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




This morning, jobless claims were above 400k yet again, coming in at 418k.  While this was in line with consensus at 420k, it shows that the employment scenario is still far, far away from improving meaningfully.  4-week rolling claims declined slightly week-over-week but remain elevated at 425k. 


TALES OF THE TAPE: KKD, SBUX, MCD, CPKI - jobless claims77



Wheat prices dropped again yesterday as U.S. weather improved and Russia moved to resume its exports.



  • KKD’s largest holder Mohamed Abdulmohsin Al Kharafi & Sons files form 144; registers to sell 2.3M shares.
  • SBUX was downgraded at Goldman Sachs to Neutral from the Conviction List.  YUM was downgraded to sell on China uncertainty while the restaurant space was downgraded to Neutral from “Attractive” on valuation.
  • SBUX price target was target raised at Credit Suisse to $46 from $44. FY11 EPS lowered to $1.54 from $1.55 v. Reuters $1.50 and FY12 EPS reduced to $1.92 from $1.97 v. Reuters $1.80.
  • SBUX Baristas at outlets in Chile plan to strike on Thursday because their wages are so low that they cannot afford to buy lunch, the Wall Street Journal reported Wednesday. This would mark the first strike at a Starbucks-owned store in Chile.
  • MCD is rated Buy by Bank of America, the price target was raised to $96 from $85.


  • CPKI’s acquirer, Golden Gate Capital, has completed the tender offer for California Pizza Kitchen.




Howard Penney

Managing Director


Rory Green


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