Notable news items and price action from the last twenty four hours.
- PFCB was initiated with a “New Outperform” rating at Wells Fargo.
- PFCB announted a long-term licensing agreement with Interaction Asian Restaurants L.P. to develop and operate P.F. Chang’s China Bistro in the Canadian provinces of Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland. The first location is scheduled to open in 2012.
- MCD Japan sales fell 7% in March due to the closure of restaurants damaged in the March 11 earthquake. Rolling blackouts implemented following the quake also reduced operating hours.
- Tilman J. Fertitta and his Landry’s Restaurants Inc. subsidiary on Thursday officially placed a bid of $137.3 million for McCormick & Schmick’s Seafood Restaurants Inc.
- Nestlé is looking to develop its food supply service to restaurants (Nestle Professional.
- USDA inspectors are exempted from the government shutdown, if it comes to pass.
- YUM traded down 1.4% on accelerating volume after a strong session the day prior.
- PNRA also declined 1.4% on accelerating volume.
- Casual dining took it on the chin following the RT earnings Wednesday after the close. I remain positive on EAT, PFCB, and RUTH while maintaining a cautious view on TXRH and CAKE.
- Praesidian Capital Opportunity Fund III-A LP offered $9.5 million for the 20 Charlie Brown’s restaurants, including 17 in New Jersey.
Howard Penney
Managing Director