We added Zoe's Kitchen (ZOES) to Investing Ideas on Tuesday April 14, 2015. We are unlocking this excerpt from Restaurant Sector Head Howard Penney's conference call with institutional investors where he outlines his bullish thesis EXCLUSIVELY for Investing Ideas subscribers.
Takeaway: Adding German Equities to Investing Ideas
We are adding German Equities (EWG) to Investing Ideas today. Please see the note below from Hedgeye CEO Keith McCullough and watch a special video excerpt featuring Europe Analyst Matt Hedrick from a call held earlier this week below.
Our Europe Analyst, Matt Hedrick (German American dude) hosted a bullish Institutional Research call on Germany earlier this week and the highlights were as follows:
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In this Hedgeye Macro Minute, Director of Research Daryl Jones discusses the three biggest bearish data points on oil for both intermediate and long-term durations.
Takeaway: We’re hosting a flash call tomorrow, April 17 at 11am EST to run through the activist playbook on PNRA. Dial-in details and materials to fol
Last night Panera announced in a press release that its Board of Directors approved an increase to the company’s share repurchase program to $750 million. The company expects to repurchase $500 million over the next twelve months. The release also highlighted the progress that Panera is making in its previously announced refranchising initiative. The company has entered letters of intent to sell 73 cafes and is expected to reach its refranchising goal by year end (50-150 cafes). This initiative, which is expected to be accretive to earnings, was reflected in management’s 2015 EPS guidance.
On March 3, 2015 we penned an open letter to CEO Ron Shaich detailing our activist playbook on the company:
In this letter, we recommended five steps he should consider taking in order to unlock significant shareholder value:
We believe these changes to the business model will significantly enhance the margins, returns, and overall earnings power of the company. We put the baseline earnings power of the company between $8-10 per share and the implied stock price between $240-300.
We look forward to further articulating these recommendations on the call tomorrow.
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