Notable news items and price action from the restaurant space as well as our fundamental view on select names.
- MCD traded flat yesterday despite weaker than expected May sales results being released yesterday before market open. Our view is that May’s results offer further evidence that the core business is waning and comps are being driven by beverages. Europe’s soft performance is a focus for many as the E Coli situation continues on the continent with a potential negative impact for MCD’s June sales causing concern.
- CPKI and Golden Gate Capital today announced that CPK Merger Sub Inc. has commenced the previously-announced tender offer for all of the outstanding shares of common stock of the Company at a price of $18.50 per share, according to a press release published by the company yesterday.
- BOBE was raised to Buy from Hold at Miller Tabak. Bob Evans gained 11.5% on accelerating volume yesterday.
- Casual dining traded poorly yesterday. DRI, BWLD, DIN, TXRH and KONA all traded lower on accelerating volume.