RECENT NOTES
7/16/15 JUST CHARTS| BWLD | SHORT
7/15/15 June Restaurant Sales and Employment Trends
7/15/15 YUM | Delivered a Mixed Bag of Results
7/12/15 JUST CHARTS | YUM
7/10/15 DFRG | COVERING THE SHORT
RECENT NEWS FLOW
Friday, July 17
DPZ | Downgraded to sector weight from overweight at KeyBanc, citing valuation as a reason.
Thursday, July 16
MCD | Survey: McDonald’s operators report weakening finances. This survey only includes 29 franchisees representing 208 restaurants, so it is not representative of the broader population of franchisees. (Click here for article)
SBUX | Management says they will open 15 new locations in low income and predominantly minority neighborhoods. (Click here for article)
DPZ | Announced retirement of CFO Michael Lawton and promotion of Jeffrey Lawrence to EVP and CFO. (Click here for article)
Wednesday, July 15
CMG | Will launch their new game “Friend or Faux,” on July 21, that compares its ingredients to its competitors in the limited-service segment. (Click here for article)
Tuesday, July 14
PNRA | Upgraded to overweight from underweight at Piper Jaffray, price target is $200.
YUM | Reported 2Q15 EPS of $0.69 beating consensus estimates of $0.64. YUM remains on the Hedgeye Restaurants Best Ideas list as a LONG. (Click here for article)
BWLD | BWLD upgraded to outperform from market perform at Raymond James, price target is $195. BWLD is a new edition to the Hedgeye Restaurants Best Ideas as a SHORT. Please refer to our Just Charts analysis here for more of an explanation.
SBUX | Expanding to South Africa in 2016. (Click here for article)
SECTOR PERFORMANCE
Casual dining and quick service stocks, in aggregate, underperformed the XLY last week. The XLY was up 1.91%, only BWLD beat it, out of the casual dining stocks that we follow, rising 1.93% last week.
QUANTITATIVE SETUP
From a quantitative perspective, the XLY remains bullish on a TRADE and TREND duration.
CASUAL DINING RESTAURANTS
QUICK SERVICE RESTAURANTS
