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
Howard Penney
Managing Director
