THE HBM: SAFM, GMCR, SBUX, SONC, DIN

THE HEDGEYE BREAKFAST MONITOR

 

MACRO NOTES

 

Consumer

 

Yesterday’s initial jobless claims number came in at 404k versus expectations of 405k and the prior week’s revised 405k. The jobs picture is far from improving and, while the numbers are not deteriorating, we believe that casual dining needs an improvement in the jobs picture to boost demand.  

 

THE HBM: SAFM, GMCR, SBUX, SONC, DIN - initial claims 1014

 

 

Gasoline prices have ticked up over the last week as the dollar has weakened and some optimism on the economy has surfaced. 

 

THE HBM: SAFM, GMCR, SBUX, SONC, DIN - gasoline prices 1014

 

Advance Retail Sales for September came in at +1.1% versus expectations of 0.7%.  Retail Sales Less Autos came in at 0.6% versus expectations of 0.3%.

 

China

 

China’s inflation came in at 6.1% in September, exceeding 6% for a fourth month in succession.

 

 

SUBSECTOR PERFORMANCE

 

THE HBM: SAFM, GMCR, SBUX, SONC, DIN - subsectors fbr

 

 

FOOD PROCESSORS

 

SAFM: Sanderson Farms target increased to $52 from $48 at Stephens

 

 

QUICK SERVICE

 

GMCR: Green Mountain Coffee Roasters was upgraded by Longbow Research to Buy, with a price target of $112.

 

SBUX: Starbucks was reiterated “Overweight”at Piper Jaffray and its price target was raised to $55 from $50.

 

SONC: Sonic announced that its Board of Directors authorized a stock repurchase program for up to $30 million worth of common stock through August 31, 2012.

 

  

CASUAL DINING

 

DIN: DineEquity has announced that franchisee Neighborhood Restaurant Parnters purchased Apple Restaurants, which includes 40 Applebee’s in the Atlanta area. No terms of the agreement were disclosed.

 

THE HBM: SAFM, GMCR, SBUX, SONC, DIN - stocks 1014

 

 

Howard Penney

Managing Director

 

Rory Green

Analyst

 


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