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Chipotle

Chipotle (CMG): Awaiting strong correction in bearish waveAfter the recent 50-1 stock split, we revisited Chipotle's chart, refining our analysis for a clearer picture. With the adjusted setup, we’re more confident in our outlook for a potential bearish correction. Our initial turn-around zone was spot-on when factoring in the split, and we remain committed to our analysis. Today, NYSE:CMG reached the targeted Wave B area at the 61.8%-78.6% Fibonacci level. Immediate reactions are often rare, but we believe a reversal could materialize soon. We’re eyeing the range between $43-$26, near the trendline, as a potential target zone for the next phase in this corrective wave pattern. In the second quarter, Chipotle posted an 18.2% year-over-year revenue growth, boosted by an 11.1% rise in comparable restaurant sales and over 8% transaction growth. The earnings report tomorrow will likely attract more investor attention, but our approach focuses on technical entries at key levels rather than earnings reactions. We have alerts set and are prepared to buy when the scenario aligns. Until then, patience and disciplined timing will guide our approach.
NYSE:CMGShort
by freeguy_by_wmc
Starbucks Appoints New CEO: Brian Niccol Takes the Helm Starbucks Corporation (NASDAQ: NASDAQ:SBUX ), a global leader in coffee retail, has made a significant leadership change by appointing Brian Niccol, former CEO of Chipotle Mexican Grill, as its new Chairman and CEO. This decision, announced on September 9, 2024, has already sparked considerable investor interest, with Starbucks shares surging 24% on the news. However, while the market reacts positively, some caution may be warranted as the journey ahead could be challenging. Leadership Change and Market Reaction The appointment of Brian Niccol is a bold move by Starbucks, aiming to revitalize the company's growth strategy. Niccol is widely recognized for his transformative leadership at Chipotle, where he nearly doubled the company’s revenue and achieved an 800% increase in its stock value during his tenure. His success in driving digital transformation, menu innovation, and expanding brand benefits positions him as a promising leader for Starbucks at a crucial time. Niccol is set to succeed Laxman Narasimhan, who is stepping down after a brief 17-month tenure. During his time as CEO, Narasimhan focused on enhancing partner experience and store operations, but the company faced several challenges, including declining sales, rising competition in China, and changing consumer spending patterns due to economic pressures. What This Means for Starbucks The appointment of Niccol signals Starbucks' commitment to reinvigorating its growth and adapting to the evolving market landscape. His track record at Chipotle suggests that Niccol could introduce significant changes to Starbucks' operational and digital strategies. However, investors should be mindful that such transformations take time to materialize and that the initial market exuberance may be premature. Technical Analysis: Key Levels to Watch From a technical perspective, Starbucks’ stock has confirmed a double bottom pattern, a bullish indicator that suggests a potential reversal from its recent downtrend. The stock surged above its 200-day moving average with a trading volume of over 150 million shares, the highest since June 2000. This level of activity indicates strong interest from institutional investors, which could bode well for the stock’s future performance. The daily price chart shows a gap up, a strong bullish reversal pattern where a stock's opening price exceeds the previous day's closing price. Conversely, a gap down occurs when the opening price is lower. A gap up indicates bullish sentiment and strong buying interest. However, the stock’s Relative Strength Index (RSI) is currently above the 70 threshold, indicating overbought conditions. This could lead to short-term profit-taking, so investors should monitor key support and resistance levels closely. - Support Levels: Starbucks shares may find support around $86, a level that aligns with key Fibonacci retracement levels. If the stock pulls back further, it could test the $83 level, where the double bottom’s neckline is located. - Resistance Levels: On the upside, the stock could face resistance near $98, with a more bullish move potentially targeting the $107.50 area, where a trendline connects multiple peaks from the past year. Conclusion: A Cautious Optimism While the market has responded enthusiastically to Niccol’s appointment, it’s essential to approach this transition with cautious optimism. Niccol's proven leadership could drive significant growth for Starbucks, but the challenges he inherits from his predecessor will require time and strategic execution to overcome. Investors should keep a close eye on how these developments unfold and consider their risk tolerance before making any decisions. The potential is there, but as always in the stock market, nothing is guaranteed.
NASDAQ:SBUX
by DEXWireNews
$CMG top in?As you can see on the weekly chart, we had a deviation above resistance and now look to be closing below it. Typically, that's an extremely bearish pattern. Since the covid low, we've largely seen Chipotle go straight up and now I think we're about to see it go straight down. Ichi also showing exhaustion signs. I'd expect to see a bottom sometime between now and mid-next year down below the $24 range. My base case is that we bottom before the end of the year, but the move can extend into next year. Let's see what happens.
NYSE:CMGShort
by benjihyam
2
Chipotle Mexican Grill (CMG) Soars on Stellar EarningsIn the fast-paced world of stock trading, few names evoke the kind of sizzle that Chipotle Mexican Grill (NYSE: NYSE:CMG ) does. With its recent first-quarter earnings report exceeding expectations, NYSE:CMG stock is once again on investors' radar for all the right reasons. Chipotle ( NYSE:CMG ) reported 27% surge in earnings to $13.37 per share, easily outpacing the FactSet consensus of $11.81 per share. This marks the second consecutive quarter of accelerating growth for the burrito giant, cementing its position as a formidable player in the ever-evolving restaurant industry. But it's not just the bottom line that has investors salivating; Chipotle's top-line performance was equally impressive. Sales soared nearly 14% to $2.684 billion, slightly surpassing analyst forecasts. Driving this growth was a robust 7% increase in same-restaurant sales, showcasing the enduring popularity of Chipotle's offerings among consumers. Not content with resting on its laurels, Chipotle ( NYSE:CMG ) also saw improvements in its operating margins. Operating margin expanded to 16.3% from 15.5%, with restaurant operating margins reaching 27.5%, up 190 basis points. This operational efficiency underscores Chipotle's ability to drive profitability even in challenging market conditions. Looking ahead, Chipotle ( NYSE:CMG ) remains bullish on its growth prospects, forecasting same-restaurant sales growth in the mid- to high-single digits. This optimistic outlook reflects management's confidence in the strength of Chipotle's brand and its ability to capture market share in the highly competitive restaurant landscape. Investors have wasted no time in expressing their enthusiasm for Chipotle's stellar performance. Following the earnings announcement, NYSE:CMG stock surged 3.5% to $3,028 in early Thursday trading. This uptick builds on the stock's recent momentum, with shares posting their third consecutive gain. But perhaps the most compelling development for investors is Chipotle's proposed 50-for-1 stock split, pending shareholder approval at the annual meeting on June 16. If approved, this move could make CMG stock more accessible to a broader range of investors, potentially fueling further upside in the share price. In summary, Chipotle Mexican Grill's ( NYSE:CMG ) stellar first-quarter earnings report underscores its resilience and ability to thrive in a dynamic market environment. With accelerating earnings growth, robust sales performance, and a promising outlook, NYSE:CMG stock appears poised for continued success. As investors await the outcome of the stock split vote, now could be an opportune moment to consider adding Chipotle to their portfolios for long-term growth potential.
NYSE:CMGLong
by DEXWireNews
Chipotle Breaks Tradition with 50-for-1 Split Amid Record HighsIn a groundbreaking move reflecting its soaring market success, Chipotle Mexican Grill ( NYSE:CMG ) has announced its first-ever stock split, igniting excitement among investors and signaling a new era of accessibility for potential shareholders. The decision, approved by the company's board, comes as Chipotle's shares continue to reach unprecedented highs, with premarket trading seeing a nearly 8% surge to $3011. Chipotle's ( NYSE:CMG ) remarkable ascent to record levels over the past year underscores the unwavering demand for its signature burritos and rice bowls, particularly among its affluent customer base. Buoyed by robust earnings, the California-based chain has solidified its position as a market leader, driving its market value to a staggering $76.71 billion. The 50-for-1 stock split is a strategic move aimed at democratizing ownership of Chipotle's shares, making them more accessible to individual investors. If approved at the upcoming annual meeting, shareholders stand to receive an additional 49 shares for each share held, effectively reducing the share price to around $56 based on Tuesday's closing price. Chipotle's ( NYSE:CMG ) Chief Financial and Administrative Officer, Jack Hartung, emphasized the split's role in expanding ownership opportunities, stating it will "make our stock more accessible to employees as well as a broader range of investors." Analysts view the stock split as a savvy maneuver to enhance liquidity while maintaining the company's compelling economics. Jim Sanderson, an analyst with Northcoast Research, noted that the move should ease liquidity concerns given Chipotle's soaring share price, which ranked it as the fourth-highest-per-share value on the S&P 500 index. Despite the split, Chipotle's fundamental strengths remain intact, with its forward price-to-earnings multiple (P/E) standing at 49.72, outpacing industry peers such as Starbucks and McDonald's. This underscores investors' confidence in Chipotle's growth prospects and reinforces its status as a formidable player in the fast-food industry. Technical Outlook Chipotle ( NYSE:CMG ) is trading above the 200- day Moving Average (MA) with a Bullish Relative Strength Index (RSI) of 86 indicating strong overbought situation. As Chipotle charts new territory with its historic stock split, all eyes are on the company's continued trajectory and its ability to sustain momentum in a fiercely competitive market. With accessibility on the rise and investor enthusiasm soaring, Chipotle is poised to embark on its next chapter of growth and innovation, reaffirming its status as a beloved brand and investment powerhouse in the years to come.
NYSE:CMGLong
by DEXWireNews
CMG Weekly H&S Forming Into +GEX Level - weekly is forming right shoulder in distribution cycle right at 1600 psych + positive gamma level - consistent with /ES local top of 4060 (or 4200 on impulse wave) - invalidated if break above 1630s - high risk counter trend trade against current market conditions & positive gamma ratios - BTO Feb 1400p @ 10.85 - IV on puts is cheap + upcoming ER should elevate Feb premiums - gamma conditions for this week and next week's expiry outlined below Ticker: NYSE:CMG Exp. Dates. Greater Than: 2023-01-27 Total_OI:= 39443.00 COTMC:= 1694.77 CITMP:= 1634.34 COI:= 1600.00 plus_GEX:= 1600.00 Spot_Price:= 1596.86 COTMP:= 1571.13 Pos_Trans:= 1535.00 ZeroGEX:= 1505.00 CITMC:= 1493.08 SMA50:= 1488.47 EMA21:= 1487.95 Neg_Trans:= 1440.00 POI:= 1400.00 minus_GEX:= 1400.00 GEX_Ratio:= 1.63 Ticker: NYSE:CMG Exp. Dates. Greater Than: 2023-02-03 Total_OI:= 35202.00 COTMC:= 1694.77 CITMP:= 1634.34 COI:= 1600.00 plus_GEX:= 1600.00 Spot_Price:= 1596.86 Pos_Trans:= 1575.00 COTMP:= 1571.13 ZeroGEX:= 1505.00 CITMC:= 1493.08 SMA50:= 1488.47 EMA21:= 1487.95 Neg_Trans:= 1440.00 POI:= 1400.00 minus_GEX:= 1400.00 GEX_Ratio:= 1.49
NYSE:CMGShort
by soulunveiled
Chipotle - More rice please!-Although they never put enough rice and meat in their bowls, the price hike that they gave to us is enough for now! -The 27 analysts offering 12-month price forecasts for Chipotle Mexican Grill Inc have a median target of 1,800.00, with a high estimate of 2,100.00 and a low estimate of 1,569.20. The median estimate represents a -4.56% decrease from the last price of 1,886.00. -Based on analyst expectations we are already at the price that was expected. Now the only thing left is to digest the bowls we ate and lay down for a nap. -Long-term, definitely a buy but for now it rose at took all it could.
NYSE:CMGShort
by caldooninvestment
11
McDonalds +20% Upside Trade?MCD's has consolidated nicely right along its recent all time high set months ago at $231.91 and is doing so off of consecutive higher highs and higher lows on significant time frames. On the monthly, we also see that McDonalds is putting in a bullish engulfing candle. There are still a few weeks left in the month, but with the price already being in blue sky territory, and very little bearish momentum in sight, there does not appear to be anything in its price chart to hold it back from running all the way to its first fib extension at around $297.88 roughly, based on a retracement from its previous all time high in October 2020, down to the swing low in March 2020. From the time of writing this that would be a 25% gain approximately. Stop loss just below $231.91 and $221.29 would be wise (just incase it wicks). Be very cautious with a close below $221.29 as there is plenty of room to fall swiftly if volume/bids fail to come in.
NYSE:MCDLong
by TradeVibez