Thu, Sep. 15, 2:37 PM
- Domino's Pizza (DPZ +0.6%) announces the launch of customer ordering through Facebook Messenger by the use of bot technology.
- The company says customers in the U.S. can use their "pizza profile" to order via Messenger.
- Domino's already accepts orders via Twitter emojis, Amazon's Alexa, and Apple Watch on top of its website and mobile app.
- Source: Press Release
Sat, Sep. 10, 12:17 PM
- The sluggish trend continues in the restaurant sector with same-store sales down 0.6% in August, according to the latest read from Black Box Intelligence.
- Same-store traffic was 2.7% lower Y/Y during the month to improve on the 3.9% drop recorded in July. Average guest check across the industry was up 2.3% to help offset for some of the loss of customers.
- Another weak month in the Southwest (sales -5%, traffic -7%) doesn't bode well for chains with a high concentration of stores in Texas.
- Though the broad read from analysts is that consumer spending is still tight in the U.S., there are also some concerns that restaurant chains are having trouble building brand loyalty with millennials giving their business to independent eateries.
- Restaurant stocks: CAKE, CBRL, DNKN, DPZ, DRI, EAT, JACK, MCD, RRGB, RT, SONC, WEN, BWLD, BDL, QSR, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, HABT, NDLS, BOJA, PBPB, PLKI, FRSH, RAVE, LOCO, TACO, PZZA, KONA, BGR, BJRI, CHUY, FRS, CBRL, GTIM, TAST, WING, BOJA, ZOES, PLAY, FOGO, ARCO, STKS, WING.
- Related ETF: BITE.
Tue, Aug. 30, 10:16 AM
- There's more confirmation that consumers are doing the heavy lifting in the U.S. to prop up GDP while business investment falls short.
- "Consumer confidence improved in August to its highest level in nearly a year, after a marginal decline in July," noted The Conference Board director Lynn Franco.
- Some analysts think the slowdown in auto sales is freeing up some spending in other areas, although certain sectors that rely on foot traffic (restaurants, department stores) aren't necessarily seeing the bounce.
- Companies that line up neatly with millennial trends seem to be the ones making the outrageous gains in the retail sector. Ulta Salon (NASDAQ:ULTA), Domino's Pizza (NYSE:DPZ), Burlington Stores (NYSE:BURL), and Amazon (NASDAQ:AMZN) come to mind -- with the four generating returns ranging from 40% to 60% over the last year.
- ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, RCD, PEZ, PMR, PSCD, JHMC.
Mon, Aug. 29, 3:41 AM
- New rules by the FAA go into effect today, clarifying what is acceptable commercial usage of small unmanned aerial vehicles.
- Drones must weigh less than 55 pounds, fly up to a maximum of 400 feet in altitude, at a speed of no more than 100 miles per hour and can only be operated during the day.
- According to industry estimates, the rules could generate more than $82B for the U.S. economy and create more than 100K new jobs over the next decade.
- Related stocks: AMBA, AMZN, AVAV, BA, DJI, OTCQX:DRNE, DPZ, HON, INVN, IXYS, GPRO, TRMB
Tue, Aug. 16, 4:08 PM
- A major announcement from Ford that it will develop a 100% autonomous vehicle in 2021 could have far-reaching implications in a variety of sectors.
- “The first application of the fully autonomous vehicle will be commercial applications, whether it’s ride-hailing or parcel delivery,” Ford CEO Mark Fields told Recode. Companies that could be eyeing the implication of purchasing self-driving car fleets include FedEx (NYSE:FDX), Amazon (NASDAQ:AMZN), UPS (NYSE:UPS), Domino's Pizza (NYSE:DPZ), and Papa John's International (NASDAQ:PZZA).
- There's also relevance on Ford's big bet on autonomy for Avis Budget Group (NASDAQ:CAR) and Hertz (NYSE:HTZ).
- The trucking and shipping sectors (ARCB, KNX, MRTN, CGI, YRCW, HTLD, UACL, SWFT) will also be monitoring how autonomous vehicle technology fits into the future.
- Previously: Ford to produce mass market autonomous vehicle (Aug. 16)
Thu, Jul. 28, 8:53 AM
- Donald Trump said he would like to raise the federal minimum wage to $10 per hour. The surprising disclosure came at a press conference yesterday in Florida, although he seemed to walk it back a bit later in the day.
- Hillary Clinton supports a $12 per hour national level, but is open to state and cities that go higher with the minimum wage.
- A higher federal minimum wage could pressure restaurant chains operating in states where the lowest pay scale in nearer to the $7.25/hour floor.
- Related stocks: CBRL, DNKN, DPZ, JACK, MCD, RT, WEN, BOBE, TACO, RAVE, BH, PLAY, IRG, DIN, PZZA, PLKI, SONC, LOCO, FRSH, BOJA, FRGI, WING, PBPB, NATH, FRS.
- Related ETF: BITE.
Tue, Jul. 26, 10:27 AM
- A harsh view on the restaurant sector from Stifel Nicolaus is based in part on its view that a U.S. recession could occur within nine months. The note from the firm also warns on a loss of pricing power by restaurant operators.
- Early Q2 reporters Starbucks, McDonald's (MCD -3.9%), and Chipotle (CMG -1.8%) already set a negative tone for the sector by missing estimates, but Stifel's downgrade on 11 different restaurant chains is taking the gloom to a new level.
- 50 of the 55 publicly-traded restaurant stocks with a market cap of over $50M are in negative territory today. Leading decliners are Noodles (NDLS -17.7%), Chuy's Holdings (CHUY -9.3%), BJ's Restaurants (BJRI -6.2%), Sonic (SONC -3.8%), Bojangles (BOJA -3%), Dave & Buster's Entertainment (PLAY -3.6%), and Red Robin Gourmet Burgers (RRGB -7%).
- Investors are betting that pizza delivery chains won't be impacted by the general trend of sluggish traffic. Both Domino's Pizza (DPZ -0.6%) and Papa John's International (PZZA -1.7%) are up over 10% over the last few weeks.
- Previously: Restaurant stocks on watch after McDonald's miss and Stifel cuts (July 26)
- Previously: U.S. restaurant traffic down 3.5% in June (July 15)
- Related ETF: BITE.
Sat, Jul. 23, 1:08 PM
- 7-Eleven and drone delivery service upstart Flirtey announce that they have completed the first fully autonomous drone delivery to a customer's residence. The pair says the development will help advance research toward integrating drones into the National Airspace System.
- The drone delivery in the Reno area, which marked the first time a U.S. customer has received a package to their home via drone, included Slurpee drinks, a chicken sandwich, donuts, hot coffee, and candy.
- Looking ahead, the two companies have plans to expand drone delivery tests and work closely together, according to a top 7-Eleven exec.
- Drone watch: While there's some speculation on the ways that companies such as Amazon (NASDAQ:AMZN), Wal-Mart (NYSE:WMT), Walgreens Boots Alliance (NASDAQ:WBA), and Domino's Pizza (NYSE:DPZ) could use drone delivery, many industry watchers think emergency conditions (flood/forest fire/earthquake/medical) or niche situations (oil rigs/barrier islands/inaccessible roads) are the most likely scenarios for widespread drone action. Earlier this year, an article in the MIT Technology Review speculated that an intermediary dropping off point out such as the local Starbucks (NASDAQ:SBUX) store could be utilized instead of working out all the problems of home delivery.
- Related (directly and tangentially) stocks: AMBA, AVAV, DJI, OTCQX:DRNE, HON, INVN, IXYS, GPRO, TRMB, FDX, UPS, TGT.
Thu, Jul. 21, 1:02 PM
- Domino's Pizza (NYSE:DPZ) is up 6% after comparable-store sales dazzle both in the U.S. (+10%) and internationally (+7%). Those marks look especially strong considering the sluggish comp growth across the restaurant sector.
- Domino's carved out a new all-time high of $146.73 in today's action.
- The pizza sector is hot across the board after a note from KeyBanc Capital Markets suggested that consumers are opting for at-home delivery over casual dining out due in part to civil unrest. Papa John's (NASDAQ:PZZA) is up 1.2% and nanocap Noble Roman's (OTCQB:NROM) is up 4.1%.
- Other pizza bets: Pizza Hut(NYSE:YUM), Pizza Inn (NASDAQ:RAVE), PizzaRev (NASDAQ:BWLD), Papa Murphy's (NASDAQ:FRSH), Pie Five (RAVE), Little Caesars (private)
Thu, Jul. 21, 9:30 AM
Thu, Jul. 21, 7:47 AM
- Domino's Pizza (NYSE:DPZ) reports domestic same-store sales rose 9.7% in Q2.
- International same-store sales increased 7.1%.
- Global retail sales expanded 11.7% (+14.3% excluding foreign currency impact).
- Revenue break-up: Domestic Company-owned stores: $97.83M (+10.2%); Domestic franchise: $69.68M (+14.5%); Supply chain: $339.26M (+12%); International franchise: $40.57M (+12.4%).
- Gross margin rate improved 20 bps to 31.4%.
- G&A expense rate dropped 10 bps to 12.4%.
- Operating margin rate grew 10 bps to 19%.
- Store count +1,011 Y/Y to 12,936.
- DPZ +3.7% premarket.
Thu, Jul. 21, 7:33 AM
Wed, Jul. 20, 5:30 PM| Wed, Jul. 20, 5:30 PM | 13 Comments
Fri, Jul. 15, 11:25 AM
- The restaurant sector continues to face pressure in generating traffic and with labor costs rising, but commodity prices are working in its favor as of late.
- The slide in prices in Q2 was 64% on eggs, 20% for dairy, 15% for beef, 12% for cheese, and 11% for chicken, according to analysis from Evercore.
- "Commodities continue to benefit margins with the breakfast (restaurant) day-part benefiting the most," noted Evercore analyst Matt McGinley earlier this week.
- While each company hedges commodity costs differently, the general trend of lower costs is favorable for a host of chains - including Denny's (NASDAQ:DENN), Starbucks (NASDAQ:SBUX), Dunkin' Donuts (NASDAQ:DNKN), Domino's Pizza (NYSE:DPZ), Cheesecake Factory (NASDAQ:CAKE), Panera Bread (NASDAQ:PNRA), IHOP (NYSE:DIN), Wingstop (NASDAQ:WING), Bojangles (NASDAQ:BOJA), Kripsy Kreme Doughnuts (NYSE:KKD), and Steak 'n Shake (NYSE:BH).
- Related ETF: BITE.
Mon, Jul. 11, 7:27 AM
Fri, Jul. 8, 8:52 AM
- Canaccord Genuity warns on a sluggish environment in the restaurant industry during June.
- Channel checks show a decline in sales and traffic which is believed to be due in part to a heightened sense caution from consumers and uptick in gas prices.
- Canaccord estimates that U.S. restaurant same-store sales fell 2.0% to 2.5% in June.
- Restaurant stocks: CAKE, CBRL, DNKN, DPZ, DRI, EAT, JACK, MCD, RRGB, RT, SONC, WEN, BWLD, BDL, QSR, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, HABT, NDLS, BOJA, PBPB, PLKI, FRSH, RAVE, LOCO, TACO, PZZA, KONA, BGR, BJRI, CHUY, FRS, CBRL, GTIM, TAST,WING, BOJA, ZOES, PLAY, FOGO, ARCO.
- Related ETF: BITE.