Promotions Drive Surge in Traffic, But Margins Likely to Suffer Discounts Steak ‘N Shake Co. (SNS) shares jumped 10% today after reporting that same-store sales grew 5% in the company’s fiscal 3Q09 ended July 1. Comps surpassed recent domestic sales of the competition: McDonald’s Corporation (MCD), Burger King Holdings Inc (BKC), Wendy’s/Arby’s Group (WEN), Jack in the Box Inc (JACK) and CKE Restaurants Inc (CKR). Customer Traffic Surges 13.4%, Prices/mix Falls 8.4%. Cash-strapped customers flocked to the fast-food burger chain for its deeply discounted promotional menu items. The company celebrated its 75th anniversary on February 13th by offering steakburgers for 15 cents -- the same price they were when the chain started in 1934. From that time through March 29, the price rose only to 75 cents. While a proven way to draw new customers into the stores ...

For Immediate Release

Chicago, IL - June 22, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Jack in the Box Inc. (JACK), McDonald's Corp. (MCD), Burger King Holdings Inc. (BKC), Yum! Brands Inc. (YUM) and Medtronic (MDT).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Friday's Analyst Blog:

Jack in the Box Gets Focused

Jack in the Box Inc. (JACK) agreed to sell 55 of its 61 Quick Stuff convenience stores and gas stations, taking another step toward its goal of shrinking its capital base and focusing

...

For Immediate Release

Chicago, IL - June 22, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Jack in the Box Inc. (JACK), McDonald's Corp. (MCD), Burger King Holdings Inc. (BKC), Yum! Brands Inc. (YUM) and Medtronic (MDT).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Friday's Analyst Blog:

Jack in the Box Gets Focused

Jack in the Box Inc. (JACK) agreed to sell 55 of its 61 Quick Stuff convenience stores and gas stations, taking another step toward its goal of shrinking its capital base and focusing

...

For Immediate Release

Chicago, IL - June 22, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Jack in the Box Inc. (JACK), McDonald's Corp. (MCD), Burger King Holdings Inc. (BKC), Yum! Brands Inc. (YUM) and Medtronic (MDT).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Friday's Analyst Blog:

Jack in the Box Gets Focused

Jack in the Box Inc. (JACK) agreed to sell 55 of its 61 Quick Stuff convenience stores and gas stations, taking another step toward its goal of shrinking its capital base and focusing

...

MCD: May Sales Sizzle but FX to Take Bite Out of EarningsCurrency headwinds temper growth but MCD shares remain a good value in a dangerous marketMcDonald's Corporation (MCD) continues to report strong worldwide same-store sales but, as expected, foreign currency translation remains a drag on earnings.Much of the foreign exchange [FX] drag -- expected to be $0.20 for 2009 -- was already factored into estimates or offset by anticipated declines in commodity costs in 2H09. In turn, we are trimming our 2009 EPS estimates by just $0.04 to $3.78 and maintaining our Buy rating on what we consider a defensive safe haven in a dangerous market.McDonald's announced today that global same-restaurant sales jumped 5.1% in May, with overseas operations remaining strong and those in the U.S. moderating. Comps in in the U.S. grew 2.8% in May -- respectable given the ...

Highlights include McDonald's Corporation (MCD), Burger King Holdings Inc (BKC), Wendy's/Arby's Group (WEN), Jack in the Box Inc (JACK), CKE Restaurants Inc (CKR) and Yum! Brands Inc (YUM).MCD: April Sales Take Bite Out of Competitors' LunchIt appears that McDonald's Corporation (MCD) is not only taking share from casual dining restaurants, it's taking share from its fast-food competitors as well.McDonald's announced today that global same-restaurant sales jumped 6.9% in April, with strength in all territories. Comps surged 6.1% in the U.S., 8.4% in Europe and 6.5% in Asia/Pacific, Middle East and Africa.Although McDonald's quick service competitors -- including Burger King Holdings Inc (BKC), Wendy's/Arby's Group (WEN), Jack in the Box Inc (JACK) and CKE Restaurants Inc (CKR) -- haven't announced April sales yet, recent results suggested they were losing share, with comps ...

Wendy's Adapts with Value Offerings, Arby's Lags Lean TimesThe sinking economy necessitates that restaurants adapt to survive. First quarter financial results at Wendy's/Arby's Group Inc. (WEN) indicate Wendy's is adapting well to the lean times, attracting cash-squeezed consumers with a "Value Trio" of 99-cent sandwiches, while Arby's $5.95 bundling value packages is driving them to cheaper fare at McDonald's (MCD), Taco Bell -- a Yum Brands Inc. (YUM) concept, and Jack in the Box Inc. (JACK).Wendy's/Arby's Group, formed in September through the merger of Arby's parent, Triarc, and Wendy's, reported that 1Q09 system-wide same-store sales at its Wendy's fast-food hamburger chain rose 1.0%, but fell 8.7% at the pricier Arby's roast beef take-out chain. Wendy's comps would have been stronger, but 300 of its units stopped serving breakfast.Excluding one-time charges, 1Q09 EPS was $0.01, missing our estimate of $0.04 ...