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

NEW YORK, NY / ACCESSWIRE / June 29, 2018 / Shares of Starbucks and Chipotle were both shedding on Thursday. Starbucks saw its shares drop after revealing that its CFO and executive vice president Scott Maw would be stepping down this year and Chipotle saw a loss after analysts noted that the company’s investor call was light on giving details.

RDI Initiates Coverage on:

Chipotle Mexican Grill, Inc.
https://rdinvesting.com/news/?ticker=CMG

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

Chipotle Mexican Grill, Inc. shares closed down 6.32% on about 2.2 million shares on Thursday. The burrito restaurant chain, under the leadership of new CEO Brian Niccol who came from Taco Bell, will be going through some big changes. The company announced that it will be closing as many as 65 underperforming locations. Niccol said on the company’s investor call that he can “easily see a future where Chipotle more than doubles revenue to over $10 billion.” Analysts said the call was disappointing however because of the lack of detail given. BTIG analyst Peter Saleh remarked, “The call was lighter on detail than we would have liked so we expect weakness in the stock today.” Guggenheim analyst Matthew DiFrisco stated, “[The] conference call disappointed in that it lacked meaningful near-term catalysts or fine tuned financial objectives.” Chipotle said on the call that it expects to spend as much as $135 million to win back customers and reposition the company as a lifestyle brand. Spending will be on a new ad campaign and digital investments to speed mobile and online orders.

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

Starbucks Corporation shares closed down 2.61% on about 32 million shares traded on Thursday. The coffee giant slipped after traders learned that the company’s CFO and executive vice president, Scott Maw, is stepping down. Maw will retire on November 30th and the company has already looked for someone to replace him. CEO of Starbucks, Kevin Johnson remarked, “As we enter our next phase of continued growth, I am confident in the finance team Scott has developed and am appreciative of his willingness to support through the transition into new leadership.” Johnson also said, “I am grateful for the contributions Scott has made over the past seven years that led to the unprecedented growth of Starbucks.” Maw will remain as a senior consultant for the company through March 2019 after he retires. Starbucks had recently announced that it would be closing 150 underperforming stores.

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

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

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SOURCE: RDInvesting.com

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