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News Breaks
January 16, 2013
11:30 EDTCMGChipotle falls after weaker than expected earnings guidance
Shares of quick service restaurant operator Chipotle Mexican Grill (CMG) are lower after the company issued weaker than expected Q4 earnings guidance earlier this morning. The company forecast Q4 EPS of $1.92-$1.97, versus consensus of $2.09, and guided Q4 revenue to $699.2M, versus consensus of $690.86M. Monty Moran, co-CEO, cited a faster than expected rise in food costs in Q4, but said food inflation should level off in 2013. Following the disappointing guidance, research firm Jefferies said it expected the shares to be down meaningfully, adding that Chipotle's 2013 earnings could be significantly below consensus. Jefferies maintained an Underperform rating on the stock with a $215 price target. On a positive note, William Blair said in a note to investors this morning that Chipotle's comparable store results will likely bottom in Q1 before moving higher. William Blair viewed Chipotle's business as healthy and said they would be opportunistic buyers on any share weakness. The firm maintained an Outperform rating on the stock. RW Baird was positive on Chipotle as well, also saying any weakness represented a buying opportunity. The stock initially gapped down over 10% at the open, but has since recovered and is trading lower by about 6% to $279.31 in late morning trade. The Fly notes that volume is very heavy, with nearly 1.8M shares exchanging hands in morning action, more than twice the average daily volume.
News For CMG From The Last 14 Days
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September 29, 2015
11:38 EDTCMGMcDonald's rises as analysts weigh in on fast food sector
Shares of McDonald's (MCD) rose in morning trading after Credit Suisse upgraded the Big Mac maker to Outperform. Some McDonald's competitors were also active after Telsey Advisory initiated coverage on multiple companies in the quick-serve and fast casual restaurant space. WHAT'S NEW: Credit Suisse analyst Jason West upgraded McDonald's to Outperform and raised his price target on its shares to $112 from $110. West said that more improvements for the company are "forthcoming" even after CEO Steve Easterbrook announced positive operational and financial steps. The analyst added that checks suggest that U.S. same-store sales trends are beginning to turn as a result of operational and menu changes, as well as some new product wins. West said he sees 5%-6% possible upside to current 2016 expectations and views a favorable risk/reward of roughly 2%-3% downside as opposed to 20% upside, even if the turnaround is "fairly modest." NOTABLE INITIATIONS: Separately, Telsey Advisory Group analyst Bob Derrington initiated coverage of several companies in the restaurant sector, stamping Panera (PNRA) with an Outperform rating and a $225 price target. The analyst noted that the company's plan to become a better dining alternative continues to build traction and that same-store sales trends are likely to speed up in 2016 and 2017. Derrington initiated Jack in the Box (JACK) with an Outperform rating and a price target of $95, as he sees it being positioned for strong appreciation in the year ahead based on management's plan to revitalize and differentiate the Jack in the Box brand. The analyst also expects the company to further differentiate, improve the returns, and position its Qdoba brand for quick growth and recycle its franchise cash flow for better shareholder returns. Derrington initiated coverage of Chipotle (CMG) with a Market Perform rating and an $800 price target, saying that despite the firm's positive prospects due to better-than-most-peer same-store sales and revenue growth, the company's margin risk makes him take a more cautious approach to his rating of the stock. The analyst also tagged Buffalo Wild Wings (BWLD) with a Market Perform rating and a $220 price target, noting that the company's strong growth prospects seem to be reflected in its premium valuation. PRICE ACTION: In morning trading, McDonald's shares rose 1.6% to $97.49, Panera shares gained 0.9% to $191, Jack in the Box advanced 1.1% to $78.24, Chipotle added 1% to $715 and Buffalo Wild Wings were 1.3% higher at $195.68.
10:00 EDTCMGOn The Fly: Analyst Initiation Summary
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06:44 EDTCMGChipotle initiated with a Market Perform at Telsey Advisory
Target $800.
September 23, 2015
10:24 EDTCMGOptions with increasing implied volatility
Options with increasing implied volatility: SNCR PTCT SRPT AMZN CREE CMG ISRG QLIK SNKD BIIB JNPR

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