Tag: Big Employers

Why Ford will slam Tesla; Yum stock whips Mickey D’s, and Hut launches S’mores cookies

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Pizza Hut’s new S’mores cookies are $6.99.

A news summary, focused on big employers; updated 5:57.m.

FORD: Why Ford will beat Tesla, even as electric cars gain a toehold (Barron’s).

YUM: The company’s stock has overthrown McDonald’s as the hottest fast-food stock around. Year to date, shares have surged 9% vs. 4% for McDonald’s and a skinny 0.2% for the S&P 500 index. (The Street). Also, former Chairman David Novak says workers are “starved for recognition” from their supervisors (Business First).

PIZZA HUT today introduced 8-inch Hershey’s Toasted S’mores Cookies for a limited time at $6.99 (press release).

AMAZON has started hiring up to 500 employees for a new distribution center in Florence Township outside Trenton, N.J. “They want to be up and running in time for the Christmas holiday,” Township Administrator Richard Brook said last week (Burlington County Times).

GANNETT: Tribune Publishing’s shares dove 15% today on fears that Courier-Journal owner Gannett may rescind its $15-a-share takeover offer; Gannett’s stock fell 2.4% (Talking New Media). The chances Tribune would pursue a “Pac-Man” defense takeover of Gannett had already eased when Tribune decided to share confidential information that could pave the way for Gannett’s $864 million purchase of Tribune (Reuters).

KFC: A 29-year-old man was arrested last night in Columbus, Ga., after he allegedly approached the KFC drive-thru on Manchester Expressway completely nude (Ledger-Enquirer).

BROWN-FORMAN said today it will release fourth-quarter financial results on June 8, followed by a conference call with Wall Street analysts (press release). Meanwhile, Boulevard is sad we missed the chance on Saturday to celebrate World Whisky Day, where everyone was invited to “try a dram and celebrate the water of life” (Hot Rum Cow).

TEXAS ROADHOUSE opens one of its newest restaurants today, a $1.3 million outlet in the college town of Ithaca, N.Y. (Ithaca Voice).

CHURCHILL DOWNS: Thoroughbred racing’s now increasingly international, as NBC Sports made clear during Saturday’s Preakness Stakes, when the network teased its coverage of the Royal Ascot meeting in Britain starting next year (Chicago Now). Ascot got a big publicity boost in 1964’s “My Fair Lady.” The women’s dress code for the royal enclosure is super-strict, including this admonition: “strapless, off the shoulder, halter and spaghetti straps are not permitted” (Ascot).

Photo, top: Pizza Hut.

For Humana’s top brass, Anthem-Cigna’s private ‘squabbles’ offer a window on mega-merger pitfalls

A news summary, focused on big employers; updated 6:12 p.m.

anthem-cigna-logos-thumb-400Quarrels have broken out behind the scenes of Anthem’s proposed acquisition of Cigna, as the health insurers seek regulatory approval for their landmark $48 billion deal, according to a series of letters reviewed by The Wall Street Journal. “People on both sides say the squabbles could delay or derail antitrust approvals, which are typically harder to obtain if both parties aren’t in sync,” the Journal is reporting today.

The deal was announced July 24, three weeks after Aetna and Humana announced their own planned $34 billion tie-up, as big insurers sought scale and efficiency in a shifting U.S. health care industry. The Anthem-Cigna dissension suggests their proposal may fall behind in the regulatory review,  worrisome because it’s “thought to have better odds if reviewed alongside Aetna-Humana,” the Journal says.

On Friday, Aetna CEO Mark Bertolini said he expected his company’s purchase of Humana would close during the second half of the year. He also said he couldn’t rule out the possibility Aetna might move its headquarters from its historic Hartford home once the deal is complete.

In other news, new federal overtime regulations could force employers to boost the pay of about 149,000 Kentuckians, although mostly at small and mid-sized companies. Starting in December, salaried employees earning $47,476 or less annually must be paid time-and-a-half for working more than 40 hours in a week; that’s twice the current level (Courier-Journal).

China fund and KKR drop talks to buy into Yum China; ‘Pac Man’ takeover of CJ-owner’s tough to swallow, and another Taco Cantina on the way

A news summary focused on big employers; updated 3:09 p.m.

tacobell-restaurant
The first Taco Bell Cantina in Chicago; next up is in Berkeley, Calif.

YUM: A consortium led by sovereign wealth fund China Investment Corp. and private equity firm KKR has ended talks to buy a stake in Yum’s 7,205-restaurant China unit, partly over Yum’s unwillingness to give up majority control because of the negative tax implications that would pose (Reuters).

GANNETT: Tribune Publishing’s defensive “Pac-Man” takeover of Courier-Journal owner Gannett would be a mouthful (New York Times). Meanwhile, Gannett’s unsolicited bid for Tribune got more personal yesterday, with each company calling out the other’s leaders by name and questioning management’s decision-making (Chicago Tribune).

TACO BELL is planning one of its next new Cantinas for Berkeley, Calif., across from San Francisco. The new formats, which target urban millennials and include alcohol on the menu, were announced last fall for Chicago and San Francisco (San Francisco Eater). The San Francisco Cantina is still alcohol-free — “no beer, no sangria, none of the boozy Mountain Dew slushies that they serve at the flagship Cantina in downtown Chicago,” thanks to a liquor license dispute with the neighbors (SF Eater, too). Taco Bell last week announced plans for four new upscale concept restaurants in Southern California.

KFC: That chicken-flavored nail polish the Internet fell in love with was a one-off by a Hong Kong franchisee; it won’t be sold company-wide. “As a brand strategy, it’s not something we will pursue,” Yum China CEO Micky Pant said in an interview yesterday after the fast food giant’s annual shareholder meeting in Louisville (Courier-Journal). Meanwhile, a video about the polish has gone viral, racking up nearly 231,000 views:

CHURCHILL DOWNS: Two horses have died today in separate incidents after races leading up to this afternoon’s Preakness Stakes (WDRB).

UPS will invest $177 million expanding its distribution hub in Columbus, Ohio, creating 75 jobs on top of the 748 employees already there (Columbus Business First).

PIZZA HUT: New Orleans police arrested a man for doing something very naughty on a mattress behind a Pizza Hut restaurant (Times-Picayune).

In other news, the Westport Village shopping center has been sold to Atlanta-based Hendon Properties for $23.8 million (Courier-Journal). The center at night, below:

Westport Village Shopping Center

In Yum’s history, 11 herbs and spices became a recipe for a fast-food giant

Boulevard focuses on news about some of Louisville’s biggest employers, nonprofits, and cultural institutions. This is one in an occasional series about them.

Harland Sanders
Sanders

Louisville-based Yum Brands traces its corporate roots to one of the most-recognized entrepreneurs — and cooks — in the world: Col. Harland Sanders. He launched his iconic Kentucky Fried Chicken chain in 1930 from his roadside restaurant in Corbin, Ky., during the Great Depression.

It grew into a business giant based on his secret recipe of 11 herbs and spices. In 1964, at age 73, Sanders sold the chain for $2 million ($15 million in 2016 dollars) to a partnership led by Kentucky businessman John Y. Brown Jr. (a lawyer and future governor of the state) and Jack C. Massey, a venture capitalist.

In the 1970s and 80s, KFC passed through a series of owners, ultimately getting acquired by PepsiCo.

The beverage giant added Pizza Hut in 1977, and Mexican fast-food chain Taco Bell in 1978 — and then it spun off all three into Tricon Global Restaurants in 1997. Tricon made Louisville its corporate headquarters, and then adopted the name Yum! Brands. (Boulevard doesn’t use the exclamation mark because it looks like a typo to readers who aren’t familiar with the brand!)

With nearly 43,000 restaurants in more than 130 countries and territories, Yum is now one of the biggest restaurant chains in the world. Its marquee brands — KFC, Pizza Hut and Taco Bell — are one of the biggest private employers, with a combined 505,000 employees; a majority of them work part-time. Revenues in 2015 exceeded $13 billion. It ranked No 218 in the Fortune 500 in June 2016.

Greg Creed
Creed

In Louisville, Yum employs 1,000 at the corporate headquarters as well as KFC’s U.S. division offices. In early 2016, however, CEO Greg Creed and the four other top executives shifted to Plano north of Dallas, where the company’s biggest two divisions, KFC Global and Pizza Hut, are headquartered. Allaying concerns that Yum’s corporate headquarters might move, too, a spokesman told WDRB in February 2016 the executives would work from Louisville one or two weeks per month. Taco Bell is based in southern California’s Irvine.

Sanders’ affiliation with KFC hasn’t entirely ended. He continued as a spokesman for many years after he sold the chain to Brown and Massey. He died in 1980 at Jewish Hospital and was buried in Cave Hill Cemetery before a monument designed to look like the KFC-Yum headquarters, at 1441 Gardiner Lane. For many years, his grave has been the most-visited there.

Last year, Yum resurrected the colonel — actually, former Saturday Night Live comedian Darrell Hammond — to boost sales. But the new series of commercials that followed have gotten mixed reviews. Here’s one:

Aetna chief doesn’t rule out HQ move; CJ owner Gannett now looks like a takeover target, too

A news summary focused on big employers; updated 3:53 p.m.

aetna-headquarters
Aetna’s headquarters in Hartford, where it was founded in 1853.

HUMANA: Aetna’s CEO did little today to allay concerns the insurance giant might leave its historic Hartford home after its workforce doubles to 110,000 with the pending Humana merger. Mark Bertolini told the annual stockholders meeting that Aetna was required to establish a Kentucky presence when it sought to buy Humana. “Having said that,” he told shareholders, “the rest of all of our real estate is under review.” He expects the $37 billion deal to close in the second half of the year. (Hartford Courant). Humana’s stock closed at $169.60 a share, up less than 1%, but enough to make it the best-performing stock this week among Boulevard’s portfolio of big local employers.

GANNETT: Tribune Publishing is reportedly turning the tables on Gannett by planning a hostile offer to buy the owner of The Courier-Journal, USA Today and more than 100 other dailies. “I am going to bid on Gannett,” CEO Michael Ferro told five dozen Los Angeles Times staffers, according to a confidential source. “I have lawyers working on it.” That would counter Gannett’s sweetened all-cash offer this week, to $15 a share, or about $475 million, excluding  $385 million of outstanding debt (Politico Media).

UPS CEO David Abney doubts package delivery by drone will be as ubiquitous as some forecast. Speaking to a Boston business conference, he said: “I don’t believe there are going to be 10,000 to 20,000 of these flying over metro Boston delivering dog food and toothbrushes. I just don’t believe the economics of those work out” (Boston Business First).

AMAZON, which is developing Prime Air to transport packages to customers within 30 minutes via drone, could learn something from DHL’s drone delivery program (Business Insider).

PAPA JOHN’S: Baseball-related pizza promotions are now so pervasive, they extend to the local level, thanks to Papa John’s status as the “official pizza” of 22 big league clubs (538).

BROWN-FORMAN is now offering pregnant employees 12 weeks’ paid leave, about twice as much as the most generous maternity leave plans of the area’s 10 biggest employers (Insider Louisville).

CHURCHILL DOWNS: Which horses stand the best chances at tomorrow’s 141st Preakness Stakes (New York Times).

Donald Trump
Trump

In other news, presumptive GOP White House nominee Donald Trump addresses the 70,000-member NRA annual meeting today at the Kentucky Exposition Center (NBC).

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