Investment Ideas
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.
Recent Notes
07/14/14 MONDAY MASHUP: YUM ON DECK
07/15/14 YUM: THOUGHTS INTO THE PRINT
07/17/14 YUM: EARNINGS RECAP
07/18/14 CMG: THOUGHTS INTO THE PRINT
07/18/14 DRI: PERPETUALLY MISGUIDED (FOR 46 MORE DAYS)
Events This Week
Monday, July 21st
- CMG earnings call 4:30pm EST
Tuesday, July 22nd
- DFRG earnings call 8:30am EST
- DPZ earnings call 10:00am EST
- MCD earnings call 11:00am EST
Wednesday, July 23rd
- CAKE earnings call 5:00pm EST
Thursday, July 24th
- DNKN earnings call 8:00am EST
- BJRI earnings call 5:00pm EST
- SBUX earnings call 5:00pm EST
Friday, July 25th
- No events
Chart of the Day
Recent News Flow
Monday, July 14th
- EAT Brinker was upgraded to overweight at JP Morgan with a $52 PT.
- RRGB announced it is two weeks away from opening its newest restaurant on Long Island.
Tuesday, July 15th
- MCD Janney released a report noting the growing long-term threat McDonald's is facing from privately owned Chick-fil-A.
- RRGB completed an acquisition of 32 franchised restaurants in the U.S. and Canada for approximately $40 million in cash.
- DRI Starboard delivered a letter to the Board of Darden, calling for new leadership and a series of operational improvements.
Wednesday, July 16th
- BOBE delivered a letter to stockholders stating their case for the Board's director nominees at the annual meeting on August 20th, 2014.
Thursday, July 17th
- CAKE The Cheesecake Factory announced that its licensee, S.A.B. de C.V., opened its first restaurant in Mexico (Guadalajara, Jalisco).
- TAST Carrols Restaurant announced its agreement to acquire 21 Burger King restaurants from Kessler Group, Inc.
- MCD announced a quarterly cash dividend of $0.81 payable on September 16, 2014 to shareholders of record on September 2, 2014.
Friday, July 18th
- No news
Sector Performance
The XLY (+0.2) underperformed the SPX (+0.5%). Both casual dining (-1.6%) and quick service (-0.7%) stocks, in aggregate, undperformed the XLY Index.
Consumption
The Hedgeye U.S. Consumption Model is signaling bullish, with 7 out of 12 metrics flashing green.
XLY Quantitative Setup
From a quantitative perspective, the sector remains bullish on an intermediate-term TREND duration.
Casual Dining Restaurants
Quick Service Restaurants
Howard Penney
Managing Director
Fred Masotta
Analyst