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
- Is It Time to Ignore the Fed? | Financial Sense
- And The Best Performing Asset In August Was... | ZeroHedge
- It's Settled: Central Banks Trade S&P500 Futures | ZeroHedge
- 20,000 Pakistan Riot Police Unleash Tear Gas, Rubber Bullets As Protesters Breach PM's Residence, 230 Injured | ZeroHedge
- Past Fear, Present Fear | ZeroHedge
- The March Of War | iBankCoin.com
- What Is the Bond Market Telling Us? | Financial Sense
The most relevant financial news and articles from the Internets
- Warren Buffett's 23 Most Brilliant Insights About Investing | Business Insider
- There's Not Enough Sand To Satisfy America's Insatiable Fracking... | Business Insider
- 50 Days Of War In Gaza May Cost Israel Dearly | Business Insider
- Should You Worry About That Mole? Here's How To Tell | Business Insider
- Apparent Hollywood hack attack nabs stars' nude pix | Business Insider
- Novartis Japan admits concealing drug side effects | Business Insider
- Rex Energy's High Growth, Faltering Stock Price Deserve a Look | TheStreet.com