Winner: Mc Donald's
The Motley Fool reported that MCDonald's profits continued to increase, and people dined less ion sit down restaurants and opted for their value menu instead.
McDonald's has blown past analysts' expectations again and again. This outperformance has been going on for so long it's difficult to remember way back when McDonald's was in dire need of a turnaround.Loser: Local Restaurants
The papers are filled with the eulogies of favorite eateries. Portlanders will miss chains such as Chili's, but will also lament the closing of restaurants that helped to make Portland a national "foodie" city such as Lucier and D.F. The Oregonian reports:
Observers can't remember a worse year for Portland restaurants. In the first two months of 2008, seven restaurants closed, four as part of the implosion of the overextended N.W. Hayden Enterprises. The year ends with the fall of Lucier -- the $4 million South Waterfront showcase -- ringing in our ears. In between, more than 20 Portland restaurants shut their doors.Winner: The Country Of Origin Labeling Law
It only took six years and multiple delays, but 2008 finally saw the roll out of the C.O.O.L law, which will allow consumers to know where their meat and produce has traveled to on it's way to the grocery store. While detractors condemned the law for being full of loopholes and a hassle for the industry, threats of fines from the USDA prompted producers, distributors, and retailers to follow suit instead of pushing back the implementation for another few years.
Loser: The Country of Origin Labeling Law
The controversial law, which will do nothing to help food safety and recall issues, was seen by some as a way for the US to sell more product over other countries. The end of 2008 showed us what might be just the beginnings of fall out from other nations; Mexico barred imports from major meat processing plants. Forbes has more:
Meat industry sources said Mexico may be striking back at the U.S. country-of-origin labeling law for fresh beef and pork, which went into effect earlier this year. "That is the only reason that we could see for Mexico doing this," said Allendale analyst Rich Nelson, as one wasn't provided.Winner: Hormel
Not only did they just win 2008 Food Processor of the Year, Hormel is seeing as an investor's dream in this turbulent climate. The Motley Fool rated it as one of the four stocks that will shine in the market, and even those across the pond are noticing that Americans are eating Spam ahain. The UK Times Online has more:
They have shot up by more than 10 per cent in the past three months and the Hormel Foods Corporation has had to introduce a double shift at its factory in Austin, Minnesota, seven days a week to keep up with demand.Loser: The Chicken Industry
2008 saw industry gians Pilgrim's Pride file for bankrupcy, after reporting huge losses and a losing battle with meeting creditor deadlines. Their CEO resigned two weeks ago as they struggled to reorganize, and the future of the company is uncertain. Tyson's chicken division suffered losses as well, and on December 17th they signed an agreement with creditors essentially putting up all of their assets for collateral (via Forbes). Let's hope that works out for them.
