This Week in Food and Restaurants
by Aristotle Munarriz (MF Edible)

Miami, FL. (March 27, 1997) --Today QUAKER OATS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: OAT)") else Response.Write("(NYSE: OAT)") end if %> finally cut its losses and agreed to dump its Snapple subsidiary onto the lap of TRIARC <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: TRY)") else Response.Write("(NYSE: TRY)") end if %>. While Triarc is probably best known for its Arby's eateries (and, yes, we all had a time in our lives where we didn't know Arby stood for R.B., as in the company's specialty roast beef sandwiches) the company is also heavy into drinkables, namely the country's third most popular cola, RC (no relation to RB) Cola.

Ever since Quaker bought Snapple at the peak of its acceptance, analysts have been rightfully panning the acquisition. Quaker defended its position, figuring Snapple, along with its flagship beverage Gatorade, would result in a 1-2 drink punch. Of course, that was before COCA COLA <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: KO)") else Response.Write("(NYSE: KO)") end if %> and the aforementioned Triarc would come to fill the shelves with more new-age beverages, at a time when customers were realizing that your taste buds can often tire of flavored iced teas and non-carbonated concoctions.

Speaking of non-carbonated concoctions, two fizzless burger chains, CHECKERS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CHKR)") else Response.Write("(Nasdaq: CHKR)") end if %> and RALLY'S <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: RLLY)") else Response.Write("(Nasdaq: RLLY)") end if %> agreed to tie the knot. With Carl's Jr. parent company, CKE RESTAURANTS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CKR)") else Response.Write("(NYSE: CKR)") end if %> having a stake in the value-priced quick service drive-throughs, one might be quick to say this was an arranged marriage. Regardless, Checkers now hopes to equal Rally's feat in achieving profitabality even in these Burger Wars days.

THE EDIBLE EIGHT

A bad week for the markets, a bad week for the E8. While it is thankfully still in the black, thanks to a strong February and a steady March, and well above the sluggish Nasdaq Composite and restaurant stocks in general, holding your own in the battered market restaurant stocks means nothing if you don't move forward when the sector rolls back into favor. . . whenever that day may be.

The Edible Eight      -1.8%
NASDAQ                -4.2%
S&P 500               +2.3%
Fidelity Sel: Food    +3.5% (as of Thursday)
IBD: Restaurants     -11.0% (as of Thursday)

Until next week, Digest Foolishly,

MF Edible

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