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

  • JACK reported earnings last night after the close.  EPS came in at $0.61 versus the street at $0.48.  Approximately $0.02 came from a tax benefit. 
  • PZZA gained following its strong results on Tuesday after the close.  Management struck a confident tone on the earnings call yesterday.
  • TXRH held an Analyst/Investor Day in NYC yesterday and outlined aggressive growth and expansion plans.  The company is providing aggressive comp guidance that could be at risk if the company has to take more price than it is currently planning on taking in 2011.
  • SAFM reported weak earnings this morning.  An insightful comment from the press release: “While retail demand for chicken has remained steady, we have continued to see weak food service demand, and we expect this trend will remain until the national unemployment rate improves.  Consumers are simply not dining out as frequently and restaurant traffic has remained under pressure.”
  • TAST reported Q4 EPS of $0.12 versus consensus at $0.19 and announced its intention to split the business into two, separate, publicly traded companies.  Specifically, the company stated in its press release, “The separation of our Hispanic Brand and Burger King restaurant businesses is a natural evolution for Carrols. We believe that the separation will enable each company to better focus on its respective opportunities as well as to pursue its own distinct plan and growth strategy. We also believe that a separation offers the potential for improving shareholder value as each publicly traded company will be better positioned to align its business with its respective shareholders' objectives."
  • RRGB saw one of its holders, Clinton Group, lower its stake to 5.2% from 9.72%.
  • RT, DIN, RRGB, TXRH, and DRI all declined on accelerating volume yesterday. 
  • MRT gained yesterday on strong volume.  The company reports today after the market.
  • DPZ and CMG declined yesterday on accelerating volume.  Both are at risk to commodity exposure.  DPZ is facing a vertical cheese price chart and a difficult 1Q compare versus 1Q2010 and CMG is largely unlocked from a commodity cost perspective.



Howard Penney

Managing Director

Cartoon of the Day: Bulls Leading the People

Investors rejoiced as centrist Emmanuel Macron edged out far-right Marine Le Pen in France's election day voting. European equities were up as much as 4.7% on the news.

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McCullough: ‘This Crazy Stat Drives Stock Market Bears Nuts’

If you’re short the stock market today, and your boss asks why is the Nasdaq at an all-time high, here’s the only honest answer: So far, Nasdaq company earnings are up 46% year-over-year.

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Who's Right? The Stock Market or the Bond Market?

"As I see it, bonds look like they have further to fall, while stocks look tenuous at these levels," writes Peter Atwater, founder of Financial Insyghts.

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Poll of the Day: If You Could Have Lunch with One Fed Chair...

What do you think? Cast your vote. Let us know.

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Are Millennials Actually Lazy, Narcissists? An Interview with Neil Howe (Part 2)

An interview with Neil Howe on why Boomers and Xers get it all wrong.

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6 Charts: The French Election, Nasdaq All-Time Highs & An Earnings Scorecard

We've been telling investors for some time that global growth is picking up, get long stocks.

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Another French Revolution?

"Don't be complacent," writes Hedgeye Managing Director Neil Howe. "Tectonic shifts are underway in France. Is there the prospect of the new Sixth Republic? C'est vraiment possible."

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Cartoon of the Day: The Trend is Your Friend

"All of the key trending macro data suggests the U.S. economy is accelerating," Hedgeye CEO Keith McCullough says.

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A Sneak Peek At Hedgeye's 2017 GDP Estimates

Here's an inside look at our GDP estimates versus Wall Street consensus.

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Cartoon of the Day: Green Thumb

So far, 64 of 498 companies in the S&P 500 have reported aggregate sales and earnings growth of 6.1% and 16.8% respectively.

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Europe's Battles Against Apple, Google, Innovation & Jobs

"“I am very concerned the E.U. maintains a battle against the American giants while doing everything possible to sustain so-called national champions," writes economist Daniel Lacalle. "Attacking innovation doesn’t create jobs.”

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An Open Letter to Pandora Management...

"Please stop leaking information to the press," writes Hedgeye Internet & Media analyst Hesham Shaaban. "You are getting in your own way, and blowing up your shareholders in the process."

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