The table below lists our Investment Ideas as well as our Bench -- a list of potential ideas we are watching closely. We intend to update this table regularly and will provide detail on any material changes.
08/25/14 Monday Mashup: BKW, BWLD and More
08/26/14 BKW: Flame-Broiled Crawlers
08/28/14 BKW/THI Call Replay & Summary
08/28/14 BOBE: Leaving Much to be Desired
08/29/14 Restaurant Sector Valuation
Events This Week
Wednesday, September 4th
- LOCO earnings call 5pm EST
- KONA Liolios Group Gateway Conference
Chart of the Day
Milk prices are up 17.1% YTD and 24.3% YoY.
Recent News Flow
Monday, August 25th
- TXRH upgraded to overweight at Stephens with a $32 PT.
- BWLD took a minor stake in Rusty Taco which has nine locations in three markets.
- JMBA entered into an agreement with Capgemini in order to accelerate franchise recruiting and development.
Tuesday, August 26h
- BKW announced the acquisition of THI for C$94.05/share in cash and stock.
- THI downgraded to sector perform at Scotiabank with a C$90 PT.
- THI downgraded to hold at Miller Tabak with an $81 PT.
- PLKI announced its title sponsorship for NCAA Football's Bahamas Bowl.
- BOBE announced that four of Sandell's nominees were elected to the company's 12-member board.
Wednesday, August 27th
- THI upgraded to neutral at Credit Suisse with a C$89 PT.
- THI downgraded to market perform at BMO Capital with a C$92.75 PT.
- THI downgraded to market perform at Raymond James with a C$92.50 PT.
Thursday, August 28th
- BOBE downgraded to underweight at Stephens with a $40 PT.
- DRI reschedules 2014 annual meeting for Friday, October 10th.
The SPX (+0.8%) outperformed the XLY (+0.3%) last week. In aggregate, casual dining stocks performed in-line with the XLY as quick-service stocks outperformed the index.
XLY Quantitative Setup
From a quantitative perspective, the sector remains bullish on an intermediate-term TREND duration.
Casual Dining Restaurants
Quick Service Restaurants