THE HBM: YUM, PNRA, CMG, CHUX, EAT

THE HEDGEYE BREAKFAST MENU

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

MACRO

Consumer

CPI ex-food and energy came in at 0.2%, in line with expectations.  CPI grew 3.8% year-over-year, versus expectations of 3.6%.

Initial jobless claims came in at 428k versus expectations of 411k and 417k (revised) the prior week.

THE HBM: YUM, PNRA, CMG, CHUX, EAT - initial claims

Subsectors

Restaurant significantly outperformed yesterday, but on low volume.  The more cyclical FSR name were higher on accelerating volume 

THE HBM: YUM, PNRA, CMG, CHUX, EAT - subsectors fbr

QUICK SERVICE

  • YUM announced a 14% increase in its quarterly dividend.  The increase raises the annual dividend rate to $1.14 a share, 2.1% yield.
  • PNRA is changing its menu for the fall season, with a new Roasted Turkey Artichoke Panini one of the offerings.  (link here)
  • CMG’s new concept, ShopHouse Southeast Asian Kitchen will open to the public today in Washington D.C.’s DuPont Circle.  Some images of the menu are below, courtesy of dcist.com

THE HBM: YUM, PNRA, CMG, CHUX, EAT - CMG shophouse

FULL SERVICE

  • CHUX has appointed former KONA CEO Marc Buehler as the O’Charley’s Concept President, effective tomorrow.  Given how “on trend” Kona has been of late, this is a perplexing move. 
  • EAT traded higher on accelerating volume yesterday, while RRGB was notable on the decliners side, also trading on strong volume.

THE HBM: YUM, PNRA, CMG, CHUX, EAT - stocks 915

Howard Penney

Managing Director

            

Rory Green

Analyst