4 Consumer Stock Stories Making a Commotion On Tuesday
CBS Corp. (NYSE:CBS): Closing price $52.47
Both CBS and Time Warner Cable confirmed Tuesday that the deadline to reach a new agreement has been moved back to Thursday at 9 a.m. Eastern Time from Wednesday at 5 p.m. Progress in the discussions (of which there was none) is not the cause of the postponement, but due to a technicality related to the Federal Communications Commission rule in regards to pulling signals during a “sweeps” period, said an inside source.
YUM! Brands Inc. (NYSE:YUM): Closing price $70.43
Apparently it is not enough that China Central Television bashed KFC with reports in 2012 that the company sold chicken fattened on illegal drugs; now it claims that the ice cubes at a KFC restaurant are dirtier than toilet water. The government-owned broadcaster said that ice in a Beijing outlet contained 13 times as much bacteria as water from a toilet bowl, and was 20 times over the national limit. Yum Brands intends to launch a minimum of 700 new KFC stores across China in 2013, and the new fallout brings questions concerning the depth of the damage to the brand’s reputation. However, Yum Brands spokesman Jonathan Blum minimized the nature of the incident behind the new headlines, commenting that “We have a strict quality assurance process for ice and water. Right now, we’re investigating the report about an isolated incident at one restaurant to ensure that our standards are followed.”
RadioShack Corp. (NYSE:RSH): Closing price $2.78
On Tuesday, RadioShack suffered a double blow, as it posted a wider-than-anticipated quarterly loss and also announced the exit of its financial chief, all of which accelerates the pressure on the electronics retailer only months before the holiday selling season. The results showed that the recently-appointed Chief Executive Joe Magnacca faces a huge challenge in engineering a rebound. Magnacca said Tuesday that he expects a turnaround to take several quarters. Analyst Anthony Chukumba at BB&T Capital Markets said that “We are struggling to find any silver lining in the results,” as he wondered if the firm has the time left that the new CEO thinks it will take to complete his turnaround strategy.
Starbucks Corp. (NASDAQ:SBUX): Closing price $67.66
Starbucks and Danone SA said Tuesday they will soon sell a co-branded yogurt via Starbucks cafes and in grocery stores, as yogurt makers and food firms vie for market share in the $7-billion United States market. The partnership emerges while Starbucks moves into the “health and wellness” category, and as Danone and other yogurt makers attempt to dominate the market, in which yogurt consumption per capita lags to that of Europe. Financials of the transaction were unreported. The first product of their collaboration will be ready-to-eat Greek yogurt parfaits to be sold in domestic Starbucks stores in spring 2014.
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