Some news items from the restaurant world:
- EAT was initiated with a “buy” rating and traded up on strong volume
- RT is scheduled to report Q2 (Nov) earnings tomorrow after the market close. Yesterday the stock was upgraded and outperformed its peer stocks, finishing the day up 10%.
- SONC is expected to report fiscal Q1 (Nov) earnings today after the close.
- MCD traded down on a positive day for the market and the restaurant space. Volume also accelerated which is a bearish indicator. We will be publishing a Black Book on MCD next week; our outlook for 2011 is decidedly bearish for the stock.
- MCD officially rolled out oatmeal nationwide as part of its breakfast menu
- SBUX is now offering a $2 breakfast sandwich with any beverage as part of a special offer
- SBUX: There is a story on Bloomberg this morning. In my view, there is more to the Kraft deal than the single serve business. Starbucks wants to control the distribution channel.
- COSI traded up on strong volume as the company’s turnaround continues.
- PEET was rated "Hold" at McAdams Wright Ragen 24-month target price is $48.00 per share.
- Bar and Grill traded well yesterday, trading up on accelerating volume.
Howard Penney
Managing Director
