Diamonds and Dogs
Soda is back! SodaStream (SODA) shares spiked 18% after strong earnings and sales. The carbonated drinks maker reported $119.2 revenue, a 17.2 percent increase from the second quarter of 2015. Management said the company is working to reposition the brand around sparkling water and effectively communicating the compelling benefits of their home carbonation system to drive double digit revenue growth in each of their four geographic regions. Advertising does work.
Texas Roadhouse (TXRH) was doing well. The Louisville, KY-based restaurant company dove 12% following lower-than-expected revenue for the 2016 second quarter. Earnings of 47 cents per diluted share actually beat Wall Street's forecasts of 45 cents per share. On the surface there was little to complain about, but I guess Wall Street was concerned about slower same-store sales trends, some under-performance at non-comp units and ongoing wage pressure. The good news is the stock is still up year to date.