THE HBM: BEEF, WEN, BJRI

THE HEDGEYE BREAKFAST MONITOR

 

MACRO NOTES

 

Commodity Prices

 

Beef

 

A massive beef recall in Canada has crossed the border, leading the Seattle branch of a major food distributor to recall 16,800 pounds of ground-beef patties that may be contaminated with dangerous bacteria, according to the Seattle Times.

 

 

Commentary from CEO Keith McCullough

 

Top 3 Most Read (on Bloomberg terminal): #1 Spain Firewall #2 Asian Stocks Fall and #3 China Soft Landing – now we’re talking:

  1. JAPAN – clients want a “catalyst” in the Japanese Sov Debt Crisis – here’s mine: gravity. The Yen kicks off the week down -0.4% vs the USD (after Goldman said buy Yen Fri) and former exec director of the BOJ (Hirano, from 2002-2006) saying that Japan has “crossed the Rubicon with really desperate measures.”
  2. SPAIN – continued selling in Spanish stocks, down -1.8% to start the week and now down -5.1% for the YTD (vs Germany +18.6%) and Super Mario Monti wants “firewall.” It ain’t over, till its over folks.
  3. COPPER – the Doctor continues to look exactly like the slope of global growth, slowing. Copper now bearish TRADE and TAIL w/ big TRADE resistance overhead at $3.85/lb.

You’d think that after the worst week for Asian and European stocks in 2012, the bull would be back this morn. Nope.

 

KM

 

 

SUBSECTOR PERFORMANCE

 

THE HBM: BEEF, WEN, BJRI - subsector 2

 

 

QUICK SERVICE

 

WEN: Wendy’s is claiming to be the first fast food company to back a new system that replaces the food processing industry standard practice of stunning chickens with electricity with a new low-atmospheric pressure system that renders the chickens unconscious before the birds are handled by plant workers.  The company says it is working with its U.S. and Canadian pork suppliers to reduce the use of crates. 

 

NOTABLE PERFORMANCE ON ACCELERATING VOLUME:

 

PEET: Peet’s coffee gained 5.5% on accelerating volume.  Declining coffee prices continue to help this company.

 

 

CASUAL DINING

 

BJRI: BJ’s Restaurants was raised to Outperform from Neutral at Wedbush.

 

NOTABLE PERFORMANCE ON ACCELERATING VOLUME:

 

DRI: Darden declined on accelerating volume as concerns about the “choppy” macro environment and seafood inflation at Red Lobster.

 

THE HBM: BEEF, WEN, BJRI - stocks 2

 

 

Howard Penney

Managing Director

 

Rory Green

Analyst

 


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