Notable news items/price action from the past twenty-four hours.
- SBUX gained almost 5% on accelerating volume yesterday as investors reacted favorably to the AGM, which was held yesterday in Seattle. Critical takeaways from the AGM include the company’s intent to expand the CPG business and growing its K-cup business, which management believes could ultimately become a $1 billion business.
- SBUX card mobile has become a hit already. More than 3 million people, so far, have paid for their purchases using Starbucks Card Mobile (either the Starbucks Card Mobile iPhone or Blackberry applications).
- SBUX said that it would expand on its previously announced relationship with Courtesy Products, the nation’s leading provider of in-room coffee service to hotels, via a new brewing system that would be priced lower than the Keurig machine. Details of the deal are still being worked out, according to The Wall Street Journal.
- WEN is trading well recently, gaining 3.2% on accelerating volume yesterday. The next catalyst for the stock is the sale of Arby’s.
- KKD is outsourcing its domestic supply chain distribution channels to Sysco Corp. KKD declined on accelerating volume yesterday.
- SONC is facing stiff competition in its Texas market as In-N-Out and CKE Restaurants (via Carl’s Jr) expand into Texas.
- MRT declined on accelerating volume yesterday.
- Consumers may be more resistant to price increases than management teams are aware of. A man in Texas fired a gun at a KFC/Taco Bell drive-thru employee after discovering the price of a burrito had risen to $1.49 from 99 cents.
- Subway is the most loved fast food chain in the US according to Amplicate, an online opinion-collating resource. The top 20 rankings, per the Amplicate survey, can be found here.