Notable news items and price action from the restaurant space as well as our fundamental view on select names.
U.S. corn futures tumbled to the one-day limit on losses Wednesday and wheat futures fell more than 4% as concerns over low supplies eased.
According to the Financial Times, Google Executive Chairman Eric Schmidt is bullish on the growth of mobile payments in the coming year; he believes one-third of all restaurants and retail outlets will allow for mobile payments within the next year.
- SONC reported solid 3QFY11 earnings after the close yesterday but, given that May and June saw slower trends, the momentum is unlikely to be quite as strong in this current fiscal quarter.
- Lavazza CEO Antonio Baravalle said that it is “premature” to say that the company will raise its stake in Green Mountain Coffee Roasters from 6%. Lavazza will consider acquisitions in markets where it doesn’t already operate, including China.
- JACK management sees potential for 2,000 stores in the U.S.
- CMG announced yesterday that it is increasing its use of local produce.
- DPZ - Domino's Pizza Enterprises Ltd is fast becoming one of Australia's top e-commerce companies with more than $1million in mobile sales recorded in one week. This milestone comes just one week after the official launch of Domino's Mobile Ordering Site which can be used to order pizza from any internet enabled mobile device. Domino's CEO Don Meij said topping the $1million in sales milestone in such as short space of time was an incredible achievement. - Foodservice.com
- McDonald’s Corp.’s planned sale of its business in South Africa to Cyril Ramaphosa’s Shanduka Group is at risk because the suspension of part of a tax law in the country may lead to lenders withdrawing funds, Business Day reported, citing Shanduka spokeswoman Maureen Mphatsoe.
- EAT - TableTop Media has signed a multi-year contract with ERJ Dining, LLC. and completed the first phase of deployment for its Ziosk touchscreen devices to 30 Chili’s locations in St. Louis, Chicago and Central Illinois.
- CAKE’s Rock’s Sugar employees are being sued for sexual harassment