Notable news items and price action from the past 24 hours as well as our fundamental view on select names.
- CHUX reported 1Q EPS from continuing ops of $0.09. O’Charley’s comparable restaurant sales increased by 0.4%, with guest counts growing by 0.9%, for the first quarter. Restaurant level margins declined from 15.8% in 1Q10 to 14.7% in 1Q11. For 2Q, the company is forecasting a net profit/loss between -$1 million and +$2 million.
- DPZ’s hedgefund fan base is growing. Trian Fund Management LP disclosed a 9.7% stake yesterday.
- DRI rotated four top executives at Red Lobster and Olive Garden.
- YUM’s Taco Bell debuted a new promotion campaign for its Taco 12 Pack with the offer of free music by hip hop duo Chiddy Ban.
- YUM’s bid to acquire Little Sheep will be subject to China’s anti-monopoly inspection process.
- CBOU and MCD gained on strong volume yesterday.
Howard Penney
Managing Director