Notable news items and price action from the restaurant space as well as our fundamental view on select names.
- SBUX was raised to “Outperform” at BMO Capital Markets. The price target is $45 per share.
- THI has reached an agreement with former President and CEO Don Schroeder “with respect to his relationship with the company”. Schroeder is assuming an advisory role. Under the terms of the agreement, he will also receive C$7.5m severance.
- WEN Chief Marketing Officer Ken Calwell, has been hired as president of Papa Murphy’s International, which operates the Vancouver, Washington-based take-and-bake pizza chain.
- DRI, CBRL, RUTH, DIN and BJRI traded lower on accelerating volume. In QSR, COSI, SBUX, and JACK also underperformed on accelerating volume.
- Late Friday Becker Drapkin Management LP and Carlson Capital LP formed a group holding 5.6% of RT, with the intention to nominate three people to the board of Directors. I will have a note on RT out shortly....
Howard Penney
Managing Director
