|Bid||0.00 x 800|
|Ask||0.00 x 900|
|Day's Range||77.56 - 79.00|
|52 Week Range||74.19 - 93.98|
|Beta (3Y Monthly)||0.62|
|PE Ratio (TTM)||15.12|
|Earnings Date||May 15, 2019|
|Forward Dividend & Yield||1.60 (1.99%)|
|1y Target Est||91.00|
What's Expected for McDonald’s Q1 2019 Earnings(Continued from Prior Part)Analysts’ expectationsOf the 29 analysts covering (MCD), 79.3% recommend “buy,” 20.7% recommend “hold,” and none recommend “sell.” Their 12-month target of
What's Expected for McDonald’s Q1 2019 Earnings(Continued from Prior Part)Analysts’ expectationsAnalysts expect McDonald’s (MCD)adjusted EPS to fall 1.7% YoY (year-over-year) in the first quarter to $1.76 from $1.79, due to lower revenue
What's Expected for McDonald’s Q1 2019 Earnings(Continued from Prior Part)Analysts’ estimates In the first quarter of 2019, analysts expect McDonald’s (MCD) revenue to fall 4.1% YoY (year-over-year) to $4.93 billion from $5.14 billion, likely
What's Expected for McDonald’s Q1 2019 EarningsStock performanceMcDonald’s (MCD) is set to report its first-quarter earnings before the market opens on April 30. As of yesterday, MCD had risen 6.5% since its fourth-quarter earnings on January
In 2014 Lenny Comma was appointed CEO of Jack in the Box Inc. (NASDAQ:JACK). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we wil...
Shake Shack Stock Falls after Longbow’s Downgrade(Continued from Prior Part)Stock performance Shake Shack (SHAK) was trading lower today after Longbow downgraded it. As of 10:40 AM Eastern Time, the stock was trading at $58, 2.5% lower than
Shake Shack Stock Falls after Longbow’s DowngradeLongbow’s downgrade Today, Longbow Research downgraded Shake Shack (SHAK) to “neutral” from “buy” on concerns about its high valuation. However, the equity research company is positive on
Shares of fast casual Mexican eatery Chipotle (NYSE:CMG) have been on a tear since February of 2018. At that point in time, Chipotle stock bottomed at $250 before former Taco Bell executive Brian Niccol took over as CEO.Source: Shutterstock Ever since, Niccol has executed flawlessly on multiple growth initiatives, the sum of which have driven Chipotle to report its best numbers ever since the infamous E. coli outbreak. Consequently, CMG stock has nearly tripled over that same stretch, and today finally trades near its pre-E. coli highs.Although the Chipotle turnaround is very real, and the company is firing on all cylinders, this mega-rally in CMG stock may be on its last legs.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhy? Many reasons, ranging from valuation to slowing growth concerns. Put together, all these concerns paint an outlook for CMG stock that isn't all that great. * 7 AI Stocks to Watch with Strong Long-Term Narratives With that in mind, let's take a look at four reasons to sell CMG stock on this big rally. Too Far, Too FastBroadly speaking, CMG has simply come too far, too fast.The stock has nearly tripled over the past fourteen months. That's a big rally on its own, but a big portion of this rally has happened recently, with the stock up 85% since Christmas 2018. That's a near 100% rally in just over three months.Because of this big rally, Chipotle stock is now in technically overbought territory, with a Relative Strength Index that is as high as its been pretty much ever and a stock price that is nearly as far as its ever been above its 200-day moving average.All of these overbought conditions, and the stock is heading into earnings season. That means the numbers need to be really good in order for the stock to hold onto its gains. If they aren't really good, the stock could drop in a big way. Valuation FrictionI follow a lot of stocks, and Chipotle is now close to being the most richly valued restaurant stock I've ever seen that isn't growing revenues at a 20%-plus rate.Chipotle stock trades at nearly 60-times forward earnings. The giants in this space, like McDonald's (NYSE:MCD), Yum (NYSE:YUM), Jack in the Box (NASDAQ:JACK), and Domino's (NYSE:DPZ), trade around 20- to 30-times forward earnings. The sector average forward multiple is 24.To be sure, the fast growers like Shake Shack (NYSE:SHAK) and Wingstop (NASDAQ:WING) trade around 100-times forward earnings, but both of those companies are projected to do 20%-plus revenue growth this year. Chipotle is projected at a much more mundane 9% sales growth this year, which is pretty much the same as McDonald's and Domino's.True, there is a big margin expansion narrative at play here, but even if you model that narrative out, there still isn't enough long term profit power here to justify a $700-plus price tag. Economic Slowdown and Chipotle StockAlthough stocks are rallying to all time highs, the economy is still slowing, U.S. consumer sentiment is still below where it was for most of 2018, and sales across the restaurant industry haven't been all that great to start 2019.Inevitably, this slowdown will catch up to Chipotle. The company is firing on all cylinders right now thanks to digital business expansion, menu innovations, and a new marketing campaign. But, those tailwinds will cool in 2019 as they mature and come against tougher laps. When that happens, a slowing economy will start to show up in Chipotle's numbers, and that could have a materially negative impact on the stock. Mysterious E. coli OutbreakTo be clear, there has been an E. coli outbreak in the United States, a source has not been identified, and Chipotle hasn't been mentioned by any reports. It's also highly unlikely that Chipotle is the source of this outbreak.Having said that, there is an E. coli outbreak happening right now, and the last major E. coli outbreak in the U.S. was Chipotle's fault. I don't think consumers have entirely forgotten that. Consequently, when consumers hear E. coli outbreak today, they naturally get a little bit worried about Chipotle. This worry may have a negative impact on the numbers in April and May, and that could provide a drag on Chipotle stock.As of this writing, Luke Lango was long MCD and DPZ. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * FAANNG Stocks, Ranked From Cheapest to Most Expensive * 7 Stocks With a Lot on the Line This Earnings Season * 7 Marijuana Companies: Which Pot Stocks Should You Buy? Compare Brokers The post 4 Reasons to Sell Chipotle Stock While It Still Is Riding High appeared first on InvestorPlace.
Cowen Initiates Coverage on Wendy’s with an 'Outperform' Rating(Continued from Prior Part)WEN’s performanceWendy’s (WEN) stock was flat in early morning trading on April 10. YTD (year-to-date), the stock has risen 15.2% as of April 9. The
Cowen Initiates Coverage on Wendy’s with an 'Outperform' RatingCowen’s “buy” recommendation On April 10, Cowen initiated coverage on Wendy’s (WEN) with an “outperform” recommendation and a price target of $21.0. This 12-month price
Jack In The Box Inc NASDAQ/NGS:JACKView full report here! Summary * ETFs holding this stock are seeing positive inflows * Bearish sentiment is low and declining * Economic output in this company's sector is expanding Bearish sentimentShort interest | PositiveShort interest is low for JACK with fewer than 5% of shares on loan. Additionally, this was an improvement in sentiment as investors who seek to profit from falling equity prices reduced their short positions on March 12. Money flowETF/Index ownership | PositiveETF activity is positive. Over the last month, ETFs holding JACK are favorable with net inflows of $72.05 billion. This was the highest net inflow seen over the last one-year.Error parsing the SmartText 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, and is accelerating. 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.
I must admit that I haven't paid much attention to Chipotle (NYSE:CMG) over the past several months. After receiving a nice pop following its outstanding first-quarter earnings report, Chipotle stock mostly entered a frustrating consolidation pattern.Source: Shutterstock My initial thoughts were, here we go again! It's the same, old CMG stock, with perhaps some different seasoning sprinkled on to confuse passersby. One of the biggest reasons why I was hesitant on the trendy eatery was history.Back in the early 1990s, Jack in the Box (NASDAQ:JACK) suffered a horrific bout of food contamination. In the end, over 700 people across four states fell ill, leading to 171 hospitalizations and four deaths. It took many years, and an entirely revamped marketing campaign before customers trusted JACK.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Medical Marijuana Stocks to Cure Your Portfolio I wasn't alone in wondering whether Chipotle stock would suffer the same fate. Some of the similarities between CMG's food-poisoning outbreak and JACK's crisis are eerie, including the number of people affected.However, Chipotle exceeded nearly everyone's expectations. With its back against the wall, CMG stock kept fighting. Today, it's one of the strongest names on Wall Street, having gained nearly 65% year-to-date.If you speculated on the long side, congratulations! Now is a great time to sell Chipotle stock into strength. Chipotle Is OverheatedThe most obvious clue that CMG stock may face downside pressure soon is its technical chart. While technical analysis isn't exactly a uniform science, you can glean useful information from generally-accepted principles.For instance, both the relative strength indicator (RSI) and the moving average convergence divergence (MACD) are flashing red-hot. Another confirming factor is volume. As the price for Chipotle stock rises, volume isn't following it up into the stratosphere.That tells me that most investors are in "wait and see" mode. If so, I wouldn't jump onboard here. Under such circumstances, the markets want to see some justification for the elevated prices. If they don't receive at least a compelling narrative, they'll likely dump CMG and search for better opportunities.Beat them at their game, and capture a premium rate for your earlier speculation. CMG Stock Is OvervaluedI've read recent analyses on Chipotle stock that suggested the low-hanging fruit in this equity is gone. I couldn't have said it any better myself.What I will do, though, is quantity my argument. Click to EnlargeA major contributor to Chipotle's comeback story was revenue growth. Management threw everything at their rehabilitation efforts, including generous discounts and freebies. While this tactic challenged margins, it revitalized growth. In 2017, quarterly revenues grew an average 15% on a year-over-year basis.With such a robust rate, CMG stock naturally found its way back to the top. But now, I think that narrative is overcooked. For example, consider quarterly revenue growth in 2018, which has dropped down to under 9%. Contrast that to the share price, which increased over 47% last year.This year, Chipotle is up 65%, as I mentioned earlier. The burrito specialist may have produced solid numbers for its first quarter. That said, I don't think they did enough to justify that 65% premium. Again, if I'm profitable on CMG, I'd take it while the going is good. Chipotle Stock and Demographic ChallengesWith millennials representing the largest workforce right now in America, marketers are constantly seeking ways to attract them. This is a tricky endeavor under the best of circumstances. However, one thing everyone can agree on is that millennials love eating out.Another distinctive millennial trait is their thirst for authenticity. This is a generation that genuinely believes that through their choices, they can make a positive impact on the world. That being the case, attributes such as small and local are in, and big and branded are out.And how authentic is Chipotle? Probably about as authentic as a Philadelphia sushi roll, which is to say, not very.That's the problem Chipotle stock will face in the future. Over the years, millennials have earned a reputation for their pickiness and fickleness. If seasoned players like McDonald's (NYSE:MCD) are constantly tweaking their menus, so must Chipotle.But I'm not seeing any substantive changes. Every time I go to one of their stores, I can expect the same thing: an unimaginative burrito wrapped in aluminum foil. At a time when everyone is mixing it up, staying static is risky.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Stocks That Would Be Hurt By a Mexico/U.S. Border Closure * 7 A-Rated Healthcare Stocks for Industry Expansion * 10 Stocks That Every 30-Year-Old Should Buy and Hold Forever Compare Brokers The post 3 Reasons Why You Should Sell Chipotle Stock into Strength appeared first on InvestorPlace.
The public battle between Jack in the Box and its store operators rages on, as the chain’s National Franchisee Association (NFA) called for the replacement of CEO Lenny Comma again, Wednesday. In a statement, the NFA said the recent formation of the Franchisee Advisory Council (FAC), which includes non-NFA members and Jack in the Box […]
Jack in the Box (JACK) relies on menu innovation, improved delivery channels and franchises unit growth to drive revenues despite stiff competition.
In the quick service restaurant (QSR) industry, there are two recurring themes. First, low prices and high convenience always wins. Second, McDonald's (NYSE:MCD) is consistently one step ahead of the QSR competition in terms of delivering the lowest prices and the highest convenience. That's what keeps MCD stock one of the great QSR buys.Source: Shutterstock McDonald's consistently has outperformed over the past five years. During that stretch, MCD stock has risen nearly 100%. The S&P 500 is up just 50% over the same time frame.Meanwhile, QSR peers Yum (NYSE:YUM), Jack in the Box (NASDAQ:JACK), Shake Shack (NYSE:SHAK), and Habit (NASDAQ:HABT) have all under-performed relative to MCD stock, too.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis over-performance from MCD stock will continue for the foreseeable future. This is largely because McDonald's remains one step ahead of the QSR competition in terms of delivering the lowest prices and highest convenience to consumers. * 7 Reasons to Buy Housing Stocks in 2019 Specifically, McDonald's recent acquisition of decision technology firm Dynamic Yield puts the QSR chain ahead of the competition when it comes to integrating technology and data into brick-and-mortar operations.This integration will only increase consumer convenience by personalizing and digitizing the consumer experience. It also has the potential to lower costs through cutting labor expenses.As such, technology and data will power a bright future for McDonald's. That future will be one wherein the company will continue to dominate on price and convenience, and where MCD stock will continue to out-perform. Price and Convenience Always WinWhen it comes to the QSR industry, only two things truly matter at the end of the day: price and convenience.Just think about what a QSR is supposed to do. As the name implies, a QSR is supposed to give consumers quick food at reasonable prices. When consumers go to a QSR, their priorities are minimizing cost and maximizing convenience.Sure, consumers may also want the meal to be healthy, but if healthy were the priority, the consumer would cook at home. Consumers may also want the meal to be very tasty, but if quality were the priority and cost weren't an issue, the consumer would eat at a fancy restaurant.As such, the priorities for a consumer going to a QSR are largely restricted to price and convenience. So long as prices are low, and convenience is high, the consumer's highest priority needs are being met. That consumer is therefore likely to return when they are next seeking a low-cost, high-convenience meal or snack.Because of this, the two things that matter most in the QSR industry are price and convenience. If a QSR dominates on price and convenience, then that QSR will continue to see customer and sales growth. McDonald's Always Is One Step AheadWhen it comes to price and convenience, McDonald's has no peer in the QSR industry. This is mostly because everything McDonald's does enhances the customer value prop through lowering prices and/or elevating convenience. Importantly, McDonald's is also always one step ahead of the competition.Example 1: in 2015, McDonald's rolled out All-Day Breakfast. This was a novel breakthrough in the QSR industry that drove huge traffic growth, mostly because it increased consumer convenience (consumers could now order a McMuffin at any time of the day). Now, everyone has replicated the All-Day Breakfast initiative.Example 2: once everyone replicated the All-Day Breakfast initiative, McDonald's pivoted to revamping its menu to include fresher ingredients and healthier options. The revamp drove huge traffic growth, mostly because it increased convenience (healthier food was now available in a drive-thru setting) and lowered prices (healthier food was now being offered at McDonald's prices). Since that revamp, mostly everyone in the QSR space has adopted broad healthy menu makeovers.The next leg in this "one step ahead" growth narrative will come from technology and data integration. Specifically, McDonald's recently acquired decision technology firm Dynamic Yield. The plan? Take Dynamic Yield's decision technology and data analytics, and integrate it into McDonald's brick-and-mortar locations worldwide. That integration includes digital, dynamic, and data-driven ordering kiosks and drive-thru menu displays, which should create a more personalized customer experience.The result? Increased consumer convenience and lower prices. Data-driven digital ordering kiosks will make the checkout experience quicker, easier, and overall better. Further, if data-driven digital ordering kiosks are that good, then they will inevitably phase out human cashiers. That will lower labor expenses, and allow McDonald's to pass those cost savings onto consumers through lower prices. Bottom Line on MCD StockIn the QSR industry, price and convenience are most important. Thus, the QSR chain that dominates on price and convenience will be the winning QSR chain.Over the past several years, that winning QSR chain has been McDonald's, thanks to things like All-Day Breakfast and a menu revamp. McDonald's will remain that winning chain for the next several years, too, thanks to the company pioneering a new era of technology-integrated and data-driven QSR operations.Because of this, MCD stock projects as a winner for the foreseeable future. Valuation friction will rear its ugly head from time to time. But, in the big picture, the stock will remain on a healthy long term uptrend.As of this writing, Luke Lango was long MCD. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks With Key Products That Face an Uncertain Future * 7 SaaS Stocks to Buy for Long-Term Gains * 5 Semiconductor Stocks That Are Scorching Hot Buys Compare Brokers The post MCD Stock Keeps Popping Because McDonald's Keeps Innovating appeared first on InvestorPlace.
Jack In The Box (JACK) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
Mizuho Downgrades Wendy’s from 'Buy' to 'Neutral'(Continued from Prior Part)Stock performance The Mizuho downgrade appears to have led a fall in Wendy’s (WEN) stock price. Today, at 10:30 AM EST, the company was trading ~1.2% lower from its
Mizuho Downgrades Wendy’s from 'Buy' to 'Neutral'Wendy’s downgradeMizuho downgraded Wendy’s (WEN) from “buy” to “neutral” today and also lowered its 12-month price target from $20 to $18. The new price target implies an upside
The performance of quick-service restaurant company Jack in the Box Inc. (JACK) over the last year has been disappointing. Its stock price has declined by 7%, which is significantly behind the S&P 500's gain of 4% during the same time period. The company is putting in place a revised strategy in order to boost its financial outlook.
As Jack in the Box Inc. (NASDAQ:JACK) released its latest earnings announcement on 20 January 2019, analyst forecasts seem pessimistic, as a -14% fall in profits is expected in theRead More...
Bartlett estimated that Jack in the Box's same-store sales improved by 1% in the final nine weeks of the first quarter after introducing its value-priced BLT Cheeseburger Combo, a $4.99 promotion, and the $3 Loaded Fries. "While it is encouraging that consumers responded well to JACK's value approach, decelerating traffic (-3.3% at company stores vs. +2.0% in F4Q18) and widening SSS underperformance in F1Q19 as a whole shows that JACK remains at a disadvantage in the current value-oriented promotional environment," Bartlett wrote. Bartlett rated the company a buy with a $103 price target.