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THE HEDGEYE BREAKFAST MONITOR

MACRO NOTES

German business sentiment index dropped for a fourth consecutive month to 106.4 in October from a revised 107.4 in September.  French business confidence fell to 97 in October from 99 in September. 

 

SUBSECTOR PERFORMANCE

THE HBM: MCD, CMG - subsector fbr

QUICK SERVICE

MCD: McDonald’s reported strong 3Q earnings this morning.   EPS came in at $1.45 versus expectations of $1.43 on the back of strong global comps with strength in France, Russia, Germany and the U.K. being particularly encouraging.  U.S. comps came in at 4.4% versus 3.8% expectations.  Europe came in at 4.9% versus 3.3% consensus and APMEA also beat, printing a 3.4% comp versus the Street at 2.7%.  The company said that October comparable sales are expected to be up 4% to 5%. 

THE HBM: MCD, CMG - MCD US

THE HBM: MCD, CMG - MCD Europe

THE HBM: MCD, CMG - MCD APMEA

CMG: Chipotle Mexican Grill reported $1.90 versus $1.85 on the back of 11.3% comparable restaurant sales growth.  Margins were slightly negative in the third quarter, year-over-year, as chicken, beef, cheese, and sour cream costs were higher than expected.  The company sees mid-single digit inflation in 2012.

THE HBM: MCD, CMG - stocks 1021

Howard Penney

Managing Director

Rory Green

Analyst