No More $400 Burrito Stock (CMG)
When Chipotle Mexican Grill, Inc. (CMG) shares topped $400 anyone holding should have sold then. Chipotle crashed today like a classic momentum stock and shareholders got a wet burrito slap to the face.
Chipotle shares fell $86 today closing at $316 for a 22% decline. The love affair between Wall Street and Chipotle Mexican Grill is over. Traders crushed the stock after the company missed the quarter and warned there will trouble ahead.
Chipotle Mexican Grill's Q2 revenue hit $691 million. That's an impressive number but the Street expected $706 million and down the ship goes. To make matters worse, a record drought is likely to raise food prices this year and next, says Jack Hartung, Chipotle’s CFO.
MASTERY Bottom line:
Burritos hit the fan today and Mastery expects CMG to continue to trade volatile for the next week.
Let the dust settle before you consider taking a bite of Chipotle.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- A Drone's Eye View Of The Massive Numbers Behind The Greek "No" Vote | ZeroHedge
- Volatility, Confusion Reign As PBoC Intervenes: Chinese Stocks Surge Then Tumble | ZeroHedge
- Tumbling Futures Rebound After Varoufakis Resignation; Most China Stocks Drop Despite Massive Intervention | ZeroHedge
- Citigroup Just Cornered The "Precious Metals" Derivatives Market | ZeroHedge
- Greek Referendum Polls Close: "No" Seen Ahead By Most | ZeroHedge
- Have the Saudis Miscalculated the Impact of Lower Crude Prices on US Production? | Financial Sense
- Nomi Prins: In A World Of Artificial Liquidity – Cash Is King | ZeroHedge
The most relevant financial news and articles from the Internets
- 'Terminator Genisys' had a rough weekend at the box office | Business Insider
- Amazon's Hit Man | BusinessWeek
- This founder used to split his time between Amazon... | Business Insider
- 4 ways to outsmart any multiple-choice test | Business Insider
- The "Magic Mike" sequel was a huge disappointment at the box... | Business Insider
- Hallucinogens Legally Sold as 'Bath Salts' a New Threat | BusinessWeek
- A butcher's hack for soggy buns, and other game-changing burger... | Business Insider