Hedgeye - Monday Mashup: Big Week for BOBE

Investment Ideas

Recent Notes

06/30/14 Monday Mashup: DNKN, NDLS and More

Events This Week

07/08/14 BOBE earnings release 4:00pm EST

07/09/14 BOBE earnings call 10:00am EST

Chart of the Day

With BOBE set to release earnings tomorrow after the close, we thought we’d take a close look at the value destruction the current Board and management team have perpetuated since mid-2012. We are expecting a disappointing release and would be buyers on any negative news. BOBE remains our highest conviction long idea. We run through our long thesis in this slide deck.

Recent News Flow

Monday, June 30^th

DIN Applebee’s brought back its Take Two menu for a limited time, giving guests the ability to pair any two selections from its Taste of Summer menu, starting at $10.99.
NDLS debuted catering in Colorado.
RRGB eliminated the position of COO, currently held by Eric. C. Houseman, in an internal restructuring. Houseman’s employment will end on or around August 1^st.

Tuesday, July 1^st

WEN announced the return of its #PretzelLoveSongs campaign, in which the company takes select social media posts and turns them into lyrics of songs. This year, the songs will be performed in a series of music videos by Boyz II Men and Jon Secanda.
NDLS unveiled plans to add a floating server at its stores in order to drive dessert and drink sales. CEO Kevin Reddy expects this addition to the restaurants will result in a 3% boost in same-store sales. Noodles & Company has been testing the floating server in select restaurants for the past two years and plans to roll out the program system-wide by 2016.

Wednesday, July 2^nd

No significant news.

Thursday, July 3^rd

BOBE holder Sandell reported a 8.4% beneficial ownership in the company.
CAKE announced plans to celebrate National Cheesecake Day on July 30^th and 31^st by offering any slice of cheesecake at half price.

Friday, July 4^th