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THE HEDGEYE BREAKFAST MENU

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

MACRO

Jobless claims are uncomfortably close to their recent highs - weakness in the labor market continues.  I continue to believe that consumer demand over the past nine months wasn’t strong enough to overcome another bump in unemployment. 

SUB-SECTOR PERFORMANCE

The QSR sector continues to be the safe-haven of the group…. 

THE HBM: SBUX, CHUX, DNKN, DRI, KKD, YUM and DPZ - hfbrd

QUICK SERVICE

DNKN - SSS are tracking in the MSD range QTD (see my note from yesterday)

CKE - Blended same-store sales for company-operated units climbed 2.2% in 2Q, with Carl’s Jr. up 2% and Hardee’s showing a 2.5%.

KKD - September 29 Krispy Kreme  will celebrate National Coffee Day and its new Krispy Kreme Signature Coffee Blends by giving a FREE 12oz cup of House Blend Coffee to its guests. No Purchase Necessary.

YUM - Niren Chaudhary, managing director of Yum! Restaurants India Pvt. Ltd., said the company is aiming at total sales of $1 billion from India by 2015 and it will invest $150 million to take the number of its restaurants in India to 1,000 by 2015, from 400 currently. 

SBUX - Robert Luciano, director of store development for Starbucks Coffee Canada is talking about significant growth opportunities in Canada.

SBUX - Bloomberg is also reporting that “Starbucks Corp. plans to double or triple the company’s outlets in Germany from 150 in the next several years, Handelsblatt reported, citing an interview with Chief Executive Officer Howard Schultz.”

DPZ - The new pizzas from DPZ look to be hitting home with consumers priced at $7.99

THE HBM: SBUX, CHUX, DNKN, DRI, KKD, YUM and DPZ - dpz

FULL SERVICE

CHUX - FNF files 13D.  Bill Foley is back!

CHUX - Standard & Poor's lowered its corporate credit rating on O'Charley's Inc. to 'B-' from 'B'. The outlook is negative.

DRI - will be webcasting their 2011 Shareholder's Meeting today starting at 10:00 am ET to 11:00 am ET.

DRI and Publix will work with the nonprofit Sustainable Fisheries Partnership to help rebuild fish populations.  Darden unveiled the plans Wednesday at the Clinton Global Initiative's seventh annual meeting and said its first goal is to focus on rebuilding commercial grouper and red snapper reef fisheries in the Gulf of Mexico.

THE HBM: SBUX, CHUX, DNKN, DRI, KKD, YUM and DPZ - qsr

THE HBM: SBUX, CHUX, DNKN, DRI, KKD, YUM and DPZ - fsr

Howard Penney

Managing Director

            

Rory Green

Analyst