TALES OF THE TAPE: KKD, SONC, COSI, WEN, DPZ, CBRL, KONA, RUTH

Yesterday’s May retail sales data was bullish for the restaurant industry.  Food Service and Drinking Places posted healthy sales growth M/M of 0.6% versus the -0.8% decline in April.  Overall, sales in May fell (ex-auto sales were up) with weakness was broad based.

The National Restaurant Association projects that 50 million adults will dine at a restaurant to celebrate Father’s Day this Sunday, June 19. 

QSR

  • KKD, SONC, COSI and WEN all up on accelerating volume; all of the QSR stocks we monitor were up on the day
  • PNRA is investing $40 million in its first major television campaign that is deliberately understated in the way it portrays the fast-growing bakery-café brand.
  • DPZ announced its Domino’s App for iPhone and iPod touch is now available on the App Store. The app gives users the ability to order from Domino’s with just a few taps of the screen.


CASUAL DINING

  • CBRL, RT and CHUX up on accelerating volume!  CBRL and RT are both being pursued by activist investors
  • KONA and RUTH down on accelerating volume

TALES OF THE TAPE: KKD, SONC, COSI, WEN, DPZ, CBRL, KONA, RUTH - stocks 615

Howard Penney

Managing Director