Monday Mashup: YUM, BLMN and More

Reminder: We are hosting a call tomorrow, December 2nd, at 10am EST to run through our long thesis on YUM.  We will send out materials and dial-in information tomorrow morning.


Monday Mashup: YUM, BLMN and More - 1


Recent Notes

11/24/14 Monday Mashup: YUM, RUTH and More

11/25/14 Best Idea Call Invite: Long YUM


Events This Week

Tuesday, December 2nd

  • YUM Hedgeye Best Idea Call at 10am EST

Wednesday, December 3rd

  • BOBE earnings call 10am EST

Thursday, December 4th

  • SBUX Investor Day at 11am EST


Chart of the Day

The Restaurant Value Spread, which turned positive in May for the first time in the prior 25 months, continues to widen sequentially.


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Recent News Flow

Monday, October 24th

  • RRGB announced the opening of its newest restaurant in South Florida. 
  • PNRA announced the resignation of EVP and CMO, Michael Simon.  Mr. Simon accepted a new senior leadership position with Bai Brands.  Chris Hollander, VP of Marketing at Panera, will fill Mr. Simon's vacancy while the company conducts an internal and external search for a replacement.
  • PZZA announced the acquisition of Pizza Corner stores in South India.  Papa John's will convert these stores to Papa John's branded restaurants through 1Q15.

Tuesday, October 25th

  • TXRH COO, Steve Ortiz, announced his retirement, effective January 12, 2015.  Mr. Ortiz has been with the company for 18 years and served as COO since 2004.  The company is currently working on an agreement with Mr. Ortiz to become a franchisee in the San Diego area.  In order to fill this vacancy, Doug Thompson has been promoted to VP of Operations and will report directly to CEO Kent Taylor.

Wednesday, October 26th

  • BWLD elected Cindy L. Davis to its expanded Board of Directors.  This addition expands the board to eight members.  Ms. Davis most recently served as VP of Nike and President of Nike Golf from 2008 to 2014.

Friday, October 28th

  • BLMN signed a purchase agreement to sell Roy's Restaurants to United Ohana, LLC.  The transaction is expected to close in the next 30-60 days.


Sector Performance

The XLY (+2.7%) outperformed the SPX (+0.7%) last week, as both casual dining and quick service stocks, in aggregate, outperformed the SPX Index.


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XLY Quantitative Setup

From a quantitative perspective, the sector remains bullish 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


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