Schaeffer's Daily Market Blog Features Papa John's International, Tiffany & Co., Applebee's International, and H.J. Heinz

Business Wire, May 31, 2006

CINCINNATI -- Among the stocks featured in the May 31 edition of Schaeffer's Market Blog are Papa John's International (NASDAQ:PZZA), Tiffany & Co. (NYSE:TIF), Applebee's International (NASDAQ:APPB), and H.J. Heinz (NYSE:HNZ). Schaeffer's Market Blog is just one of the many free market commentaries written every day at www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. The Market Blog is written throughout every trading day by Schaeffer's financial analysts and traders. They are quick insights to the day's most notable market activity from an options perspective. For additional information about this report or to have it delivered to you free via email every day click on the following link. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB12M&PAGE=1

Schaeffer's Market Blog for Wednesday, May 31, 2006:

Below are just a few of today's Market Blog entries. Click here to read all of today's Market Blog. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB1C&PAGE=1

9:03 AM Papa John's Reports Strong Sales

Before the open this morning, Papa John's International (NASDAQ:PZZA) announced that domestic, system wide same-store sales increased 5.2 percent in May. The restaurant chain also said total system wide international sales for Papa John's-branded units increased 24.6 percent for the four weeks ended May 21 from the year-earlier period.

After staging an impressive rally from their August 2004 low to their January 2006 peak, the shares have been grinding sideways, consolidating into support at their ascending 10-month moving average. PZZA has not suffered a monthly close below this long-term trendline since October 2004.

9:10 AM Tiffany Reports Earnings

In earnings news, Tiffany & Co. (NYSE:TIF) posted first-quarter earnings of 30 cents per share, as sales climbed six percent to $539.2 million. U.S. retail sales inched two percent higher, international sales were up 13 percent, and direct-marketing sales were up four percent. Worldwide same-store sales increased five percent. The Street had expected a profit of 28 cents per share on revenue of $546.8 million. For fiscal 2007, the luxury retailer forecasts earnings of $1.77 to $1.82 per share and sales growth of almost 10 percent. The consensus estimate on the Street currently stands at $1.80.

Technically speaking, the retailer has struggled since putting in a near-term peak in December. From that high, the equity has retreated more than 25 percent under pressure from its declining 10-week and 20-week moving averages. What's more, TIF is currently poised to close the month below both its 10-month and 20-month trendlines for the first time since April 2005.

9:18 AM May Same-Store Sales Drop at Applebee's

Applebee's International (NASDAQ:APPB) announced this morning that May same-store sales fell 1.9 percent system wide, declined two percent at domestic franchise locations, and dropped 1.9 percent at company restaurants. The firm stated that it is reviewing its fiscal 2006 earnings and same-store sales projections in light of the declines. According to Zacks, the restaurant operator is expected to report earnings again on July 26, with the Street expecting a profit of 32 cents per share. This estimate is down from the firm's year-ago profit of 34 cents per share. Historically, APPB has missed the Street estimate only once during the past five quarters.

The stock has drifted lower since being capped by resistance at the 25 level at the end of March. What's more, the equity's recent decline has pulled its 10-week and 20-week moving averages into a bearish cross. It appears the security may be looking at another test of former support at the 20 level.

12:52 PM FOMC Minutes Due Out Shortly

The equity market has settled into a rather narrow trading range during the past couple of hours as investors await the FOMC minutes set to be released at 2:00 p.m. Eastern time. This report should inject a bit of volatility back into the market, but the question is in which direction. Indications that inflation is an issue, or that further rate hikes past the June meeting may be necessary could spark a sharp sell off. Hints that growth is expected to continue to be strong and that inflation is benign could push equities significantly higher.

1:20 PM Heinz Ahead of Earnings

There are a lot of put options being traded on H.J. Heinz (NYSE:HNZ) today ahead of the company's earnings report. The HNZ June 40 put contract has seen more than 8,000 in volume thus far today, and total put volume is running at around 10 times the stock's average. It is not unusual to see a lot of options activity ahead of an earnings report, but there has been very little in the way of call option activity. Clearly, expectations for the report aren't very high, which is interesting considering the stock's strong upward trend of late.

For more information on these stocks or any stock in your portfolio, feel free to visit our Schaeffer's Equity Scorecard feature. Click here to read all of today's Market Blog: http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB1C&PAGE=1