University of Michigan Consumer Confidence comes out today at 09:55 a.m.  We’ll be watching for any indication of a further slump in confidence although, at least for the restaurant space, confidence hasn’t seemed to matter lately although it may begin to matter if it slumps much lower.


THE HBM: SBUX, MCD, COSI, WEN, BOBE - umich survey vs actual





THE HBM: SBUX, MCD, COSI, WEN, BOBE - subsector fbr





SBUX: Starbucks announced the acquisition of juice company Evolution Fresh for $30 million in cash.  The company hopes that the purchase will help Starbucks gain a foothold in the estimated $50 billion health food market.  We believe that the company's strategy is to capture the upside in profits by owning these small brands in tangent categories.  Starbucks' distribution channel provides a clear runway for these brands to grow rapidly.


SBUX: Starbucks is targeting 20% of customers in Malaysia to use the newly-launched pre-loaded Starbucks card.  A spokesman for the company said that the card is a stored value card that offered customers convenience when purchasing merchandise at any Starbucks store nationwide.


MCD: McDonald’s is looking to capitalize on the depressed commercial property market and purchase more of the land and buildings where it operates, according to management commentary during an investor conference yesterday. 


COSI: Cosi issued a letter to Brad Blum yesterday saying it would welcome his offer to lead the company for $1 if it were “sincere”.


WEN: Wendy’s was maintained “Overweight” at Barclays.





BOBE: Bob Evans Farms was downgraded to Equal Weight from Overweight at Stephens.


THE HBM: SBUX, MCD, COSI, WEN, BOBE - stocks 1111




Howard Penney

Managing Director


Rory Green


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