Notable news items and price action from the restaurant space as well as our fundamental view on select names.
The main commodity data points this morning are wheat and coffee prices declining. Warmer weather may aid wheat spring prospects and easing fears about frost damage in Brazil is causing coffee prices to decline.
French newspaper Le Figaro is claiming that French lawmaker Bernard Reynes is proposing an increase in the value-added tax on soft drinks from 5.5% to 19.6% to help finance assistance to agriculture.
- CMG, it emerged yesterday, invested $2.5m in Soul Daddy, the winner of the America’s Next Great Restaurant television show. $2.5m is equivalent to $0.08 per share for CMG.
- SONC has introduced a line of sundae shakes and a new spicy hot dog option.
- PZZA was cut to “Neutral” at SunTrust Robinson. The stock closed down -4.7% on accelerating volume yesterday.
- CBOU, PEET and SBUX all gained on accelerating volume as coffee prices came down.
- DRI was raised to “Strong Buy” at Raymond James. The PT is $62.
- RUTH, BJRI, and BWLD gained on accelerating volume.