Notable news items from the past few days and price action from Friday.

  • MCD CEO, Jim Skinner, received a total of $9.7 million in compensation in 2010, including his roughly $42,000 annual salary increase as well as a 38% rise in his annual performance bonus.
  • JACK was cut to “Underperform” from “Neutral” at Credit Suisse.
  • WEN is challenging its biggest rival, McDonald’s, by putting its marketing dollars behind gaining more French fry market share.  A “national taste test” carried out by Wendy’s claims that 56% of consumers preferred Wendy’s fries to McDonald’s, with 39% taking the opposite view and 4% having no preference.  Wendy’s fry unit sales were up 16% during the national media in December versus the base period.
  • DIN is carrying out an internal investigation after a toddler at a Madison Heights, Michigan, Applebee’s location was served alcoholic margarita mix.  Police are looking into the incident and Applebee’s has pledged to cooperate and conduct its own investigation.
  • YUM gained on strong volume on Friday. 
  • KKD gained on strong volume on Friday, also.  The stock has declined sharply since 3/31, when the company announced disappointing earnings.
  • RT declined once more, on accelerating volume, as confidence in the company’s ability to meet the Street’s expectations waned. 




Howard Penney

Managing Director

Another French Revolution?

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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

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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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A 'Toxic Cocktail' Brewing for A Best Idea Short

The first quarter earnings pre-announcement today is not the end of the story for Mednax (MD). Rising labor costs and slowing volume is a toxic cocktail...

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Energy Stocks: Time to Buy? Here's What You Need to Know

If you're heavily-invested in Energy stocks it's been a heck of a year. Energy is the worst-performing sector in the S&P 500 year-to-date and value investors are now hunting for bargains in the oil patch. Before you buy, here's what you need to know.

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McCullough: ‘My 1-Minute Summary of My Institutional Meetings in NYC Yesterday’

What are even some of the smartest investors in the world missing right now?

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Cartoon of the Day: Political Portfolio Positioning

Leave your politics out of your portfolio.

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Jim Rickards Answers the Hedgeye 21

Bestselling author Jim Rickards says if he could be any animal he’d be a T-Rex. He also loves bonds and hates equities. Check out all of his answers to the Hedgeye 21.

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Amazon's New 'Big Idea': Ignore It At Your Own Peril

"We all see another ‘big idea’ out of Amazon (or the press making one up) just about every day," writes Retail Sector Head Brian McGough. "But whatever you do, DON’T ignore this one!"

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