A news summary focused on 10 big employers; updated 8:24 a.m.
YUM‘s 7,200-restaurant China Division said today it would issue 10 million common shares to Yum Brands shareholders as part of its planned spinoff next month. The offering could result in Yum China receiving proceeds of up to $54.05 million, implying a maximum offering price per share of $5.405, according to a regulatory filing. (bit.ly/2ctqkQy) The China division, which operates in more than 1,100 cities, is higher risk and potentially more rewarding, while Yum without the China division is likely to be more stable with greater cash flow (Reuters and SEC document).
PIZZA HUT has hired a Walmart technology executive to help develop digital ordering initiatives as its chief customer officer, a new position. The executive, Helen Vaid, will lead the international e-commerce, technology and operations business for the 16,000-location pizza chain. Vaid was Walmart’s vice president of digital store operations and experience. Before that, she was a general manager at Snapfish, a web-based photo-sharing and photo-printing company (press release).
KINDRED has paid a $3.1 million penalty to the federal government after failing to comply with a corporate integrity agreement it signed with regulators. The penalty came after the hospital and nursing home giant failed to correct improper billing practices in the fourth year of the five-year agreement. This penalty is the largest issued for corporate integrity violations to date, the Department of Health and Human Services Office of Inspector General said yesterday. The violations were discovered after several unannounced site visits were completed by the inspector general’s office. Under the agreement, Kindred had agreed to a number of corrective actions, including outside scrutiny of billing practices. In exchange for the agreement, the agency agreed not to exclude Kindred from participating in Medicare, Medicaid or other federal healthcare programs (Home Health Care News).
TACO BELL competitor Chipotle is launching a new marketing campaign today in a bid to convince people they can trust what’s in their burritos, nearly a year after two E. coli outbreaks sickened dozens of its customers in several states. In the campaign, the fast-Mexican chain says its now tracing ingredients back to the farm, blasting pathogens off chorizo with high-powered water jets, and requiring restaurant managers to receive food-safety certification (Wall Street Journal).