TALES OF THE TAPE: RRGB, TXRH, MCD, PFCB, JACK, CBOU, WEN, CPKI, DRI, CAKE

Notable news items and price action from the past twenty-four hours, as well as our fundamental view on select names.

  • RRGB reported EPS of $0.58 versus consensus of $0.24.  The company beat consensus on the top and bottom line.  Comps came in at +1.9% versus consensus at +0.8% and restaurant margin was 19.8% versus consensus of 17.8%.  The first four weeks of 2Q comped 0.5% higher than the same period in 2010. 
  • RRGB was raised from Neutral to Buy at Stern Agee.  The stock was also upgraded from Underperform to Buy at BofA.
  • TXRH’s Board of Directors authorized the payment of a cash dividend of $0.08 per share of common stock.  The payment will be distributed on July 1, 2011 to shareholders of record at the close of June 15, 2011.
  • MCD is digging its heels in and refusing to call time on Ronald McDonald despite campaign groups’, that link the mascot (and happy meals) to childhood obesity, requests that the fast-food company stop using the clown to market to children.
  • PFCB CEO Bert Vivian sold 20,000 shares of PF Chang’s stock on 5/19.
  • JACK traded up 5.6% on accelerating volume yesterday.  Stronger top-line performance at Jack in the Box and Qdoba in 1Q surprised investors when results were released after the close Wednesday.  Nearing completion of its refranchising program, the company is far better poised from a business perspective relative to recent times.  Commodity costs remain a concern for the foreseeable future.  See our note from yesterday for more details.
  • CBOU and WEN also gained on accelerating volume.
  • CPKI, DRI, and CAKE all gained on accelerating volume.

TALES OF THE TAPE: RRGB, TXRH, MCD, PFCB, JACK, CBOU, WEN, CPKI, DRI, CAKE - stocks 519

Howard Penney

Managing Director