chew on this
Posted by Dale Buss on November 8, 2012 02:17 PM
Turns out that consumers around the world can't and don't just keep simply trading down in their eating habits as incomes and economies keep slowing or remain sluggish. Many just stop going out to eat altogether. Exhibit A: McDonald's just reported its first monthly decline in same-store sales from year-to-year, for October, since 2003, when the company in general was struggling.
This result — a 1.8-percent dip in global revenue at "same-store" restaurants open at least 13 months — reflects broadly on the state of the global economy, because if there's one thing that unites us as a species, it's eating cheap and fast food. Yet even though it's been promoting lower-priced menu items, McDonald's relevant revenues in October fell by 2.2 percent in both the United States and Europe, and by 2.4 percent in the region encompassing Asia, the Middle East and Africa.
It isn't clear how much of the bad number may reflect some kind of general slump in the fast-food proposition, in any market. But the European result isn't that surprising because the continent is sliding into recession again because of eurozone woes and consumers' loss of confidence that politicians and bankers can fix them. Cooling in China is one big reason for the drop in the Asian region.
So the U.S. results might raise the most eyebrows at McDonald's headquarters in Oak Brook, Ill. Three potential factors include McDonald's lack of recent "new product news" in the U.S., "an uptick in competition in the U.S.," and a drag from Hurricane Sandy, said Sterne Agee analyst Lynne Collier. Speaking of that competition, Wendy's reported higher revenues at "same" stores but lower profits mostly for accounting reasons. Its third-quarter increase of 2.7 percent in revenue at restaurants open at least 15 months — the sixth straight quarter of such growth — was welcome in view of the chain's concerted efforts to move a bit upscale with higher-quality ingredients and menu items.Continue reading...
games people play
Posted by Shirley Brady on November 1, 2012 02:02 PM
Following last week's UK kick-off, Nintendo released its Wii U campaign today for the US, with the spot above touting its new home game console (and a view of the future in which players apparently live in cubes). It also kicked off a cross-promotional partnership with Burger King: between now and December 2nd, kids can collect ten Wii U and Mario themed toys with the purchase of a Kids Meal. The Wii U, a follow-up to the Wii, will debut on Nov. 18 starting at $299.
Posted by Dale Buss on November 1, 2012 09:03 AM
Pfizer drops on weaker sales of specialty care drugs and emerging market slump, plans to buy back up to $10B in shares.
UK lawmakers prepare to grill Starbucks, Amazon and Google on taxes.
Con Edison makes progress in restoring NYC neighborhoods' power, while MTA offers free fares in bid to get New York moving again.
Apple's Cook fields his A-team before a wary Wall Street.
Avon sees sales drop in China and the U.K.
Barclay's hit with record U.S. fine.
Burger King tests delivery service in Florida.Continue reading...
Posted by Dale Buss on October 29, 2012 09:04 AM
Google Nexus NYC tablet launch delayed by Hurricane Sandy, sells out online.
Pearson and Bertelsmann strike deal to combine Penguin and Random House publishing houses, thwarting News Corp.
Honda cuts full-year outlook over anti-Japan sentiment in China.
Audi repeats goal to match 2011 operating profit in 2012.
British Airways launches customer recognition program.
Burger King third-quarter net income falls, still beats estimates.
Burt's Bees "deflakes" with billboard and video campaign.
Cadillac raises prices in bid for luxury credibility.Continue reading...
Posted by Dale Buss on October 25, 2012 09:03 AM
P&G sees profit soar and revenue drop in latest earnings report.
Kimberly-Clark pulls back in Europe.
Twitter encourages brands to find and use their authentic voice.
Apple earnings report on Thursday will be closely watched.
AT&T sees slowing in wireless-subscriber growth.
Barbie CMO looks to Royal Caribbean cruise experience launch in new year.
Best Buy shakes up management.Continue reading...
chew on this
Posted by Dale Buss on October 22, 2012 02:23 PM
As global economic bellwethers go, McDonald's sales results probably rank right up there with oil prices and consumer-confidence measures. So its shareholders, analysts and executives aren't exactly lovin' it when the company reports lackluster results, as it did for the third quarter.
The fast-food leader reported weaker-than-expected earnings for the period as it battled a weak global economy and accommodated more budget-minded consumers from Europe to China. Both sales and profits fell during the quarter, a rarity for McDonald's.
Of course, McDonald's results aren't directly synonymous with the status of the world's appetite for quick fare. The stronger dollar hurt international sales too. Also, competitors in many markets have been upping their game lately, including both Burger King and Wendy's in the United States, and the new strains from rivals also are reflected in McDonald's results.Continue reading...
Posted by Dale Buss on October 12, 2012 09:02 AM
AMC stages World Zombie Day to lobby Dish Network.
Audi contemplates minivan.
Best Buy plans to match online prices.
Bugatti goes social with its super-car brand.
Burger King seeks the next new big marketing idea.
Cadillac considers sports car.
Carrefour lifts recovery hopes.
Coca-Cola Hellenic, Greece's biggest company, quits the country.
Fila pursues Adidas market share.Continue reading...
Posted by Dale Buss on October 11, 2012 02:06 PM
Customers will notice something different about Wendy's starting in March: A new logo that updates the pig-tailed, red-haired "Wendy" in the brand's first revamp of its iconic brand face in 29 years.
Yes, in the tradition of Betty Crocker and Aunt Jemima, Wendy — the name comes from the daughter of late founder Dave Thomas — gets a smoother new 'do and more stylish freckles. It's the first logo change for Wendy's since 1983 for the Dubin, Ohio-based fast food brand, and just the tip of the iceberg for changes coming to the burger chain, which last year dethroned Burger King for #2 spot in America.Continue reading...