NEW YORK, NY / ACCESSWIRE / September 24, 2018 / McDonald’s shares were in the green on Friday despite being scolded by New York State Comptroller Thomas DiNapoli over its chickens. Shares of DAVIDsTEA were plummeting after hitting a new high on no news or a catalyst.
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McDonald's Corporation shares were up 2.80% on about 8.8 million shares traded. The fast food giant has received a warning from New York State Comptroller Thomas DiNapoli, who is scrutinizing the company and the “potential financial and reputational risks" associated with the fast-food company's chicken. Josh Balk, vice president of the Humane Society's farm animal protection, praised DiNapoli's letter to McDonald's. He remarked, "That McDonald's is allowing chickens to gravely suffer in its supply chain while its competitors take steps to improve their treatment certainly should cause concern for anyone invested in the company. We're glad the state of New York recognizes this and is taking steps to protect its investment by urging McDonald's to do better." Separately McDonald’s has increased its dividend by 14.9%.
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DAVIDsTEA Inc. closed down a little over 25% on Friday on colossal trading volume. The stock traded nearly 14.5 million shares compared to an average trading volume of just under 57,000 shares. Shares also hit a new high of $5.35 before retracing. There was no particulars news from the company to explain the moves. The company released a statement on the unusual activity and said that it "wishes to confirm that it is not aware of any corporate development or other reason for the recent market activity." The retailer of specialty tea recently announced second quarter financial results, revealing that sales had decreased by 12%. Co-Founder, Executive Chairman and Interim CEO, Herschel H. Segal, said during the earnings call, "We know that DAVIDsTEA is a leading tea company with great products and a recognized brand. We also know that we are in a healthy industry and I believe on the right side of history. Tea remains the second most consumed beverage in the world after water. A February 2018 Euromonitor International report states that the trend over the past decade of consumers increasingly drinking tea continues. This is because Canadians are becoming more aware of the health benefits and the huge variety of tea offerings. Euromonitor also observed 2 distinct tea markets in Canada in 2017. There is the traditional market, where products are presented mostly in teabags, that are sold primarily through supermarkets, hypermarkets and discounters. And you have on the -- another category of players, that includes DAVIDsTEA, that distribute tea in bag or sachet format but currently focus on loose-leaf and organic teas."
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