Consumer Stock Recap: Diamond Foods Burning, McDonald’s Delivery
Diamond Foods’ (NASDAQ:DMND) accounting scandal accounting scandal still leads to confusion. Diamond said a large payment to walnut growers in September was an advance on their 2011 crop, but three growers say they told the company they didn’t plan to deliver their 2011 crops and were told to cash the checks as top-ups for their 2010 deliveries.
General Motors’ (NYSE:GM) Chevrolet Volts investigation by the NHTSA could be lengthy as it probes the cause of post-crash fires of the electric vehicles. The company line coming out of Detroit from GM is that it can resolve the issue without a major battery redesign.
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Ford (NYSE:F) President Mark Fields squelches talk that the carmaker is looking for a new CEO on CNBC, saying “Alan Mulally is here and not going anywhere.” Last week, the firm’s head of social media fired up a comment to Wall Street Breakfast along the same lines.
Sears Holdings’ (NASDAQ:SHLD) board has approved the spin-off of its Orchard Supply Hardware Stores business. The spin-off was first announced in June. On Dec. 30, Sears will distribute 1 share of Orchard common stock, and 1 share of preferred stock, for every 22.14 shares of Sears stock held by shareholders on record as of Dec. 16. The common stock will trade under the ticker OSH.
Zagg (NASDAQ:ZAGG), an online mobile device retailer is trading lower today after announcing it’s appointed Randall Hales as the company’s new president and COO, and promoted Derek Smith to the position of CMO. Both will be assuming their roles immediately.
McDonald’s (NYSE:MCD) provides delivery often in China and other Asian markets, where labor is often cheap and drive-through impractical. An exec claims McDonalds’ delivery sales “have been posting double-digit growth every year in every country where it’s offered.” Yum Brands’ (NYSE:YUM) KFC chain is also offering delivery at many Chinese locations.
Wendy’s (NYSE:WEN) shares drop over Barron’s article over the weekend that suggests profits may stall unless it starts focusing on improving its stores rather than buying back shares.
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