THE HBM: CMG, DPZ, SBUX, WEN

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

MACRO

Commodities

Gasoline prices continue to shadow the trend of 2008. 

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Subsectors

Full service restaurants underperformed peer subsectors despite a significant gain of +22.8% day-over-day for KONA on an upgrade.

THE HBM: CMG, DPZ, SBUX, WEN - subsector fbr

QUICK SERVICE

CMG dipped yesterday as speculation mounted that the 7% gain following the opening of Chipotle’s new concept, ShopHouse Southeast Asian Kitchen, was overdone. 

DPZ announced yesterday that after three months of operation, the new Domino’s App for iPhone and iPod Touch has achieved $1 million in sales in a single week.

SBUX is planning to build a “major multibillion-dollar business in the grocery industry”, according to Howard Schultz, cited in German newspaper Spiegel. 

SBUX is set to see margin expansion due to the single-serve business, according to Piper Jaffray.

WEN was reiterated “Overweight” by Barclays.

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Howard Penney

Managing Director

Rory Green

Analyst