Diamonds and Dogs
Burgers are in today. McDonald's (MCD) shares spiked 3% today despite the fast food giant missing earnings on both the top and bottom lines. Traders are banking on new CEO Steve Easterbrook's turnaround plan, which will be announced on May 4th. The stock has risen since he first took helm at the Golden Arches. But McDonald's is facing headwinds including slipping sales and the strong dollar.
High-flyer, Chipotle Mexican Grill (CMG) tumbled 7% today despite earnings that topped estimates. The issue was revenue, which just fell shy of forecasts. And though sales rose 10% during the quarter, the Street was hoping for something closer to 12%. When the rate of growth is called into question – a growth stock typically sells off. But don't feel sorry for Chipotle shareholders. Since being spun off from McDonald's 9 years ago, the stock has risen more than 10 fold. Not bad.
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