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THE HEDGEYE BREAKFAST MONITOR

MACRO NOTES

Wheat


A glut in wheat prices is set to lead prices lower, according to Bloomberg, as exporters fight for sales.  France, in particular, is suffering as Ukraine can export wheat to northern Africa – an important export market for France – as much as $10-15 cheaper than the French can.

THE HBM: DNKN, GMCR, MCD, SBUX, DRI, OSI - wheat 1114


 

SUBSECTOR PERFORMANCE

THE HBM: DNKN, GMCR, MCD, SBUX, DRI, OSI - subsectors fbr

QUICK SERVICE

DNKN: Dunkin’ Brands has announced that JP Morgan, Barclays, and Morgan Stanley are waiving a lock-up restriction with respect to up to 732,758 shares of the company’s common stock.  The waiver will take effect on November 16, 2011, and the shares may be sold on or after such date, subject to the terms of the waiver.

GMCR: Green Mountain Coffee was cut to Hold from Buy at Argus Research.

MCD: McDonald’s aims to “at least” double coffee sales in Germany over the next four years according to the Financial Times Deutschland.

MCD: McDonald’s was maintained overweight at Barclays.

SBUX: Starbucks has raised over $1 million in donations within the first two weeks of its Create Jobs for USA Fund program’s launch.

CASUAL DINING

DRI: Darden featured in Barron’s this weekend where the publication, citing Goldman Sachs research, said the shares could rise to $60 due to a combination of new unit growth on college campuses and airports and pricing. Goldman’s PT is $53.

OSI: OSI Restaurant Partners LLC, parent to Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and other casual-dining chains reported a larger net loss for its third quarter despite strong top-line trends.  Domestic system-wide same-store sales rose 5.6% at Outback Steakhouse during the quarter.

THE HBM: DNKN, GMCR, MCD, SBUX, DRI, OSI - stocks 1114

Howard Penney

Managing Director

Rory Green

Analyst