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Investment Ideas

The table below lists our Investment Ideas as well as our Idea Bench -- 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.

Monday Mashup: BLMN, SBUX and More - 1

Notable Callouts

We added BLMN to the Investment Ideas list as a long in a note last Thursday.  CLICK HERE to access the note.

Recent Notes

09/22/14 Monday Mashup: PBPB, TAST and More

09/24/14 SBUX: A Well-Timed Transaction

09/25/14 BLMN: Same As It Ever Was

Events This Week

Tuesday, September 30th

DPZ TAG Fall Consumer Conference

DENN, BJRI Wells Fargo Securities Retail and Restaurants Summit

Chart of the Day

Monday Mashup: BLMN, SBUX and More - 2

Recent News Flow

Monday, September 22nd

  • JMBA announced the launch of a new line of cold-pressed juices that will initially focus on the Southern California markets with the product becoming available in Northern California by mid-October, and eventually rolling out across the Jamba system in 2015.
  • THI announced it will celebrate National Coffee Week (beginning September 29th) with $1 any size coffee across select cities.
  • DFRG celebrated its expansion within the D.C. market with the newest opening of its Double Eagle Steak House at CityCenterDC.  This opening marks the 11th Double Eagle restaurant and the 43rd restaurant overall for DFRG.
  • BOBE was upgraded to neutral from underperform at CL King.

Tuesday, September 23rd

  • DRI issued an open letter to shareholders highlighting "Starboard's troubling, inconsistent, contradictory and misleading statements."
  • PLKI introduced its new southern inspired Beer Can Chicken which will be available through October 25th for just $3.99.
  • SBUX announced it will purchase the remaining 60.5% share of Starbucks Japan in a two-step offer process.
  • LOCO opened its first restaurant in Visalia, CA.

Wednesday, September 24th

  • PZZA mentioned positively at Longbow Research, reaffirming its $63 PT.
  • BWLD upgraded to buy from hold at Miller Tabak with a $170 PT.
  • BOBE Activist Sandell Asset Management filed an amended 13D in which it noted it has been contacted by firms interested in the food products division and real estate.
  • EAT Maggiano's introduced its new "Lighter Take" menu which includes new preparations of classic, Italian dishes with at least one-third fewer calories than the original recipes.
  • DRI Activist Starboard Value issued a letter to Darden shareholders in which it "condemns the current board's series of desperate tactics aimed at trying to confuse shareholders by repeating obviously false statements about Starboard's nominees and their turnaround plan for Darden."

Thursday, September 25th

  • BOBE The WSJ reported six firms are interested in buying Bob Evans real estate, including Spirit Reality, American Realty Capital, Store Capital and National Retail Properties.
  • JACK debuted its new late night instant win game, Jack's Muchie PeelTM.
  • BLMN JP Morgan reaffirmed its overweight rating and increased its PT to $22.
  • WEN introduced three new BBQ Pulled Pork offerings: the BBQ Pulled Pork Sandwich ($4.49), the BBQ Pulled Pork Cheeseburger ($4.99) and the BBQ Pulled Pork Cheese Fries ($2.99).

Friday, September 26th

  • DRI ISS recommends for all twelve of Starboard's nominees for Darden, concluding that "significant board change is warranted."

Sector Performance

The XLY (-1.6%) underperformed the SPX (-1.4%) as both casual dining and quick service stocks outperformed the XLY Index.

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XLY Quantitative Setup

From a quantitative setup, the sector turned bearish on an intermediate-term TREND duration.

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Casual Dining Restaurants

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Quick Service Restaurants

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Howard Penney

Managing Director

Fred Masotta