Food Roundup: Burger King Woes, Gatorade Hypocrisy, KFC's New KGC, and More

(MoneyWatch)  Visits to Burger King drop unexpectedly -- Shares for the burger chain took a tumble after the company admitted it faced an "unanticipated traffic slowdown" in March resulting in lower-than-expected revenues for the third quarter. Analysts expect rival McDonald's to do better, though both chains are benefiting from the economic squeeze on consumers. [Sources: Reuters, Wall Street Journal]

Burger King apologizes for Texican Whopper ad -- The company apologized Tuesday after Mexico's ambassador to Spain criticized the ad and called for its removal, saying it was offensive and "improperly used the stereotypical image of Mexicans." The television ad aired in Spain and showed a Texan cowboy living with a short Mexican, representing "the taste of Texas with a little spicy Mexican." Burger King agreed to revise the ad. The controversy came just days after Burger King caught flak for another ad involving Sir Mix-A-Lot and SpongeBob SquarePants, though the company is not backing down on that one. [Sources: Reuters, Sky News]

Gatorade takes on Powerade claims -- PepsiCo is suing the Coca-Cola Company, arguing that Coke's ads falsely lead consumers to believe that Powerade is a more "complete sports drink" than Pepsi's Gatorade. But Gatorade itself has been accused of exaggerating its benefits. Powerade has four electrolytes, while Gatorade has two, but there is little evidence that the drinks have any real advantage over water combined with some regular food. [Sources: Daily Bread, Seeking Alpha]

KFC ready to launch grilled chicken -- Hoping to win over the health-conscious, the company famous for its fried chicken will roll out grilled chicken options nationwide. KFC has been working on perfecting the more nutritious menu item for a long time, and the recipe, like that of its predecessor, will be kept secret and guarded in a safe. [Source: AP]

Money flows for McDonald's franchises -- Wells Fargo and U.S. Bank both announced new lending programs for McDonald's franchises, as the chain is thriving in the current economic climate. Funding will be available to franchisees for acquisitions, renovations and relocations. "In this environment," said the head of Wells Fargo's restaurant finance group, "where there's less capital available, it opens the door for us to pursue brands like McDonald's more aggressively." [Source: Dow Jones]