THE HEDGEYE BREAKFAST MONITOR
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.
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.