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Sonic (SONC)

Sonic reported for the 1st-quarter 2010 earnings of $6.2 million, or $.10 per share, on sales of $136.5 million. That compares to the prior year earnings of $7.1 million, or $.12 per share, on sales of $184.1 million.
Lower sales reflects primarily the impact on the company's revenue mix from refranchising 205 partner drive-ins during fiscal 2009. The company now receives franchise royalties from these refranchised drive-ins instead of partner drive-in sales. To a lesser extent, the decline in revenues also included the effect of lower same-store sales on partner drive-in sales and franchise royalties. Fiscal 2010 Revised Outlook Based on Sonic's first quarter results and the anticipation of a continued challenging economic and credit market environment, management anticipates earnings for 2010 will be flat versus fiscal 2009 earnings, as adjusted. This expectation is primarily based on a projected decline in annual system-wide same-store sales of 4% to 6% for the fiscal year, reflecting expected improvement in the latter half of the year versus the current trend. The company also anticipates a decline in restaurant-level margins associated with the decline in sales.

Jan 11 · 4:07:00 PM · Source: Company Press Release
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by Rich Pike

Ruby Tuesday (RT)

Ruby Tuesday reported for the 2nd-quarter 2010 earnings of $0.4 million, or $.01 per share. That compares to the prior year loss of $37.4 million, or $-.73 per share. Same-restaurant sales at Company-operated restaurants declined 1.7% and those for domestic franchised restaurants decreased 4.7% in the second quarter compared to the same quarter of the prior year.
Sandy Beall, Founder and CEO, commented on the results, saying, "In an environment that remains challenging, we are pleased that the momentum we established over the prior several quarters through our marketing strategies, cost savings initiatives, and store-level operations continued in the second quarter and is resulting in a stronger business, substantial free cash flow, and significant debt reduction.

Jan 11 · 3:57:00 PM · Source: Company Press Release
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by Rich Pike

California Pizza Kitchen (CPKI)

Nestle announced today it has agreed to acquire Kraft Foods' frozen pizza business in the US and Canada. The acquisition includes the California Pizza Kitchen brand license for frozen pizza and related products sold in grocery stores. This transaction is subject to regulatory approval and is expected to be completed in 2010.

Jan 11 · 3:40:00 PM · Source: Company Press Release
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by Rich Pike

Chipotle Mexican Grill (CMG)

Deutsche Bank upgraded Chipotle Mexican Grill Inc. from Hold to Buy.
Deutsche analyst said "We highlight 3 reasons for our upgrade: (1) leverage to an improving macro environment, which could drive upside to comps and EPS, (2) strong balance sheet and cash flow, and (3) reasonable valuation, particularly considering the lack of growth stories in the restaurant sector. We're raising our EPS ests. 2009E goes to $3.75 from $3.69. 2010E goes to $4.11 from $3.93.

Jan 11 · 3:35:00 PM · Source: StreetInsider.com
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by Rich Pike

CKE Restaurants (CKR)

Carl's Jr. is reporting that through Jan. 8, interest in Kim Kardashian’s salad commercial has received unparalleled press coverage, garnering 258 million media impressions (potential viewers/readers), more than three times the quantity achieved by any one of the chain’s previous celebrity commercial stars and, amazingly, more than all of them combined.
“Kim Kardashian has been an absolute joy to work with and her genuine charm, charisma, beauty and brains have endeared her to a huge base of fans,” said Brad Haley, e.v.p. of marketing for Carl’s Jr. “Because of Kim’s immense popularity, her commercial is not only a hit on television, its a hit in the digital space as well. And, the result is that the new salads, particularly Kim’s favorite the Cranberry Apple Walnut Grilled Chicken Salad, have been selling at record pace. As the commercial says, ‘Who says salads can’t be hot?’”

Jan 11 · 3:30:00 PM · Source: Business Wire
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by Rich Pike

Cheesecake Factory (CAKE)

Janney Mntgmy Scott downgraded Cheesecake Factory from Neutral to Sell.
Analyst Mark Kalinowski said in a client note that his sources have suggested that casual dining operators' sales at restaurants open at least a year were no better in December than in October and November, when the indicator was down by 4 percent to 5 percent.

Jan 11 · 3:17:00 PM · Source: MSN Moneycentral
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by Rich Pike

Buffalo Wild Wings (BWLD)

Morgan Keegan upgraded Buffalo Wild Wings Inc. from Perform to Outperform.

Jan 11 · 3:12:00 PM · Source: StreetInsider.com
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by Rich Pike

Disney (DIS)

China is big enough to support two Disneyland resorts, Bill Ernest, president of The Walt Disney Co.'s parks in Asia said amid concerns the company's new Shanghai park would draw visitors away from its one in Hong Kong.
Ernest noted that in the U.S., where the population is about a quarter of the size of China's, there are already two major resorts; in Orlando, FL, and in Anaheim, CA. "We think there's plenty of room," Ernest said at a groundbreaking ceremony Dec. 14 for a long-awaited expansion of Hong Kong's Disneyland. "We think there's plenty of business there that supports both parks."

Jan 1 · 1:54:00 PM · Source: Post Gazette
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by Michael Oliveto

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