TALES OF THE TAPE

QSR underperformed yesterday on more negative commentary around current trends.

 

The tales from yesterday centered around the underperformance of QSR following the news from SONC.  See the post from yesterday about current QSR trends and outlook.  The most disturbing move yesterday was EAT, which declined 3.3% on big volume: +40%.  The environment is tough for casual dining, with some select companies showing improving trends.  EAT’s fiscal 4Q10 quarter will be sloppy as expected; improving trends are not expected until early fiscal FY11.    

 

It is also worth noting the low short interest in the QSR category.  While takeover speculation does scare investors from being short some of these stocks, the level of short interest will likely increase significantly if the S&P 500 turns down.

 

TALES OF THE TAPE - stocks 620

 

Howard Penney

Managing Director


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