Category: Latest Headlines

Latest Headlines August 9, 2016August 10, 2016

Nuns play legal hardball against Yum; B-F names new Australia region chief; Roadhouse rival is bust; and Amazon’s Bezos sells $757M in stock — most ever

A news summary focused on 10 big employers; updated 1:01 p.m.

YUM: Two activist groups filed a shareholder proposal today requesting that fast-food giant Yum quickly phase out harmful antibiotic use in its meat supply, taking particular aim at the KFC unit’s nearly 15,000 restaurants, according to Reuters. The request from the Sisters of St. Francis of Philadelphia and As You Sow of Oakland, Calif., say KFC lags rivals McDonald’s, Chick-fil-A, Subway and Wendy’s in setting policies to curb routine use of antibiotics in chicken production.

In a statement issued after reports of the shareholder proposal, KFC said its “position on antibiotics is currently being reviewed to determine the viability for our suppliers to go beyond the FDA guidelines for antibiotic usage,” according to The Courier-Journal.

Yum’s 6,500-Taco Bell chain has agreed to stop using antibiotics for humans in its chicken supply early next year. The 14,000-unit Pizza Hut division has made a similar promise for pizza topping chicken. But KFC, which buys far more chicken than the other two brands, hasn’t budged (Reuters and Courier-Journal). Buy a boxing nun hand puppet at eBay for just $35.99 (auction listing).

BROWN-FORMAN named Marc Satterthwaite as new managing director for Australia, New Zealand and Pacific Islands, taking over from Michael McShane, who’s retiring Oct. 31 after 17 years with the company. Satterthwaite has held several leadership positions, including division director for the U.S. central states and Canada, director of North America Region sales operations, and as the interim country manager for India. Most recently, he’s been chief of staff to the U.S. commercial director (The Shout).

TEXAS ROADHOUSE competitor Logan’s Roadhouse — founded in Lexington in 1991 — has filed for Chapter 11 bankruptcy protection in Delaware. The Nashville-based steakhouse chain said Monday in its petition that it will close 18 under-performing restaurants; it has 250 overall. Logan’s was easily confused with Louisville-based Texas Roadhouse because of their similar formats, including encouraging patrons eat buckets of free peanuts and drop the shells on the floor (Lexington Herald-Leader). Texas Roadhouse shares recently traded for $45.48, up 1.3%, or 59 cents.

AMAZON founder and CEO Jeff Bezos sold one million of his company shares last week, raising $757 million, according to a Securities and Exchange Commission filing. That’s a record for Bezos, exceeding the $671 million he sold in May (Fortune). Amazon’s stock closed yesterday at $766.56, near its all-time high of $770.50 (Google Finance). Say yes to this dress: The retailer’s best-selling wedding gown is gorgeous and a bargain to boot: as little as $16, a steal when the average bridal dress costs $1,357 (Refinery 29). Amazon employs 6,000 workers at distribution centers in Jeffersonville and Shephardsville; more about its local operations.

GE: Twisting the knife in the back of all the cities that didn’t land GE’s new headquarters, the conglomerate has unveiled renderings of its planned, new, high-tech 2.4-acre corporate campus in Boston. The design shows a 12-story building with a giant, sail-like veil and GE logo on top. The former owner of GE Appliances is moving from Fairfield, Conn., its corporate home since 1974 (Boston Globe and Seattle Times).

New GE headquarters includes two century-old brick warehouses.

GE sold GE Appliances to Haier for $5.6 billion in June. The maker of refrigerators, dish washers and other “white goods” employs 6,000 workers in Louisville’s Appliance Park.

Latest Headlines August 8, 2016August 8, 2016

Walmart’s $3B Jet buy hurting Amazon? (Wall Street says nope); a Humana DOJ loss could be Louisville’s gain; and Baxter Avenue Theatres plans big upgrades

A news summary focused on 10 big employers; updated 4:28 p.m.

Amazon vs. Walmart — Amazon’s stock (blue) rose and Walmart’s stock (red) fell today on the Jet deal.

AMAZON: Walmart’s $3 billion bet on discounter Jet may reinvigorate growth in its online shopping business, which has slowed in recent quarters even as Amazon’s overall sales have rocketed above $100 billion annually (CNN). Wall Street’s not holding its breath; Amazon’s stock rose a smidge and Walmart’s fell a bit by the time trading closed at 4 p.m. ET (Google Finance).

Earlier today, news emerged that Amazon’s office has been searched by Japan’s Fair Trade Commission over its dealings with merchants who sell goods through the retailer, a person with knowledge of the matter told Bloomberg. The antitrust agency is looking into whether Amazon sought deals with sellers that gave it more favorable conditions over other e-commerce companies in one of its biggest foreign markets. It wasn’t immediately clear when the JFTC inquiry took place (Bloomberg).

The retailer’s shipping costs are skyrocketing, underscoring why it just unveiled its first branded Prime Air cargo plane. Amazon’s shipping expenses soared 43% vs. a year ago during the first half of the year. In 2013-2015, those costs were rising 29% to 32% annually. This year, it’s already on track to spend nearly $6 billion on shipping.

Amazon logo “Bottom line,” says ZD Net, “Amazon has no choice but to become more efficient than UPS and FedEx. If Amazon can use its own air fleet to even come close to its shipping vendors, it’ll potentially save billions of dollars simply by cutting out the middleman.”

Here’s a time-lapse video showing the new Prime Air Boeing 767 being readied for its debut this weekend at the annual Seafair air show in its corporate hometown of Seattle; more news coverage about Prime Air.

Amazon and UPS are both big employers in the Louisville area; UPS has 22,000 workers at its Louisville International Airport hub, and Amazon employs 6,000 at distribution centers in Jeffersonville and Shephardsville.

KINDRED has just filed its detailed quarterly 10-Q report with the Securities and Exchange Commission. The hospital and nursing giant reported strong earnings on Thursday (SEC document).

HUMANA could lose its Justice Department battle to win approval for the insurer’s proposed $37 billion merger with Aetna, but Louisville’s economy could wind up a winner — if the history of GE Appliances’ auction is a guide (WDRB).

In other news, the Baxter Avenue Theatres is adding powered reclining chairs and a full bar to the seven-screen Highlands complex at Mid-City Mall, an approximately $500,000 upgrade that will start in October (Insider Louisville).

Latest Headlines August 5, 2016August 6, 2016

Amazon’s Prime Air edges closer to takeoff (watch out, UPS); Ford China sales hit July record; and U.S. added 255K jobs in July, beating forecasts

A news summary focused on 10 big employers; updated 9:06 p.m.

Prime Air plane — Amazon’s new Prime Air 767 is operated by Atlas Air.

AMAZON today is showcasing its first branded air cargo plane during Seafair’s Air Show, an annual community celebration in the retail giant’s Seattle hometown. The Boeing 767-300, operated by Amazon’s air cargo provider Atlas Air, is flying in the show for thousands of Seattle residents and employees. In May, Amazon said it would lease 20 of the planes from Atlas for its nascent air delivery service. The 767’s appearance, complete with the company’s Prime Air livery, is the latest step in Amazon’s drive to take control of every phase of its logistics as it becomes both a customer and competitor of UPS, FedEx and other shippers (press release). Amazon and UPS are both big employers in the Louisville area; UPS has 22,000 workers at its Louisville International Airport hub, and Amazon employs 6,000 at distribution centers in Jeffersonville and Shephardsville.

Walmart’s reported negotiations to buy Amazon competitor Jet.com for around $3 billion would only put a small dent in the Seattle retailer (The Street). More news about the rumored Walmart-Jet talks.

UPS filed its detailed quarterly 10-Q financial report with the Securities and Exchange Commission today (SEC document).

FORD: Despite China’s slowing economy, Ford and its joint venture partners sold 88,189 vehicles there last month — a record — up 15% compared to a year ago (press release). Also, the automaker yesterday recalled approximately 830,000 vehicles to replace side door latches that may not be operating properly; the recall includes vehicles made in Louisville. They are 2013-15 Ford C-MAX, 2013-15 Ford Escape, 2012-15 Ford Focus, 2015 Ford Mustang and Lincoln MKC, and 2014-16 Ford Transit Connect vehicles sold or ever registered in certain U.S. states (press release). In Louisville, Ford employs nearly 10,000 workers at the Louisville Assembly Plant and Kentucky Truck Factory.

TACO BELL will roll out its new Naked Chicken Chalupa — a taco with a shell made of fried chicken — across the country next year after testing it on the West and East Coasts (Brand Eating).

KFC: Late Night host Seth Meyers joined other comedians ribbing GOP White House nominee Donald Trump this week, zeroing in on Continue reading “Amazon’s Prime Air edges closer to takeoff (watch out, UPS); Ford China sales hit July record; and U.S. added 255K jobs in July, beating forecasts” →

Latest Headlines August 4, 2016August 5, 2016

Kindred said beating Q2 forecasts; in China, ‘bloom off the rose’ for Yum; and Papa John’s renews NFL deal, re-commits to Manning for TV commercials

A news summary focused on 10 big employers; updated 5:16 p.m.

KINDRED said second-quarter results came in at the high end of Wall Street’s expectations. Revenues were $1.8 billion and earnings were 23 cents per share (press release). Yahoo Finance has the forecast. The report was issued after stock markets closed; in extended trading, Kindred’s shares were unchanged at $11.17. The Louisville-based hospital and nursing giant also declared a regular quarterly dividend of 12 cents a share (press release). Kindred employs 2,200 workers in Louisville and 102,000 nationwide. More about the company.

YUM‘s dominance of China’s fast-food market is starting to slip as consumers shift to healthier options and Chinese-style food chains, from huoguo (hot pot) to tangbao (steamed dumplings). That might explain some of the middling interest in Yum’s China Division spinoff. “There would definitely have been more buyer interest five years ago, but at that time they were doing so well that they couldn’t bear to sell,” said management professor Li Weihua of China University of Political Science and Law. “With the bloom off the rose, if they don’t sell now, it would be worth even less five years later” (Bloomberg).

PAPA JOHN’S has renewed its multiyear sponsorship contract with the NFL, a deal in place since 2010. As the official pizza sponsor of the league, the chain said today it will continue using NFL logos and trademarks in advertising and marketing campaigns across marquee league events, such as the Super Bowl, Pro Bowl and NFL Kickoff (press release).

In related news, Papa John’s won’t be replacing Peyton Manning in its TV commercials, even though the Denver Broncos quarterback has retired. “Peyton Manning is the Michael Jordan of football. Period. End of conversation,” CEO John Schnatter told Wall Street analysts during a teleconference yesterday on the chain’s better-than-forecast second-quarter financial results. He’ll play a different role, however, said COO Steve Ritchie. “I think you’ll see some very fun and interactive ways that the marketing team . . . has utilized Peyton in the spots” (Seeking Alpha). Here’s one with Manning, Schnatter and the Houston Texans’ J.J. Watt, and long-retired Hall of Famer Joe Montana.

Latest Headlines August 3, 2016August 17, 2016

Papa John’s loses court ruling on Panera exec poaching, and stock hits record high; Humana nails Q2 revenue and earnings; and Taco Bell’s three-step entry to new foreign markets

A news summary focused on 10 big employers; updated 8:42 p.m.

PAPA JOHN’S: A federal judge sided with restaurant chain Panera Bread and issued a temporary restraining order barring a former IT executive from working at Papa John’s. U.S. District Judge John A. Ross said Panera would likely win its lawsuit, filed last month, accusing former vice president Michael Nettles of violating his noncompete agreement and misappropriating trade secrets by taking a job as the chief information officer at the Louisville pizza chain (Law 360).

Also today, Papa John’s shares closed at $77.38, up 4.6%, or $3.37, after the chain reported second-quarter results beating Wall Street forecasts after markets closed yesterday afternoon. Earlier today, the stock hit a new record intraday high of $78.09 before easing back. The company has also filed its quarterly 10-Q report with the Securities and Exchange Commission.

HUMANA: Racing to save its $37 billion merger with Humana, Hartford-based Aetna has urged a judge to hear its case in the fall — and before considering a second merger of two other insurance companies that Justice Department antitrust enforcers are trying to stop (Reuters).

Earlier today, Humana reported second-quarter results that beat forecasts on both the top and bottom lines. Revenue was $14 billion vs. $13.7 billion a year ago, and adjusted earnings per share were $2.30 vs. $1.77. Analysts were expecting $13.6 billion in revenue and $2.21 EPS. The Louisville-based health insurer also reaffirmed its full-year 2016 financial guidance increase on July 21 to earn $9.25 a share vs. the previous $8.85 EPS. Humana’s stock closed at $173.48, up $3.91, or 2.3%.

“Our second quarter and year-to-date results show the improvement in the effectiveness of our clinical programs and increasing clinical engagement by our members,” CEO Bruce Broussard said in the earnings release. “The improved health outcomes from these programs is not only lowering healthcare costs, but allowing more affordable options for our Medicare members.”

The insurer said it wouldn’t hold a customary conference call with analysts to discuss the report because of the pending merger with Aetna, and doesn’t expect to hold any in the quarters ahead, either (press release and MarketWatch).

Finally today, Humana filed its second-quarter report with the Securities and Exchange Commission — the full 10-Q (SEC document). Humana has 12,500 employees in Louisville and about 50,000 nationwide; more about the company.

TACO BELL follows a three-step process to decide whether to enter a foreign market for the first time, according to Pizza Marketplace:

Move a team to the city under consideration to learn what everyday life is like in the target city, including how people get to work and what they do for fun.
Get to know the locals through focus groups to see how outsiders can become part of the community.
Cook and prepare food to understand what flavors work — and don’t work. In Tokyo, for example, prospective customers wouldn’t order nachos and cheese because they didn’t they want to get messy. Solution? Nachos became seasoned chips with dipping sauces.

In other news, franchiser Wag n’ Wash of Denver expects its first Kentucky pet food and grooming store to open soon in Louisville with an in-house bakery menu that includes pumpkin ravioli, sushi, pies and cakes using human-grade ingredients (Courier-Journal). This will be Wag n’ Wash’s 15th store since opening in 1999.

The former publisher of The Voice-Tribune — Tracy Beale, formerly Tracy Blue — is launching online magazine TAB’s View next month with a staff of six, including herself. She left the Voice-Tribune last winter amid her high-profile divorce from the weekly’s then-owner, Blue Equity CEO Jonathan Blue. Blue Equity recently sold the Voice-Tribune and other publications to the owner of LEO (Insider Louisville).

Latest Headlines August 2, 2016August 3, 2016

Papa John’s Q2 report beats forecasts on revenue and profits; shares up modestly after hours

The Louisville-based pizza chain reported second-quarter revenues of $423 million, a 6% increase from the year-ago quarter’s $399 million. Earnings were 61 cents per diluted share, a 29.8% bump from a year ago. The results beat forecast estimates. On average, analysts had been expecting 414.8 million in revenue and 54 cents EPS, according to Yahoo Finance.

Papa John’s also boosted its earnings guidance for the rest of the year, to a range of $2.35 to $2.45 a share from the prior range of $2.30 to $2.40, according to a Securities and Exchange Commission filing after stock markets closed. In the after-hours session, shares were trading for $74.40, up less than 1%. In the regular session, they closed at $74.01, down 20 cents.

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