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
- Gold Dumped (Pre-CPI) And Pumped (Post-CPI) | ZeroHedge
- Bill Ackman's "Most Important Death-Blow-For-Herbalife Presentation Ever" - Live Feed | ZeroHedge
- France Defies US, British Demands To Kill Mistral Sale To Putin... For Now | ZeroHedge
- Cows Versus Bulls | ZeroHedge
- Rising Wages Where? Real Wages Post First Annual Decline Since 2012 | ZeroHedge
- Yellen Reiterates Position of Extended Low Rates | Financial Sense
- When Twitter Word Order Goes Badly Wrong | ZeroHedge
The most relevant financial news and articles from the Internets
- 9 Tricks For Waking Up Earlier | Business Insider
- Here's The Number One Mistake That Kills Startups, According To Ben... | Business Insider
- An Activist Investor Takes Aim At A Multi-Billion Dollar Tech Company | Business Insider
- Netflix to Report Q2 Numbers; Original Programming a Boon | TheStreet.com
- The Israeli Army Is Suffering Some Of Its Most Severe Losses In Years | Business Insider
- Everything We Know About The Huge Spy Base In Cuba That Russia Is... | Business Insider
- Tripoli's International Airport Has Turned Into A Surreal Battleground [PHOTOS] | Business Insider