THE HBM: SBUX, MCD, DIN

08/16/11 09:29AM EDT

THE HEDGEYE BREAKFAST MENU

MACRO

Consumer

The ICSC chain store sales index posted its third straight decline, falling 1.5% in the latest week. Year-over-year growth slowed to 3.5%, its lowest level in six weeks. Its becoming more apparent that the stock market volatility may be impacting consumer behavior more than the potential benefit from lower gasoline prices.

THE HBM: SBUX, MCD, DIN - ICSC

Gasoline prices have slumped in August to-date after gaining 4.4% in July.  Concerns surrounding slowing economic growth are likely weighing on oil prices.

THE HBM: SBUX, MCD, DIN - gas prices

Subsectors

We’ve been highlighting the Food Processors group as a beaten-down category that will benefit as commodity inflation becomes less of a headwind.  Over the past day and week, the subsector has outperformed other food, beverage, and restaurant peers.

THE HBM: SBUX, MCD, DIN - subsectors fbr

QUICK SERVICE

  • SBUX Via ready brew has been expanded to six additional countries, according to a press release out this morning.  The product is now available to all Starbucks locations in Asia.
  • MCD is rated as more healthful than Subway by its most influential, social-media-connected patrons, according to Nations Restaurant News.

CASUAL DINING

  • Bar and Grill led the way yesterday. DIN outperformed, gaining 7.4% on steady volume.

THE HBM: SBUX, MCD, DIN - stocks 816

Howard Penney

Managing Director

Rory Green

Analyst

© 2024 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.