Notable news items and price action from the restaurant space as well as our fundamental view on select names.
- CBRL has been cut to “Market Perform” from “Outperform” at Morgan Keegan. The twelve month price target is $48 per share.
- GMCR have entered into an amendment of their credit agreement that extends the maturity of its term loan facility, U.S. revolving credit facility, and alternative currency revolving credit facility to five years from June 9th, 2011. Additionally, the amended agreement boosts the company’s revolver by $500 million.
- PEET management said yesterday that coffee prices are “caught in a speculative bubble”. The company also said that increasing packaged coffee sales will help margin.
- KONA and CAKE traded higher on accelerating volume yesterday.
- SONC underperformed QSR on accelerating volume.