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B-F’s still kinda, sorta behind Finlandia; and Yum CEO Creed talks tough on Domino’s: It’s the technology, stupid

A news summary, focused on big employers; updated 4:51 p.m.

FinlandiaBROWN-FORMAN: Amid recent speculation the company is considering selling Finlandia, CEO Paul Varga threw tepid support behind the vodka brand during the fiscal fourth-quarter conference call with Wall Street analysts yesterday; he was responding to an analyst’s question about Finlandia’s being a “drag” on growth.

“Finlandia has been very important to particularly Jack Daniel’s development in Eastern Europe over the last decade,” Varga said, according to Seeking Alpha’s transcript. “It’s just a very difficult time for the vodka segments in those Eastern European countries right now, and we’ve seen this before with categories where they go through some rough times. . . . Right now, we continue to work Finlandia” (Seeking Alpha).

Greg Creed
Creed

PIZZA HUT: Yum CEO Greg Creed, conceding in especially frank language that Domino’s has greater U.S. revenue momentum, says improving ordering technology is critical. “We have to get our technology in shape in order to be as easy to order, pay, and track [as possible],” he told an investor conference Wednesday, “and I think as we build the brand and we get that in shape, we’ll actually build more units and that will give us greater physical access.” Pizza Hut has 8,100 U.S. locations, including its Express format vs. more than 5,200 for Domino’s (The Street).

Technology is key to luring millenials and other young customers. Domino’s newest technology shows the challenge. The company’s biggest franchiser in Australia yesterday said it will start using satellites next week to follow customers as they approach stores to pick up already-placed orders, allowing the company to wait until the last moment to start cooking so orders stay fresh. The fast-food surveillance measure, which starts Monday, comes a decade after Domino’s started letting customers track their own orders. The newest service works with customers who place orders with their GPS-equipped smartphones, and opt in to be tracked. They  can specify whether they’re coming on foot, on bike, or by car (Bloomberg). Other recent Domino’s innovations include the capabilities to order food via emoji, smartwatch, or a “zero-click” mobile app (Eater).

John Schnatter
Schnatter

PAPA JOHN’S CEO John Schnatter promised neighbors in tony Anchorage he would limit his personal helicopter use to six or fewer times a week, and only between 8 a.m. and 9 p.m.; they had complained about the noise it created (Insider Louisville).

In other news, U.S. stocks accelerated their decline an hour before markets closed, as Wall Street looked ahead to a Federal Reserve meeting, and the U.K.’s so-called Brexit vote due later this month. The Dow Jones Industrial Average and other major indices were all down about 1% (Google Finance).

Oscar-winner and Louisville native Jennifer Lawrence will portray Elizabeth Holmes, the 32-year-old disgraced founder of the controversial blood-testing startup Theranos; the new film is still in development. Lawrence, 25, played an entrepreneur last year in Joy, about the inventor of a kitchen mop (Hollywood Reporter). Louisville filmmaker Matthew Fulks has sued singer Beyoncé, claiming a trailer for the Grammy winner’s new Lemonade movie copied elements of his 2014 short film Palinoia (Spin and Vulture).

Watch the trailer, and Fulks’ film:

Bottom Line

From Kindred, ‘fungible’ is our word for the day, and we’ll now use it in many conversations
Kindred headquarters
Company headquarters at Fourth and Broadway.

The healthcare giant just issued the following press release:

Kindred announced today it completed syndication and pricing of an incremental $200-million term loan, the proceeds of which will be used to repay outstanding borrowings under the company’s existing $900-million senior secured asset-based revolving credit facility (the “ABL Facility”). This borrowing will have the same terms as, and will be fungible with, the outstanding $1.18 billion of term loans under Kindred’s existing senior secured term loan credit facility (the “Term Loan Facility”). The incremental term loan will be issued at 99.05% of par.

In connection with the incremental term loan, the company also received consent from the required lenders under the Term Loan Facility and the ABL Facility to amend various provisions of those credit facilities, including to allow for a broader range of joint venture activity, increase the company’s financial flexibility and make other changes to better align the terms of these borrowings with Kindred’s strategic plan.

Kindred has retained J.P. Morgan Securities to act as sole lead arranger and sole bookrunner for the incremental term loan. JPMorgan Chase Bank is the administrative agent and collateral agent for the Term Loan Facility, under which the incremental term loan will be borrowed.

Related: investor relations, where you’ll find more press releases, plus SEC documents.

Got another head-spinning word? Please post it in the comments section, below.

Latest Headlines

Ali chose his Cave Hill site, but location kept secret for now; security a long-term problem

The late prize-fighter and Louisville native personally picked out his Cave Hill Cemetery gravesite a decade ago, challenged only by deciding which plot would be best at the 300-acre burial grounds in the Highlands.

Muhammad Ali
Ali in 1967.

Ali will have a modest marker after his burial tomorrow, following Muslim tradition and his wish to remain humble despite his outsized life — in sharp contrast to the more ornate cemetery art on many of the other 130,000 occupied plots there. Family spokesman Bob Gunnell and Cave Hill would not say exactly where the grave will be, according to the Associated Press. But it’s certain to become a pilgrimage site for worldwide fans of the humanitarian, raising the cemetery’s already high profile — and security concerns as well. Ali will join a who’s-who of governors, business leaders and other Kentucky residents there. The most-visited grave is that of KFC founder Harland Sanders.

Ali died last Friday in Phoenix, where he lived most of the year. He was 74 and had been battling Parkinson’s disease for decades.

Cave Hill traces its history to 1846, when the mayor and city council set out to develop what soon became a “garden” cemetery, which by then was a concept gaining popularity in major U.S. cities. It’s unclear what measures will be taken to keep Ali’s grave undisturbed. Entering the cemetery isn’t easy, however; it’s surrounded by a high brick wall topped in places with razor wire, and the entry gates at Broadway and Baxter and on Grinstead Drive are monitored by security cameras and a guard. (See a map of Cave Hill.)

Securing Ali’s body has already been an issue; gossip site TMZ reported that officers with the Metro Police Department and the Jefferson County Sheriff were stationed outside the A.D. Porter and Sons Funeral Home, which is coordinating some of this week’s events.

Elvis
Bodynap target.

At other cemeteries, guarding burial sites of celebrities has been a problem. Someone stole Charlie Chaplin’s body from his Switzerland grave and held it for ransom, the Associated Press says. Elvis Presley was first buried at Forest Hill Cemetery in Memphis in 1977, but his family moved him to his Graceland estate after three men were accused of plotting to steal it. Authorities foiled a plan to steal Abraham Lincoln’s body at Illinois’ Oak Ridge Cemetery and hold it for ransom in 1876, nine years after he died. Ultimately, his coffin was moved 17 times, mostly due to numerous reconstructions of his tomb and fears for the safety of his remains.

Celebrities’ graves can be a potentially valuable tourist attraction. Continue reading “Ali chose his Cave Hill site, but location kept secret for now; security a long-term problem” →

Latest Headlines

Taco rises, Chipotle plunges in new survey; Yum sets China spin for Oct. 31; Aetna: DOJ wants more info, but deal on track

A news summary, focused on big employers; updated 5:30 p.m.

Taco Bell store front
Taco revamped menu this year to include breakfast.

TACO BELL ranked No. 2 among fast-casual Mexican restaurants in the annual Harris Poll restaurant brand survey, published today, right behind Moe’s Southwest Grill. Last year, the Yum unit tied for No. 3. Meanwhile, Chipotle — hit hard this year by stubborn health scares at some restaurants — got knocked down to No. 5; it had topped the list the past three years (Harris). Moe’s is owned by the same company that operates shopping mall mainstays Auntie Anne’s and Cinnabon. (USA Today).

In horrific allegations in Houston, three teenagers say Taco Bell employees stabbed one of them, then burnt the other two with hot grease — accusations the company disputes (CW 33and Houston Chronicle). And in Wisconsin, a 25-year-old Village of Waterford man is facing the possibility of more than three years in prison after allegedly passing out in the drive-thru of a Waukesha Taco Bell last week and physically refusing arrest (Journal Times).

McShane
McShane

BROWN-FORMAN said Michael McShane, a senior vice president overseeing the Australia, New Zealand, and Southeast Asia regions, is retiring Oct. 31. The spirits and wine giant didn’t disclose details about replacing him. McShane’s 17-year career started in 1999 as finance director for Brown-Forman Beverages based in Sydney after serving in a variety of roles for Swift & Moore, then distributor for Brown-Forman in Australia (press release). Also, a transcript is now available for the company’s fourth-quarter earnings conference call yesterday (Seeking Alpha).

YUM has set Oct. 31 as the date it plans to formally split itself into two publicly traded companies when it cleaves the mammoth China division away under pressure from activist investor Corvex Management. CEO Greg Creed said yesterday his team would begin a road show in early October to pitch the split to prospective investors (The Street). Yum shares closed at $83.73, down less than 1%.

Karen Lynch
Lynch

HUMANA: Aetna president Karen Lynch told analysts at a Goldman Sachs health care conference the Hartford insurer is giving the Justice Department “a lot of information” in response to a second request, amid the agency’s review of the planned $37 billion acquisition of Humana. But she didn’t detail the nature of the agency’s additional request. Lynch said the deal still remains on track to close later this year (Hartford Courant).

TEXAS ROADHOUSE shares closed at $46.54, up 15 cents, after hitting an intraday high of $46.81. It was the second consecutive day shares closed at an all-time high. The casual steak house chain’s stock has soared 27% in the past year vs. a slim 1% gain in the S&P 500 index (Google Finance). Since opening in 1993, the company has grown to more than 460 locations in 49 states and five international locations in the Middle East (company fact sheet).

Haier logoGE will pay eligible workers a “closing payment” of $800 following the $5.6 billion sale of the company’s home appliances business to China’s Haier. Also, those who lose jobs within the first year after the sale will get preferential placement at other GE locations. The sale closed Monday, ending a 61-year chapter in Louisville’s economic history. The IUE-CWA union and Haier have agreed to honor terms of the current contract with about 6,000 Appliance Park workers while a new one is being negotiated (WDRB). Monday’s sale also included GE’s 1,200-employee refrigerator factory in Decatur, Ala. (Decatur Daily News). Haier and other Chinese multinationals setting up factories in the U.S. are attracted to America’s stable social, political, and legal environments. Haier completed its $5.6 billion acquisition of GE Appliances on Monday, part of a wave of such investments totaling more than $15 billion last year (Rutgers University).

UPS: Prosecutors in Las Vegas have dropped charges against a paraplegic man accused May 21 of robbing a UPS driver of a cellphone and scanner, and then running from the scene, conceding his disabilities would have made that impossible. But the prosecutor’s move didn’t come until after Antwine Hunter spent two weeks in jail (Review-Journal).

David Callaway
Callaway

In other news, in a move with big implications for The Courier Journal, the top editor at USA Today, David Callaway, is leaving to become CEO of financial news site The Street, effective July 1; the paper has started a search for his replacement (USA Today).

Callaway had been at the paper four years, a period during which it assumed growing influence over the CJ  Continue reading “Taco rises, Chipotle plunges in new survey; Yum sets China spin for Oct. 31; Aetna: DOJ wants more info, but deal on track” →