THE HBM: MCD, PNRA, AFCE, CBRL, BWLD

THE HEDGEYE BREAKFAST MONITOR

 

MACRO NOTES

 

Consumer

 

Initial jobless claims came in at 362k versus 352k consensus for the week ended 3/3 and 354k during the week prior (revised up from 351k)

 

THE HBM: MCD, PNRA, AFCE, CBRL, BWLD - claims

 

 

SUBSECTOR PERFORMANCE

 

THE HBM: MCD, PNRA, AFCE, CBRL, BWLD - subsector

 

 

QUICK SERVICE

 

MCD: McDonald’s reported sales of 11.1%, 4.0%, and 2.4% for the U.S., Europe, and APMEA, respectively.  Consensus was looking for 8.7%, 6.8%, and 8.6%, respectively.  Due to calendar shifts, the numbers include an adjustment ranging from approximately 3.1% to 3.4%.  We will have a note up detailing our thoughts on MCD shortly.

 

THE HBM: MCD, PNRA, AFCE, CBRL, BWLD - MCD US

 

THE HBM: MCD, PNRA, AFCE, CBRL, BWLD - mcd eu

 

THE HBM: MCD, PNRA, AFCE, CBRL, BWLD - MCD APMEA

 

 

PNRA: Panera is featured in the Wall Street Journal today stating that it will increase its media investment by 26% this year.  "A lot of people think, if you do nothing, you will stay at zero. But the reality is, if you do nothing, you'll be at a negative," said Founder and Chairman Ron Shaich.

 

AFCE: AFC reported 4Q EPS of $0.24 versus $0.24 consensus.

 

NOTABLE PERFORMANCE ON ACCELERATING VOLUME:

 

AFCE: AFC Enterprises gained 3% on accelerating volume.

 

 

CASUAL DINING

 

CBRL: Cracker Barrel continues to highlight gas prices as a potential risk going forward.  Most of the other restaurant companies that have addressed the topic have been downplaying the impact of gas prices and highlighting the consumer handling current levels quite well.

 

BWLD: Sanderson Farms CEO Joe Sanderson said yesterday that there is no chance of the supply of chicken growing this year.

 

NOTABLE PERFORMANCE ON ACCELERATING VOLUME:

DIN: Dine Equity bounced back after three consecutive down days.

 

THE HBM: MCD, PNRA, AFCE, CBRL, BWLD - stocks

 

 

Howard Penney

Managing Director

 

Rory Green

Analyst

 


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Todd Jordan on Las Vegas Sands Earnings

"The quarter actually beat lowered expectations. Overall, the mass segment performed well although base mass lagging is a concern," writes Hedgeye Gaming, Lodging & Leisure analyst Todd Jordan on Las Vegas Sands.

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"Congress' FY17 omnibus appropriation will fully fund the Pentagon's original budget request plus $15B of its $30B supplemental request," writes Hedgeye Potomac Defense Policy analyst Lt. Gen Emerson "Emo" Gardner USMC Ret.

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