THE HBM: WEN, DPZ, CBRL, MSSR

THE HEDGEYE BREAKFAST MENU


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

 

MACRO

 

Consumer

 

The most important macro statistic for the restaurant industry is job growth.  Today, jobs data is a complete bomb.  Payroll employment was flat during the month. Even if Verizon's 45,000 striking workers are added back into the mix, payroll gains were far weaker than was expected. 

 

Subsectors

 

THE HBM: WEN, DPZ, CBRL, MSSR - subsectors fbr

 

 

QUICK SERVICE

 

WEN traded strongly yesterday on the news that Emil Brolick will soon take over as CEO.

 

DPZ CEO Jerry Doyle made an appearance on CNBC yesterday.  Doyle said that cheese prices are in the $1.78-$1.79 range, the NFL strike settlement is positive for his company’s business, and that the company has used cash “efficiently”.

 

 

CASUAL DINING

 

CBRL’s board has unanimously declined the demand to appoint Biglari to the board. The company, according to a press release issued last night, “endeavored to avoid proxy fight, and held numerous discussions with Biglari and offered him the opportunity to appoint two qualified independent directors.

 

MSSR rated “New Buy” at GFI Group

 

THE HBM: WEN, DPZ, CBRL, MSSR - stocks 92

 

 

Howard Penney

Managing Director

            

 

Rory Green

Analyst