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