THE HBM: MCD, SBUX, PNRA, DPZ, SONC, AFCE, TXRH, BJRI

Notable macro data points, news items, and price action pertaining to the restaurant space.

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MACRO

Consumer

Initial jobless claims came in at 408k for the week ended August 13th, versus expectations of 400k and the week prior’s revised number of 399k.

THE HBM: MCD, SBUX, PNRA, DPZ, SONC, AFCE, TXRH, BJRI - initial jobless claims

Commodities

The costliest drought in Texas history probably forced ranchers to sell the most cattle to feedlots since December, according to Bloomberg, perhaps causing a surge in U.S. meat supply that may reduce costs for the food processors.

Subsectors

THE HBM: MCD, SBUX, PNRA, DPZ, SONC, AFCE, TXRH, BJRI - subsectors fbr

QUICK SERVICE

  • MCD raised to Outperform versus Perform at Oppenheimer
  • SBUX cut to Perform versus Outperform at Oppenheimer
  • PNRA raised to Outperform versus Perform at Oppenheimer
  • DPZ raised to Outperform versus Perform at Oppenheimer
  • SONC cut to Perform versus Outperform at Oppenheimer
  • AFCE reported 2Q earnings post-close yesterday.  EPS came in at $0.23 versus $0.23 expectations.  Global and domestic same-store sales increased 0.7% and 0.5%, respectively.  On the conference call, management said that the consumer environment is “choppy”.

CASUAL DINING

  • TXRH Chairman Taylor steps into Chief Executive Role
  • TXRH cut to Perform versus Outperform at Oppenheimer
  • BJRI raised to Outperform versus Perform at Oppenheimer

THE HBM: MCD, SBUX, PNRA, DPZ, SONC, AFCE, TXRH, BJRI - stocks 818

Howard Penney

Managing Director

Rory Green

Analyst