Notable macro data points, news items, and price action pertaining to the restaurant space.
THE HEDGEYE BREAKFAST MENU
Consumer
The increase in gas prices seen in July has been arrested by global economic growth concerns. Despite weakness in the dollar of late, gasoline prices have still been trending down so far this month.
Subsector
Casual dining continues to underperform peer groups in the food, beverage and restaurant spaces. EAT is the only name in casual dining to have outperformed the SPX over the past month.
QUICK SERVICE
- CMG was raised to Outperform from Market Perform at Morgan Keegan. The 12-month price target is $330.
- CMG was moved to reveal that bacon is an ingredient in its pinto beans by the tweeting of journalist Seth Porges, who was surprised to learn – as a non-pork eater – that the pinto beans he had been eating for 10 years contained bacon.
- BKC has ousted its King character as the first of many steps towards reinventing itself over the next year. A new ad campaign is set to air this weekend rolling out the California Whopper.
- SBUX has agreed to pay £45,000 to settle a disability discrimination case brought on behalf of a Texan barista who claimed she was fired because she has dwarfism.
CASUAL DINING
- TXRH CEO G.J. Hart is leaving the company to assume the role of Chairman and CEO of CPKI.
Howard Penney
Managing Director
Rory Green
Analyst
