Notable news items/price action over the last twenty-four hours.
- PFCB earnings are in and provide another example of a low quality beat in casual dining. A lower-than-expected tax rate helped EPS come in at $0.64, while a normalized rate would have seen earnings in line with expectations, at $0.57. Guidance - rev now saying +3-4%, prior was MSD growth; lowered Pei Wei openings to 6-8 from 10-12 EPS growth the same.
- Denny’s and BOBE reported latest-quarter results Tuesday that included negative sales trends blamed on tough winter weather that kept guests at home. DENN reported 4Q operating revenues at $135.9m versus the Street at $142.5m..
- BOBE reported 3Q EPS at $0.51 versus the Street at $0.63. Management reaffirmed 2011 sales forecast of approximately $1.7bn versus the Street at $1.68bn
- Bob Evans comps (0.5%) vs consensus +0.5%
- Mimi's Cafe comps (3.2%) vs consensus (4.0%)
- SBUX price target raised to $40 from $36 at Piper Jaffray.
- GMCR was upgraded to Buy form Hold at KeyBanc based on a potential partnership with Starbucks and stronger Q1 brewer sales.
- CMG was downgraded to Neutral from Outperform at Cowen and Company.
- Recent news that travel and tourism spending has increased is positive news for the restaurant industry.
- GMCR got a mention yesterday in an interview with SAC’s Steve Cohen. GMCR is one of his top picks.
- JACK has been performing well of late. Yesterday the stock gained 0.6% on accelerating volume.