The table below lists our 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.
06/09/14 Monday Mashup: DFRG, CAKE, PNRA
06/09/14 MCD: Time For A Change
06/12/14 New Best Idea: Short DFRG (Replay)
06/13/14 BOBE: Reiterating Best Idea Long
Events This Week
06/17/14 KKD Annual General Meeting
06/17/14 Deutsche Bank Global Consumer Conference: BAGL
06/17/14 Jefferies Global Consumer Conference: CHUY
06/17/14 BOBE earnings release 4:00pm EST
06/18/14 Jefferies Global Consumer Conference: BBRG, DNKN, FRGI, FRSH, JACK, NDLS, RUTH, ZOES
06/18/14 BOBE earnings call 10:00am EST
06/20/14 DRI earnings release BMO, earnings call 8:30am EST
Chart of the Day
Recent News Flow
Monday, June 9th
- EAT Chili’s announced the completion of its nationwide rollout of tabletop tablets in the U.S., which included the installation of 45,000+ Ziosk tablets in 823 company-owned restaurants.
Tuesday, June 10th
- DPZ initiated buy at Jefferies with an $85 PT.
- BJRI officially launched a mobile ordering/payment app for its restaurants. The new app allows customers to use their mobile devices to order ahead for dine-in and takeout, move ahead in line for a table and pay at their own convenience.
- WEN was downgraded to hold from buy at Argus Research based on “uncertainty” around the company’s remodeling initiatives.
- GMCR announced an initiative to expand its presence at SUBWAY, by bringing Keurig single serve brewers to thousands of restaurants.
- DNKN announced the locations of its first traditional restaurants in CA. They are currently planned for Downey, Long Beach, Modesto, Santa Monica and Whittier. Construction is planned to begin later in June, earlier than expected.
- PZZA Papa John’s announced the appointment of former AIG Executive Chairman, Laurette Koellner, to its Board of Directors.
Wednesday, June 11th
- No major news.
Thursday, June 12th
- PNRA closed on a $100 million term loan from BoA, Wells Fargo and TD Bank. Proceeds from the loan will primarily be used for general corporate purposes.
Friday, June 13th
- No major news.
The XLY (-1.7%) underperformed the SPX (-0.7%) last week. Casual dining stocks underperformed the narrower XLY index, while quick service stocks outperformed.
U.S. Macro Consumption
The Hedgeye U.S. Consumption Model continues to signal bearish, flashing red on 7 out of 12 metrics.
XLY Quantitative Setup
From a quantitative perspective, the sector remains bullish on an intermediate-term TREND duration.
Casual Dining Restaurants
Quick Service Restaurants