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

  • SBUX is rated neutral at Janney, according to a report this morning that highlights coffee prices as the primary risk to EPS over the next twelve months.  Given SBUX’s customer loyalty, control over its supply chain, and – most importantly – the fact that they have locked in their coffee prices for the year, I am maintaining a positive view on SBUX.
  • SBUX’s managing director for the U.K. has spoken of a difficult sales climate in which fewer people are out on the streets shopping.  The U.K.’s 736 Starbucks stores saw a drop in sales since early January.
  • SBUX turned 40 yesterday and unveiled its new logo.
  • CBRL’s soft performance over the last month has coincided with a spike in gasoline prices.   MasterCard Advisors’ SpendingPulse report showed yesterday that average gasoline demand fell 1.8% to 8.953 million barrels-per-day in the week to March 4th.  Year-over-year, demand slipped 1%.  Retail gasoline prices rose 19 cents last week to $3.43 per gallon, 27% higher than a year ago, after crude oil rose to a 29-month high on unrest in the Middle East, the report said.
  • SONC gained almost 4% on accelerating volume following an upgrade yesterday.  This name is not out of the woods and, as I wrote in a note yesterday, I believe that the preannounced comps for 2QFY11 flattered to deceive.
  • DIN continues to underperform, declining on strong volume yesterday.  EAT, BJRI, CAKE, and RT all gained (with EAT trading on strong volume).
  • YUM traded higher on accelerating volume.  



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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