TALES OF THE TAPE: MCD, TXRH, PZZA, DPZ, WEN, PEET, CHUX, DIN, KKD, SONC, CMG, JACK, CBOU, YUM

Notable news items/price action over the past twenty four hours.

  • MCD is raising prices by 0.8% in Germany on higher raw material costs, Bild reported. 
  • TXRH reported EPS of $0.14 versus expectations of $0.16.  FY11 guidance is for EPS to grow by 10% versus prior guidance of up 5-15%.  10% EPS growth implies EPS of $0.88 versus consensus of $0.94.  Comps came in at 3.1% versus expectations of 2.9% and guidance for FY11 comps is 3.5%. 
  • TXRH also declared an 8 cent dividend.
  • PZZA reported 4Q results yesterday after the close.  System comps came in at 0.7% versus the street's expectation of 0.5% and EPS came in at $0.51 versus consensus of $0.48.  EPS guidance of $2.00-$2.12 was reaffirmed versus consensus of $2.07 as the company believes favorable impact of early year sales will substantially mitigate the unfavorable impact of currently projected commodity cost increases throughout the remainder of the year.
  • DPZ is launching a new campaign promoting a new chicken menu.  The company is replacing Domino’s Chicken Kickers with a boneless chicken option.  Its chicken wing recipe is also changing.
  • Restaurant stocks in general declined steeply yesterday on strong volume. 
  • WEN, PEET, and CHUX were the only three stocks to gain on strong volume.  WEN and PEET are two names I have been vocal on as of late.  I see PEET as a viable target for SBUX, as I have written about at length over the past couple of weeks.  WEN is a classic turnaround story and I saw the recent Analyst Day (and announcement that the firm is selling Arby’s) as an inflection point for this company (WEN: FOCUSED, REAL & UNDERVALUED, 1/28/11).
  • DIN declined on strong volume, as did CAKE, CPKI, CBRL, and many other casual dining stocks. 
  • In QSR, KKD, SONC, CMG, JACK, CBOU and YUM were among the notable decliners. 

TALES OF THE TAPE: MCD, TXRH, PZZA, DPZ, WEN, PEET, CHUX, DIN, KKD, SONC, CMG, JACK, CBOU, YUM - stocks 223

 

Howard Penney

Managing Director