Data breach dampens Chipotle’s good quarter
NEW YORK — Chipotle saw a key sales figure rise more than expected as it works to regain customers’ trust after a series of food scares, but may have lost at least a little ground again in disclosing a possible data security issue.
The company said it recently detected unauthorized activity on the network that supports its payment system in restaurants, but believes it has stopped the activity. It said its investigation is focused on restaurant transactions between March 24 and April 18 of this year, and would not provide further details since the investigation is still going on.
A Chipotle representative said the company has notified card networks, which notify issuing banks, which in turn notify customers.
The Denver-based chain said earlier that sales rose 17.8 percent at established locations for the three months ended March 31, following a 29.7 percent decline in the year-ago quarter. Sales at stores open at least 13 months had turned positive in December after dropping steeply starting in late 2015. The 13-month metric is a considered a key indicator because it strips out the volatility of newly opened and closed locations.
McDonald’s sales climb, customer traffic a focus
in the first three months of the year. That included a 1.7 percent increase in its flagship U.S. market, where the fast-food chain has suffered four straight years of declining customer visits.
Sales rose as a result of higher prices, the company said, and from smaller and bigger versions of the Big Mac that helped drive up average spending. Customer visits were “relatively flat” from a year ago, when factoring out the benefit of an extra day in last year’s quarter.
Cost cuts at Coca-Cola go deeper, including jobs
Coca-Cola’s sales declined in the first quarter as it restructured its business, and the world’s biggest beverage maker said it will cut 1,200 jobs starting later this year as it deepens its cost-cutting.
The maker of Coca-Cola said the job cuts will come from its corporate staff around the world. That would represent about a 22 percent reduction of its corporate staff of about 5,500, or a 1 percent reduction in its total workforce of 100,300 employees, according to FactSet.
Coca-Cola Co. said the cuts would help it find another $800 million in annualized savings, in addition to the $3 billion the company previously said it is trimming. Most of those savings are expected to be realized in 2018 and 2019, it said.
Caterpillar’s profit jump fuels brighter outlook
Caterpillar’s first-quarter adjusted profit handily topped expectations on Wall Street, and revenue climbed thanks to improved sales across its business segments. The construction equipment company also boosted its full-year outlook thanks to a stronger-than-expected start to the year.
Shares jumped 7.9 percent Tuesday to close at $104.42.
For the three months ended March 31, the Peoria, Illinois, company earned $192 million, or 32 cents per share. That compares with $271 million, or 46 cents per share, a year earlier.