CKE Restaurants (NYSE: CKR), parent company of Hardee's and Carl Jr.'s is suing Jack in the Box (NYSE: JBX) for a television commercial which allegedly suggests that the company's famous angus burgers are made from cow anus (see YouTube video above).

This is one of the more entertaining legal cases I've seen in awhile. According to the Associated Press, "CKE claims the ads create the misleading impression that Jack In The Box's new 100 percent sirloin burgers use a better quality of meat than the Angus beef used by Carl's Jr. and Hardee's. CKE claims the spots confuse consumers by comparing sirloin, a cut of meat found on all cattle, with Angus, which is a breed of cattle."

According to CKE CEO Andrew F. Puzder "They're not being funny. They need to stop misleading people about what Angus beef is."

Here's the problem: They actually are being funny. And I certainly don't claim to be a legal expert, but I think that part of Jack in the Box's defense is going to be "Lighten up and learn to take a joke."

Puzder said that CKE had asked Jack in the Box to pull the ad, but the company refused, pointing to a Carl Jr.'s ad which suggested that its milkshakes were better than the competition. Here's the best part: Puzder said the comparison was not valid because they had not claimed that competitors made their milk from cow anuses.

This whole "scandal" seems like a tempest in a tea pot to me. Jack in the Box's commercial was a clever pun on the word "angus" and certainly not misleading. Did anyone watching it really come away thinking that angus burgers were made from anuses?

Continue reading Jack in the Box sued for suggesting angus burger is really anus burger

Jack in the Box sued for suggesting angus burger is really anus burger originally appeared on BloggingStocks on Mon, 28 May 2007 13:26:00 EST. Please see our terms for use of feeds.

Encouraged by sales of its Angus beef burgers in southern California, McDonald's Corp. (NYSE: MCD) is planning to expand its test marketing of the premium burgers to New England.

McDonald's comes late to the Angus burger trend. Rivals Burger King Holdings, Inc. (NYSE: BKC), Hardees and Carl's Jr. -- the latter two part of CKE Restaurants, Inc. (NYSE: CKR) -- have been selling the premium burgers for years. In fact, Hardees has just announced a new addition to its menu, a patty melt style Thickburger, also made with Angus beef.

The new burgers are part of McDonald's ongoing efforts at revitalization. Those efforts have included the introduction of new beverage choices, such as iced coffee, which is also expected to spread throughout the U.S. soon. Another part of that effort is a new advertising campaign, emphasizing career opportunities at McDonald's -- no doubt to try to change its image as a source of low-paying, dead-end jobs.

The revitalization appears to be working. Back in April, McDonald's reported a strong quarter, especially internationally. The share price has risen since then, and reached a 52-week high this morning.

McDonald's sees success with Angus beef and iced coffee originally appeared on BloggingStocks on Tue, 15 May 2007 15:05:00 EST. Please see our terms for use of feeds.