Notable news items and price action from the last twenty-four hours.
- YUM down 1.8% on accelerating volume; China raising rates and rumors today that KFC in Japan to reduce outlet opening hours in response to shortages in chicken supplies.
- RT to report AMC current guidance for fiscal 2011 (May) guidance is EPS $0.76-0.86 and company-owned same-restaurant flat to +2%.
- LNY CEO and MSSR suitor Tilman Fertitta said in an interview with CNBC that McCormick & Schmick’s “is not a good public company” and Landry’s will make its official tender offer on April 7. On the broader restaurant space, Mr. Fertitta discussed inflation as being a present factor for operators.
- MSSR gained 4.8% on accelerating volume yesterday. Tilman will end up paying $10.50-$11.00 for MSSR.
- CMG CEO Steve Ells received $14.1M in compensation for fiscal 2010 versus $6.41M the year prior.
- COSI gained 3.2% on accelerating volume during yesterday’s trading.
- MCD may be facing another Happy Meal ban, this time in New York as politicians move to ban toy giveaways from fast-food restaurants. City Council Deputy Majority Leader Leroy Comrie, who plans to introduce the bill on Wednesday, said banning toy giveaways would reduce the allure of fast-food restaurants for children and encourage the industry to provide healthier options.
- Volume in restaurant stocks broadly fell yesterday, versus the thirty-day average.
Howard Penney
Managing Director
