Chipotle's ($CMG) revenue miss this past quarter was enough to hammer the widely-loved stocks price in early trading. At last check the stock is losing nearly 1/4 of its value as investors worry about slowing customer traffic and potentially higher food costs.
It is amazing how a stock gets crushed even though revenue rose by 21%, however it missed expectations by 2%. This is the stock market world we live in these days and why we must always do as much homework as possible to avoid a $CMG situation.
The unexpected negative news out of $CMG has taken its toll on other big name stocks in the sector. Dunkin' Brands ($DNKN) down 5%, Brinker International ($EAT) down 4.5%, Panera ($PNRA) down 5%, and Starbucks ($SBUX) down 4%. I am not sure what burritos have to do with coffee? Even the potential of rising input prices will not hurt Starbucks as much because their big cost is coffee beans, not commodities affected by the US drought.
We already own Starbucks for clients and look as today's sell-off as a buying opportunity for the stock as well as others in the sector.
Market expert and TV personality Matt McCall blogs about what is really moving the markets. He will emphasize Exchange-Traded Funds (ETFs) and individual stocks throughout the trading day.
No comments:
Post a Comment