• It's Here!

    Etf Pro

    Get the big financial market moves right, bullish or bearish with Hedgeye’s ETF Pro.

  • It's Here

    MARKET EDGES

    Identify global risks and opportunities with essential macro intel using Hedgeye’s Market Edges.

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