Notable news items and price action from the past twenty-four hours along with our fundamental view on key names.

  • DPZ reported impressive earnings, easily beating consensus.  EPS came in at $0.42 versus $0.39, driven by total domestic comps of -1.4% versus consensus -4% and international comps at +8.3% versus consensus +6.5%. 
  • MRT reported after the close yesterday.  1Q11 EPS came in at $0.16 versus $0.13 with comparable restaurant sales up 7.5% versus consensus of 7%.  Food and beverage costs came in at 31% of sales which was slightly higher than expected.  2Q guidance is for EPS of $0.03 to $0.05 versus consensus $0.05 but FY11 guidance was raised by a penny on each end of the range to $0.45 to $0.49 versus consensus $0.45.  The company guided to 2Q and FY11 comps up 6-8%.  Beef gained 10% in the quarter for MRT but rising commodity costs were successfully offset by price increases.
  • CPKI has responded to those affected by the recent Alabama tornado with a two-day fundraiser.
  • BJRI was upgraded to “Overweight” from “Neutral” at Piper Jaffray.
  • MSSR’s board has decided to put the company up for sale.  Tilman Fertitta/Landry’s has responded by withdrawing the proxy seeking to contest a quorum at the 2011 AGM.  Mr. Fertitta said in a statement that his group hopes that the Board is “committed to conducting a process in which all acquisition proposals are fairly evaluated”.
  • DIN, DRI, RUTH, CAKE, EAT, PZZA and CBOU both traded higher on accelerating volume yesterday.
  • COSI, TXRH, and SONC all traded down on accelerating volume.





Howard Penney

Managing Director

Cartoon of the Day: Acrophobia

"Most people who are making a ton of money right now are focused on growth companies seeing accelerations," Hedgeye CEO Keith McCullough wrote in today's Early Look. "That’s what happens in Quad 1."

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People's Bank of China Spins China’s Bad-Loan Data

PBoC Deputy Governor Yi says China's non-performing loan problem has “pretty much stabilized." "Yi is spinning. China’s bad-debt problem remains serious," write Benn Steil and Emma Smith, Council on Foreign Relations.

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UnderArmour: 'I Am Much More Bearish Than I Was 3 Hours Ago'

“The consumer has a short memory.” Yes, Plank actually said this," writes Hedgeye Retail analyst Brian McGough. "Last time I heard such arrogance was Ron Johnson."

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Buffalo Wild Wings: Complacency & Lack of Leadership (by Howard Penney)

"Buffalo Wild Wings has been plagued by complacency and a continued lack of adequate leadership," writes Hedgeye Restaurants analyst Howard Penney.

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Todd Jordan on Las Vegas Sands Earnings

"The quarter actually beat lowered expectations. Overall, the mass segment performed well although base mass lagging is a concern," writes Hedgeye Gaming, Lodging & Leisure analyst Todd Jordan on Las Vegas Sands.

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An Update on Defense Spending by Lt. Gen Emo Gardner

"Congress' FY17 omnibus appropriation will fully fund the Pentagon's original budget request plus $15B of its $30B supplemental request," writes Hedgeye Potomac Defense Policy analyst Lt. Gen Emerson "Emo" Gardner USMC Ret.

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Got Process? Zero Hedge Sells Fear, Not Truth

Fear sells. Always has. Look no further than Zero Hedge.

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REPLAY: Review of $EXAS Earnings Call (A Hedgeye Best Idea Long)

Our Healthcare Team made a monster call to be long EXAS - hear their updated thoughts.

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Capital Brief: 5 Things to Watch Right Now In Washington

Here's a quick look at some key issues investors should keep an eye on from Hedgeye's JT Taylor and our team of Washington Policy analysts in D.C.

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Premium insight

[UNLOCKED] Today's Daily Trading Ranges

“If I could only have one thing of the many things we have it would be my daily ranges." Hedgeye CEO Keith McCullough said recently.

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We'll Say It Again: Leave Your Politics Out of Your Portfolio

If your politics dictates your portfolio positioning, the Democrats and #NeverTrump crowd out there have had a hell of a week.

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Cartoon of the Day: 'Biggest Tax Cut Ever'

President Donald Trump's economic team unveiled what he called last week, "the biggest tax cut we’ve ever had.” Before you get too excited about that hang on a sec. "Trump Tax Reform ain’t gettin’ done anytime soon," Hedgeye CEO Keith McCullough wrote in today's Early Look.

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