Steven Kron, Goldman Sachs

Wendy's/Arby's Group Inc. (WEN) - Steven Kron at Goldman Sachs

Shares of Wendy's ( WEN ) are off 7 cents, or 1.5%, at $4.52, after Goldman Sachs analyst Steven Kron downgraded the stock from "Buy" to "Neutral" following the company's announcement yesterday of Q4 revenue that missed analysts' estimates. His read on the company now is that the cost savings he was looking forward to this year were already largely taken last fiscal year, and so now he's dealing with earnings before interest, taxes, depreciation and amortization (Ebitda) growth of just 4%, down from his prior view of 11%, this year. Furthermore, Kron sees commodity costs becoming a "headwind" where they were a benefit last year. Beef prices have already started to move up, he notes 

McDonald's Corporation (MCD) - Steven Kron at Goldman Sachs

Separately, Goldman's analyst Steven Kron added already buy rated McDonald's Corp /quotes/comstock/13*!mcd /quotes/nls/mcd ( MCD 6529 , +126 , +197% ) to the conviction buy list McDonald's shares rose 24% 

McDonald's Corporation (MCD) - Steven Kron at Goldman Sachs

McDonald's hasn't let its low priced food eat into margins as much as other fast food chains Goldman Sachs restaurant analyst Steven Kron noted that McDonald's was able to grow US same store sales and improve its margins, a feat that's "a pretty rare occurrence these days in" the fast food industry "There's very little not to like here," Kron said "Traffic driving initiatives aren't coming at the expense of margins" 

Wendy's/Arby's Group Inc. (WEN) - Steven Kron at Goldman Sachs

"We think it will be a highly participatory relationship." Stephen Kron, an analyst with Goldman Sachs & Co., questioned Wendy's plans for its revamped breakfast menu. Wendy's, which eliminated its breakfast menu earlier this year, plans to test a new breakfast menu and coffee offerings in three undisclosed markets next year, Roland said, with a goal of a national launch in 2011.  

McDonald's Corporation (MCD) - Steven Kron at Goldman Sachs

1341 ET 07Oct2009 Goldman: Buy McDonald's calls ahead of upcoming catalysts McDonald's Corp November call options are attractive to capture upside exposure ahead of Oct. 22 quarterly earnings and November analyst day. Multiple positive catalysts should drive upside in buy rated McDonald's, wrote Goldman Sachs equity derivative strategists in a note. Its option prices appear inexpensive. Goldman's restaurant analyst Steven Kron sees positive earnings revisions and on Nov. 12 analyst day, the analyst believes the event should serve to remind investors of the strength and positioning of McDonald's worldwide, the note said. With shares at $57.44, investors can position for upside from upcoming catalysts with Nov $60 call options for 70 cents. 

Brinker International, Inc. (EAT) - Steven Kron at Goldman Sachs

Shares of Brinker International Inc took off Wednesday as analysts extolled the cost cut driven profit the restaurant operator posted the day before.Dallas based Brinker , which runs Chili's Grill & Bar and other chains, said on Tuesday it earned $35 million, or 34 cents per share, in its fiscal third quarter, despite a double digit drop in revenue. Goldman Sachs analyst Steven Kron on Wednesday upgraded Brinker to "Buy" from "Neutral," saying Brinker's "paradigm shift in cost structure" will continue to drive profit margins higher. He said the company's cost savings will spark profit margin gains despite continued drops in same store sales, a key retail indicator that measures sales changes in stores open at least a year. Cost saving measures include lower expenses to open shops, pre portioned serving sizes for food, more active negotiations with suppliers, and leaner management, Kron said. 

The Cheesecake Factory Inc. (CAKE) - Steven Kron at Goldman Sachs

NEW YORK , Shares of casual dining chain Cheesecake Factory Inc dropped Monday after a Goldman Sachs analyst cut his rating, saying he is looking for sales to rise and cost cuts to better protect margins. Shares fell $1.03, or 7.2 percent, to $13.30 in afternoon trading. Analyst Steven Kron lowered his rating to "Neutral" from "Buy" and said in a note to investors he needs to see more evidence that same store sales, or sales at locations open at least a year, will improve and that managing costs will better protect margins. Same store sales at most sit down chains have dropped for months as consumers forgo a meal out in favor of fast food or eating in. 

Burger King Holdings, Inc. (BKC) - Steven Kron at Goldman Sachs

The No. 2 burger chain has installed a new broiler at over 60% of its stores in the U.S and Canada that can cook foods like thicker burgers, ribs, kebabs and a host of other items that could give sit-down chains like DineEquity Inc.'s (DIN) Applebee's, Brinker International Inc. (EAT) Chili's or Ruby Tuesday Inc. (RT) a run for their money. "The lines between a QSR and a casual diner, from a product standpoint, are starting to blur," Goldman Sachs restaurant analyst Steven Kron said, referring to quick-service restaurants, jargon for fast-food chains. In the same vein, Jack in the Box Inc. (JACK) soon plans to roll out miniature sirloin burgers, which Chief Executive Linda Lang on Wednesday said are intended to rival the mini burgers sold at casual-dining restaurants. 

Darden Restaurants, Inc. (DRI) - Steven Kron at Goldman Sachs

, Red Lobster and other chains, to accelerate plans to strengthen its brands and operations. As such secular trends set in, Darden and other large casual-dining chains, like Brinker International Inc. (EAT), will have to focus more on capturing traffic from smaller chains and mom-and-pop eateries, which are projected to struggle more and have to close more locations through the downturn. Restaurant analysts are calling for a meaningful decline in the number of restaurant locations to help correct an oversupply after years of overbuilding. Goldman Sachs analyst Steven Kron recently estimated that 12,000, or up to 8% of all casual-dining locations, are needed to close to balance supply and demand, with most of those expected to be bar and grill concepts and independent restaurants.