Take a look at the MILLIONS in options that GS and Susquehanna wrote/sold compared to other institutions who bought. Clearly they feel there is money to be made selling options and "hoping" the stock price will land luckily at the right number to make them all worthless to all who bought them. If you don't believe these guys are manipulating Aapl on options expiration dates, I'm sure GS has some options they'd like to sell you.
What other great ideas is Aapl coming up with? They've been working on a TV for at least 6 years now and now starting to make cars out in 2020! Maybe Aapl will come up with Aapl default swaps or start building rockets? Yeah, rockets! Is there any other stupid idea the media clowns will run with? I thought Apple was going to start building houses because of their foray into home controls.
They are targeting different customers but I agree there are many other similar choices for a lot less.
This restaurant was founded in less price sensitive NYC. In other words, lots of people making inflated salaries who are used to high price restaurants simply because they are located in NYC. The three S FL restaurants are all in affluent areas. Their international expansion is UAE and Kuwait, again moneyed areas. The real question is will a restaurant be able to survive in a middle class area where people are more value conscious and will weigh a very similar Wendy's meal for $8 vs a nice decor Shak meal for $12.
Went to Boca store this last Saturday. No line but seats were 85% full. It's a trendy restaurant but I thought their hamburgers were about same as Wendy's but much pricier. This place will appeal to the snobby crowd who likes to think they are a little better then the average person and doesn't want to go to a lower class fast food chain. Problem is that this is a trendy restaurant and 80% of restaurants fail within 5 years. Trendy restaurants tend to be hip for awhile until the next trendy one comes along. Look at where these stores are being located...in Florida, Boca Raton, Lincoln Road, and Coral Gables. Targeting the affluent areas which will work for awhile. Expansion to regular joe areas will probably not succeed unless they can offer the middle class people value besides nice decor and what I thought was smaller burgers then Wendy's with higher prices. They do offer their brand beer though.
While I understand that those will add value, is that really the reason to invest in CMG, that they will be successful in the pizza and asian cuisine restaurants? I'd be more wanting to bank on 200 new Chipotles plus international expansion but even with that their major earnings contributors are facing increased costs and growth in the low single digits. Will that minimal growth offset their food cost increases to make their earnings shine again?
If you're thinking of buying here, why? What's the next thing to get the stock to jump? Earnings in 90 days and maybe they will raise prices which is a double edged sword. I don't foresee any upgrades coming until they prove their growth story again. They will have two more quarters of double digit comp growth just because the price increases didn't start taking effect until end of 2nd Q last year. That's known, so if they bring the next 2 in with nothing new and a future of low to mid single digit growth, this stock will stair step down to $500 level.
Actually, neither of those. Both to me are not places you go out to, but you're out doing something else and want to grab something to eat. We actually like Red Robin's Guacamole Burger. There's a Shake Shack near us that I almost suggested going to last night but then I saw the photo on their website of their burger and it reminded me of 5 Guys which are total gut bombs IMO. We will have to try it out one of these days though. She liked CMG but thought it was a ripoff.
I actually like their food but down they went. Something tells me that Shak will follow the same path once the insiders get to sell their stake in this company and after achieving their single store growth this summer. Pbpb is a very good reminder of a small concept hyped to a ridiculous level. Here's a great new idea! A sandwich shop! Hardly any of those around. Here's another great idea! A hamburger shop! Hardly any of those around! Where CMG set themselves apart is that they filled a nitch between Taco Bell and sit down Mexican restaurants. Shak doesn't do that. They just entered a crowded burger market on all fronts.
Their same stores comps are going to stagnate. Went to a store the other day at lunch time and it had a decent stream of customers but it wasn't the kind of crowd that would make you go Wow. The seating was pretty open too. I found the steak burrito, chips, and side for $13 somewhat pricey. It was good but wasn't so great that I'd be drawn there more than once a month. Their earnings this quarter were fine but their future growth seems shaky. The 16% comp sales growth this year was half due to increasing their prices. 8% non-price related growth is pretty good plus they plan to add about 11% more stores in 2015. So let's say without another price increase, they get 6% comp growth and average 6% growth due to new stores throughout the year. 12% growth if the economy as a whole continues positive. If it stagnates, you may get no comp growth as CMG food is a bit pricey and people may cut back if their personal economic outlook is cloudy. The strong dollar is showing signs of hurting the US economy. Also higher food prices don't seem to be abating and probably will continue inflating with the easy money in the US.
What are the Pros for CMG right now? Store expansion is one but likely into less desirable locations ie less sales per new store. Their Asian and Pizza ideas may be what carries the growth day for them but pizza is a dime a dozen. I'm not saying CMG won't be a solid business going forward but they don't look to have a near term future that warrants a high growth multiple.
I actually was able to get on the site and counted 62 total locations with 35 of those in the US. Very odd that there is a high concentration of shops in the Middle East of all places.
This company was going to price at $16 and then after all the hype, they repriced it at $21, a 30% markup, and then it went up another 130% when it opened. If the owners and the bankers only thought the value was $16 initially, why would they mark it up to $21 other than simply due to greed? They actually should have marked it up to $40 but whatever, that's not the point. The point is that this company hardly has any stores and it is being compared to CMG which IPOd with over 400 stores and McD backing them. And the GREAT news today is that Shak plans to open a single new store sometime this summer. Yahoo! The growth is astronomical! Please. Get out of this thing as soon as you can as it will sink in to the 20s. Keep in mind there are a bunch of hamburger flippers that got in on the IPO and they just doubled their investment in one day. Think they will be long term holders to bolster their minimum wage pay? I doubt it and when they are allowed to unload, down it will go. Not knocking the company at all, just this ridiculously overvalued stock price.
Something to consider is that price increase didn't start taking effect until mid 2nd Q 2014. 1st Q and 2nd Q 2015 should have double digit ss growth until equally higher prices begin to be compared yoy.
1600 / 50 states is only 32 stores per state. Haven't really even gone into Europe or China yet. Store count could easily go to 5000 in next 5 years. Could your state support 100 stores?
Why? Because those who bought since it hit $119.75 are selling now that they are even or close to even. Aapl has been range bound for the last two months. By about 2 pm, they should be out and only long term holders and buyers will be around. Aapl WILL be the first trillion dollar company within 2 years.