Movie theaters don't want you to know how many calories are in the popcorn and that's why they are resisting FDA attempts at requiring disclosures. If the FDA required scales in front of the popcorn counters, or that all popcorn be sold with free carrots, I might side with the theaters, but requiring one of those small nutritional information panels on the back of the popcorn bucket -- eaten in a darkened theater -- hardly seems oppressive to me.

I'm all for free choice and I don't want to take away anyone's jumbo popcorn as they go to the movies -- unless, of course, I get to eat some of it.

Arena Pharmaceuticals (ARNA), which soared over 10% in Monday morning trading, has set a new 52-week high of $6.75. Over the past month, Arena signed a licensing deal for its potential weight-loss drug, lorcaserin, with Japan's Eisai; released study results for the drug; and got a boost from a decision by a Food and Drug Administration panel on rival's Vivus (VVUS) drug. Arena's shares have more than doubled during that time.

The Eisai licensing deal is potentially worth about $1.3 billion. Meanwhile, the study results Arena released showed lorcaserin helped nearly half the patients lose 5% of their weight and improved their chances of keeping it off. Arena's drug did that while exhibiting a safer safety profile than either of its competitors' treatments: Vivus's Qnexa and Orexigen's (OREX) Contrave.

Today was a wishy-washy day. We started out strong with overseas trading in stocks, but the G20 debt cut pledge seems unbelievable and is still in the years ahead rather than today. Judges upheld Sarbanes-Oxley, except for one issue, which was an attack against the measure of corporate governance. Financial regulatory reform may have just run into another snag after Senator Robert Byrd, a democrat from West Virgina, died at the age of 92 ahead of a key vote this week. Consumer spending also rose 0.2%, but income rose 0.4%, and that is being taken somewhat cautiously, despite being positive.

Here were today's unofficial closing bell levels:

Dow 10,138.52 -5.29 (-0.05%)
S&P 500 1,074.56 -2.20 (-0.20%)
Nasdaq 2,220.65 -2.83 (-0.13%)

Top Analyst Calls

Ronald McDonald debuted in 1963 with TV personality Willard Scott donning the clown costume for the first time in an ad spot for McDonald's (MCD). But if some health advocates have their way, the fiery-haired clown's days are numbered.

The Corporate Accountability International is calling McDonald's mascot a "deep-fried Joe Camel for the 21st Century" and is sponsoring "Retire Ronald" events at several locations around the country. The group claims that Ronald McDonald is a spokesperson for childhood obesity, and they want him cut from the payroll pronto.

Muhtar Kent, CEO of The Coca-Cola Company (NYSE: KO), took to the pages of The Wall Street Journal to argue against the government's proposed "fat tax" on soda. In a column titled "Coke Didn't Make America Fat," Kent noted that "our industry has become an easy target in this debate." However, he believes the sedentary lifestyle of Americans is to blame for our nation's obesity problem.

"If we're genuinely interested in curbing obesity, we need to take a hard look in the mirror and acknowledge that it's not just about calories in. It's also about calories out," wrote Kent. He also cited the "regressive nature and inherent illogic" of trying to rectify obesity by taxing soft drinks, observing that West Virginia and Arkansas -- two states which currently tax sodas -- are among the states with the highest obesity rates in the nation.

The stock price of Pfizer Inc. (NYSE: PFE) has been declining this morning. Pfizer canceled the development of an obesity drug for which many had high hopes, especially in light of the looming 2011 Lipitor blockbuster cholesterol drug patent expiration. Pfizer may find it hard to post growth without it.

Pfizer is not the only pharma that has recently canceled the same class of obesity drugs. Only Wednesday, Sanofy Aventis (NYSE: SNY), after stopping sales in Europe of its version of the drug, Acomplia, also stopped clinical trials on humans. Merck & Co. (NYSE: MRK) stopped development of a similar drug candidate called Taranabant a few weeks ago. Those companies all had high hopes the drug could be used for smoking, diabetes and high cholesterol along with obesity. According to Bloomberg, only Bristol-Myers Squibb Co. (NYSE: BMY) is still developing a similar medicine.

Why are they all stopping? Mostly because they figured regulators around the world will not approve the drug due to negative psychiatric side-effects. This class of drug works on blocking the pleasure centers in the brain, specifically, it blocks the cannabinoid type 1, or CB1, receptors. If cannabinoid sounds familiar, it is because this is the very same pleasure centers that give marijuana smokers the "munchies." By blocking these centers, studies have shown people have become depressed and had suicidal thoughts.

Perhaps not having chemical and pharmaceutical degrees I'm missing something, but it seems rather straight forward that if one's pleasure centers are blocked, depression could ensue. Even if it just blocks one specific type, that could be enough to create an imbalance.

Usually regulators weigh costs, risks and benefits of the drug and the condition treated, often approving drugs with severe side effects. These drugs are our best option currently. But drug companies should change their attitude somewhat, and when developing new drugs, place more emphasis on looking at the the body as one whole entity, and see how the drug interacts with the rest of the body, not just if it can treat the specific condition.

Score a victory for corporate responsibility and good taste.

After drawing fire from nearly everyone when a Seminole County, Florida, mother complained that her 9 year-old daughter's report card arrived wrapped in an advertisement for McDonald's (NYSE: MCD), the company has decided it will discontinue that practice.

At the time of the original scandal, I wrote that I thought the ad campaign sent the wrong message: "The ad offered kids a free Happy Meal for their good work. Shouldn't kids be taught to work for knowledge and pride, not crappy food and imported toys?"

Apparently McDonald's ultimately agreed, saying it offered to reprint the report card envelopes without the ad at no cost to the school, "because we believe the focus should be on the importance of a good education."

It's a shame that young children are exposed to cynical cradle-to-grave marketing strategies on television, but parents should be able to send their kids to school without having to worry that second-grade teachers will be hocking Happy Meals.

As news of the nationwide obesity epidemic among children sweeps through the media, it's hard to fathom that one of major purveyors of crap food are the schools: Yes, those places we send children so they can be safe and grow up to strong, intelligent members of society.

Mercifully, Congress is close to dealing with the issue. According to the New York Times, "Federal lawmakers are considering the broadest effort ever to limit what children eat: a national ban on selling candy, sugary soda and salty, fatty food in school snack bars, vending machines and a la carte cafeteria lines ...Several lawmakers and advocates for changes in school food believe that an amendment to the $286 billion farm bill is the best chance to get control of the mountain of high-calorie snacks and sodas available to schoolchildren. Even if the farm bill does not pass, Mr. Harkin and Senator Lisa Murkowski, Republican of Alaska, a sponsor of the amendment, vow to keep reintroducing it in other forms until it sticks."

Signing this bill would send the right message. It's important for schools to raise money to fund programs, but exploiting vulnerable members of society and selling them something that could have a very negative impact on their lives is not the right way to do that. Government should not fund programs, however worthy, that sell unhealthy stuff to people.

The next step is for some independent-minded, courageous politicians (yeah, I know) to take on the lottery, which is similar to junk food in schools, in that they raise money by selling unhealthy products to society's most vulnerable.

Restaurateurs are cheering a New York court's decision striking down a menu law implemented by the New York Board of Health. The law required fast-food restaurants to disclose on their menus how many calories were in their meals.

The Department of Health says it is disappointed its law was overturned on a "technicality", and that it will continue to explore ways to make it easier for the consumer to eat healthy. If you've ever tried to get nutritional information in a fast-food restaurant you know how hard it can be. If you have the foresight, you can get it quickly online, but I've been in McDonald's (NYSE: MCD) locations where I was told they did not have the information available on site. Even if they do, it can be a hassle, and displaying it on the menu is the logical way to make sure consumers have convenient access to the information they need to make a decision.

The idea of New York's law was very similar to the way our securities laws are in this country: It was based on clear and compulsory disclosure, rather than subjective requirements. A public company can have O.J. Simpson and Jose Canseco as its CEO and CFO, as long as it discloses the baggage they bring. Similarly, McDonald's should be allowed to serve whatever it wants -- but consumers should be warned that they may find themselves carrying extra baggage if they order the wrong item.

It's a shame that fast-food chains want to keep their customers in the dark about nutrition, and it's unfortunate that the court has stymied the Department of Health's efforts to provide the consumer with greater information.

In what could be seen as a major victory for child health advocates, 11 of the nation's biggest food and drink companies will be restraining themselves like never before when it comes to advertising food and beverage products to kids under the age of 12. It's always been a troubling question as to why breakfast cereal companies are allowed to use bright colors and free prizes to lure children into sugary cereals and why fast-food chains get away with using cartoon characters to sell junk food to kids. Perhaps that will change soon.

The companies involved with this major shift in marketing include well-known producers like Campbell Soup Co. (NYSE: CPB), General Mills Inc. (NYSE: GIS) and PepsiCo Inc. (NYSE: PEP). Interestingly, the new guidelines adopted by the companies came a day before the FTC meets to pressure food and drink manufacturers to limit their marketing to children. The hope is that such limits will help reverse the explosion of childhood obesity currently occurring in the U.S.

Will parents be able to make more reasonable decisions now that some of those attention-grabbing marketing pitches won't be enticing kids to want all the "bad stuff'?" Probably. And the limits are certainly a good thing, given that the 11 companies involved in the new advertising guidelines account for about two-thirds of food ads on television that are directed towards kids. So, no more processed, sugary, nutritionally empty foods using such colorful characters as Shrek, Dora the Explorer and SpongeBob SquarePants. This one is a victory for kids.

I've heard lots of excuses for weight gain -- depression, stress, work, injuries, kids, but this is a new one: Blame your credit cards!

According to a piece on BankRate, people tend to spend more when they use a credit card instead of cash, and that also applies to food purchases: "A Visa study of 100,000 restaurant transactions found that customers spent, on average, 30% more than those who paid with cash. That 30% can be the difference between a small order of fries and soft drink and a supersize order, or it can be the addition of a high-calorie dessert."

That an increase in the size of the check at a restaurant would lead to an increase in consumption is a no-brainer. So here's a diet tip: Pay cash when dining out. It'll keep your wallet heavier and you body lighter.

GlaxoSmithKline's (NYSE: GSK) Alli, the first ever over-the-counter weight loss drug approved by the FDA, will be available in late June, almost hitting the market in time for this summer's bathing suit season.

The drug will likely become immediately popular, because it will be FDA tested and approved (unlike Trimspa and Hoodia), but available over-the counter (unlike Meridia and Xenical). Helping it to become a household name is the $150M+ marketing push the drug is getting this year. The advertising has already begun -- I saw an ad for Alli while researching GNC's website for this blog. This should be enough to bring the drug to the forefront of our obese culture's mind. However, the advertising won't be able to keep it there. Only results will.

And unlike past drug treatments for obesity, this one is being very upfront about what it is and isn't. It is not a magic pill, says the website, myalli.com, and the most active ingredient for it to work is you. This is both good and bad for Glaxo. The good news for the company is that they will not be told they are advertising the product falsely -- the website is all about how you have to be ready to change your lifestyle for it to work, and how if you don't, the drug will give you less than desirable side-effects. The bad news is that this is much less likely to be a blockbuster drug if it is not the miracle obesity pill the market has been dying for, which it sadly doesn't appear to be.

All in all, I'd say this is no home run, but a stand-up double for Glaxo. Alli will help those willing to work at it, and strengthen the company's consumer healthcare products segment, fitting in nicely with anti-smoking drug Nicoderm. It will not, if Alli's website is any indication, revolutionize dieting in our instant gratification seeking country.

(On a totally unrelated note, Google ought to sue Glaxo for copyright infringement -- the Alli logo strongly resembles Google's own logo. Although I guess Google would have a tough time with anything like that, with all the heat they are facing since taking over YouTube and all.)

This morning, fast-food behemoth McDonald's (NYSE: MCD) reported that its same-store sales spiked 4.8% worldwide in April. Helping drive the sales growth last month, according to company officials, were the kid-friendly Happy Meal, breakfast items, and the new "Snack Wrap" menu offering.

On U.S. soil, same-store sales rose 3.5%. The figures rose 3.5% in Europe and surged 10.3% in the Asia/Pacific, Middle East, and Africa regions (this ties in with Zac's posting yesterday about the expanding waistlines among Japanese women). Total sales rose 9.6% across the globe and 4.2% in the U.S.

With the exception of its fries, and the Big Mac I crave about once every 18 months, McDonald's has never been my favorite, but it's inarguably a force to be reckoned with. And amid complaints from Morgan Spurlock and countless others, MCD has done its part to fight obesity - finding an oil free of trans fats for its french fries, for one, and introducing healthier menu options, such as veggie burgers and better salads.

The company's stock is also an exquisite performer. MCD has been trending higher since early 2003, more than quadrupling in value during the past four years. This month, the stock has eked above its November 1999 peak to peg a new all-time high.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

A piece in today's Wall Street Journal discussed the growing "curviness" of Japanese women. According to the Journal: "Japanese stores that used to keep just two or three sizes of clothing on hand are rushing to stock larger sizes. Juicy Couture, known for its figure-hugging terrycloth tracksuits, opened one of its biggest stores in Tokyo last year. And Tokyo's high-end Isetan department store, which used to relegate its bigger sizes to one corner, now prominently features larger items from designers such as Ralph Lauren, Diane von Furstenberg and DKNY."

The average Japanese woman's hips are 35 inches, about an inch wider than those of women a generation older. The emergence of companies like Kripsy Kreme and McDonald's, along with a generally more western diet is a key contributor to the trend. This got me to thinking: As America imports products from the developing world at a record pace, could our chief export become obesity? And if it does, how might investors make money from that trend? Here are a couple of my picks for companies that could look to capitalize on the globalization of obesity:

Casual Male Retail Group (NASDAQ: CMRG): With its current stable of more than 500 stores in the United States, Canada, and England, Casual Male is the largest specialty retailer of big and tall men's apparel. Could the company follow fast food chains around the world in a quest to corner the market on clothing for expanding waistlines?

Nutrisystem (NASDAQ: NTRI): This company markets monthly food packages containing breakfasts, lunches, dinners and desserts, which are delivered to your door every day. As people in foreign countries gain a taste for fattening American foods, will they also want to lose weight with low-calorie American foods?

These are just some of my ideas for capitalizing on a global trend, and you should always do careful bottom-up research before you invest. I don't own any of these.

With the tobacco industry's experience all too fresh in their minds, the nation's restaurants, beverage and food suppliers learned late last week that the Federal Trade Commission is going to subpoena 44 of them for all records of their marketing of junk food to children. The info will be gathered to aid in preparing a report to the Senate on child obesity.

In the wake of the film Fast Food Nation (based on the best-selling book of the same name) and the award-winning documentary Super Size Me, public opinion seems to be moving away from blaming we consumers for our inability to deny the fry, and placing it on marketers of less-than-wholesome foods. Already this year we've seen the nation's restaurants scramble to divest themselves of trans fats.

However, an attack on core products such as doughnuts, pizzas, burgers and soft drinks would have enormous financial ramifications for businesses such as KFC (YUM Brands, NYSE:YUM) and McDonald's (NYSE: MCD), since those items are the profit margin.

This could also enhance the climate for personal injury claims.

Sen. Edward "Sticks" Kennedy introduced the Prevention of Childhood Obesity Act in the last Congress, and although it didn't emerge from committee, it appears that the issue will be on the front burner this time. Don't be surprised if the clerk at your local 7-11 starts asking to see proof of age before you can buy a Ding Dong.