The table below lists our current Investment Ideas as well as our Watch List – a list of potential ideas that we are in the process of evaluating. We intend to update this table regularly and will provide detail on any material changes.
05/05/14 Monday Mashup: YUM, BOBE and More
05/12/14 BLMN: Still Bearish
*BOBE Best Ideas Call
Events This Week
05/14/14 KONA Annual General Meeting
05/14/14 DFRG Annual General Meeting
05/15/14 JACK Earnings Call 11:30am EST
05/15/14 BKW Annual General Meeting 9:00am EST
05/15/14 PBPB Annual General Meeting 9:00am EST
05/15/14 CMG Annual General Meeting
05/15/14 YUM Investor & Analyst Conference 12:30pm EST
05/16/14 MCD Investor Meeting 11:00am EST
Chart of the Day
We snagged this from our recent slide deck running through the bull case on BOBE. The chart pretty much says it all – therein lies a major opportunity.
Recent News Flow
Monday, May 5th
- CBRL upgraded to market perform at Raymond James.
- CMG upgraded to outperform at Raymond James with a $560 PT.
- DIN Applebee’s unveiled four new dishes (including the New Grilled Vidalia Onion Sirloin), a refreshed beverage line and under 600 calorie lunch combos.
Tuesday, May 6th
- BJRI announced its newest restaurant opening in Orlando, FL.
Wednesday, May 7th
- THI declared a $0.32 dividend payable on June 5,2014 to shareholders as of May 22, 2014.
- CMG upgraded to buy at Longbow Research with a $641 PT.
- PZZA upgraded to buy at Feltl and Company.
- PNRA upgraded to buy at Bank of America Merrill Lynch with a $185 PT.
Thursday, May 8th
- MCD reported +1.2% global comps in April. The U.S. business was flat, despite a free coffee promotion and the launch of the Bacon Clubhouse. APMEA (+2.9%) led the way, while Europe (+0.3) was up modestly.
- DRI Starboard sent a letter to Darden’s Board urging them to immediately provide notice of a Special Meeting. In the letter, Starboard called the Board’s “casual and dismissive attitude toward the Special Meeting [disturbing].”
- SONC upgraded to outperform at Oppenheimer with a $25 PT.
Friday, May 9th
- BWLD initiated underperform at Buckingham with a $116 PT.
U.S. Macro Consumption
The XLY (-0.6%) underperformed the SPX (-0.1%) last week. Both casual dining and quick service stocks underperformed the broader XLY index. The Hedgeye U.S. Consumption Model turned bullish, flashing green on 8 out of 12 metrics.
XLY Quantitative Setup
From a quantitative perspective, the sector remains bearish on an intermediate-term TREND duration.
Casual Dining Restaurants
Quick Service Restaurants