Notable news items and price action from the past twenty-four hours along with our fundamental view on select names.
- SBUX reported earnings yesterday after the close. U.S. company comps came in at +7%, EPS was in line with expectations at $0.34.
- KONA reported a 7.6% increase in 1Q same-store sales after the close yesterday. Overall, restaurant sales increased 12.3% and restaurant operating margin increased to 14%. Net loss for the quarter was $0.01 per share and the company is guiding to earnings in the second quarter of $0.02 to $0.04 per share.
- EAT CEO Doug Brooks is committed to creating shareholder value. Yesterday he said he would sell Maggiano’s if the right offer came along.
- BWLD investors will be happy to read that an appeal by the NFL to reimpose a lockout on players while they remain in dispute was rejected by a federal court judge yesterday.
- CMG and Pinkberry feature in an interesting story about overseas expansion for restaurant companies.
- DPZ’s Domino’s Pizza U.K. & Ireland is hoping to capitalize on German growth with an all-share purchase of the country’s master franchise and plans to expand the brand from two stores in Berlin to a 400-store empire.
- PFCB declined 10.4% on accelerating volume following poor earnings yesterday.
- PNRA also declined on accelerating volume after worse-than-expected earnings on Tuesday.
Howard Penney
Managing Director