760.30 +0.43 (0.06%)
After hours: 5:35PM EDT
|Bid||759.76 x 1300|
|Ask||765.99 x 2200|
|Day's Range||747.01 - 760.59|
|52 Week Range||383.20 - 760.59|
|Beta (3Y Monthly)||1.18|
|PE Ratio (TTM)||103.85|
|Earnings Date||Jul 23, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||695.35|
Chipotle stock has rallied back near its 2015 record highs after a stunning comeback. But is it a buy right now? Here is what the fundamentals and technical analysis say about the stock.
(Bloomberg) -- Bill Ackman has made about $730 million betting on burritos.The value of the billionaire investor’s stake in Chipotle Mexican Grill Inc. has surged as the restaurant chain rose to a record Monday, more than three years after a food-safety crisis tarnished the brand and battered its shares.Ackman originally invested roughly $1.2 billion in the company back in 2016. Two years later, with the shares up 17%, he started selling, offloading batches of shares in a series of transactions between August 2018 and last month. Now, with Chipotle grazing a new high, the value of Ackman’s remaining stock in the company has surged to about $1.35 billion.Ackman’s Pershing Square Capital Management has returned about 48% on its investments this year through July 9, according to the firm’s website. The strong returns are a welcome reversal of fortune for Ackman, whose high-profile setbacks in recent years have included his $4 billion loss on Valeant Pharmaceuticals International Inc. and his losing bet against Herbalife Nutrition Ltd.Chipotle’s shares gained 1.2% to $759.87 in New York, the highest since the company’s initial public offering in 2006. The customer-illness issues started in 2015, and the shares closed that year at $479.85, beginning the first of three straight annual declines.Ackman’s Pershing Square Capital Management declined to comment on the investment.Activist Ackman announced a stake in the company in September 2016, wagering that Chipotle could rebound. The company later that year added four new board members in a shake-up endorsed by Ackman, then replaced Chief Executive Officer Steve Ells, who founded the chain, with former Taco Bell chief Brian Niccol.Under Niccol, the burrito chain has made a series of overhauls. It has relocated company headquarters, pushed hard into delivery and rolled out a new loyalty program to attract customers. So far results have been positive with the key indicator of same-store sales rising 9.9% in the latest quarter -- the fifth consecutive period of acceleration.The shares were up 0.9% at 3:49 p.m. in New York, paring some of the earlier gains. The shares finished 2018 up 49% and have surged about 75% so far this year.\--With assistance from Leslie Patton and Brandon Kochkodin.To contact the reporters on this story: Scott Deveau in New York at email@example.com;Craig Giammona in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Anne Riley Moffat at email@example.com, ;Liana Baker at firstname.lastname@example.org, Lisa Wolfson, Michael HythaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Shares of burrito giant Chipotle Mexican Grill touched an intraday high Monday, effectively completing the stock’s comeback.
In an industry, which is increasingly reliant on digital services, five restaurant stocks stand to report better-than-expected earnings in the second quarter of 2019.
Zacks.com featured highlights include: United States Cellular, Dropbox, Chipotle Mexican Grill and Molina Healthcare
Investing.com - Chipotle Mexican Grill reached an all-time high on Monday after Piper Jaffray upgraded its price target on the restaurant chain.
Restaurant Brands International (NYSE:QSR) rolled out tacos at their Burger King chain recently and the fans jeered.Source: Shutterstock It was easy to see why. The Burger King version is a thoroughly American creation of ground beef and hamburger toppings inside a crisped shell. It's not even as good as Taco Bell, the YUM! Brands (NYSE:YUM) chain that was once sued by customers claiming the meat inside wasn't actually meat.But the move does hint at something. Taco sales are up 4% in 2019. People like them. They're also cheap and easy to make. For operators dedicated to growth like Restaurant Brands International, tacos are a natural fit. Note that QSR stock has risen nearly 40% so far in 2019.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Brazilian MagicThe Brazilians at 3G Capital formed Restaurant Brands in 2014, combining the Burger King and Tim Horton's chains. In 2017 they added Popeye's, a chicken franchise.Under their zero-based budgeting system, in which every dollar spent must be justified every year, the chains have thrived. The shares are up 70% since the merger. There's a 50 cent per share dividend yielding 2.81%, and 2018 sales were up 17%. There is 65 cents per share of profit on $1.39 billion in sales expected for the June quarter, which will be reported July 31. * 10 Stocks to Buy for Less Than Book It's a stark contrast to 3G's other big deal, Kraft Heinz (NASDAQ:KHC), which has been a disaster for shareholders since its formation at the start of 2015. Those shares are down 60% despite a dividend now yielding 5.11%.Fast food yields to the zero-based touch more easily than food manufacturing. Corporate franchisees can crunch the numbers as just-another operational detail.But, as a recent lawsuit by Tim Horton's franchisees shows, you can only squeeze a concept so far. Critics have recently called QSR stock overvalued. The best way to keep growing may be with another franchise. Some Tacos?Mexican food can be a home run, if done right. Just look at Chipotle Mexican Grill (NYSE:CMG), which has now recovered from its scandals. CMG stock is up 70% so far in 2019.All this brought me to Del Taco Restaurants (NASDAQ:TACO). (I've got a little interest in Del Taco. My brother once worked in one and burned his hand in a fryer.)Del Taco has had a turbulent history but it makes a decent taco. They had sales of $505 million in fiscal 2019 and showed a small profit. The market cap is about $461 million, just short of the sales figure. QSR sells for over 3.5 times sales.Del Taco has just the right size and just the right menu for an operator who wants to make it a national franchise. The fast food business is consolidating. The last two years have seen over 70 deals in the space. Private equity groups Roark Capital and JAB Holding are gobbling up chains by the handful. They're all chasing YUM! Brands, which owns Taco Bell and McDonald's (NYSE:MCD), which has more than doubled in value under CEO Steve Easterbrook. Bottom Line on QSR StockThe trend in fast food is for good operators to expand through acquisition and squeeze out fatter margins from chains and franchises. That's QSR's business model.It's a tough business that is rapidly consolidating. There aren't many profitable operations of reasonable size left to be gobbled up. Tacos are a growing business and Del Taco would be a tasty bite for an acquirer. See how quickly QSR, or one of its rivals, pounces on it.Dana Blankenhorn is a financial and technology journalist. He is the author of a new environmental story, Bridget O'Flynn and the Bear, available now at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing, he owned shares in QSR. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post Restaurant Brands International: Burger King Needs a Better Taco appeared first on InvestorPlace.
The restaurant industry is buzzing, thanks to recent partnerships with delivery channels like DoorDash, Grubhub, Postmates and Uber Eats, rollout of self-service kiosks and loyalty programs.
BJ's Restaurants' (BJRI) various sales-building initiatives, including menu innovation, should drive the top line in the upcoming quarters.
Domino's (DPZ) top line in second-quarter 2019 is likely to be driven by an increase in sales at domestic and international stores.
Just over halfway through 2019, the restaurant sector overall is not keeping pace with the S&P 500 (+20%) Russell 2000 (+16.7%), or Russell Microcap (+13.7%) Indexes year-to-date. The "Big Five" (a self-coined term) - consisting of McDonald's (up 21% year to date), Yum Brands (+21%), Darden Restaurants (+25%), Chipotle Mexican Grill (+73%) and Domino's Pizza (+13%) - are up an average of nearly 31%. Chipotle is by far the best performer so far in 2019, and is trading near an all-time high.
Domino's (DPZ) solid digital ordering system, robust international expansion and other sales initiatives should consistently drive growth.
Chipotle Mexican Grill Inc NYSE:CMGView full report here! Summary * Bearish sentiment is low * Economic output in this company's sector is expanding Bearish sentimentShort interest | PositiveShort interest is low for CMG with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | NeutralETF activity is neutral. The net inflows of $5.36 billion over the last one-month into ETFs that hold CMG are not among the highest of the last year and have been slowing. Economic sentimentPMI by IHS Markit | PositiveAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Services sector is rising. The rate of growth is strong relative to the trend shown over the past year. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.