RECENT NOTES
11/23/16 JACK | COVERING THE SHORT
11/22/16 DIN | ADDING TO THE SHORT BENCH
11/11/16 RESTAURANTS MACRO NOTE | FADE THE RALLY PART 2
11/10/16 BWLD BLACK BOOK REPLAY | COMING AROUND THE ACTIVIST CORNER
11/10/16 POSITION MONITOR | FADE THE RALLY
11/8/16 CMG | Q&A
11/7/16 BJRI | YOU CAN’T TOUCH THIS
11/4/16 SBUX | REMINISCING
11/3/16 THOUGHT LEADER CALL | THE IMPACT OF MEDIA FRAGMENTATION
11/3/16 RRGB | SEEING THE LIGHT
11/2/16 RESTAURANT: WALL STREET MEETS MAIN STREET | DIGGING INTO THE IMPACT OF MEDIA FRAGMENTATION
SECTOR PERFORMANCE
Casual Dining and Quick Service stocks that we follow were mixed versus the XLY last week. The XLY was up +1.9%; top performers on a relative basis from casual dining were BBRG and DFRG, with performances of +5.5% and +4.8%, respectively, while HABT and BOJA led the quick service group this week up +12.8% and +6.5%, respectively.
CASUAL DINING RESTAURANTS
QUICK SERVICE RESTAURANTS
COMMODITIES
ARTICLES OF INTEREST
CMG | COMPANY SUED FOR POSTING MISLEADING CALORIE COUNTS
According to a class-action lawsuit filed last week in Los Angeles, three men who ate chorizo burritos at three different CMG locations are alleging that the restaurant chain has been deceiving customers by posting low calorie counts. According to menus in CMG restaurants, the chorizo burrito is said to have only 300 calories, but this appears to only account for the chorizo itself, and not the other components of the burrito (when you add the tortilla, beans, rice, etc. the calorie-count reaches upwards of 1,350).
DOL | OVERTIME RULE PUT ON HOLD
A federal judge in Texas issued an injunction that temporary halts the new overtime regulation, originally set to go into effect December 1st. This injunction, imposed by Judge Amos Mazzant, gives Congress time to vote to stop the regulation and allow for the incoming Trump administration to create “a more realistic and workable overtime solution based on sound economic considerations.”
CMG | NEARING DEAL ON BOARD CHANGES
Chipotle and activist investor, Bill Ackman, are closing in on a deal that could realign the company’s board of directors. As of late, the board’s leadership has come into question as the company has struggled to recover from a series of foodborne illness outbreaks. If a deal is reached, the company would avoid a public battle over board seats.
Please call or e-mail with any questions.
Howard Penney
Managing Director
Shayne Laidlaw
Analyst
