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Higher Cigarette Prices Help Boost Altria 2Q Earnings

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By The Associated Press

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Gene J. Puskar/AP

By MICHAEL FELBERBAUM

RICHMOND, Va. — Marlboro maker Altria said Thursday its second-quarter profit rose about 3 percent as higher prices and lower expenses from a longstanding legal settlement offset a decline in cigarette sales.

The owner of the nation’s biggest cigarette maker, Philip Morris USA, also raised the lower end its full-year earnings guidance.

Altria (MO), based in Richmond, Va., earned $1.27 billion, or 63 cents a share, for the April-June period, up from $1.22 billion, or 60 cents a share, a year ago.

Excluding one-time items, earnings were 62 cents a share, missing Wall Street expectations by a penny.

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Revenue, excluding excise taxes, decreased 2.5 percent to $4.5 billion. Analysts polled by FactSet expected $4.62 billion.

Cigarette volumes fell nearly 7 percent to 33.8 billion cigarettes compared with a year ago. Marlboro volumes fell more than 7 percent, volume for its other premium brands fell by nearly 11 percent, and volumes for discount cigarette brands like L&M increased nearly 4 percent,

Its share of the U.S. retail market rose 0.3 percentage points to 50.7 percent. Marlboro’s share of the U.S. market was flat at 43.7 percent.

The premium Marlboro brand has been under pressure from competitors and lower-priced cigarette brands as consumers face economic pressure and high unemployment.

Those economic challenges are in addition to the tax hikes, smoking bans, health concerns and social stigma that have made the cigarette business tougher.

The company has introduced several new products with the Marlboro brand, often with lower promotional pricing. They include special blends of both menthol and non-menthol cigarettes to try to keep the brand growing and to lure smokers away from its competitors. It has said it has a pipeline of innovative products to supplement the Marlboro brand in the future.

Altria and others are focusing on cigarette alternatives — such as electronic cigarettes, cigars, snuff and chewing tobacco — for future sales growth because the decline in cigarette smoking is expected to continue.

Volumes of Altria’s smokeless tobacco brands such as Copenhagen and Skoal rose more than 4 percent from a year ago. For the quarter, the company’s smokeless tobacco brands had 55 percent of the market, though smokeless tobacco is a tiny market compared with cigarettes.

Altria said inventory changes and retail share losses drove volumes for its Black & Mild cigars down 8 percent during the quarter.

Altria also owns a wine business, holds a voting stake in brewer SABMiller, and has a financial services division.

The company Thursday also raised the lower end of its full-year adjusted earnings guidance by a penny to a range of $2.36 and $2.41.

During the latest quarter, Altria said it repurchased 3.7 million shares for a total cost of about …read more

Source: FULL ARTICLE at DailyFinance

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Sales Fall at 'Broken' McDonald's

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By Matt Brownell

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Not all is happy in McDonaldland.

McDonald’s reported its first-quarter earnings Friday morning, and while profit rose slightly, comparable-store sales in the U.S. fell 1.2%. Things were even worse abroad, with comparable sales in Asia, the Middle East and Africa falling 3.3%.

In a statement accompanying the filing, McDonald’s (MCD) CEO Don Thompson cited “global economic headwinds” and a “challenging eating-out environment.”

The poor sales don’t come as a complete shock. While the company reported improved profits in the fourth quarter of 2012, it also saw sales decline in key foreign markets and dealt with a drop in operating profit margins.

Though popular, the McRib barbecue sandwich can’t solve all of the chain’s problems. So in recent months, McDonald’s has introduced Chicken McWraps in a bid to stimulate sagging sales. But franchisees recently complained that the sandwiches took too long to prepare.

And the company is also confronting the fact that customer-service issues are rampant at its franchises: According to one report, McDonald’s officials told franchisees that “service is broken.” QSR Magazine, an industry trade publication, found that the average wait time at the McDonald’s drive-through window was a full minute slower than at rival Wendy’s (WEN).

McDonald’s stock dropped by more than 2 percentage points to $99.76 a share in pre-market trading.

Matt Brownell is the consumer and retail reporter for DailyFinance. You can reach him at Matt.Brownell@teamaol.com, and follow him on Twitter at @Brownellorama.

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From: http://www.dailyfinance.com/2013/04/19/sales-fall-at-broken-mcdonalds/

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Midwest's Drought-Busting Rains Shift Farm-Economy Prospects

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By Reuters

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Seth Perlman/AP

By Karl Plume and Sam Nelson

CHICAGO — Torrential downpours across a broad swath of the U.S. Midwest this week are easing the worst drought in more than 50 years, flooding streams, snarling river transportation, stalling corn plantings — and changing the outlook for the American farm economy in 2013.

The Army Corps of Engineers is closing locks along a 150-mile stretch of the Mississippi River from roughly Davenport in Iowa to Hannibal, Mo. Barge traffic was backing up Thursday, as water levels were too high for barges to take on grain.

The Mississippi and other major rivers are expected to begin cresting Sunday — and likely will run over levies in some areas. That is a sharp reversal from as recently as January, when low water levels disrupted the main water thoroughfares that bring grain from the nation’s breadbasket to the world’s markets.

“These rains are really helping bring most areas out of drought status. And the rain encompasses all of the western Corn Belt that was previously dry,” said Don Keeney, meteorologist for MDA Weather Services, a widely followed commercial forecasting firm.

If the drought is ending, it would represent a sea change for the farm economy, where expectations for another dry summer had been baked in. Continued rainy weather could further delay spring plantings, cause a sharp fall in the price of farm commodities, and lower the cost of everything from hog feed to cereal ingredients.

Lower feed prices would help livestock and dairy producers, but soft grain prices could cut into farmers’ incomes and perhaps even cause farmland values to retreat from recent record highs.

An end to drought conditions would bring a burst in economic activity across the agriculture industry — from farmers in the fields to those operating grain elevators, processing companies and shippers.

“If in fact the drought is easing, and if we are migrating to a situation that might afford better yields, to my mind, for the full value chain, it’s a godsend,” said Bruce Scherr, chief executive of agribusiness analytics firm Informa Economics. “Another year like last year would be devastating.”

The 2012 drought brought corn production to only 10.8 billion bushels, a 6-year low, with yields reaching a 17-year low of 123.4 bushels an acre. The production losses added to the impact of rising exports to China and domestic demand for ethanol production to drive corn prices on the Chicago Board of Trade to an all-time high last August.

Farmers filed a record $11.8 billion in crop-insurance claims, according to Agriculture Department data. And farm income fell last year by 3 percent from a record set in 2011.

Transformation

“Isn’t it ironic that all winter we’ve been worried about dry soil, and all of that has changed in a period

From: http://www.dailyfinance.com/2013/04/19/rain-ends-midwest-drought/

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PepsiCo Quarterly Earnings Fall Even as Revenue Rises

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By The Associated Press

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PURCHASE, N.Y. — PepsiCo’s first-quarter profit fell 5 percent, but higher prices lifted the soda and snack maker’s sales.

Adjusted profit topped Wall Street‘s view and the maker of Frito-Lay, Gatorade and other products stood by its full-year earnings forecast, following a year in which it cut costs and invested more heavily in marketing for its biggest brands.

For the period ended March 23, PepsiCo Inc. (PEP) earned $1.08 billion, or 69 cents a share. That’s down from $1.13 billion, or 71 cents a share, a year earlier.

Excluding the impact of Venezuela‘s currency devaluation and other items, per-share earnings rose 12 percent to 77 cents. Analysts expected 70 cents, according to FactSet.

Revenue for the Purchase, N.Y., company rose 1 percent to $12.58 billion, beating analyst expectations of $12.54 billion.

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From: http://www.dailyfinance.com/2013/04/18/pepsico-earnings-fall/

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Tesco Prepares to Exit U.S. With Sale of Fresh & Easy

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By Reuters

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By James Davey and Kate Holton

Britain’s biggest retailer, Tesco, wrote down the value of its global operations by $3.5 billion and announced plans to exit the United States, as it sought to rebuild after a year in which profit fell for the first time in two decades.

The group, the world’s third largest retailer after Walmart and Carrefour, said on Wednesday abandoning loss-making Fresh & Easy in the U.S. would mean restructuring and other one-off costs of 1 billion pounds ($1.5 billion).

Tesco also wrote down the value of its property in Britain by 804 million pounds, reflecting a decision not to develop more than 100 sites, and its businesses in Poland, the Czech Republic and Turkey by 495 million pounds, to account for a sharp slowdown in demand.

Though Chief Executive Philip Clarke hailed Tesco’s fourth quarter performance in its home market as its best quarterly outcome in three years, it still represented a slowdown in growth since Christmas, despite a year of huge investment.

“I’ve been working for Tesco for nearly 40 years and I can tell you this – it already looks, feels and acts like a different and a better business,” Clarke told reporters.

“We’ve closed the gap in the [U.K.] market, at times we’ve outperformed it,” he said.

Shares in Tesco, up 24 percent over the last three months, were down 3 percent at 1004 GMT, valuing the business at 30 billion pounds.

“Management cannot claim concrete evidence of a U.K. recovery with these numbers,” said Panmure Gordon analyst Philip Dorgan.

“It will take time — retail is detail — but we believe that Tesco is on track and we expect recovery in the U.K. to slowly emerge in FY2014,” he said, adding that Tesco could commence share buybacks in 2015.

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Tesco made a statutory pretax profit of 1.96 billion pounds in the year to Feb. 13, down 51.5 percent. It also reported an expected 14.5 percent fall in underlying full-year profit to 3.55 billion pounds, largely reflecting the cost of a 1 billion pounds turnaround plan for its home market, launched after a shock profit warning in January last year.

Earnings were also hit by the impact of the euro zone debt crisis on eastern European markets, restrictions on store opening times in South Korea, and the Fresh & Easy losses.

Fourth quarter sales at British stores open over a year, excluding fuel and VAT sales tax, grew 0.5 percent. Though at the top end of analysts’ forecasts it was worse than growth of 1.8 percent recorded in the six weeks to Jan. 5.

Tesco’s fightback plan for Britain, where it makes over 60 percent of revenue and profit, has focused on more staff, refurbished stores, revamped food ranges and price initiatives

From: http://www.dailyfinance.com/2013/04/17/tesco-exits-united-states/

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Coca-Cola Per-Share Earnings Fall 13% in the First Quarter

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By The Associated Press

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Justin Sullivan/AP

Coca-Cola Co.’s first-quarter results came in above expectations as the world’s biggest beverage maker saw global sales volume grow.

The Atlanta-based company said it earned $1.75 billion, or 39 cents a share, for the period ended March 29. That’s down from $2.1 billion, or 45 cents a share, a year earlier.

Not including one-time items such as restructuring charges, however, Coca-Cola said it earned 46 cents a share, better than the 45 cents a share analysts expected.

Net revenue declined to $11.04 billion, from $11.14 billion a year ago, hurt by foreign currency exchange rates and two fewer selling days in the period. Analysts expected $10.97 billion.

Coca-Cola Co. (KO) also announced it was starting to refranchise its U.S. business by giving bottlers expanded territories.

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From: http://www.dailyfinance.com/2013/04/16/coca-cola-first-quarter-earnings/

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McDonald's to Roll Out New 'Dual-Point' Ordering System

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By Rick Aristotle Munarriz

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McDonald’s (MCD) customers aren’t as happy as they used to be, but the world’s largest restaurant chain has a plan.

Facing a spike in customer complaints on employee friendliness, McDonald’s is rolling out a new dual-point ordering system that will hopefully make the dine-in experience less chaotic than it is at the moment.

Diners, franchisees, and investors better hope so.

Grimace is in the House

Shares of McDonald’s hit a new all-time high on Friday, but things aren’t as rosy as the stock chart suggests. In October 2012 the chain posted a year-over-year decline in monthly sales at the individual store level, the first time since 2003 it reported negative monthly comparable sales.

McDonald’s has been expanding its menu aggressively to offset diner boredom. Premium chicken sandwiches, restaurant-worthy salads, and premium coffee beverages give the fast food behemoth more than just burgers to woo diners.

However, all of the exotic additions could also be creating confusion and long waits for customers.

Having a McHeart-to-Heart

McDonald’s executives invited franchisees to a webcast last month where it detailed that one in five of the customer complaints that were coming in were about unfriendly employees. According to The Wall Street Journal, executives also pointed out that the number of complaints singling out rude or unprofessional employees is growing.

It could be a training issue, but it could also be the complexity of the menu and the longer wait times for the hungry to get their food.

McDonald’s is banking on a new system to get that right.

Your Number is Up

The new system at McDonald’s will dish out orders by placing numbers on receipts. A lot of chains do this already, but McDonald’s will have an overhead screen that flashes the order numbers that are ready. Instead of having customers hover around the register after they order, the new system frees them to sit or walk around the restaurant until their food is ready.

Perhaps more importantly, there will be a dedicated employee bringing the completed orders to the opposite end of the counter. The move will free the clutter around the registers, and the runner will be able to fulfill any requests for sugar packets or honey-mustard sauce containers instead of tripping up a cashier tending to a new order.

A more pleasant experience will naturally encourage more repeat visits. McDonald’s needs that to happen, regardless of what its sky-high share price suggests.

Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends McDonald’s. The Motley Fool owns shares of McDonald’s. Try any of our newsletter services free for 30 days.

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From: http://www.dailyfinance.com/on/mcdonalds-dual-point-ordering-system/

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Coming Soon to Taco Bell: Breakfast and Health Food

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By Matt Brownell

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Taco Bell (YUM) has seen sales explode in the last couple of years, largely on the strength of zany junk food like the Doritos Locos Tacos. But now it’s making a pitch to customers who aren’t necessarily attracted by bizarre fast-food mashups.

The “Mexican-inspired” fast-food joint announced this week that it was going to start bringing healthier offerings to its menu. According to the AP, it’s aiming to make at least 20% of its menu items meet government guidelines for fat and calorie content by 2020. That means, for instance, that a single meal would only have 666 calories, based on the 2,000-calorie daily diet recommended by the USDA. CEO Greg Creed said that some of the healthier products may start launching as early as next year.

That’s not the only change coming to Taco Bell‘s menu. Earlier this month, Creed told a restaurant industry conference that the chain was aiming to double sales over the next decade, in part by adding breakfast to the menu.

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The breakfast menu (dubbed “FirstMeal,” of course) has already rolled out in more than 800 Taco Bells on the West Coast, including locations in California, Arizona and Colorado. As you might expect, you aren’t getting pancakes — Taco Bell looks to be putting its own twist on the breakfast burrito with its first offering, the A.M. Crunchwrap. It features egg, cheese, a hashbrown and your choice of bacon or sausage, all stuffed inside a tortilla. And since this is Taco Bell, you’ll get it with a glass of Mtn Dew A.M., which is a mix of a Mountain Dew and orange juice.

“Everyone’s saying we’re crazy because McDonald’s owns this,” Creed told the conference. “That has to stop.”

And breakfast isn’t the only time of day that Taco Bell wants to conquer. The chain also recently started offering an afternoon menu called “Happier Hour,” which includes the snack-sized loaded grillers and a variety of frozen drinks. It will aim to increase traffic during the 2 p.m. to 5 p.m. time block, which tends to be a dead zone for restaurants.

We’re not sure we can get on board with the idea of eating Taco Bell for breakfast, but then, we’re sure people said the same of McDonald’s. Maybe we just need to think outside the bagel.

Matt Brownell is the consumer and retail reporter for DailyFinance. You can reach him at Matt.Brownell@teamaol.com, and follow him on Twitter at @Brownellorama.

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From: http://www.dailyfinance.com/on/taco-bell-breakfast-healthy-choices/

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Burger King CEO Hees to Take Heinz Reins After Buyout

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By The Associated Press

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PITTSBURGH — Burger King CEO Bernardo Hees will take the top job at Heinz following its acquisition by investment firm 3G Capital and Warren Buffett’s Berkshire Hathaway Inc. (BRK.B).

Hees, 43, has been CEO at Burger King, another 3G Capital investment, since 2010. Before that, Hees was CEO of America Latina Logistica, Latin America‘s largest railroad and logistics company.

He will remain CEO at Burger King until the deal closes. Likewise, Heinz Chairman and CEO Bill Johnson will retain that job until the acquisition of the company closes.

The investors announced plans in February to buy Pittsburgh-based H.J. Heinz Co. (HNZ) in a $23.3 billion deal. Heinz shareholders are set to vote on the acquisition at a meeting April 30.

The deal is expected to close in the second or third quarter and still awaits regulatory approval in some countries and the European Union. U.S. authorities have already signed off on the deal.

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3G Managing Partner Alex Behring said in a statement that Hees’ experience in the food industry makes him the ideal leader for Heinz.

Berkshire and Brazilian investment firm 3G said they will discuss a continuing role with Heinz with Johnson.

At Miami-based Burger King Worldwide Inc. (BKW), Chief Financial Officer Daniel Schwartz will become chief operating officer and will take the CEO job on July 1.

Hees led a campaign to revamp Burger King‘s menu and marketing. The menu moves helped boost the burger chain’s profit in the fourth quarter.

But now, the world’s second-biggest hamburger chain says it needs to play up value more aggressively to compete with rivals.

On Wednesday, Burger King said it expects revenue at restaurants open at least a year fell 1.5 percent in the first quarter. The figure is considered critical because it strips out the effects of locations that opened or closed during the year.

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From: http://www.dailyfinance.com/2013/04/11/burger-king-heinz-buyout/

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KFC's China Sales Hit Hard by Bird Flu Outbreak

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By The Associated Press

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By CANDICE CHOI

NEW YORK — Yum Brands says publicity surrounding a new strain of flu is hurting its KFC sales in China, putting added pressure on its efforts to recover from an earlier controversy over its chicken suppliers.

The Louisville, Ky.-based company said in a regulatory filing Wednesday that the new bird flu cases have had a “significant, negative impact” on KFC in the past week. The news comes at a sensitive time for the company, which has been working to rebuild trust with customers following a TV report that its suppliers were giving chickens unapproved levels of antibiotics.

That report already sent sales plummeting for Yum, which is the biggest Western fast-food operator in China with about 5,300 locations. For March, Yum said sales at restaurants in China open at least a year fell 13 percent, including a 16 percent drop at KFC and a 4 percent gain at Pizza Hut.

The decline follows a 20 percent drop for January and February.

The impact from the bird flu cases would be reflected in April’s sales results, which will be reported May 10.

“Historically in these situations, we have educated consumers that properly cooked chicken is perfectly safe to eat, and we will continue to do so,” Yum said of the bird flu scare in the filing with the Securities and Exchange Commission.

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China announced the first known cases of a new strain of bird flu on March 31. The reports have sparked concerns among experts that the virus could mutate in a way that allows it to spread easily among people. Although there has been no sign of human-to-human transmission so far, the virus has infected 33 people and nine killed. On Wednesday, China‘s premier said that efforts to prevent and contain the virus were proceeding in an orderly manner.

Yum has been reporting monthly sales figures for China to keep investors updated on its recovery efforts in relation to the supplier scandal. As part of its push to regain trust with customers, it had announced the elimination of more than 1,000 small producers from its chicken supplier network and strengthened oversight over farmers.

CEO David Novak has noted that Yum has overcome major ordeals in the past, such as a bird flu scare in 2005 that dragged down sales by as much as 40 percent. And the company hasn’t adjusted its aggressive plans for expansion in the country.

Nevertheless, Yum has warned that that it expects its profit to fall in 2013 as a result of the chicken supplier scandal. That would snap an 11-year streak of double-digit growth.

Yum has more than 39,000 locations worldwide and China has been a critical engine of growth for the company because of the country’s rapidly growing ranks of middle-class consumers.

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From: http://www.dailyfinance.com/2013/04/11/yum-china-sales-bird-flu/

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5 Things to Watch This Week

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By Rick Aristotle Munarriz

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Alamy

From an established homebuilder going public to the leading used car retailer slamming on the brakes long enough to announce quarterly results, there will be plenty of news waiting to break in the coming days. Let’s go over some of the items that will help shape the week that lies ahead on Wall Street.

1. Home IPO, Sweet Home IPO: Unless you’ve been sleeping under a rock, you’re probably aware that residential real estate has bounced back in a major way. Prices are inching higher, and available inventory is thinning out.

If you are sleeping under said rock, by the way, at least make sure it has central air, indoor plumbing, and room for a pool.

As homebuilders see their financials and share prices improve, privately held developers now want in on the action. TRI Point Homes (TPH) went public earlier this year, and this week it will be Taylor Morrison Home hanging the “Open House” sign on its IPO.

Taylor Morrison Home is hoping to raise roughly $500 million as it offers 23.8 million shares priced at $20 to $22 apiece. The stock should price on Tuesday for this developer that happens to be one of country’s 10 largest homebuilders. Taylor Morrison Home should then begin trading on Wednesday.

2. Facebook Calls an Audible: Facebook (FB) unveiled a new platform for Android devices last week, and Facebook Home makes its debut on Friday.

The new program will run on some of the latest Android wireless devices, aiming to make the smartphone experience more about people than apps.

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Phones with Facebook Home installed will boost up to a screen where Facebook notifications are front and center with the latest photos uploaded by friends serving as a background. It’s more impressive than it sounds, and more importantly it’s reversible — it’s just a matter of uninstalling the program.

A bolder move by Facebook — HTC First — will also hit the market Friday. This is what many in the media are now calling the Facebook Phone since it’s optimized for the new application. Even if the phone itself doesn’t sell well, the future of Facebook Home can still be bright.

3. Good Buy, Ruby Tuesday?: The climate for casual dining is challenging. The end of the payroll tax stimulus is giving diners less money to eat out. It’s certainly not helping that hungry customers are choosing “fast casual” places that provide quality food quickly at lower price points and without the tipping rite.

Ruby Tuesday (RT) has been a laggard, and a new CEO was brought in late last year to attempt a turnaround. The new helmsman has shed …read more

Source: FULL ARTICLE at DailyFinance

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ConAgra Reports Lower Profit on Acquisition Charges

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By The Associated Press

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Alamy

NEW YORK — ConAgra reported a third-quarter profit that fell shy of Wall Street expectations as the maker of Chef Boyardee and Hebrew National hot dogs booked charges related to its acquisition of Ralcorp and struggled to grow sales for its existing brands.

The Omaha, Neb.-based company had announced last year that it was buying Ralcorp Holdings, which makes store- brand products such as cookies and pretzels for retailers including Kroger, Target and Whole Foods. ConAgra noted at the time that such products are gaining popularity in the U.S. as supermarkets and drug store chains improve their offerings as a way to cultivate shopper loyalty.

The deal, which closed on Jan. 29, made ConAgra Foods Inc. (CAG) the nation’s biggest producer of store brands.

In its consumer foods segment, ConAgra said sales rose 7 percent in the quarter as a result of acquisitions and a more favorable mix of prices and packages. But sales volume for existing brands declined 3 percent. The company’s other brands include Hunt’s ketchup, Slim Jim and Marie Callender‘s frozen meals.

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In the commercial food segment, which provides goods to restaurant chains and other outlets, sales rose 1 percent. The company noted that its Lamb Weston potato unit benefited from higher prices, which offset a volume decline that resulted primarily from softness in Asian markets.

For the three months ended Feb. 24, ConAgra said it earned $120 million, or 29 cents. That’s down from $280.1 million, or 67 cents a share, in the year-ago period.

Not including one-time items, the company said it earned 55 cents a share. Analysts on average expected a profit of 56 cents a share.

Revenue rose 13 percent to $3.85 billion, which was also shy of the $3.9 billion that Wall Street expected.

Its shares were down more than 3 percent at $34.30 in premarket trading.

ConAgra stood by its full-year guidance of adjusted net income of $2.15 a share, representing a 17 percent increase from the previous year. The forecast includes a 5-cents-per-share benefit from its acquisition of Ralcorp. Next year, the company expects a 25-cents-a-share benefit from the acquisition.

Analysts expect annual earnings each share of $2.16.

The board also declared a regular quarterly dividend of 25 cents a share, payable May 31 to shareholders of record April 30.

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Monsanto Raises Profit Forecast on Strong Corn Sales

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By Reuters

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Dan Gill/AP

By Carey Gillam

Monsanto, the world’s largest seed company, raised its full-year profit forecast on Wednesday after reporting a better-than-expected second quarter driven by strength in its global corn business.

Its shares rose nearly 2 percent in premarket trading after the company, a leading developer of genetically engineered corn, soybeans and other crops, said it expects to sell a record amount of corn this year.

Monsanto Co. (MON) said strong demand for its products allowed it to raise its fiscal 2013 earnings forecast by 10 cents a share to a range of $4.40 to $4.50 per share before certain after-tax items. That compares with a target set in January of $4.30 to $4.40 per share.

The outlook for net earnings for the full year was raised to $4.42 to $4.52 a share, up from $4.31 to $4.41.

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Monsanto said net earnings were $1.48 billion, or $2.74 a share, in the second quarter, ended Feb. 28, compared with $1.21 billion, or $2.24 a share, a year earlier.

Before certain after-tax items, it earned $2.73 a share, up from $2.28 a year earlier. Analysts were looking for $2.58, according to Thomson Reuters I/B/E/S.

Net sales for the quarter increased 15 percent to $5.5 billion, led by sales of corn seed and genetic traits, which rose more than 16 percent to $3.28 billion. That offset a nearly 2 percent decline in sales of soybean seeds and traits, a 7 percent drop in vegetable seed sales, and a 9 percent slide in cotton seeds and traits.

Monsanto said strong corn sales in Brazil and in the U.S., where farmers are preparing to plant spring crops, drove results.

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Beer and Hot Dogs: Which Ballparks Charge Most

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By CNNMoney

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By MELANIE HICKEN

It’s opening day for baseball Monday — the start of the season when many fans flock to their favorite stadium. But a day at the ballpark can get pricey, especially if you include the cost of food and drink to get through nine innings.

Classic baseball refreshments like hot dogs and beer can vary widely in price depending on the ballpark, CNNMoney found when it surveyed the 30 major league teams.

Mets fans at New York’s Citi Field shell out the most for a regular hot dog — $6.25 a pop. Meanwhile, Cincinnati Reds‘ watchers at Great American Ball Park can get a dog for just a buck — the cheapest of any of the 26 stadiums that replied to our price requests. So Cincinnati fans can get six franks for less than the price of a single hot dog at Citi Field.

Meanwhile, thirsty fans pay the most at Washington Nationals games — where, unless they take advantage of a $5 drink special before the first pitch, the cheapest beer available is a 16-ounce can for $8. For half that, beer drinkers can get a 12-ounce draft at Cleveland Indians games. The best deal? A 14-ounce beer for $4 at Arizona Diamondbacks‘ Chase Field.

Some stadiums offer unique food options to cater to local taste buds — those items generally carry even higher price tags.

At Giants games, seafood lovers can enjoy an $8.75 bread bowl of clam chowder or a $16.50 crab sandwich on San Francisco sourdough bread. For those with a sweet tooth, the stadium offers a $10 Ghirardelli hot fudge sundae in homage to San Francisco‘s famous Ghirardelli Square.

At Comerica Park, Detroit Tigers fans can buy a variety of fried options, including a $7 deep-fried red hot sausage on a stick and a $5 package of deep-fried peanuts.

Minnesota Twins fans can enjoy “state fair classics” like fried pickles ($7.50) and Turkey drumsticks ($9.75) at Target Field in Minneapolis.

Texas Rangers Ballpark in Arlington, Texas, is home to a $26 monster of a hot dog dubbed the “Boomstick,” a 2-foot-long beef hot dog, smothered in chili, nacho cheese, jalapenos and caramelized onions on a potato bun.

Some stadiums are trying to lure more fans with lower food prices. At most stadiums, fans pay between $3 and $5 for a basic hot dog and $5 to $7 for the cheapest beer — for a total of $8 to $12. But at Arizona Diamondbacks‘ ballpark, a 14-ounce beer and a “value” hot dog costs just $5.50 — less than a beer alone at other parks.

Low concession prices became a priority after the financial crisis of 2008, said Diamondbacks President and CEO Derrick Hall.

“For us, it was a challenge to make sure that we …read more
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Panera Tries a New Pay-What-You-Want Experiment — with Chili

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By The Associated Press

Panera Bread Company restaurant (Jeff Roberson, AP)

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Jeff Roberson, AP

By JIM SALTER

ST. LOUIS — Order a bowl of turkey chili at a St. Louis-area Panera Bread cafe and it’ll cost you a penny. Or $5. Or $100. In other words, whatever you decide.

Three years after launching the first of five pay-what-you-want cafes, the suburban St. Louis-based chain on Wednesday quietly began its latest charitable venture that takes the concept on a trial run to all 48 cafes in the St. Louis region.

The new idea experiments with a single menu item, Turkey Chili in a Bread Bowl, available at each St. Louis-area store for whatever the customer chooses to pay. The new chili uses all-natural, antibiotic-free turkey mixed with vegetables and beans in a sourdough bread bowl. The suggested $5.89 price (tax included) is only a guideline. All other menu items are sold for the posted price.

Panera (PNRA) calls it the Meal of Shared Responsibility, and says the potential benefit is twofold: Above-the-cost proceeds go to cover meals for customers who cannot pay the full amount and to St. Louis-area hunger initiatives; and for those in need, the 850-calorie meal provides nearly a day’s worth of nutrition at whatever price they can afford.

“We hope the suggested donations offset those who say they only have three bucks in their pocket or leave nothing,” said Ron Shaich, founder, chairman and co-CEO of the chain and president of its charitable arm, Panera Bread Foundation.

If the experiment works in St. Louis, it could be expanded to some or all of the chain’s 1,600 bakery-cafes across the country, though Shaich said there is no guarantee and no timetable for a decision.

Panera has long been involved in anti-hunger efforts, starting with its Operation Dough-Nation program that has donated tens of millions of dollars in unsold baked goods.

The first pay-what-you-want Panera Cares cafe opened in the St. Louis suburb of Clayton in 2010. Others followed in Dearborn, Mich., Portland, Ore., Chicago and Boston.

At those nonprofit cafes, every menu item is paid for by donations. Kate Antonacci of Panera Bread Foundation said roughly 60 percent of customers pay the suggested retail price. The rest are about evenly split between those who pay more and those who pay less.

The Panera Cares cafes generally bring in 70 to 80 percent of what the traditional format stores do, Antonacci said. That’s still enough for a profit, and Panera uses proceeds for a job training program run through the cafes.

The new idea is fairly low-profile. Shaich said Panera is relying on media reports and word of mouth — no direct marketing, no advertising. Signs in the St. Louis cafes will tout the idea, and hosts and hostesses will explain it to customers.

“We don’t want this to be self-serving,” Shaich said. “We want to make this an intellectually honest …read more
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Burger Giants Follow Panera and Subway Toward Upscale Fare

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By Rick Aristotle Munarriz

Wendy's flatbread

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Wendy’s

The big three burger giants are stealing a page from the menus of their fast-casual competition.

McDonald’s (MCD), Wendy’s (WEN), and Burger King (BKW) have been rolling out new sandwiches this month that will pit them against Subway, Panera Bread (PNRA), and perhaps even that gourmet burger joint down the road.

Artisan breads, calorie counts, and more non-beef options are among the latest things the chains are introducing to woo in the customers who have been flocking of late to their marginally more upscale rivals.

Meet the New Menu Items

Wendy’s is introducing a pair of flatbread grilled chicken sandwiches. Flatbread is an option that most people will associate with Subway, but Wendy’s going a step further. Its flatbread is a five-grain blend of flax, cracked wheat, millet, rolled oats, and sesame seeds that would look more at home on Panera’s menu.

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McDonald’s is also aiming at Subway’s niche with its new Premium McWraps. The world’s largest burger-flipper has offered Snack Wraps before, but the new menu items are built on larger flour tortillas, with more grilled or fried chicken and salad greens. An internal memo leaked to Advertising Age called the addition a “Subway buster” — but naturally we’ll have to see about that.

Over at Burger King, they’re now offering turkey burgers as an alternative. Burger King has offered a veggie burger in the past, but this is the first time that one of the three leading hamburger chains has tried turkey burgers, though they are frequently on the menus of gourmet burger eateries that can afford to stock wider selections.

Healthy Moves are Stealthy Moves

Menu development at McDonald’s, BK, and Wendy’s never stands still: The chains are perpetually introducing new items and retiring less popular options to keep generating interest. However, it’s no coincidence that all three are expanding their now menus with entrees feel cribbed from the menus of fast casual chains. It’s probably also not a coincidence that many of these new additions are healthier than the typical fare being flipped at the chains. As consumers grow ever-more health conscious, and labeling requirements become more common, the chains are finding it wise to offer alternatives to their less healthy signature sandwiches.

The Smoky Honey Mustard flatbread at Wendy’s packs a modest 370 calories. The sweet chili version of the Premium McWrap made with grilled chicken weighs in at an even slimmer 360 calories and a reasonable 9 grams of fat. BK‘s turkey burger isn’t exactly healthy, with 26 grams of fat, though its 5 grams of saturated fat makes it half as bad as the traditional Whopper on that front.

Bringing it All Home

A new Wendy’s ad pitches the convenience of picking up one of its flatbread sandwiches.

“Didn’t even have to get out of the …read more
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Domino's Promises Slower Pizza Delivery — Yes, Slower

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By Matt Brownell

Domino's Pan Pizza will be delivered later.

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Domino’s

Once famous for its “30 minutes or less” pizza delivery guarantee, Domino’s (DPZ) is now going a very different route, proudly trumpeting the fact that it will take longer for you to get your pie.

A new commercial for Domino’s starts with a clip from an old “30 minutes or less” ad, before Robert Gavitt, a Domino’s franchisee, switches off the TV. He goes on to explain that, “Domino’s used to be all about speed. Not anymore.” The chain’s new pan pizza, he explains, requires more time to get right — cooks need to hand-press the dough into the pan, add a second layer of cheese, and then keep it in the oven longer to get the perfect crust. The overall result: a better, not faster, pizza.

“It’s not easy for us to slow down, but it’s the right thing to do,” insists Gavitt.

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The slow-down promise is an interesting twist on the old guarantee, but it doesn’t come completely out of the blue. Toward the end of 2009, Domino’s debuted its re-invented pizza with an ad campaign called “Oh Yes We Did.” In a series of self-critical — some might say self-flagellating — commercials, Domino’s acknowledged the numerous complaints about the quality of its pizza, and promised to do better. While it never explicitly promised to drop its focus on fast delivery times, the campaign was the first step in transforming Domino’s speed-centric brand identity into that of a business dedicated to crafting a quality pie.

The campaign was a huge success: Domino’s same-store sales soared by 10% in 2010 and the company’s stock has more than tripled in value over the last three years. With such impressive sales figures backing up the strategy, it’s no surprise that Domino’s has taken it to the next level by completely repudiating its old, speedy reputation.

The pizza chain hasn’t actually offered its 30-minute guarantee since the early 1990s, and we doubt that a couple more minutes in the oven will make a noticeable difference in delivery times. But as an advertising strategy for emphasizing the quality of its new pizza, it makes a lot of sense.

Matt Brownell is the consumer and retail reporter for DailyFinance. You can reach him at Matt.Brownell@teamaol.com, and follow him on Twitter at @Brownellorama.

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Coke and Pepsi Up Against a Young Monster — and Losing

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By Travis Hoium

Cans of Monster Beverage Corp. drinks are displayed for a photograph in San Francisco, California, U.S., on Tuesday, Feb. 19, 2013. Monster Beverage Corp. is expected to release earnings data on Feb 27. Photographer: David Paul Morris/Bloomberg

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They come in coffee cups, small cans, large cans, shots, you name it — energy drinks are everywhere. If the marketing is to be believed, these magic elixirs help us accomplish amazing feats in five hours (5-Hour Energy), excel in extreme sports (Red Bull and Monster), and are the best part of waking up (Folgers).

America is addicted to energy, and every company in the drink business is trying to get a piece of the action. There’s no shortage of choices for those looking to imbibe. But only a few of these manufacturers will succeed, so investors must choose their beverage carefully.

The Energy Drink Epidemic

It all started with our growing addiction to coffee. Americans drink a total of 400 million cups of coffee per day, more than one cup per person. Recently, the trend has been toward more straightforward energy drinks or shots.

Consider this comparison: Monster Beverage (MNST) — which, like Red Bull, is one of the leaders in the energy drink market — has seen its revenue grow 20 times (2,000 percent) in the last 10 years. Starbucks (SBUX) has grown two-and-three-quarters times (274 percent) during the same period.

5-Hour Energy leads the energy-shot front, selling 1.5 billion energy shots since it was launched in 2004. The company behind the product, Living Essentials, had sales of $1 billion last year and pocketed $600 million in profit.

So, What’s Brewing at Coke and Pepsi?

With Red Bull and Monster dominating the energy drink category, soft drink giants Coca-Cola (KO) and PepsiCo (PEP) can’t seem to get a foothold in the market.

Coca-Cola has tried to sell Full Throttle, NOS, Surge, and Vault, with little success.

Pepsi has tried to expand the Mountain Dew brand with Amp and now Kickstart, which is being heavily promoted during March Madness. Time will tell if Pepsi’s latest attempt to sell high-voltage Mountain Dew is more successful than the first, but I doubt it will be.

Just the fact that Coca-Cola and Pepsi are putting so much effort into energy drinks shows how important the market is. Still, they seem to have no discernible advantage over the smaller brands.

Both Red Bull and Monster market their product differently than Coke or Pepsi ever did. They’ve gone after extreme sports, attaching their brands to the craziest athletes on earth. Red Bull has now gotten into film production and owns a fleet of helicopters and other aircraft that have become a marketing dream.

As long as these companies are playing an outsider strategy but attaching to extreme athletes, they’ll be able to hold off the big dogs. After all, everybody likes an underdog, a role extreme sports has played for a long time.

One for the Little Guys

Right now, Red Bull, …read more
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Soft Sales at Red Lobster Sink Darden's Earnings

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By The Associated Press

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Victor J. Blue, Bloomberg via Getty Images

Darden Restaurants‘ third-quarter net income dropped 18 percent, as it dealt with soft sales at Red Lobster but the performance still beat Wall Street‘s expectations.

The Orlando, Fla., company said Friday that sales at its Olive Garden, Red Lobster and LongHorn Steakhouse restaurants open at least a year fell a combined 4.6 percent. The figure is a key gauge of a restaurant operator’s performance because it excludes results at store recently opened or closed.

Darden Restaurants Inc. (DRI) has been struggling to make its brands relevant again as diners increasingly head to chains like Chipotle Mexican Grill Inc. (CMG) and Panera Bread Co. (PNRA), where they feel they’re getting restaurant-quality food without paying as much. As it looks for ways to catch up to shifting trends, Red Lobster this week started testing a “pay-at-the-counter” concept at two location near the its headquarters.

For the three months ended Feb. 24, Darden earned $134.4 million, or $1.02 a share. That’s down from $164.1 million, or $1.25 a share, a year earlier. Analysts polled by FactSet expected earnings of $1.01 a share.

Revenue rose 5 percent to $2.26 billion from $2.16 billion, matching Wall Street‘s view. Revenue for the specialty restaurant group surged 61 percent, buoyed by the addition of some Yard House restaurants, as well as new restaurants for The Capital Grille, Bahama Breeze and Seasons 52.

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Revenue at Red Lobster dropped 6 percent as it contended with higher expenses and weaker sales at its locations in the U.S. open at least a year. Olive Garden revenue edged up slightly and revenue for LongHorn Steakhouse climbed 6.9 percent as both chains took in money from new restaurants.

Darden said that bad winter weather hurt sales at some of its restaurants. Sales at Red Lobster restaurants open in the U.S. at least a year declined 6.6 percent in the quarter. The figure fell 4.1 percent for Olive Garden locations in the U.S. and dropped 1.6 percent for LongHorn Steakhouse.

The company reaffirmed its fiscal 2013 earnings forecast of $3.06 to $3.22 a share. Analysts predict earnings of $3.17 a share. It still anticipates revenue will climb 6 percent to 7 percent. Based on the prior year’s revenue of $8 billion, this implies about $8.48 billion to $8.56 billion.

Wall Street expects revenue of $8.52 billion.

Darden’s board also declared a quarterly dividend of 50 cents a share. The dividend will be paid on May 1 to shareholders of record on April 10. Darden Restaurants shares closed at $48.96 on Thursday.

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Whole Foods' GMO Labels Are About to Change Grocery Shopping

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By M. Joy Hayes, Ph.D.

Genetically Modified Organisms

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A label on a bag of popcorn indicates it is a non-GMO food product. (Robyn Beck, AFP/Getty Images)

Who would have thought that Walmart (WMT) would ever sell organic foods? But now they do, and you can thank Whole Foods (WFM) for that. Whole Foods sets the trends, and it’s about to do it again with a new food-labeling initiative that may force other major retailers to follow suit.

Whole Foods announced on Friday that it is giving its suppliers five years to clearly label all products containing ingredients with genetic material that has been modified through genetic engineering, or Genetically Modified Organisms. Alternatively, suppliers have the option of sourcing only non-GMO ingredients. The company says this move is in response to consumer demand (as reflected by the growing sales of their existing non-GMO products) and grassroots political movements pushing for more transparent labeling.

Where Whole Food Goes, So Goes the Neighborhood

Whole Foods became the first national certified organic grocer in 2003 and flourished as it served high-income customers. Other major retailers saw that there it was profitable to offer organic food options that were clearly labeled as such.

In 2005, Safeway (SWY) introduced its own private-label organics line, called O Organics. In 2006, Walmart, Target (TGT), and Costco (COST) all introduced their own lines of organic products.

In turn, this broader demand motivated big brands like Kellogg (K) and Kraft (KRFT) to start developing organic versions of their most popular products in order to meet the grocers’ new and growing demand for organic products.

Next Course, Hold the GMOs

If Whole Foods is right about the significant, growing consumer demand for non-GMO products, then we should expect to see a similar spread of non-GMO products in mainstream grocery stores.

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According to a recent poll conducted by Huffington Post and YouGov, 82 percent of Americans want GMO foods to be clearly labeled. Whole Foods President A.C. Gallo told The New York Times that some of their suppliers have seen sales increases of 15 percent in foods they have labeled.

While opponents of the initiative claim that GMO labels can mislead consumers by creating a false impression that GMO foods pose health risks, advocates claim that they do have the potential to pose a wide range of health risks — everything from creating new allergens to causing humans to build up a resistance to antibiotics.

Advocates also worry that GMOs eliminate genetic diversity in our crops and put us in a position where the introduction of a new pathogen could destroy an entire food source. And some say that the FDA‘s claim that products containing GMOs are safe for consumption is based on inadequate testing — and that many of the studies that conclude GMOs are safe have been conducted …read more
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