Notable macro data points, news items, and price action pertaining to the restaurant space.
MACRO
Commodities
While coffee prices have declined -3.3% over the last week, prices have increased 24% since August 8thand near peak YTD levels.
Subsectors
Full service restaurants outperformed peer food, beverage and restaurant subsectors as DIN and CBRL traded strongly. CBRL reported a poor quarter this morning and is set to decline on the open, trading down -5% premarket.
QUICK SERVICE
- PNRA has been reiterated Overweight by Piper Jaffray with a price target of $148
- YUM expects its Indian operations to be around $1 billion by 2015.
- SBUX short interest has increased by 61% as of the August 31stdata versus the data as of two weeks prior.
CASUAL DINING
- CBRL reported $1.00 in EPS for 4QFY11 versus expectations of $0.91. The board has authorized $65mm for share repurchases. Restaurant comps came in at -1.4% versus consensus of -0.7%. Retail comps came in at -0.7% versus consensus of +1.2%. Traffic declined 4.2% during the quarter while average check gained 2.8%. Operating margins, at 6.2%, were 60 basis points below consensus.
- DIN’s Applebee’s Neighborhood Grill & Bar has teamed with sports channel ESPN for a fall Monday night football “Check In and Win” promotion.
Howard Penney
Managing Director
Rory Green
Analyst
