|Day's Range||40.32 - 40.32|
A new deal between meal delivery service, Doordash, and fast-food chain McDonald's is delivering a blow to competitors like Uber Eats. Yahoo Finance's Myles Udland, Brian Cheung, and Editor-at-Large Brian Sozzi, discuss the latest.
Grubhub shares are tumbling as the New York State Liquor Authority is reportedly planning to develop new rules that could curb fees food delivery companies can charge, according to the New York Post. Yahoo Finance's Brian Cheung and Seana Smith discuss on "The Ticker."
Kurnos said GrubHub's stock, along with some of its rivals, has been "unfairly punished" by the growing competitive landscape in third-party food delivery platforms. In GrubHub's case, the stock has rebounded about 25% from recent lows but is still trading 50% lower from its 52-week highs. GrubHub holds the title as being the only consistently profitable and self-funded food delivery company in the space, Kurnos said which can be leveraged to drive growth from three catalysts.
The restaurant chain dropping delivery exclusivity is bad news for Uber, but it's a mixed bag for Grubhub.
When you invest in growth stocks, first learn to use IBD's relative strength line to confirm a stock's real power as it breaks out of any base.
Many investors can improve their portfolio returns by knowing when to sell growth stocks. Treat a sharp break of the 10-week line as bearish.
Do relentless trade war and interest rate talk, as well as tied-at-the-hip price swings have your head spinning? If so, it may be time to leave the headlines at the door and nibble on the durable price charts in food stocks like Chipotle (NYSE:CMG), Shake Shack (NYSE:SHAK) and Grubhub (NYSE:GRUB).From rate cut optimism to gloomy "not so fast" worries regarding FOMC policy or even off-the-cuff tweets from POTUS, it's hard not to be concerned about the risks of owning stocks inexorably linked to the uncertain macro political and economic environment. Then there's food stocks CMG, GRUB and SHAK stock.Regardless of a trade war, recession or what have you, people have to eat. And for people who are on the go and demand quality over quantity, fresh food offerings from Chipotle and classic grilled American fare from Shake Shack fit the bill. Also, within our busy lives, having food delivered straight to our doorsteps or workplaces courtesy of Grubhub is another "necessity" for many of us.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Best Cryptocurrencies to Keep on Your Radar With all of that in mind, let's take a deeper dive into each of these food stocks to determine why they're ideal buys right now. Chipotle (CMG) Click to EnlargeChipotle shares have stormed higher over the past year and a half following a nauseating run of health scares that crashed CMG stock into a deep correction shortly after it notched all-time-highs in late 2015.CMG shares recently broke out of a healthy looking monthly handle consolidation. Now this food stock is attempting to make good on a breakout of its corrective cup-shaped base.CMG Stock StrategyWith the monthly stochastics in overbought territory but flirting with a bullish crossover, CMG stock is a buy today in anticipation of continued price momentum. I'm setting a price target of $1,000 on a rally out of the cup base. To protect against any pattern weakness and downside exposure, setting a stop-loss beneath the handle low at $634 looks like a good policy off and on the price chart. Shake Shack (SHAK) Click to EnlargeSimilar to Chipotle, SHAK stock has put together a monthly cup-shaped corrective base. But unlike CMG, Shake Shack's pattern is just breaking out above 62% Fibonacci resistance associated with its 2015 all-time-high to an all-time-low set in 2017.Given the depth of the correction, clearing of key resistance and bullishly trending monthly stochastics, a challenge of this food stock's high and the $100 level in 2019's second half looks compelling.SHAK Stock Strategy * 7 Best of the Best Fidelity Funds to Buy Buy shares of SHAK today. I'd recommend a blended stop below $64 and peeling off upside exposure as this food stock moves toward $95 - $100. Grubhub (GRUB) Click to EnlargeUnlike the other food stocks I've suggested that you might buy, GRUB stock is just now coming out of a deep correction. With a successful test of the 62% support level and stochastics turning higher from an oversold condition, I'm of the mind this is the beginning of yet another constructive, not destructive base in the making.GRUB Stock StrategyThe monthly chart highlights GRUB's May doji candlestick, which was confirmed as a pivot low last month. With shares only a couple percent above the ideal purchase price of $73.59, this food stock is in a buyable position right now.For containing exposure, I'd set a blended technical and dollar-based stop below $64.25 and size the position accordingly. Likewise, if GRUB stock goes more or less according to plan, taking partial profits in-between $100 - $105 looks appropriate.Disclosure: Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post 3 Food Stocks to Buy for Fast and Big Profits appeared first on InvestorPlace.
Uber Technologies is trying to break out past a potential buy point in the current stock market rally, but is it a buy?
GrubHub (GRUB) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of GrubHub Inc. - GRUB
The rideshare's restaurant delivery arm had previously been the exclusive provider to ferry Big Macs and french fries to hungry customers.
CHICAGO , July 16, 2019 /PRNewswire/ -- Grubhub Inc. (NYSE: GRUB), the nation's leading online and mobile food-ordering and delivery marketplace, today announced it will host a conference call to discuss ...
(Bloomberg Opinion) -- Domino’s Pizza Inc. didn’t come in hot in the second quarter. The pizza-delivery chain said Tuesday that comparable sales at its U.S. restaurants rose 3% in the period from a year earlier, well below the 4.6% growth analysts had expected.Shares fell in early trading, and, to a certain extent, that is understandable. But this quarter’s results didn’t leave me with any fresh concerns about Domino’s long-term strategy or its ability to hold its own amid major changes in the U.S. food delivery market. While a 3% increase in comparable sales represents a slowdown in growth for an industry darling, it is still a solid result at a moment when restaurant traffic generally remains so weak. There’s another key reason that I am less alarmed by Domino’s comparable sales slowdown, even if it is more abrupt this quarter than expected. And that’s because it’s all part of a sensible strategy to adapt to a more competitive food-delivery environment.Domino’s is in the process of doing something it calls “fortressing.” Essentially, it means adding more locations in a concentrated area. The theory is that closer proximity to customers means better service in the form of shorter wait times and pizzas arriving hot. Additionally, the company has found that this approach tends to generate more carryout sales, which are often incremental business it wouldn’t have gotten otherwise. The downside of bulking up its restaurant portfolio in certain areas is that it creates pressure on Domino’s comparable sales, with revenue transferring from one store to another. Domino’s has said this created a comparable sales headwind last year of between 1% and 1.5%.I’m typically very skeptical of any established chain – restaurant or mall-based – embracing a massive store opening plan, given how saturated the U.S. market is. But Domino’s is an exception. With its focus on off-premise eating, cutting the time it takes to get from stores to customers is crucial to keeping itself differentiated as third-party delivery services such as DoorDash, Uber Eats and GrubHub Inc. barrel into more metro areas and give diners an explosion of choice for eating at home. In fact, Domino’s acknowledged feeling the heat of third-party services in the previous quarter, saying back in April that newcomers’ aggressive marketing promotions had been a competitive challenge.Better service also should help Domino’s maintain its edge against more traditional rivals such as Yum Brands Inc.’s Pizza Hut, which has been courting value-conscious diners with deals like a $5 medium pizza and a bigger push in delivery.Importantly, it seems Domino’s is trying to execute the fortressing plan in a way that shouldn’t roil its franchisee base. Executives have noted that a single franchisee is opening the fortressed stores within their own territory, so he or she is retaining transferred sales and seeing improved store-level profitability.I expect the rise of food delivery to massively disrupt the restaurant industry over the next decade. Domino’s is right to take a short-term hit to comparable sales – while it is in a position of real strength – to gird itself for the onslaught of competition.Plus, the fact that Domino’s didn’t revise its three- to five-year outlook on Tuesday suggests that the second-quarter results aren’t viewed internally as any kind of inflection point.Booming comparable sales growth can be comfort food for investors. Even though Domino’s didn’t offer that this quarter, it’s still on the right track. To contact the author of this story: Sarah Halzack at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Investing.com - Shares of fast-food companies were down in midday trade on Tuesday after Domino’s Pizza reported disappointing same-store sales during the second quarter.
A successful launch doesn’t magically transform companies with banal, easily replicated business models into industry disruptors Continue reading...
Food delivery startups have been on a growth tear for several years now. Competition has increased and that has hurt the share price of GrubHub (NYSE:GRUB). GRUB stock, however, has been showing much better signs of life again in recent weeks and looks to be pointing to higher levels still.Source: Shutterstock As long time readers of my column here know, I do not like holding trading positions through any given stock's earnings report. Thus, please be aware that GrubHub is set to report its next batch of earnings on July 24.The advent of modern smart phones has brought about the "sharing economy." One of the services from this new economy is efficient food delivery from not just your favorite pizza chain, but from any restaurant imaginable. Each of these food delivery companies, like GrubHub has gotten itself some strategic alliances with large food chains, in addition to covering local restaurants and cafes. I find myself using these services ever more frequently.InvestorPlace - Stock Market News, Stock Advice & Trading Tips GRUB Stock Charts Click to EnlargeThe food delivery mania in 2018 led to a huge surge in GrubHub stock, one that simply by the laws of gravity had to end. And end it did, as from its September 2018 highs, the stock fell 60% into the June 2019 lows. * 7 Retail Stocks to Buy for the Second Half of 2019 By June, however, the stock finally reached its longer-standing up-trend and the lower end of the channel, as marked by the two black parallels. From a momentum perspective GrubHub stock had shown positive divergence from price (lower lows) to momentum (MACD in lower part of the chart making higher lows since early 2019). These are the type of formations I am looking for in order to see a stock establish a better lasting low.In other words, the June 2019 lows around the $60 mark, which also coincides with the stock's red 200-week simple moving average is an important line in the sand for the bulls. Click to EnlargeOn the daily chart, we see that since the first half of June, GRUB stock has gaped higher on two occasions. The first gap allowed the stock to push higher out of the falling wedge pattern (two long black parallels). The stock then consolidated for a few days, only to gap higher again on June 25. Since then, the stock has consolidated nicely in what we may refer to as a bull flag pattern. This pattern, as the name suggests, tends to resolve to the upside.The next logical upside target for GRUB stock from here is the $82 area, which currently coincides with the stock's red 200-day moving average. Active traders and investors could look to buy GRUB stock in a push above $78 toward said first upside target. This should do this while respecting any one day bearish reversal as a stop loss, and this is particularly true if this leads to the stock breaking back below $75.Get FREE ACCESS to Serge's renowned Stock Market Scanner with actionable trade ideas. Get it HERE. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy on College Students' Radars * 7 Retail Stocks to Buy for the Second Half of 2019 * The S&P 500's 5 Best Highest-Yielding Dividend Stocks The post Trade of the Day: GrubHub Stock Is Waving a Bullish Flag appeared first on InvestorPlace.