I see that earnings came in 4% below estimates. Is this correct or were there special one-time charges, so that the earnings should be adjusted upwards? And i see that CMG shares have already risen a bunch over the past several months, so it is not like the stock has not priced in good numbers already. But the numbers then were not good, as I see them.
I am not going to buy the shares here, up huge on a spike after a good run right before that. Who want to pay up so much for an earnings miss.
I have seen no commentary about the company raising its earnings estimates at all. The company did mention something about planning to raise prices by 6% in the second half of 2014. I figure a 6% price increase in the back half of 2014 is like getting 2-3% annual increase over the course of two years. So what? I think that CMG's prices are already super high for fast food. Whenever I eat there, I am amazed how expensive it is for a fast food joint selling generic mexican food.
Am I to really think that there are legitimate long buyers of CMG today at +$500 on this ridiculous spike after that completely lackluster earnings report? No one in their right mind is buying this stock here. It is all day trading bozos and forced short covering that is driving the stock. These are weak buyers at best. Smart money is selling to them.