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February, 2007 Archives | Homepage

Rats Inside a KFC/Taco Bell

A KFC/Taco Bell in Manhattan faced a disturbing rat problem. Blogging Stocks explains what the rat invasion looked like. You could also watch the video.
It seems that after local news stations heard about the rat sightings they flocked to the store to catch the rodents having their way around the restaurant. The rats were taped running between counters and tables and climbing on children's high chairs. Yikes, definitely not a good scene.

While today's rat race is definitely a disturbing event, it really shouldn't come as much of a surprise to the restaurant owners. Back in December when the store had a health inspection they were giving a passing grade but the inspectors noted at that time that there was evidence of rat droppings in the store.

The store has been closed until the store is completely re-sanitized and given a clean bill of health. According to a statement from KFC/Taco Bell construction in the basement on Thursday "temporarily escalated the situation."
Blogging Stocks also reports that shares of Yum Brands, the parent company of Taco Bell and KFC, traded down 0.7% for the day.

Posted on February 26, 2007
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Whole Foods and Wild Oats Merge

Whole Foods and Wild OatsBloomberg reports that the larger organic food retailer Whole Foods is buying smaller organic food retailer Wild Oats.
Whole Foods Market Inc., the largest U.S. natural-foods grocer, said it agreed to buy rival Wild Oats Markets Inc. for $565 million after reporting its first profit decline in five quarters.

Whole Foods will pay $18.50 in cash for each share of Boulder, Colorado-based Wild Oats, 18 percent higher than its closing price today. First-quarter net income fell 7.8 percent to $53.8 million, or 38 cents a share, Austin, Texas-based Whole Foods said today. Earnings missed analysts' estimates.

Buying Wild Oats will help counter slowing growth at Whole Foods, which faced competition from Safeway Inc., Trader Joe's and other grocery stores selling organic and prepared food. First-quarter sales at Whole Foods stores open at least a year rose 7 percent, down from 13 percent a year earlier.

"Whole Foods had won the size game and was able to call the shots," said Matt Patsky, portfolio manager at Boston-based Winslow Management Co. which overseas $350 million, including Whole Foods shares.

Wild Oats posted a loss in two of the past five years and its sales climbed 26 percent over the period to $1.12 billion, while Whole Foods doubled profit and sales.
Here are a few other details:
  • Whole Foods will add 110 stores in 24 states and Canada and close a few Wild Oats stores that overlap with Whole Foods stores.
  • Whole Foods says the integration will take them two years.
  • The deal could help Whole Foods cut costs as they face rising competition from regular grocery stores adding organic food aisles and sections.

    Another article on the merger can be found here in the Denver Post. Wild Oats is based in Denver.

    Posted on February 22, 2007
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  • Another Round of Tech IPO Mania?

    Could the tech bubble be ready for a big spike with waves of new tech IPOs and hysteria? A new Business 2.0 article (via BloggersBlog.com) is ready for champagne corks to be popped again by tech company executives and venture capitalists.

    Business 2.0 even has an image gallery featuring six IPOs on deck. They include Art.com, MetroPCS, NetSuite, Postini, Tellme Networks and Zappos. Before you get too excited about the prospect of numerous tech IPOs a ZDNet blog post warns that Business 2.0's math may be incorrect.

    Posted on February 21, 2007
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    XM and Sirius to Merge

    Sirius XMThe two companies that helped revolution radio and launch the ad free satellite radio industry are merging. The merger between Sirius Sattelite Radio and XM Satellite Radio is a $13 billion deal. There is one big possible wrench in the XM-Sirius merger plan and according to the Hollywood Reporter that wrench is regulator approval.
    Experts have been saying for months that approval of a combined XM-Sirius depends on how the FCC and anti-trust regulators view the industry. If considered broadly, with digital music players and the Internet thought of as competition, then approval ought to be granted. However, if the government sees competition for XM and Sirius stemming only from each other and from free radio, then approval isn't likely.

    Sirius and XM said Monday that they're confident they will be a single company by the end of the year. What they haven't yet decided is what their new company will be called and where it will be headquartered. Sirius is based in New York and XM in Washington, D.C.

    Sirius CEO Mel Karmazin and XM chairman Gary Parsons will have those titles at the combined company, while a role for XM CEO Hugh Panero -- if there is to be one -- is unclear, except that he will remain CEO of XM until the merger is consummated.
    We don't know what the name of the new company will be if they get regulator approval but we do know the company will have a huge subscriber base of 14 million listeners.

    Posted on February 19, 2007
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    U.S. Home Construction Falls 14.3% in January

    After two straight months of increases home construction dropped a steep 14.3% in January. Reuters says the drop was worse than what most economists were expecting.
    The pace of U.S. home construction fell 14.3% in January, sharpest drop since October and much worse than economists had expected, a government report on Friday showed.

    The drop followed two months of increases.

    The Commerce Department said housing starts clocked an annual pace of 1.408 million units in January compared with a 1.643 million pace in December. January's pace was the lowest in nearly 10 years.

    Economists had forecast January housing starts to fall to a 1.60 million pace from December's originally reported 1.642 million units annual rate.
    The housing market was considered last year's top business story by some. It is attracting a lot of early attention already this year.

    Posted on February 17, 2007
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    Motorola Announces Major Layoffs

    USA Today reports that Motorola has announced that it will lay off 3,500 employees. The news follows a fourth quarter that showed profits down 48%. Stocks jumped after the announcement.
    Zander, speaking to analysts at a meeting in New York, said the move will save the company about $400 million over two years. The cuts from Motorola's workforce of about 70,000 are to be spread across the company globally and completed in the first half of 2007.

    The world's No. 2 handset manufacturer also said it will beat Wall Street estimates for 2007 sales by as much as $3 billion, forecasting a full-year total of $46 billion to $49 billion. Analysts had predicted sales of $45.9 billion.

    The announcements sent Motorola's stock surging despite a fourth-quarter earnings report that showed profits down 48% from a year earlier on a stumble in operating results from its handset business.

    The announcement came after the world's No. 2 handset manufacturer reported that fourth-quarter profit fell 48% despite record sales as operating results stumbled during the key holiday selling season.
    The article also says that Motorola's CEO Ed Zander believes there is still strong demand for the company's Razr brand. Motorola has sold 75 million Razrs so far worldwide.

    Posted on February 1, 2007
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