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We’ve started seeing some of the recent emptier pockets of Joe Q. Consumer, and after a warning yesterday out of McCormick & Schmicks’s we wanted to see how some of the NASDAQ growth restaurant chains were doing as far as short sellers were concerned.  Interstingly enough, of the ones we look at with regularity that get media coverage it seems like there is actually a drop in short selling from August to September.  Below is a list of companies in the sector along with the shares short in September and a percentage change from the August count of the short interest:

• Red Robin Gourmet (RRGB)         3.304M  -1.13%
• Papa John’s (PZZA)                         2.245M   -2.91%
• McCormick & Schmick’s (MSSR)  1.497M   -6.22%
• Buffalo Wild Wings (BWLD)           3.293M    -6.4%
• Starbucks (SBUX)                          25.725M   -6.98%
• Cheesecake factory (CAKE)         11.636M   -7.55%
• Texas Roadhouse (TXRH)                7.066M    -7.93%
• CBRL Group (CBRL)                       4.727M  -14.92%
• P.F.Chang’s (PFCB)                         7.051M  +2.54%
• Panera Bread (PNRA)                      4.688M  +7.91%

Here are some key related articles that may give added insight:

• NYSE & AMEX Short Interest Decline
• Starbucks’ Founder Defends Company
• How Out of Favor Is P.F. Chang’s With Diners & Investors?  
• Cheesecake’s possible self-fix

Jon C. Ogg
September 26, 2007