THE HBM: SBUX, EAT, YUM, JACK, JMBA, SONC, MRT

THE HEDGEYE BREAKFAST MONITOR

 

MACRO NOTES

 

Gasoline prices are down 50 bps over the last week but seem to be trending flat-to-slightly-higher as the dollar has weakened. Gas prices coming down from the 2Q high’s has been a tailwind for restaurant traffic.

 

THE HBM: SBUX, EAT, YUM, JACK, JMBA, SONC, MRT - gasoline 1031

 

 

SUBSECTOR PERFORMANCE

 

THE HBM: SBUX, EAT, YUM, JACK, JMBA, SONC, MRT - subsector fbr

 

 

GENERAL

 

The Nation’s Restaurant News Restaurant Social Media Index (RSMI) was released, ranking restaurant chains using three primary aspects of tracking in social media: digital brand interaction; consumer sentiment and social audience growth; and overall Klout score. Unsurprisingly, Starbucks topped the list.   More surprising was Chili’s coming in at 75th.  You can find the full list here.

 

 

QUICK SERVICE

 

YUM: Yum! Brands’ KFC raised its menu prices in China by 0.5-to-2 Yuan, according to media reports.  The move is the third price adjustment that KFC China has made in 2011.

 

JACK, JMBA: Jack in the Box and Jamba Juice are testing Google Wallet in a limited trial of the technology that lets customers pay for purchases and redeem coupons with their smartphones, executives at each chain have said, according to Nation’s Restaurant News.

 

SONC: Sonic is putting out a new Bacon Cheddar Melt burger and a Mushroom Swiss Melt burger.  The advertisement reads "starting at $1.99" but it is unclear what exactly that means.  The burgers are served on "Texas toast".

 

 

CASUAL DINING

 

MRT: Morton’s Restaurant Group was reiterated “Perform” at Oppenheimer.

 

THE HBM: SBUX, EAT, YUM, JACK, JMBA, SONC, MRT - stocks 1031

 

 

Howard Penney

Managing Director

 

Rory Green

Analyst


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