Today’s Research Reports on Stocks to Watch: Starbucks and Chipotle

NEW YORK, NY / ACCESSWIRE / June 6, 2018 / It was a grim day for Starbucks shares as investors continued to mourn the loss of Howard Schultz, who will be leaving the company at the end of the month. Shares of Chipotle were seeing green after getting an upped price target from Peter Saleh of BTIG.

RDI Initiates Coverage on:

Starbucks Corporation
https://www.rdinvesting.com/report/?ticker=SBUX

Chipotle Mexican Grill
https://www.rdinvesting.com/report/?ticker=CMG

Starbucks Corporation shares closed down 2.44% on nearly 18.3 million shares traded in Tuesday’s trading session. The coffee giant fell as much as 3% yesterday after it was revealed that the company’s former CEO Howard Schultz will be departing the company. The exit of the executive had been announced after the market closed on Monday. Analyst Andrew Charles of Cowen & Co. wrote, “Investors did not anticipate Schultz (would) return to the CEO role to help improve domestic trends, but we view the resignation as an incremental negative for shares given the loss of a powerful mind.” Charles also added, “The surprise move amplifies the likelihood Schultz ultimately pursues public office.” Schultz will leave on June 26th, which also marks completion of 26 years since the company went public. Analyst David Palmer of RBC Capital also chimed in and wrote, “It is reasonable for shareholders to worry about the retirement of a legendary leader from the brand, especially one who defines the culture as Howard does.” Robert Passikoff, president of consultancy Brand Keys also said, “Howard was not only the guy who started the company but he was the one who maintained brand vision. He walked away once and the company suffered immensely.”

Access RDI’s Starbucks Corporation Research Report at:
https://www.rdinvesting.com/report/?ticker=SBUX

Chipotle Mexican Grill, Inc. shares closed up 2.14% on Tuesday on roughly 719,000 shares traded. The burrito restaurant chain saw a pop in its share price yesterday after recently receiving a price target hike from Peter Saleh of BTIG. The analyst raised his price target on Chipotle shares from $460 to $500 and reiterated a “buy” rating. According to Saleh the company’s turnaround is progressing well. He also expects the company to see improving sales and declining labor expenses. In its last quarterly report, the company revealed an adjusted EPS of $2.13 for the first quarter. Analysts had been expecting EPS of $1.57. Revenue for the quarter was $1.2 billion which was in line with estimates. Since the start of the year, Chipotle shares have rallied over 50%.

Access RDI’s Chipotle Mexican Grill Research Report at:
https://www.rdinvesting.com/report/?ticker=CMG

Our Actionable Research on Starbucks Corporation (NASDAQ: SBUX) and Chipotle Mexican Grill, Inc. (NYSE: CMG) can be downloaded free of charge at Research Driven Investing.

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