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THE HEDGEYE BREAKFAST MONITOR

HEDGEYE VIRTUAL PORTFOLIO POSITIONS

LONGS: JACK, SBUX

SHORTS: DNKN, MCD

 

MACRO NOTES

SUBSECTOR PERFORMANCE

THE HBM: MCD, CMG - subsector

 

QUICK SERVICE

MCD: McDonald’s reported 1Q12 EPS of $1.23 versus $1.23 and global same-store sales of 7.3%.  Overall, we thought the quarter was not great but not terrible.  We believe that the market was pricing in a worse quarter than what transpired; during the first quarter of the calendar year, MCD traded down 2% versus the 10% gain that the S&P 500 posted. 

THE HBM: MCD, CMG - mcd us

 

THE HBM: MCD, CMG - mcd eu

 

THE HBM: MCD, CMG - mcd apmea

 

THE HBM: MCD, CMG - mcd ww

 

CMG: Chipotle reported another great quarter with EPS coming in at $1.97 versus $1.93 with strong top line trends helping the company to gain leverage over its costs.   Same-store sales continue to exceed lofty expectations and the growth profile of the company, with the ShopHouse concept showing good promise.  The same-store sales chart is below.

THE HBM: MCD, CMG - cmg pod 1 white

NOTABLE PERFORMANCE ON ACCELERATING VOLUME:

PNRA: Panera declined on accelerating volume.  The market does not like the COO departure news.

SBUX: Starbucks declined on accelerating volume.

CASUAL DINING

NOTABLE PERFORMANCE ON ACCELERATING VOLUME:

PFCB: P.F. Chang’s declined on accelerating volume.

TXRH: Texas Roadhouse declined on accelerating volume.

THE HBM: MCD, CMG - stocks

Howard Penney

Managing Director

Rory Green

Analyst