Diamonds and Dogs
Chipotle Mexican Grill (CMG) is back. The long-beleaguered fast casual chain is up 22% to a 10 month high on earnings that beat expectations by 36%. In the coming months, management will be piloting various tests across key innovation focus areas such as consumer access, the digital experience, our menu and restaurant experience, and realigning the organization to support the go-forward strategy. The new CEO has intentions to rejuvenate the brand after two years of stagnant growth. The restaurant will open at least 130 new locations this year.
After strong earnings from Verizon, AT&T (T) reported a dud. AT&T (T) is down 6% not far from a 52 week low after missing earnings estimates. Revenues fell 3.4% to $38.04 billion missing estimates as well. Declines in legacy wireline services, domestic video, and wireless service revenues, were partially offset by growth in wireless equipment and strategic business services. U.S. wireless results grew while DIRECTV NOW net new adds reach nearly 1.5 million subscribers.