THE HEDGEYE BREAKFAST MONITOR
HEDGEYE VIRTUAL PORTFOLIO POSITIONS
LONGS: JACK, SBUX
SHORTS: DNKN, MCD
MACRO NOTES
SUBSECTOR PERFORMANCE
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.
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.
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.
Howard Penney
Managing Director
Rory Green
Analyst