Keeping you informed is one of our goals at The Motley Fool. So just in case you missed it, here's a recap of what happened during the week of Feb. 12-16 in the retail sector, as reported by our best and brightest.
We started the week with sweet and sour. No, we didn't visit our local Chinese restaurant. We heard from Cheesecake Factory
Jeremy MacNealy thinks Cheesecake Factory can grow more than it's letting on. Comparable-store sales (sales growth at stores open at least 12 months) have been slowing down, but new, smaller stores may help management make up for some of the shortfall. That news seemed to leave a sweet aftertaste in Jeremy's mouth.
Unfortunately, O'Charley's may have countered that sweetness. As Jeremy pointed out, O'Charley's has been able to raise prices but at the cost of low traffic. In addition, the company decided to do away with its "kids eat free" program. That's what brought my daughter through the doors, so I, too, wonder how much that will affect future traffic.
Restaurants were the big theme on Tuesday as Nate Parmelee and Jeremy MacNealy (that guy's everywhere!) gave us their thoughts on Yum! Brands
Nate really liked what he saw. He saw a company that can leverage slow top-line growth into faster bottom-line growth. He saw international growth opportunities. He saw a company focused on return on invested capital and free cash flow. He saw a decent valuation and a 2% dividend yield. Where's the number for my broker?
Jeremy went through Panera's conference call looking for the most important information. While he noticed that comparable-store sales growth stalled, he noticed that company managers stepped up to the plate with what they missed and what they plan to do to revive things. That's good information and should bode well for the company's future.
Rounding out the restaurants for the week, P.F Chang's
When Seth Jayson writes, I read. Yeah, he's my friend, but I genuinely like the way he thinks, and I love the way he expresses his thoughts. Talking about things he hates during the month of love is so Seth.
He also knows a bit about Guess?
Whoa! That's today. Better check out the site to see what's going on.
So that's the week that was in retail. Tune in next week to see what Foolishness our best analysts will have in store for you.
Retail editor and Inside Value team member David Meier is ranked 329 out of 21,411 in Motley Fool CAPS and does not own shares in any of the companies mentioned. You can view his TMF profile here. The Fool takes its disclosure policy very seriously.