TALES OF THE TAPE: COSI, CMG, RT, MCD, WEN, SBUX, DPZ, BJRI, SONC, DRI

Positive earnings results over the past couple of days helped keep restaurant stocks above break even in yesterday’s down tape for the broader market

 

Some notable news items and price action in the restaurant space:

  • COSI continues to outperform on accelerating volume.  I still like this stock, and have written extensively about management’s turnaround plans for the concept since early 2010.
  • CMG shares gained on accelerating volume
  • RT gained on accelerating volume following positive earnings released on Wednesday after the close
  • RT’s positive report bolstered many of its peers; RRGB, DIN, EAT, DRI and PFCB all gained on increased volume versus the thirty-day average (to greater and lesser extents, as you can see in table below)
  • MCD declined slightly on accelerating volume.  I maintain a bearish outlook for MCD’s business in 2011 and will hold a conference call with clients to that effect on Friday, the 14th of January.  Email for details.
  • WEN share prices gained on accelerating volume.
  • SBUX declined on accelerating volume as its new logo continues to generate voluminous attention on the web.  As the old maxim goes, there is no such thing as bad publicity.
  • SBUX maintaining its share of the newspaper this morning, commenting on the ongoing dispute with Kraft over its distribution agreement. In legal filings on Thursday, the coffee chain asked a U.S. District Court Judge to deny Kraft’s request to stop Starbucks from ending their agreement.  The filing also alleged that Kraft is making efforts to interfere with an orderly transition of the CPG business and is causing significant harm to SBUX in doing so.  The company also stated that it has given Kraft ample notice of their decision and that it does not impact Kraft, as a whole, significantly.
  • DPZ downgraded to neutral from outperform at Credit Suisse
  • Cowen names BJRI, SONC, and DRI as its Top-3 ideas in the Restaurant space for 2011

TALES OF THE TAPE: COSI, CMG, RT, MCD, WEN, SBUX, DPZ, BJRI, SONC, DRI - stocks 17

 

Howard Penney

Managing Director


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