Fly News Breaks for January 3, 2020
CAKE, JACK, TACO, CMG, PZZA, DPZ
Jan 3, 2020 | 09:24 EDT
BTIG analyst Peter Saleh writes that the overall restaurant industry may experience a steeper decline in 2020 traffic as more U.S. customers stay at home to watch political debates and the summer Olympics as observed four years ago in 2016. The analyst contends however that the trend is positive for the concepts that cater to off-premise dining and are growing their advertising budgets. Saleh sees Buy-rated pizza delivery names Domino's Pizza (DPZ) and Papa John's (PZZA) as key beneficiaries, naming them "top picks" in his Restaurants 2020 Outlook research note. The analyst also keeps his Top Pick designation for Buy-rated Chipotle (CMG), where he expects another year of sales growth and margin expansion. Separately, Saleh sees outsized labor cost pressure for "California-heavy" operators - where the minimum wage will rise 8.3% - including Del Taco (TACO), Jack in the Box (JACK) and Cheesecake Factory (CAKE), keeping his Neutral rating on those names.
News For DPZ;PZZA;CMG;TACO;JACK;CAKE From the Last 2 Days
Oct 19, 2020 | 08:27 EDT
Wells Fargo analyst Jon Tower raised the firm's price target on Cheesecake Factory to $37 from $30 and keeps an Overweight rating on the shares. The analyst sees Q3 results confirming an ongoing business recovery while also setting the stage for upside to both the unit economic model and growth trajectory in a post-COVID world.
Oct 19, 2020 | 07:25 EDT
RBC Capital analyst Christopher Carill raised the firm's price target on Chipotle to $1,320 from $1,250 and keeps a Sector Perform rating on the shares ahead of its Q3 results. The analyst notes that earnings should be "roughly in-line", though he also sees potential for margin and EPS upside amid the company's top-line recovery. Carill also expects Digital to be a "key driver" for Chipotle in the quarter given the recent management commentary and continued strong app usage data.