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Monday Mashup: DRI, EAT and More - 1

 

Recent Notes

10/13/14 Monday Mashup: DFRG, EAT and More

10/14/14 DRI: No Better Time for Focus and Simplicity

10/16/14 DFRG: Timing is Critical

Events This Week

Monday, October 20th

  • CMG earnings call 5:00pm EST

Tuesday, October 21st

  • EAT earnings call 10:00am EST
  • MCD earnings call 11:00am EST
  • SONC earnings call 5:00pm EST

Wednesday, October 22nd

  • CAKE earnings call 5:00pm EST

Thursday, October 23rd

  • DNKN earnings call 8:00am EST
  • BJRI earnings call 5:00pm EST
 

Chart of the Day

Milk prices are up +26.2% YTD and +31.3% YoY.

Monday Mashup: DRI, EAT and More - 2

Recent News Flow

Monday, October 13th

  • DRI downgraded to neutral at Piper Jaffray with a $50 PT.

Tuesday, October 14th

  • DRI appointed Jeffrey Smith as Independent Non-Executive Chairman and Gene Lee as Interim CEO.
  • DRI downgraded to Ba1 from Baa3 at Moody's.
  • EAT downgraded to hold at KeyBanc.
  • TXRH downgraded to hold at KeyBanc.
  • CBRL upgraded to buy at Argus with a $120 PT.

Wednesday, October 15th

  • SBUX mentioned positively at Bernstein where it continues to be rated outperform with a $99 PT.

Thursday, October 16th

  • LOCO announced the opening of its nineteenth Las Vegas area location.
  • CAKE announced its newest opening at the new Mall at University Town Center in Sarasota, FL.

Friday, October 17th

  • MCD estimates were reduced at Janney, which reduced its PT to $90.

Sector Performance

The XLY (-0.9%) outperformed the SPX (-1.0%) last week.  Both casual dining and quick service stocks, in aggregate, outperformed the narrower XLY.

Monday Mashup: DRI, EAT and More - 3

Monday Mashup: DRI, EAT and More - 4

XLY Quantitative Setup

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

Monday Mashup: DRI, EAT and More - 5

Casual Dining Restaurants

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Monday Mashup: DRI, EAT and More - 7

Quick Service Restaurants

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Howard Penney

Managing Director

Fred Masotta

Analyst