RECENT NOTES
9/29/16 DRI | 1Q17 QUARTERLY DASHBOARD
9/19/16 SBUX | THE TRANSITION IS REAL
9/13/16 CMG | THE LEGAL ISSUES AND THE IMPLICATIONS FOR A RECOVERY
9/08/16 GENERATIONAL DINING | A LOOK INTO THE CONSUMER’S MIND
9/07/16 PLAY | THE SLOWDOWN HAS COMMENCED
9/07/16 CMG | THIS IS WHY I PLAY
SECTOR PERFORMANCE
Casual Dining and Quick Service stocks that we follow underperformed the XLY last week. The XLY was up 0.5%; top performer on a relative basis from casual dining was DENN, despite posting a performance of -0.9%, while DNKN and CMG led the quick service group this week up +3.5% and +1.9%, respectively.
CASUAL DINING RESTAURANTS
QUICK SERVICE RESTAURANTS
COMMODITIES
ARTICLES OF INTEREST
COSI | COSI FILES FOR BANKRUPTCY
The long struggling fast-casual corporation has announced that it and its subsidiaries filed voluntary Chapter 11 petitions in the United States Bankruptcy Court for the District of Massachusetts. This filing officially initiates a process to preserve value and accommodate an orderly going-concern sale of Cosi’s business operations. As a result, the company closed down 29 locations this week.
COSI | COSI LENDERS TO PAY $6.8M FOR CHAIN
A group of lenders have agreed to pay $6.8 million for Cosi. The current bid is a “stalking horse bid,” which would allow them to test the market in advance of an auction, with the hopes of maximizing the value of assets and avoiding low bids. The company’s bankruptcy is the result of annual operating losses dating back more than 15 years.
YUM | CHINA DIVISION SPINOFF APPROVED
Earlier this week, the company’s board of directors approved the separation of their China business. Hopes are that this deal will initiate growth for both entities that will emerge from the split. By spinning off Yum China, the China brand can now place more focus on restaurant operations and growth.
CMG | NEW ADVERTISING CAMPAIGN FOCUSES ON FRESH INGREDIENTS
In an effort to regain customer loyalty, CMG has launched a new “Ingredients Reign” campaign, emphasizing the company’s focus on fresh ingredients. The new campaign features a series of animated short films, showcasing Chipotle’s shortlist of ingredients. The short films will be shown in movie theaters across the country, in addition to traditional print, digital, and social media distribution.
KO & DNKN | COKE & DUNKIN PARTNER TO LAUNCH RTD COFFEES IN 2017
Coca-Cola has announced a partnership with DNKN to release a line of ready-to-drink coffees in 2017. This marks Dunkin’ Donuts’ first entry into the rapidly growing ready-to-drink coffee segment.
BWLD | COMPANY ANNOUNCES DEPARTURE OF CHIEF STRATEGY OFFICER
According to the company’s SEC filing, Kathleen M. Benning ceased to serve as Chief Executive Officer on September 26, 2016. Ms. Benning will remain with the company until December 21, in order to facilitate an orderly transition. A reason for the departure was not readily available.
Please call or e-mail with any questions.
Howard Penney
Managing Director
Shayne Laidlaw
Analyst
