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Monday Mashup: CAKE, PNRA and More - 1

Recent Notes

02/02/15 Monday Mashup: WEN, CMG, DNKN, YUM, BWLD

02/03/15 WEN: Middling Q, But that’s Not the Story Here

02/03/15 WEN Leveraged Recap Puts Pressure on Yum

02/04/15 CMG: Look Past the Near Term Noise

02/05/15 YUM: In Need of a Nudge

02/06/15 January Sales & Traffic Strongest in Six Years

Events This Week

Monday, February 9th

  • MCD January 2015 Sales and Revenue Release

Tuesday, February 10th

  • GTIM earnings call 11:00am EST

Wednesday, February 11th

  • CAKE earnings call 5:00pm EST

Thursday, February 12th

  • PNRA earnings call 8:30am EST

Friday, February 13th

  • RRGB earnings call 10:00am EST
  • JACK Annual General Meeting

Chart of the Day

Monday Mashup: CAKE, PNRA and More - 2

Recent News Flow

This Morning

  • BWLD was downgraded to hold at Miller Tabak with a $193 PT.

Monday, February 2nd

  • LOCO announced the addition of Baja Shrimp as a seasonal menu option available through the spring.  The new menu items include: Shrimp Mango Tacos, Shrimp Verde Enchiladas, Shrimp & Chicken Avocado Bowl, and Avocado Shrimp Salad.
  • PZZA announced it is bringing back a fan favorite, the Bacon Cheeseburger Pizza, available through March 15th.

Tuesday, February 3rd

  • BJRI announced the opening of its newest restaurant in Nanuet, New York.  The 8,000 square ft. restaurant seats approximately 250 guests.

Wednesday, February 4th

  • RUTH announced the opening of its newest restaurant in St. Petersburg, Florida. 

Thursday, February 5th

  • WEN was upgraded to positive at Susquehanna with a $13 PT.
  • KKD announced the termination of its tax asset plan and stock transfer restrictions.
  • EAT declared a quarterly dividend of $0.28 per share, payable on March 26, 2015 to shareholders as of March 6th, 2015.
  • EAT announced the election of Elaine L. Boltz to its Board of Directors.  Boltz is a Senior Vice President at TJX Companies and has previously held positions with The Boston Consulting Group, ANN Inc., and Chico’s FAS, Inc.

Friday, February 6th

  • DNKN entered into a $400 million accelerated share repurchase program with Goldman, Sachs & Co.  On February 10th, the company will pay Goldman $400 million in cash and will receive ~6,950,000 of the company’s common stock.

Sector Performance

The XLY (+4.2%) outperformed the SPX (+3.0%) last week.  Both casual dining and quick service stocks, in aggregate, underperformed the XLY.

Monday Mashup: CAKE, PNRA and More - 3

Monday Mashup: CAKE, PNRA and More - 4

Quantitative Setup

From a quantitative perspective, the XLY remains bullish on an intermediate-term TREND duration.

Monday Mashup: CAKE, PNRA and More - 5

Casual Dining Restaurants

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Monday Mashup: CAKE, PNRA and More - 7

Quick Service Restaurants

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