RECENT NOTES
10/14/16 DFRG | QUICK TAKE | 3Q16 EARNINGS NOTE
10/14/16 RESTAURANTS MACRO NOTE | ANGST
10/12/16 CMG | WHAT RECOVERY?
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
SECTOR PERFORMANCE
Casual Dining and Quick Service stocks that we follow outperformed the XLY last week. The XLY was down -1.1%; top performers on a relative basis from casual dining were RT and BWLD, with performances of +35.7% and +6.0%, respectively, while FRGI and ZOES led the quick service group this week up +12.1% and +6.8%, respectively.
CASUAL DINING RESTAURANTS
QUICK SERVICE RESTAURANTS
COMMODITIES
ARTICLES OF INTEREST
BWLD | MARCATO SENDS BLISTERING LETTER TO BWLD BOARD OF DIRECTORS
In another episode of the Marcato-Buffalo Wild Wings saga, the San Francisco-based investment manager, which owns 5.2% of BWLD stock, delivered a blistering letter to the company’s Board of Directors. In the letter, Marcato lays out in great detail the ways in which BWLD has failed to meet expectations with regard to providing them with adequate shareholder information. Marcato even goes as far as to say that legal action is not out of the question, if BWLD continues to withhold information
CMG | CHIPOTLE CREATES NEW INGREDIENTS GAME
In another effort to attract patrons, Chipotle has launched a game in which players match pairs of ingredients while avoiding the “fake” ingredients, and in return for playing, they receive a mobile buy-one-get-one (BOGO) coupon. This promotion comes just weeks after CMG concluded its “Chiptopia” summer loyalty program, and furthers the company’s agenda for shifting consumer sentiment regarding the safety of its ingredients, as ingredient safety came under fire during the recent health scares
COSI | COMPANY MOVES INTO BANKRUPTCY PROCESS
Cosi, which recently filed for Chapter 11 bankruptcy and was subsequently delisted from the Nasdaq, will formally beginning accepting bids for the majority of its assets. The bids and sale schedule will be available on October 20th. Each of the company’s lenders has already entered a “stalking horse bid,” so all bids submitted in this cycle must be higher than the stalking horse bid offers
Please call or e-mail with any questions.
Howard Penney
Managing Director
Shayne Laidlaw
Analyst
