Notable news items and price action from the past twenty-four hours, as well as our fundamental view on select names.
- EAT price target raised to $28 by JPM, based on low valuation relative to peers and an upwardly revised 2012 EPS target.
- EAT was downgraded to “Negative” from “Neutral” at Susquehanna. The twelve-month price target is $20 per share.
- EAT declined 2.7% on accelerating volume yesterday.
- MCD market share gains are likely to continue, according to Janney Montgomery. The note cites a report by Technomic, a foodservice industry consultant, on annual market share figures for 2010.
- RRGB overhauled its menu, implementing a 1.5% price increase and resurrecting several dishes that had been removed from the menu.
- AFCE’s Popeye’s Louisiana Kitchen announced that the Popeyes restaurant system achieved supply chain cost savings of approximately $16 million in 2010.
- SBUX launched its tenth annual Global Responsibility Report, which outlines fiscal 2010 performance in ethical sourcing, environmental stewardship, and community development.
- PZZA was cut to “Hold” at Stifel Nicolaus.
- KONA gained 1.7% on accelerating volume.
Howard Penney
Managing Director
