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.




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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