Notable news items and price action from the past twenty-four hours, including our fundamental view on select names.
- CBRL was upgraded to “Buy” from “Neutral” at SunTrust Robinson Humphrey. We maintain our negative fundamental view of the company as clear victim of gas price-induced demand destruction.
- SBUX Greater China Chairman, Wang Jinlong, said on the sidelines of the Boao Forum for Asia that SBUX plans to have 1,500 stores in mainland China by 2015, nearly four times the current level.
- Kraft Foods will introduce its Gevalia coffee brand to U.S. supermarkets in August after losing the rights to distribute Starbucks’ packaged coffee.
- COSI gained 1.5% on accelerating volume.
- BWLD gained 2.8% on strong volume. Documents filed with the SEC this week show that CEO Sally Smith, as a result of the company not meeting internal revenue and in-store sales goals, took a significant 18% pay cut in 2010.
- EAT gained 3.3% on accelerating volume, closing at $24.69.
Howard Penney
Managing Director