Today’s Research Reports on Stocks to Watch: US Foods Holding and Chipotle
NEW YORK, NY / ACCESSWIRE / July 31, 2018 / Shares of US Foods Holding collapsed on Monday after reporting an earnings and revenue miss in its second quarter report and announcing that it will acquire SGA's Food Group of Cos for $1.8 billion in an all cash transaction. Shares of Chipotle fell hard yesterday as well after it was revealed the company had closed an Ohio location after people fell ill.
RDI Initiates Coverage on:
US Foods Holding Corp.
https://rdinvesting.com/news/?ticker=USFD
Chipotle Mexican Grill, Inc.
https://rdinvesting.com/news/?ticker=CMG
US Foods Holding Corp. shares plunged on Monday to close down 17.46%. The stock traded explosive volume of 13,675,277 shares compared to an average trading volume of around 1.9 million shares. The drop came after the company announced second quarter financial results as well as an acquisition. For the second quarter, US Foods reported that revenue was flat at $6.2 billion. Net income for the period saw a 94% increase to hit $126 million, or 57 cents a share on an adjusted basis. Analysts however had been expecting revenue of $6.3 billion and earnings per share of 58 cents. The company also announced the acquisition of SGA's Food Group of Cos for $1.8 billion in cash. "This acquisition will significantly increase US Foods' reach across key markets in the attractive and growing Northwest region of the U.S. and adds one of the most well-regarded regional distributors to our company," stated US Foods Chairman and CEO Pietro Satriano. "With a shared commitment to customer service, including a proven track record of leveraging technology and private brands to meet customer needs, SGA's Food Group of Companies is an ideal fit. The company's unique merchandising programs, mature local sourcing capabilities and track record of operational excellence will be strong additions to our business. We look forward to welcoming the talented teams at SGA's Food Group of Companies to US Foods, providing customers with even better service and expanded capabilities, and delivering accelerated growth and value to our shareholders."
Access RDI's US Foods Holding Corp. Research Report at:
https://rdinvesting.com/news/?ticker=USFD
Chipotle Mexican Grill, Inc. shares closed down 1.45% with an additional 3.33% more in losses in after hours trading on Monday. The burrito fast food chain saw its shares drop after a report revealed that a company restaurant in Ohio had been closed after several customers became ill. Several customers had said they were ill over the weekend and yesterday after eating at the Powell, Ohio location according to Business Insider. Chipotle said on Monday that the restaurant would be re-opened today pending health department approval. "We acted quickly and closed this single restaurant out of an abundance of caution and we are working with the local health officials to reopen this restaurant as soon as possible," said a Chipotle spokeswoman via email. "Our protocols identified a handful of illness reports at one restaurant in Powell, OH," Chipotle spokeswoman Laurie Schalow told CNBC.
Access RDI's Chipotle Mexican Grill, Inc. Research Report at:
https://rdinvesting.com/news/?ticker=CMG
Our Actionable Research on US Foods Holding Corp. (NYSE: USFD) and Chipotle Mexican Grill, Inc. (NYSE: CMG) can be downloaded free of charge at Research Driven Investing.
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SOURCE: RDInvesting.com
