 24 (Reuters) – H.J. Heinz Co reported slightly weaker-than-expected fourth-quarter sales, hurt by a decline in North America, and lowered its earnings forecast for the new fiscal year and beyond.

The ketchup maker’s shares fell 2 percent, even though its quarterly profit topped the average Wall Street estimate.

Heinz, which sells Ore-Ida frozen potatoes and other packaged foods in addition to its namesake ketchup, said North American sales declined 2.2 percent in the quarter as price increases taken to offset commodity costs hurt sales volume.

Still, its U.S. foodservice business, which supplies restaurants and other businesses, saw sales increase.

The company forecast earnings of $3.52 to $3.62 per share for fiscal 2013, which started on April 30, on sales growth of at least 4 percent.

It previously forecast $3.60 to $3.70 per share. Analysts on average were expecting $3.59, according to Thomson Reuters I/B/E/S.

The new range represents growth of 5 percent to 8 percent, which is below the company’s long-term earnings growth target. Heinz said that over the next three to five years, it is aiming for earnings growth of 6 to 9 percent, down slightly from its prior goal of 7 to 10 percent.

May 21 (Reuters) – Campbell Soup Co reported better-than-expected quarterly earnings on Monday but left its full-year forecast unchanged as it continues trying to turn around its North American soup business.

Campbell, whose shares fell 1.8 percent in morning trade, has endured several winters of weak soup sales, hurt by heavy discounting and increased competition with other simple meals. Its chief executive, Denise Morrison, has pledged to stabilize and then grow the business by introducing new products and reinvigorating its advertising.

“Although overall sales trends are improving, we are not satisfied with our performance this quarter,” said Morrison, who took the top job last summer. “We executed well in some businesses … we did not execute as well in others.”

U.S. soup sales fell 3 percent in the latest quarter, hurt by declines of 5 percent in condensed soups, 4 percent in broths, and 1 percent in ready-to-serve soups.

While Campbell has taken the right steps to improve its business, those moves have yet to gain traction, according to Morningstar analyst Erin Lash.

“We didn’t expect that their spending behind product innovation and marketing support would yield measurable improvements overnight, but obviously at some point we’d like to see the volume declines gradually improve,” Lash said.

PROFIT FALLS AS MARGINS SQUEEZED

By Dhanya Skariachan and Martinne Geller

(Reuters) – Home Depot Inc posted quarterly sales that fell short of Wall Street’s heightened expectations on Tuesday after demand slowed in April following a jump in home improvement projects spurred by an unusually warm winter.

But results were stronger than the company expected, as the warm weather pushed forward a significant amount of sales that would have normally occurred in the second quarter.

And despite recent encouraging signs about the U.S. housing market, the company said it has not fully recovered from the housing crash.

“Adjusting for weather impacts and the pull-forward of activity, the quarter’s results were encouraging and consistent with our view that growth this year will be reflective of broad GDP growth, rather than a recovery in the housing market,” said Home Depot Chief Executive Frank Blake on a conference call.

Spring is traditionally the biggest selling season of the year for home improvement chains. But this year, customers began projects early, the company said. That fueled investor optimism which lifted sales expectations past the company’s own outlook.

Home Depot’s sales rose 5.9 percent to $17.81 billion in the first quarter ended on April 29, missing analysts’ average estimate of $17.96 billion, according to Thomson Reuters I/B/E/S. Same-store sales, or sales open at least a year, rose 5.8 percent globally, and 6.1 percent in the United States.

By Brad Dorfman and Martinne Geller

(Reuters) – Best Buy Co Inc founder Richard Schulze is stepping down as chairman after he failed to tell the board that a former chief executive had an improper relationship with a female employee, the electronics retailer said on Monday.

Best Buy said the board’s investigation had found that former CEO Brian Dunn’s relationship “negatively impacted the work environment,” but involved no misuse of company resources.

“I understand and accept the findings of the Audit Committee,” Schulze said in a statement.

Hatim Tyabji, 67, chairman and CEO of wireless network technology company Bytemobile and head of Best Buy’s audit committee will succeed Schulze. The change takes effect at the end of the company’s annual meeting on June 21, when Schulze, 71, will become chairman emeritus, an honorary position, and serve out his term as director through June 2013.

Schulze’s demotion signals a much-needed separation from the past for Best Buy, which has been criticized for becoming a showroom for televisions and other gadgets that people then buy at Amazon.com (AMZN.O: Quote, Profile, Research) or other competitors. Schulze started the company with a partner in 1966.

Best Buy remains in the midst of what it expects to be a six- to nine-month search to replace Dunn, with board member G. Mike Mikan acting as interim CEO.

May 14 (Reuters) – Best Buy Co Inc founder Richard Schulze is stepping down as chairman after he failed to tell the board that former Chief Executive Brian Dunn had violated company’s policy by having “an extremely close personal relationship” with a female employee, the electronics retailer said on Monday.

Best Buy said an investigation by the board had found that Dunn’s relationship “negatively impacted the work environment,” but involved no misuse of company resources.

“I understand and accept the findings of the Audit Committee,” Schulze said in a statement.

Schulze will be succeeded by Hatim Tyabji, 67, chairman and CEO of wireless network technology company Bytemobile and head of Best Buy’s audit committee. The change takes effect at the end of the company’s annual meeting on June 21, when Schulze will become chairman emeritus, an honorary position, and serve out his term as director through June 2013.

The demotion of Schulze, 71, signals a much-needed separation from the past for Best Buy, which has been criticized for becoming a showroom for televisions and other gadgets that people then buy at Amazon.com or other competitors. Schulze started the company with a partner in 1966.

Best Buy is still in the midst of what it expects to be a six- to nine-month search to replace Dunn, with board member G. Mike Mikan acting as interim CEO.

“This increases the probability that they bring in someone from the outside, and he or she is allowed the leeway to make the tough decisions that Best Buy clearly has to make now,” BB&T Capital Markets analyst Anthony Chukumba said.

May 8 (Reuters) – Green Mountain Coffee Roasters Inc (GMCR.O: Quote, Profile, Research) stripped its founder, Robert Stiller, of his role as chairman and demoted another director for selling company shares at a time when trading by insiders was prohibited.

The maker of Keurig single-serve coffee brewers said on Tuesday the two men sold their shares to cover margin calls following a near 50 percent drop in Green Mountain’s stock price since it reported disastrous quarterly results last Wednesday.

Shares in the company fell nearly 4 percent on the news of the prohibited trading, which raised fresh questions about the credibility of a management team already under scrutiny by hedge fund manager David Einhorn and others who have questioned Green Mountain’s growth prospects and accounting practices. [ID:nL4E8G373P]

Green Mountain appointed Michael Mardy, chief financial officer of Tumi Holdings Inc (TUMI.N: Quote, Profile, Research), as interim chairman and Hinda Miller, a Vermont state senator, as chair of the governance and nominating committee.

“It definitely reflects poorly on the company’s corporate governance that they were allowed to pledge such a big portion of their stock on margin,” said Eliezer Fich, associate professor of finance at Drexel University.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

ANALYSIS: One analyst had it right [ID:nL1E8G8DH1]

By Martinne Geller

(Reuters) – Tyson Foods Inc (TSN.N: Quote, Profile, Research, Stock Buzz) posted higher-than-expected second-quarter profit, as price increases helped offset weak beef sales, and expressed optimism about the full year.

The nation’s largest meat processor said it expects to gain momentum in the third and fourth quarters.

“We still think we have the potential for earnings per share of $2 for the year if we execute as planned,” Tyson Chief Executive Officer Donnie Smith said in a statement on Monday.

Tyson, which sells beef, chicken, pork and prepared foods, had earlier forecast a profit for fiscal 2012 of more than $2 per share, but tempered its view in February, saying profit would likely come in “around the $2 mark”.

“The fact that $2 is still in the picture and was highlighted by management in its written comments probably will be seen as a positive,” said JP Morgan analyst Ken Goldman.

Goldman added that Tyson’s beef segment, which posted an operating loss of only 0.1 percent, was much better than many investors feared.

By Martinne Geller

(Reuters) – Kraft Foods Inc’s (KFT.N: Quote, Profile, Research, Stock Buzz) quarterly profit slightly exceeded Wall Street estimates, helped by price increases and an earlier Easter holiday.

North America’s largest packaged food maker also said on Thursday it was on track with plans to split into two companies later this year. It also reaffirmed its full-year growth targets.

Kraft posted net earnings of $813 million, or 46 cents per share, in the first quarter, up from $799 million, or 45 cents per share, a year earlier.

Excluding items, earnings were 57 cents per share. On that basis, analysts on average were expecting 56 cents per share, according to Thomson Reuters I/B/E/S.

Net revenue rose 4 percent to $13.09 billion, topping analysts’ estimate of $13.05 billion.

Organic net revenue, which strips out the impact of divestitures and foreign exchange, rose 6.5 percent. Price increases contributed 5.5 percentage points of the growth, while volume and mix of products contributed the rest.

May 3 (Reuters) – Alcoholic beverage maker Beam Inc posted better-than-expected quarterly profit on Thursday, helped by higher sales and lower interest expense, sending shares up 3.6 percent.

The maker of Jim Beam and Maker’s Mark bourbons also stood by its full-year target to grow earnings per share by a rate in the high single digits.

Performance in the first quarter was a little better than the company had expected, as Beam benefited from strong demand and initial orders for new products, which include new Skinnygirl drink flavors and Pucker vodka.

First-quarter net income was $79.1 million, or 49 cents per share, compared with $81.2 million, or 52 cents per share, a year earlier, when results included operations now discontinued.

Excluding items, earnings were 53 cents per share. On that basis, analysts on average were expecting 47 cents per share, according to Thomson Reuters I/B/E/S.

Net sales rose 1.9 percent to $533.8 million. Analysts were expecting $507.8 million.

Comparable net sales rose 13 percent, fueled by triple-digit sales increases for Pucker vodka and Skinnygirl cocktails, and double-digit growth for brands including Kilbeggan Irish whiskey, Basil Hayden bourbon and Courvoisier cognac.