Market News

Darden Restaurants (DRI)

Standpoint Research initiated coverage for Darden Restaurants with a recommendation of Buy. Their price target is $45.00.

Jan 19 · 12:27:00 PM · Source: StreetInsider.com
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by Rich Pike

The Indianapolis Business Journal is reporting that Steak n Shake Co. CEO Sardar Biglari bought 1,000 shares of the Indianapolis-based burger chain last week in another big bet the company's shares are undervalued.

Biglari, 32, paid about $290,000 to buy the shares on Jan. 7 and Jan. 8, according to an SEC filing. Biglari now controls about 6 percent of the company's 1.4 million shares. His stake is worth more than $26 million.

The Texas hedge fund manager used a proxy fight to gain control of Indianapolis-based Steak n Shake in 2008, then halted restaurant expansion, cut costs and introduced aggressive promotions to revive the struggling chain. The moves helped the 75-year-old chain late last year snap a 14-quarter streak of declining same-store sales.
The moves also allowed Biglari to stockpile cash and turn Steak n Shake into a holding company for non-restaurant investments. He cut capital expenditures from an average of $55 million per year to just $5.8 million in 2009, electing to save cash for other investments.

The company in December offered to acquire the outstanding shares of Fremont Michigan Insuracorp Inc. and initiated a 1-for-20 reverse stock split to discourage short-term investors.

Jan 15 · 10:42:00 AM · Source: IBJ.com
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by Rich Pike

Ruth's Hospitality Group (RUTH)

Ruth's Hospitality Group announced today that it has set the terms for its previously announced common stock rights offering. Under the terms of the rights offering, the Company will distribute at no charge to the holders of its common stock as of 5:00 p.m., New York City time, on January 20, 2010 one transferable subscription right for each share of Company common stock then owned. Each subscription right will entitle the holder to purchase 0.579232 shares of common stock at an exercise price of $2.50 per share.

Jan 15 · 10:14:00 AM · Source: Company Press Release
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by Rich Pike

Starbucks (SBUX)

Seattlepi.com is reporting that Starbucks Corp. says it plans to close a 130-worker call center at its Seattle headquarters, using an outside company in Albuquerque, N.M., to handle customer feedback.
Starbucks spokeswoman Stacey Krum characterized the change as an effort to better manage feedback, rather than a cost-cutting move. The Seattle company did not disclose details of its arrangement with Sitel.

Krum says the company hopes to find jobs for the affected employees elsewhere at Starbucks. If they are laid off, they will receive severance pay and help in finding another job.

Jan 15 · 9:56:00 AM · Source: Seattlepi.com
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by Rich Pike

McDonald's (MCD)

Chinaknowledge.com is reporting that McDonald's plans to redecorate 80% of its Chinese chain stores within three years, repainting and replacing chairs and lights to create a café-like atmosphere. Zhou Weicheng, vice president of McDonald's (China), said that the firm will redecorate more than 50% of its 1,100 restaurants in China by the end of this year, the 20th year since it entered the Chinese market. In addition, McDonald's will soon offer free wireless internet service in its restaurants across China
Currently, youth are the major consumers of McDonald's items; the fast food chain hopes to attract customers of different ages, said Zhou. This year, McDonald's intends to open 135 stores in China. Of its existing restaurants, 80% are open 24 hours a day.

Jan 15 · 9:51:00 AM · Source: Chinaknowledge.com
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by Rich Pike

Granite City Food & Brewery (GCFB)

Granite City Food & Brewery announced that its one-for-six reverse stock split was completed effective on the close of business on January 13, 2010. Trading of the Company's common stock on the NASDAQ Capital Market will begin on a split-adjusted basis at the open of trading on January 14, 2010.
Granite City Food & Brewery Ltd. is a Modern American upscale casual restaurant chain that operates 26 restaurants in 11 states. The menu features affordable yet high quality family favorite menu items prepared from made-from-scratch recipes and served in generous portions.

Jan 14 · 2:19:00 PM · Source: Company Press Release
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by Rich Pike