Notable news items and price action from the restaurant space as well as our fundamental view on select names.




Wheat and corn prices rose in Chicago on speculation that last week’s losses, which brought the lowest prices of 2011, may have fueled demand from importers.  On Friday last, the Department of Agriculture said that exporters in the U.S. sold 1.14 million metric tons of corn. 




  • WEN this morning announced that it has completed the sale of Arby’s Restaurant Group, Inc. on the terms previously announced, to Roark Capital Group, effective as of July 4, 2011.
  • MCD is looking to Twitter as one forum for advertising its products.  On Friday, it is estimated, the company spent $80,000 on purchasing two promoted trends: #ANewMcDFavorite and #LoveMcDsSmoothies.  The response from the twitterverse has been heavily negative and perhaps brings into question the wisdom of spending such sums of money on 24 hour promoted trends.  It will be interesting to see how the company’s sales of smoothies fare this summer, especially given the difficult comps the company is faced with.
  • MCD is set to accelerate expansion into South Africa after striking a developmental license transaction with Cyril Ramaphosa’s Shanduka Group Ltd.
  • CMG has gained confidence in its business’ viability in the UK and Europe following the opening of its Charing Cross store last year.  The Independent (London) reports that it has just signed up for its second site in Baker Street, as well as hiring the property agent Michael Peddar & Co to search for sites in London and the UK.
  • PNRA, JACK, CBOU, PEET, and AFCE all gained on accelerating volume on Friday.


  • KONA, EAT, and DRI gained substantially on accelerating volume on Friday following DRI’s earnings call.
  • RT - Ruby Tuesday appoints Steven Becker and Matthew Drapkin to the board.



Howard Penney

Managing Director


Rory Green


Cartoon of the Day: Acrophobia

"Most people who are making a ton of money right now are focused on growth companies seeing accelerations," Hedgeye CEO Keith McCullough wrote in today's Early Look. "That’s what happens in Quad 1."

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People's Bank of China Spins China’s Bad-Loan Data

PBoC Deputy Governor Yi says China's non-performing loan problem has “pretty much stabilized." "Yi is spinning. China’s bad-debt problem remains serious," write Benn Steil and Emma Smith, Council on Foreign Relations.

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UnderArmour: 'I Am Much More Bearish Than I Was 3 Hours Ago'

“The consumer has a short memory.” Yes, Plank actually said this," writes Hedgeye Retail analyst Brian McGough. "Last time I heard such arrogance was Ron Johnson."

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Buffalo Wild Wings: Complacency & Lack of Leadership (by Howard Penney)

"Buffalo Wild Wings has been plagued by complacency and a continued lack of adequate leadership," writes Hedgeye Restaurants analyst Howard Penney.

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Todd Jordan on Las Vegas Sands Earnings

"The quarter actually beat lowered expectations. Overall, the mass segment performed well although base mass lagging is a concern," writes Hedgeye Gaming, Lodging & Leisure analyst Todd Jordan on Las Vegas Sands.

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An Update on Defense Spending by Lt. Gen Emo Gardner

"Congress' FY17 omnibus appropriation will fully fund the Pentagon's original budget request plus $15B of its $30B supplemental request," writes Hedgeye Potomac Defense Policy analyst Lt. Gen Emerson "Emo" Gardner USMC Ret.

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Got Process? Zero Hedge Sells Fear, Not Truth

Fear sells. Always has. Look no further than Zero Hedge.

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REPLAY: Review of $EXAS Earnings Call (A Hedgeye Best Idea Long)

Our Healthcare Team made a monster call to be long EXAS - hear their updated thoughts.

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Capital Brief: 5 Things to Watch Right Now In Washington

Here's a quick look at some key issues investors should keep an eye on from Hedgeye's JT Taylor and our team of Washington Policy analysts in D.C.

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Premium insight

[UNLOCKED] Today's Daily Trading Ranges

“If I could only have one thing of the many things we have it would be my daily ranges." Hedgeye CEO Keith McCullough said recently.

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We'll Say It Again: Leave Your Politics Out of Your Portfolio

If your politics dictates your portfolio positioning, the Democrats and #NeverTrump crowd out there have had a hell of a week.

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Cartoon of the Day: 'Biggest Tax Cut Ever'

President Donald Trump's economic team unveiled what he called last week, "the biggest tax cut we’ve ever had.” Before you get too excited about that hang on a sec. "Trump Tax Reform ain’t gettin’ done anytime soon," Hedgeye CEO Keith McCullough wrote in today's Early Look.

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