RECENT NOTES
10/7/16 YUM | EATING COMPETITION’S BREAKFAST
10/5/16 DRI | 1Q17 EARNINGS WILL BE THE BEST QUARTER OF 2017
10/4/16 YUM | 3Q16 QUARTERLY DASHBOARD
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
SECTOR PERFORMANCE
Casual Dining and Quick Service stocks that we follow underperformed the XLY last week. The XLY was down -0.4%; top performers on a relative basis from casual dining were CBRL and PLAY, with performances of +1.3% and +1.1%, respectively, while ARCO led the quick service group this week up +18.4%.
CASUAL DINING RESTAURANTS
QUICK SERVICE RESTAURANTS
COMMODITIES
ARTICLES OF INTEREST
RRGB | RED ROBIN CLOSES AND REBRANDS BURGER WORKS UNITS
According to company officials, Red Robin Gourmet Burger Inc. has closed nine of its existing twelve Burger Works units, and has plans to rebrand an additional three units as “Red Robin Express”, in an effort to further differentiate the brand from competitors. The decision to abandon the Burger Works brand came after a strategic review of the concept, with company officials agreeing that the smaller-format Burger Works was not differentiated enough from the larger, full-service Red Robin restaurants
COSI | COSI TO BE DELISTED FROM NASDAQ
As a result of its Chapter 11 filing, Cosi will be delisted from Nasdaq, according to a notice from the Nasdaq Listing Qualifications Department. Cosi’s stock will be suspended on today, October 10th, with documents filed shortly after with the SEC to remove its securities from Nasdaq’s stock listings. The company made it clear that they do not plan to appeal Nasdaq’s decision
MCD | MCDONALD’S MOVING TO SUSTAINABLE COFFEE
In their latest move, MCD has pledged to buy all of its coffee from sustainable sources by 2020. This is one of many changes announced since Steve Eastbrook was named CEO in March 2015, changes that also include shifting to cage-free eggs and the removal of artificial preservatives from their Chicken McNuggets. To put this decision in perspective, last year only 37% of McDonald’s coffee was bought from certified sustainable sources
CMG | CHIPOTLE ROLLS OUT CHORIZO NATIONWIDE
In an effort to recoup lost traffic, Chipotle Mexican Grill Inc. has rolled out spicy chorizo to all 2,000 of its domestic restaurants. After initially testing the product in Kansas City, MO last year, the chorizo was made available in five markets in June. The decision to bring spicy chorizo to the masses comes on the heels of the conclusion of their “Chiptopia” rewards program
MCD | SEXUAL HARASSMENT COMPLAINT FILED AGAINST MCDONALD’S
15 complaints have been filed by “Fight for $15,” a union-backed group pushing for higher wages at quick-service restaurants, alleging that general managers and corporate staff did not address workers’ complaints concerning sexual harassment
Please call or e-mail with any questions.
Howard Penney
Managing Director
Shayne Laidlaw
Analyst
