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Notable news items/price action from Friday’s trading session.

  • DRI will be webcasting their Analyst and Investor Day(s) on Monday and Tuesday in Orlando, Florida.
  • The Independent (London) ran a story on beef prices hitting the US restaurant business over the weekend.
  • SONC and JACK declined on accelerating volume during Friday's session.
  • SBUX has defeated Kraft’s bid to prevent it from ending a distribution agreement with the company.  US District Judge Cathy Seibel disagreed with Kraft’s submission that it faced “irreperable harm” if Starbucks was allowed to terminate the agreement.
  • SBUX CEO and founder Howard Schultz is reported to have been paid $22m in 2010, a 45% rise from his 2009 compensation.
  • SBUX declined on accelerating volume on Friday.
  • Coffee prices hit their highest level since 1997 in New York and reached a 28-month high in London on signs that demand will continue to outstrip supply.
  • YUM featured in a South China Morning Post article this morning regarding KFC’s success in China.  KFC’s staggering success and outperformance of peers in the market is lauded, but the article cautions overdependence on one market and cites higher regional minimum wages and food inflation as two potential headwinds for YUM China.
  • WEN outperformed much of the restaurant space on Friday after its Investor Day took place on Thursday, rising 0.6% on accelerating volume. 
  • BWLD outperformed its casual dining peers on Friday, gaining 1.4% on accelerating volume.
  • KONA also saw its share price rise on accelerating volume.  KONA is the best performing restaurant stock over the 30-day and 60-day durations. 

TALES OF THE TAPE: DRI, SONC, JACK, SBUX, YUM, WEN, BWLD, KONA - stocks 131

Howard Penney

Managing Director