Wednesday, July 4, 2007
Friday, April 20, 2007
Farewell, Happy Meal
Those McDonald's (NYSE: MCD) Happy Meals don't seem to be flying off the counter the way they used to. The Wall Street Journal took a look at the plight of the iconic kid meals yesterday. McDonald's doesn't break down Happy Meal sales metrics, though the newspaper noted that restaurant operators confirm that the once-popular child value meals are waning in popularity.
The logical explanation is that the chain's Dollar Menu has eaten into sales. Kids can assemble their own budget-minded combinations. Burgers become double cheeseburgers. You won't see anyone cramming a pair of apple pies into a Happy Meal box for a buck.
However, that can't explain it completely. If kids are ordering off the Dollar Menu, wouldn't penny-pinching diners be scaling back on those $5 to $6 value meals? They're the more practical candidates to turn a $6 grilled chicken meal into a $3 a la carte mix of a McChicken, small fries, and a soda.
But that's not happening. Shares of McDonald's hit a seven-year high this week in part because folks are going upscale, despite the buck temptations. March comps soared an astronomical 8.2% at Mickey D's.
So I'm not buying the proliferation of Dollar Menunaires for the Happy Meal shortfall. Another argument may be that parents are recoiling from the Happy Meals as unhealthy, but now that they can replace fries with apple slices and opt for healthier beverages, is that really a problem?
McDonald's is trying. It's apparently devising lower-sodium recipes for its McNuggets. It probably won't be long before healthier fare like its grilled chicken wraps show up as Happy Meal alternatives. Still, that doesn't seem like a good reason, either. Burger King (NYSE: BKC), Wendy's (NYSE: WEN), and McDonald's all offer healthier options, but hang out by the drive-thru window, and you'll see that fries and sodas remain the accompaniments of choice.
Maybe the problem is in the marketing. Ronald McDonald seems to be outdone by BK's The King. A few years ago, McDonald's had contracted with the same animation team responsible for many hit Viacom (NYSE: VIA) shows to put out McDonald's videos, and that kind of commitment seems missing.
It may be something as simple as the toy premiums. When McDonald's had Disney (NYSE: DIS) as an exclusive partner, it had a steady flow of popular Disney and Pixar toys to distribute. The companies have agreed to see other people, which finds McDonald's pitching toys like Wizard of Oz premiums this month.
Golden arches leading to yellow brick roads? I can't see that as a major driver. Especially when BK's got SpongeBob SquarePants in its corner this month.
Face it. The Happy Meal isn't going to die, but McDonald's is unlikely to work too hard to get it back into favor. Why is that? Did you see the March comps? Did you see the stock chart? Even a kid -- one who used to devour those Happy Meals -- knows the answer to that.
Source : http://www.fool.com/investing/general/2007/04/19/farewell-happy-meal.aspx
Good start for Mattel
09:45, Apr 17th 2007 by Ronnie Dungan
Mattel has reported 2007 its first quarter financial results with net income down to $12 million but sales up to $940.3m.
Q1 income is down compared to last year’s first quarter net income of $30.2 million, however, last year’s quarterly net income was positively impacted by tax benefits of approximately $57 million, relating to audit settlements with foreign tax authorities.“While not a particularly significant quarter within the seasonal toy industry, our positive first quarter results are a good start to the year,” said chairman and CEO Bob Eckert (pictured).
“I am pleased with the performance of our strong portfolio of brands, including nice increases in the Fisher-Price and Wheels businesses and continued strength of the Disney/Pixar Cars entertainment property. Our international business continued to generate strong growth around the world, and we benefited from improved gross margins.”
For the quarter, net sales were $940.3 million, up 19 per cent compared to $793.3 million last year.
On a regional basis, first quarter gross sales increased 10 per cent in the US and increased 29 percent in international territories. Operating income for the quarter was $20.6 million, compared to prior year’s operating loss for the quarter of $32.0 million, which included $13 million of severance charges.
For the first quarter, worldwide gross sales for the Mattel Girls and Boys Brands business unit were $567 million, up 15 per cent versus a year ago. Worldwide gross sales for the Barbie brand were up two percent, with increases in international markets offsetting declines in the US. Worldwide gross sales for Other Girls Brands were down eight per cent, with gains in the Disney Princesses and Polly Pocket toy lines offset by declines in the Winx and Pixel Chix toy lines.
Worldwide gross sales for the Wheels category, which includes the Hot Wheels, Matchbox and Tyco R/C brands, were up 15 per cent, led by double-digit growth in the Hot Wheels and Matchbox lines. Worldwide gross sales for the Entertainment business, which includes Radica and Games and Puzzles, were up 59 per cent for the quarter, reflecting strong performance in the Cars entertainment property and the addition of Radica.
First quarter worldwide gross sales for the Fisher-Price Brands business unit, which includes the Fisher-Price Core, Fisher-Price Friends and the Power Wheels brand, were $391.3 million, or up 27 per cent versus the prior year. This reflects strong growth in Fisher-Price Friends and Core Fisher-Price worldwide.
First quarter gross sales for the American Girl Brands business unit, which offers American Girl branded products directly to consumers, were $62.9 million, up two percent against last year.
Source : http://www.toynewsmag.com/news/26586/Good-start-for-Mattel
Earth Day: It's Easy Being Green
By CNBC.com Staff | 20 Apr 2007 | 04:13 PM
Earth Day has been celebrated every April 22 since 1970. Some 20 million people marked the first one and a lot has been done to protect the environment since then. The ozone layer may still be a burning issue but both air and water quality are much improved. Recycling has become a way of life -- and a daily chore -- for millions of people. And the green movement is now part of the social fabric as well as the business community.
Throughout the U.S., there are hundreds of federal, state and local events marking the day, but Earth Day is definitely a global event. Here's a sampling of our coverage.
"BioTown, USA"
Eco-tourism is a growing business. The town of Reynolds, Indiana -- population 547 -- may be a good destination. Reynolds has dubbed itself "BioTown, USA." It's goal is to become the nation's first, entirely energy-self reliant municipality. Some 155 vehicles in town are flex-fuel models.
Reynolds also plans to turn all of its household and agricultural waste into electricity. The town will also be home to an ethanol plant. which will add 60 jobs. Scott Cohn visited the town
Biodegradable Barbie?
Many companies have gone green and it is no longer a simple PR gesture. At first glance, you might think that a toymaker like Mattel might not be doing much, but the California-based maker of the Barbie doll franchise is hard at work.
About one-third of the packaging for its toys comes from recycled materials. Its massive warehouse is lit by skylights and it transports goods from the local port at night when traffic is light, thus increasing fuel efficiency.
And with all the emphasis on recyclable plastic and bio-degradable products, one might ask if Barbie and Ken would be rendered so. CEO Robert Eckert says no. Dolls and toys don't work that way. They're passed down and passed around and are built to last.
Green And Yellow
With so many big companies going green, you'd think there'd be little argument against it. But there's always room and need for the contrarian view. Peter Schwartz, former chairman of the Ayn Rand Institute, and Michael Ewall, director of the Energy Justice Network, squared off on "Power Lunch."
Ewall says going green is necessary because we're starting to run out some basic resources (coal, natural gas, uranium) and that the free market does not "know what's best for humanity's health."
Schwartz counters that the corporate move to green is "cowardly appeasement" to environmentalists, who want to protect nature from humanity not for humanity's benefit.
Ewall calls ethanol "a false solution" adding that wind and solar power are better sources for transportation. Schwartz simply says let the "free market produce the kind of energy people want to buy."
Source : http://www.cnbc.com/id/18229338
Small Magnets Are Injuring Children; CPSC Releases Stronger Warning to Parents
Of the 33 cases, the children ranged in age from 10 months to 11 years, the majority were older than three, and the majority were boys. All of the injuries led to hospital stays, which ranged from three to 19 days. In nearly all cases reviewed by CPSC, children had suffered intestinal perforations.
In addition to the intestinal injuries from swallowing loose magnets, the CPSC is aware of one case of intestinal perforation after a child swallowed magnetic jewelry that was being worn on the child’s tongue, two cases of intestinal perforations after children swallowed complete components of building sets containing magnets, one aspiration of a loose magnet, and one perforation of the nasal wall from nose jewelry.
Within the past year, the CPSC has conducted five recalls with more than eight million products containing magnets that could come loose and fall out of the product. In the fall of 2006, the CPSC alerted parents to the emerging hazard of magnets. Even so, children continue to be treated in emergency rooms across the country for complications due to ingesting magnets or toy components with magnets.
If two or more magnets, two or more magnet components, or a magnet and another metal object are swallowed separately, they can attract to one another through intestinal walls. When this happens, parents and physicians may think that the materials will pass through the child. But with magnets this is often not the case. The magnets become trapped in the body and can twist or pinch the intestine, causing holes, blockage and infection in the intestine or blood poisoning. All of which can lead to death.
The CPSC is working with manufacturers, the toy industry and other stakeholders to protect children from the dangers of magnets. New voluntary standards requirements were approved on March 15th. In addition, the voluntary standards group will continue to consider additional requirements during the next year.
In the meantime, the CPSC is working to help those in the medical community better understand the hazard and how to properly diagnose it.
To help prevent serious magnet ingestion injuries the CPSC recommends:
Seek prompt medical attention if you suspect your child may have swallowed a magnet
Look for non-specific abdominal symptoms: abdominal pains, nausea, vomiting and diarrhea
Note that objects in x-rays may appear as a single object that could actually be multiple magnetic pieces separated by trapped intestinal walls
Keep small magnets and small pieces containing magnets away from young children who might mistakenly or intentionally swallow them
Look out for loose magnetic pieces – regularly inspect toys and children’s play areas for missing or dislodged magnets
CPSC has also prepared a safety alert on the hazard posed by small magnets.
Send the link for this page to a friend! The U.S. Consumer Product Safety Commission is charged with protecting the public from unreasonable risks of serious injury or death from more than 15,000 types of consumer products under the agency's jurisdiction. Deaths, injuries and property damage from consumer product incidents cost the nation more than $700 billion annually. The CPSC is committed to protecting consumers and families from products that pose a fire, electrical, chemical, or mechanical hazard or can injure children. The CPSC's work to ensure the safety of consumer products - such as toys, cribs, power tools, cigarette lighters, and household chemicals - contributed significantly to the 30 percent decline in the rate of deaths and injuries associated with consumer products over the past 30 years.
To report a dangerous product or a product-related injury, call CPSC's hotline at ( 800 ) 638-2772 or CPSC's teletypewriter at ( 800 ) 638-8270, or visit CPSC's web site at www.cpsc.gov/talk.html. To join a CPSC email subscription list, please go to www.cpsc.gov/cpsclist.asp. Consumers can obtain this release and recall information at CPSC's Web site at www.cpsc.gov.
Source : http://media-newswire.com/release_1048127.html
Toys top danger list
10:00, Apr 19th 2007 by Ronnie Dungan
The EU has issued an alert against almost 1,000 dangerous products being sold across Europe over the past year, with toys representing nearly a quarter of the blacklisted goods and half of all products coming from China.
Of the five most problematic types of products - mainly posing risks of injuries, electric shock, burns or suffocation - toys dominated the list with 221 notifications (24 per cent), followed by electrical appliances (19 per cent), motor vehicles (14 per cent), lighters (11 per cent) and cosmetics (five per cent).
Compared to the previous year, toys took over from electrical appliances as the most risky products in 2006, receiving the most notifications for not being in line with the EU's product safety rules.
Cheap and unsafe mini-motorbikes imported to the EU have also caused special concern in Brussels. As reduced-scale copies of normal motorbikes with internal combustion engines, they proved to have serious design and construction defects and on some occasions had caused serious accidents, according to the report.
Germans (16 per cent), Hungarians (15 per cent), Greeks (11 per cent) and Britons (10 per cent) were the most active in reporting the dangerous items while the total number of notifications rose by 32 percent compared to 2005.
Around 48 percent of the blacklisted goods were imported from China as the biggest exporter to the EU, about one fifth was produced within the 27-strong bloc itself and 17 per cent of notified products were of unknown origin.
The EU executive is planning to upgrade the current version of the alert system with new IT technology to cover biological and chemical risks as well as risk in food and feed - all of which are currently beyond its scope.
Source : http://www.toynewsmag.com/news/26642/Toys-top-danger-list
Plan Toys City Station
I am completely obsessed with Plan Toys. Nine times out of ten when something catches my eye in a toy store, yup, it's from Plan Toys. Everything in their line is made from sturdy wood, molded into beautiful forms, and painted with bright, bold colors. They're also very creative. Each toy presents many opportunities for cognitive and physical exploration. Equal parts education and style - the perfect toy!Though we already own an adorable wooden farm set and a clever pull-toy/shape sorting school bus, I fear it will not be long before I add the City Station to our collection. Again, not only funky, it's functional too. The open design allows little hands access to all its cool interior features. Perhaps the best part is that it connects to other rail sets (including one from Plan Toys) that all kids seem to be obsessed with these days. As does their equally cool airport, pier, city garage and more.
Plan Toys also has some great new items, including the blue Chubbie push toy below. Be sure to check out the entire collection. But beware, you may wind up buying more than you bargained for.
Source : http://www.babygadget.net/2007/04/plan_toys_city_station.php
Toys 'R' Us Children's Fund Hosts Annual Fundraising Gala
Nearly $5 Million Raised to Support Organizations that Help Children in
Need
WAYNE, N.J., April 20 /PRNewswire/ -- Last night, the Toys "R" Us
Children's Fund hosted its 22nd annual gala in New York City, raising
approximately $5 million to benefit children in need. Uniting leaders from
the toy and baby products industries for a special evening of entertainment
and fundraising, the event was hosted by comedian Martin Short and featured
a performance by GRAMMY(R) Award-winning sensation Trisha Yearwood, with a
special appearance by country music star Garth Brooks. Established in 1985,
this annual benefit has raised more than $77 million since its inception
and is one of the largest single-night fundraising events held in New York
City.
"Children are the heart and soul of what we do. We are extremely proud
that this gala provides the opportunity to impact so many lives so
positively," said Jerry Storch, Chairman and CEO, Toys "R" Us, Inc. "Money
raised through this year's gala will be used to further the mission of the
Toys "R" Us Children's Fund to help all children in need."
In the past year, the Toys "R" Us Children's Fund has concentrated its
efforts on key initiatives where a significant impact could be made: the
Marine Toys for Tots Foundation holiday toy drive, raising funds and
awareness for Autism Speaks and providing assistance to anyone who loves a
child with a disability through the Toys "R" Us Toy Guide for
Differently-Abled Kids. Here are some of the program highlights:
Annual Holiday Partnership with the Marine Toys for Tots Foundation
In 2006, Toys "R" Us, Inc. joined forces with the Marine Toys for Tots
Foundation for the third consecutive year to help bring smiles and joy to
America's neediest children. As the largest partner in the history of Toys
for Tots, the Toys "R" Us Children's Fund has raised over $10.5 million and
collected more than 600,000 toys since the partnership began. This past
holiday season, the Toys "R" Us Children's Fund helped Toys for Tots
provide toys to a record 7.6 million children living in poverty in the
United States. In addition, all Toys "R" Us and Babies "R" Us stores across
the country served as the "Giving Headquarters," launching an extensive
educational program to help parents teach their kids about the value of
giving back to their communities.
National Partnership with Autism Speaks
Earlier this year, Toys "R" Us and the Toys "R" Us Children's Fund
began their partnership with Autism Speaks to help fund crucial autism
research and advocacy. The Toys "R" Us Children's Fund kicked off the
partnership with a $250,000 grant to the organization, and Toys "R" Us
serves as the national sponsor of the Walk Now for Autism program, a series
of more than 60 fundraising events in communities across the country.
Additionally, in conjunction with Autism Awareness Month, all Toys "R" Us
stores nationwide are currently conducting an in-store fundraising and
awareness campaign to support Autism Speaks, with a goal of raising $1
million. As part of the program, Toys "R" Us created the "Ten Toys that
Speak to Autism," a unique list that features toys that promote skills that
aid an autistic child's development.
The Toys "R" Us Toy Guide for Differently-Abled Kids
For more than a decade, Toys "R" Us has released its Toy Guide for
Differently-Abled Kids, an easy-to-use selection guide for parents and
friends of children with disabilities. The complimentary guide, available
in all Toys "R" Us stores and online at http://www.Toysrus.com, is developed in
conjunction with the National Lekotek Center and features specially
selected toys that promote the development of children with physical and
cognitive disabilities. Since its inception in 1994, thousands of people
have relied on the guide to help them determine which toys are suitable for
a child's particular abilities. The Toys "R" Us Children's Fund is proud to
have supported the National Lekotek Center over the past ten years via
monetary grants.
Each year, the Toys "R" Us Children's Fund donates millions of dollars
to worthwhile children's organizations and charities around the country.
The Fund provided the Starlight Starbright Children's Foundation with a $7
million, multi-year grant to build more than 50 hospital playrooms to
benefit pediatric patients, with an additional 25 playrooms still being
constructed. The Toys "R" Us Children's Fund also provided nearly $500,000
to Kids in Distressed Situations and recently sponsored Dream Halloween
events for the Children Affected by A.I.D.S. Foundation.
About Toys "R" Us, Inc.
Toys "R" Us is the world's leading specialty toy retailer. Currently it
sells merchandise through more than 1,500 stores, including 586 stores in
the U.S. and 683 international toy stores, which includes licensed and
franchise stores, and through its Internet site at http://www.Toysrus.com. Babies
"R" Us is the largest baby product specialty store chain in the world and a
leader in the juvenile industry, and sells merchandise through 253 stores
in the U.S. as well as on the Internet at http://www.Babiesrus.com.
Source : http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/04-20-2007/0004569940&EDATE=
Toys found in a galaxy far, far away: Fremont
A large 5-foot tall safe was dropped in the Glenmoor neighborhood this morning, leaving nearly 100 collectible Star Wars toys strewn along the street, Detective Bill Veteran said.
Authorities this morning have no idea how the safe got to Gable Drive, or who it belongs to, said the detective, the department's spokesman.
``We have not had any reports of missing safes,'' he said.
Source : http://orovillemr.com/news/bayarea/ci_5713572
Police were dispatched to Gable Drive about 1:30 a.m. after a man in his garage reported hearing a large bang outside.
When he went to investigate, he found the damaged safe lying in the street, and several boxes of action figures strewn about.
``The safe had been pried open and there were six boxes of toys, each containing 15 Star Wars action figures,'' Veteran said.
Because the safe appeared to have been forced open, authorities believe there may have been other valuables inside.
Keep Kids Away from Magnetic Toys
Magnets could get attached to different sections of the bowel resulting in obstructions, perforations and sepsis - a life-threatening infection of the blood, UPI news wire quoted a report by the Centre for Disease Control in Atlanta.
Radiological examinations cannot help doctors verify whether objects in the bowel are magnets or are trapped tissue, it said.
The CDC has suggested that physicians pass a compass near the abdomen to help determine whether an unknown object is magnetic. The centre also recommends that children below the age of six not be given magnetic toys.
Source : http://www.medindia.net/news/view_news_main.asp?x=16632
Massive Recall of Magnetic Toys in US
The U.S. Consumer Product Safety Commission (CPSC) and a leading toy manufacturer have jointly announced recall of over four million units of magnetic building sets.
Only in March 2006, the company involved, the Mega Brands, recalled 3.8 million of the magnetic building sets when one child died and four others were seriously injured after they swallowed the magnets.
Now following reports of more such injuries to children the company has announced an expanded recall.
The Mega Brands insists that sets currently at retail better retain magnets due to improved quality control, material and design changes. These products are not included in the recall.
The CPSC is aware of hundreds of complaints that magnets have fallen out of various toys and at least 33 cases where children swallowed loose magnets and required emergency surgery. In addition, a 20-month-old boy from Seattle, Washington, died. At least 1,500 incidents of magnets separating from the building pieces have been reported.
Of the 33 cases, the children ranged in age from 10 months to 11 years, the majority were older than three, and the majority were boys. All of the injuries led to hospital stays, which ranged from three to 19 days. In nearly all cases reviewed by CPSC, children had suffered intestinal perforations.
In addition to the intestinal injuries from swallowing loose magnets, the CPSC is aware of one case of intestinal perforation after a child swallowed magnetic jewelry that was being worn on the child’s tongue, two cases of intestinal perforations after children swallowed complete components of building sets containing magnets, one aspiration of a loose magnet, and one perforation of the nasal wall from nose jewelry.
At least 1,500 incidents of magnets separating from the building pieces have been reported.
“CPSC is deeply concerned about the dangers that small, powerful magnets can pose to children if swallowed,” said CPSC Acting Chairman Nancy Nord. “In order for any product recall to be effective in protecting consumers, we must significantly reduce incidents and injuries from occurring after the recall is announced."
These older sets, which were manufactured in China, contain up to 250 plastic building pieces and 1/2-inch diameter steel balls. The building pieces include 1 1/2-inch squares, 1-inch triangles, cylinder rods, flexors, connectors, x-tenders, and curves and come in an assortment of colors such as metallic, primary, translucent, and glow in the dark. Consumers should stop using the recalled magnetic sets immediately and contact Mega Brands for a comparable replacement toy.
The CPSC is also urging consumers to immediately report any incidents of loose magnets to the CPSC Hotline.
Mega Brands spokesman Alex Radmanovich said the company was not going to quibble with consumers over whether they bought the product within the recall period. "If you've got this product in the home and you feel uncomfortable, please call us," he said.
But while the CPSC said that the expanded recall includes an additional 4 million sets, making a total of about 7.8 million, Radmanovich, says even with the expanded recall the total number of sets covered is about 4 million.
As the number of toys with magnets increases, so is the number of serious injuries to children.
Within the past year, the CPSC has conducted five recalls with more than eight million products containing magnets that could come loose and fall out of the product. In the fall of 2006, the CPSC alerted parents to the emerging hazard of magnets. Even so, children continue to be treated in emergency rooms across the country for complications due to ingesting magnets or toy components with magnets.
If two or more magnets, two or more magnet components, or a magnet and another metal object are swallowed separately, they can attract to one another through intestinal walls. When this happens, parents and physicians may think that the materials will pass through the child. But with magnets this is often not the case. The magnets become trapped in the body and can twist or pinch the intestine, causing holes, blockage and infection in the intestine or blood poisoning. All of which can lead to death.
The CPSC says it is working with manufacturers, the toy industry and other stakeholders to protect children from the dangers of magnets. New voluntary standards requirements were approved on March 15th. In addition, the voluntary standards group will continue to consider additional requirements during the next year.
The commission's website http:www.cpsc.gov/ has a lot more information on the problem.
Source : http://www.medindia.net/news/view_news_main.asp?str=2&x=20166
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