Happy Wednesday afternoon to everyone on The Street. 

Before we dive in, we have a big announcement. The Street Sheet is getting a facelift!

Our redesign will harken back to classic Wall Street, while rooting us squarely in the moment, true to our historically informed and uniquely modern product: Equity research for the everyday investor.

The new design will go live in 5 days, on Monday, 5/5. We can’t wait to enter our next era. Thank you for coming along for the ride.

Now, back to our usual programming.

• 🟨 | US stocks were mixed today following another batch of earnings and the US economy’s first contraction in years.

• 📈 | One Notable Gainer: Consumers must’ve stocked up on Cadbury Eggs for Easter. Parent company Mondelez International $MDLZ ( ▲ 4.14% ) saw a Q1 rise in sales, sending its stock higher.

• 📉 | One Notable Decliner: Starbucks’ $SBUX ( ▼ 6.48% ) stock slipped after the company said its automation-heavy turnaround attempts aren’t working, and unveiled plans to hire more employees in response.

MARKET MOVERS

First Solar, Seagate, Snap

$FSLR ( ▼ 8.86% ) First Solar stock plunges as CEO says Trump tariffs pose ‘significant economic headwind’ (CNBC)

$STX ( ▲ 10.55% ) Seagate Is Top Stock in the S&P 500 Today. The Company Says Tariffs Are No Problem. (Barron’s)

$SNAP ( ▼ 12.43% ) Snap drops as scrapped forecast stokes ad slowdown fears before Meta earnings (Reuters)

$VZ ( ▲ 2.55% ) Is Verizon the Best Dow Stock for the Next 12 Months? (YF)

$SMCI ( ▼ 11.97% ) SMCI Stock Is Having Its Worst Day in Months. Earnings Aren’t Looking So Super. (Barron’s)

OVERHEARD ON THE STREET

WSJ: US GDP fell at a 0.3% annualized rate in the first quarter, the first contraction since early 2022.

CNBC: President Trump blamed former President Biden for the poor reading, but the Commerce Department cited tariffs and spending cuts in its report.

AP: The Fed’s preferred inflation gauge eased in March, with core prices rising 2.6% year-over-year.

CNN: The same report showed consumer spending surged to its largest monthly gain in over two years, perhaps due to pre-tariff panic buying.

YF: Morgan Stanley $MS ( ▲ 0.03% ) called the aforementioned report a “stagflation warning shot” for the Federal Reserve.

TOMORROW’S TRADE IDEA, TODAY

I Feel Gains in This Chili’s Tonight

Strong Earnings, Weak Reaction

Brinker International $EAT ( ▼ 1.81% ) beat Wall Street expectations in FY Q3 and raised its full-year revenue guidance. Its shares subsequently fell 15% and continued to slide today.

Why? Investors appear skeptical that recent growth experienced by the restaurant group will prove sustainable. However, Goldman Sachs $GS ( ▼ 0.67% ) doesn’t share the same concerns.

The firm’s analyst Christine Cho reiterated a Buy rating on the stock and raised her 12-month price target to $191, implying upside of more than 42% from today’s close.

Buy the Dip (And Chips)

One of the reasons Goldman is so bullish is the momentum behind popular chain Chili’s.

According to Cho, Chili’s has managed to outperform its peers without relying on flashy new menu items or promotions. The analyst says viral marketing, menu innovation, and investment in its restaurants are key drivers of sustained same-store sales growth.

Cho also believes that Chili’s positive trajectory is the result of a durable and strategic transformation effort. Amid growing consumer fatigue over high fast-food prices, the company has seen its cheap menu items go viral and turned inflation into an effective ad campaign, per the WSJ.

Magianno’s Magic

Brinker’s other major brand, Maggiano’s, has also seen a major brand refresh.

The chain is attempting to create long-term improvement through upgraded recipes and a pullback from deep discounts. The idea is to present a more upscale image, and Cho says she is seeing signs of early success.

According to Goldman, Brinker has found the sweet spot between affordable prices and premium value at the perfect time, and the same goes for its stock.

ON OUR RADAR

CNN: Europe’s economy grew 0.4% in Q1, doubling the previous quarter’s pace, but tariffs have since darkened the region’s export-driven outlook.

Barron’s: Mentions of “tariffs” and “uncertainty” have surged on S&P 100 earnings calls — up 132% and 20%, respectively.

BI: Google $GOOGL ( ▼ 1.58% ) is overhauling its performance review system to reward top performers with higher pay and equity.

Reuters: Danone $DANOY ( ▲ 1.88% ) plans to eliminate artificial dyes from its US products, including YoCrunch, Light & Fit, and Oikos.

AP: Elon Musk’s plan to turn the SpaceX launch site in Boca Chica, Texas, into an official city called Starbase heads to a vote Saturday.

TUESDAY’S POLL RESULTS

Are you bullish or bearish on Hesai Group (HSAI) over the next 12 months?

🟩🟩🟩🟩🟩🟩 Bullish

🟨⬜⬜⬜⬜⬜ Bearish

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