Shop Talk
Retailers, consumers and prices
Check Out Line: Upset tummies in the food sector?
Check out sluggish results in the U.S. food sector.
Fast food giant McDonald’s and Kroger, the largest U.S. grocery chain, saw shares decline 2.5 percent and 10 percent, respectively, after reporting weak results.
McDonald’s said same-store sales at its U.S. restaurants slipped 0.6 percent in November, marking the second straight monthly decline. Following Yum Brands’ recent weaker-than-expected sales, it was the latest sign that the fast-food sector that had performed well through most of the recession was weakening.
Rising unemployment has begun to take a noticeable bite out of sales, particularly at breakfast — where McDonald’s leads the industry.
Kroger reported a much lower-than-expected quarterly profit and cut its full-year forecast as it feels pressure from falling food prices and stepped up competition.
Not everything was dark at the dinner table.
Chicken producer Sanderson Farms posted a quarterly profit compared with a year-ago loss as it benefited from higher poultry prices and lower feed costs. To wash that news down, alcoholic beverage maker Brown-Forman posted a higher quarterly profit and raised its outlook for the current fiscal year.
Free breakfast at Denny’s? I’m there!
Denny’s has finally figured out a way to get people to come out to a casual dining restaurant during a recession – give them a free breakfast. It probably isn’t a sustainable business model, but the chain gave free Grand Slam breakfasts to anybody who came in on Tuesday, an offer it advertised on Sunday during the Super Bowl.
The company was on pace to serve about 2 million of the free breakfasts, a spokeswoman said. The free breakfast promotion also slammed the company’s web site.
Denny’s got about 40 million hits on its web site in less than two days after the ad ran. The site usually gets about 350,000 visits a day, the spokeswoman said.
(Reuters photo by Lisa Baertlein)
It was really nice of Denny’s to offer a free meal to anyone and everyone. I enjoyed my meal as did my friends.
The atmosphere in the line and in the restaurant was also terrific…just a big party. Old and young, all races, political stripes, economic situations and educations….all were served a free Gran Slam with a smile. We were also given coupons for future meals and anyone that wanted a raincheck rather than wait in the line got one.
Thank you Denny’s!
Perhaps our politicians can take a cue – create a stimulus package that goes straight to we, the people. We don’t need those greedy middle-persons that divert funds elsewhere.
You asked for a bailout
This man wants to bail you out — with breakfast.
Denny’s Chief Executive Nelson Marchioli is offering the Weekday Express Slam, a budget-version of the company’s mainstay $6 Grand Slam breakfast, for $4 on weekdays from 5 a.m. until 4 p.m.
The move from Denny’s, the always-open restaurant chain, comes as companies use timely pitches and discounts to tempt consumers who are increasingly worried about recession to crack open their wallets.
Marchioli said the always-open restaurant chain was working on a $4 weekday value meal before the government began its recent bank interventions.
“When the bailout came, we thought it would be a good lede,” said Marchioli.
The bailout breakfast debuted last week and the company is backing the six-week promotion with television ads.
Marchioli said there would “absolutely” be follow-on promotions and when asked if the price would stick for future offers, Marchioli said: “If i have anything to do with it, it will.”
-
Resident Shop Talk Expert
-
