Notable macro data points, news items, and price action pertaining to the restaurant space.
THE HEDGEYE BREAKFAST MENU
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.
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
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
Howard Penney
Managing Director
Rory Green
Analyst