With BKC reporting some disappointing numbers today, we have updated our BIG 3 chart.
The 3Q09 number for WEN reflects our estimate of flat same-store sales growth for the quarter. WEN reported that comparable sales growth was up 2% in July.
The trends for MCD continue to slow; MCD finally admitted that high unemployment has had "some impact" on its breakfast business. According to senior management, “the impact has been inconsistent, reflecting the uneven path of unemployment across the nation.”
Yesterday was an ugly day, but yet, not an unexpected day for the restaurant industry. The small cap stocks were down on a big increase in volume, but this was consistent with the Russell 2000’s 3.5% decline, underperforming both the Dow and the S&P 500.
We are definitely looking for an entry point in some of the better positioned names, but I am not optimistic about how Q4 is going to shake out. I would like to feel confident that expectations for Q4 are already discounted in the stock prices.
CHUX reported in line numbers, but there is nothing there to get that stock moving to the upside with any meaning.