Strong gains across the board for restaurants. The divergence between quick service and casual dining was sustained over the past week.
The table below shows that restaurant stocks have performed strongly over the past week. Yesterday was a particularly strong day with QSR stocks rising an average of 1.5% and casual dining stocks (albeit buoyed by RT’s 13% gain) rising an average of 2.1%. Over the past week, however, quick service has outperformed casual dining by 100 bps.
Some pertinent news items this morning include:
- DPZ, PZZA, SBUX, CAKE: A second bill aimed at steadying milk prices, the “Dairy Price Stabilization Act of 2010”, was recently introduced in Congress.
- MCD: Same-store sales in Japan declined 1.4% in June.
- YUM: The company stated that it is expecting $100m profit from their Indian operations by 2015. Estimates raised by JMS Research.
- RT: News of an upgrade emerged yesterday.
- COSI: 2Q comparable store sales numbers were released yesterday. Company-owned comparable store sales were up 3.3%. June’s number was an encouraging +5.5% and traffic for the quarter was up 3.1% vs -5.6% in 1Q.