CMG barely beats by $.01 and jumps 8%. MCD misses by $.02 and drops only 2-2.5%.
What is the reasoning for such a jump in CMG when it barely beat reduced analyst estimates, and was already overvalued prior? Yeah it's a good company, but not stratospheric.
Or maybe I am missing the whole point.......there is no reasoning.
This stock is closely held by institutions and insiders and the shorts piled on some time ago. What you witnessed was a short squeeze. The chart is looking toppy and if it was a normal stock it never would have gotten so far out of whack. As thinly as it is traded, it will take some time for the price to return to pre earnings levels.
It's not about earnings with CMG it's about the faux growth and same store sales recovering over way reduced expectations. MCD on the other hand should be down 5 or 6 pts but guess some funds just keep on "lovin it".