Shares of Chipotle Mexican Grill  reported second quarter earnings that exceeded analysts’ expectations.

The fast casual restaurant chain's  net income came in at $6.60 a share, compared to the $6.50 per share predicted by analysts surveyed by FactSet.Adjusted earnings for the quarter were $7.46 a share, also topping analysts’ estimate of $6.53; the figure is also above the year-ago quarter’s 40 cents.

Revenue rose +39% year-over-year to $1.89 billion in the quarter, compared to  analysts’ estimate of $1.88 billion.

Chipotle has projected comparable restaurant sales growth in the low- to mid-double digits for  the third quarter.

Chipotle Chief Executive Brian Niccol indicated that the company is optimistic on achieving its goal of $3 million average unit volumes with “industry leading returns” on invested capital that are expected to improve as it continues to add Chipotlane drive-through lanes.

Chipotle Mexican Grill  got a rating boost from Stephens analyst James Rutherford, to overweight from equal weight.

Rutherford also hiked his share-price target to $1,700 from $1,600.This implies 26% upside from Wednesday's closing price

The analyst cited same-store sales long-term growth prospects, strong presence in the suburbs, and near-term sales drivers including reopening, new long-term opportunities (brisket being tested), digital growth, a return of dine-in sales, a bigger ad budget as some of the factors behind the improved outlook on the shares.

On Thursday, Shake Shack posted first-quarter revenue that fell short of analyst forecasts, leading to some analysts to lower their share-price targets. 

The fast casual restaurant chain’s revenue for the quarter came in at $155.3 million, versus $161.6 million expected by analysts’ (according to a Bloomberg consensus estimate).However, same-store sales growth of +5.7% handily topped the -1.74% expected by analysts.

Adjusted loss for the quarter was -1 cent vs. -$0.09 anticipated by analysts.

Analysts at Cowen cut its price target on Shake Shack shares to $93 from $97, while affirming its market-perform rating. 

Wedbush analysts lowered its target to $114 from $122 and maintained its rating at neutral.

 

 

The fast-food company, that owns chains like Taco Bell and Pizza Hut,  posted earnings of $326 million, or $1.07 a share, compared with $83 million, or 27 cents a share, in the year-earlier quarter.It also exceeded analysts’ expectation of $1.45 billion.

Global same-store sales increased 9%.

McDonald's is planning to shutter hundreds of its outlets in Walmart  stores by the end of the summer.

Walmart confirmed Friday that the fast-food restaurant chain will have around 150 locations after the closures. 

down from 500 at the start of the year and from an overall peak of about 1,000, The Wall Street Journal reported.

A former McDonald's executive told Dow Jones that stand-alone McDonald's locations with drive-throughs were far more profitable, even before the pandemic.

According to the executive, a third of the sales from Walmart-sited McDonald’s restaurants came from Walmart employees, while many patrons visited them only to load “up on refills and condiments, diluting margins.”

Walmart is now considering other restaurant options “that don't rely solely on store traffic,” others familiar with the situation told Dow Jones.

 

Coffee chain Starbucks Corp.’s shares got a rating upgrade from BTIG, as the latest round of federal stimulus checks is expected to boost spending on restaurants that are set to re-open. BTIG boosted its rating on Starbucks to buy from neutral, while maintaining its $130 price target. BTIG analysts mentioned in a note that the re-openings are faster than expected. They expect same-store sales...

Starting on March 11, Chipotle Mexican Grill is introducing customizable quesadillas to its online menu. The quesadillas will only be available on the Chipotle app and website, and will include monterey jack cheese and are prepared with “responsibly-raised” chicken, steak, carnitas, barbacoa, sofritas, or fajita vegetables, according to Chipotle. People can choose salsas or side orders,...

Howard Schultz, the executive chairman of global coffee giant Starbucks, appears bullish on blockchain.A recent investor call and interview with Fox Business’ Maria Bartiromo revealed that the company is likely to embrace the technology as a foundational piece for a future payment app. The company has long been at the forefront of digital payment solutions – according to Schultz, their emphasis on developing cashless payment methods is inherent to Starbucks’ “entrepreneurial DNA.” Schultz elaborated, “…[we’ve] constantly [had] the curiosity to see around corners and make big bets.

The new item, which will begin to be served across all its restaurants by the end of February, is  double-breaded with extra crispy chicken and thicker pickles.

The new addition  will be available seven days a week in all 4,000 KFC restaurants in the U.S. by the end of February, according to the the company.It will be priced at $3.99 a la carte , and $6.99 in a combo meal along with french fries and a drink.

"We tested the new KFC Chicken Sandwich in Orlando last spring, and we nearly doubled our sales expectations, so we knew that we had a winner," said Andrea Zahumensky, chief marketing officer of KFC U.S.

 

 

Wendy's   reported revenue that fell short of expectations. But earnings beat analysts’ forecasts. The fast food company’s adjusted EPS came in at 19 cents per share, higher than analysts’ expectations of 17 cents a share. Revenue of $452.2 million increased from $437.9 million a year ago.Analysts were expecting revenue of $454 million. "We remain focused on our goal of delivering efficient, accelerated growth behind our three major long-term growth pillars: building our breakfast daypart, growing our digital business and expanding our International footprint," said CEO Todd Penegor in a statement. 

Active membership in Starbucks’ U.S. loyalty program climbed +10% to 19.3 million people and accounted for 47% of transactions. China same-store sales dropped by just -3%. During the quarter, Starbucks opened 480 new cafes on net.It expects to open 1,100 net new stores and $1.9 billion in capital expenditures in the next fiscal year. Looking ahead, the company forecasts  adjusted earnings of 50 cents to 55 cents per share for the fiscal first quarter.  

Shake Shack's shares got a buy rating and a $78 share-price target at Loop Capital which initiated coverage on the stock. Loop Capital analyst Lynne Collier mentioned that  comparable-sales figures of the fast food restaurant chain have hit bottom and are turning around. Shake Shack's same-store sales fell -49% year-over-year in the quarter ended June 24, amid the coronavirus crisis and civil-rights protests that affected the restaurants’ operating hours.The odds of a continued upward trend are 77%. The Aroon Indicator entered an Uptrend today.

He also boosted his share-price target to $99 from $77. The analyst said in a note that he expects early signs of the U.S. recovery as “durable, aided by broadening digital access through expanded pay options for loyalty and 23% of U.S. stores adding curbside pickup,” . According to Charles, the coronavirus pandemic presents new efficiency opportunities to drive 15% earnings-per-share growth for 2022-2023.Calling the shares risk/reward balance "compelling, he mentioned that a bull/bear cases suggest 2-to-1 upside/downside ratio. “We believe Starbucks is pursuing the right structural drivers to help transcend displaced morning routines, including broadening payment options beyond a Starbucks card for customers to join My Starbucks Rewards loyalty program.”, Charles added.

In 17 of 21 cases where FAT's price crossed above its 50-day Moving Average, its price rose further within the subsequent month.The odds of a continued Uptrend are 81%. Current price $3.53 crossed the resistance line at $3.52 and is trading between $3.63 resistance and $3.52 resistance lines. Throughout the month of 07/13/20 - 08/12/20, the price experienced a +12% Uptrend.

Wingstop reported second-quarter earnings that surpassed analysts’ expectations. The restaurant chain specializing in chicken wings raked in earnings of 39 cents a share, from 17 cents in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings per share of 30 cents. The company’s revenue increased +36% year-over-year to $66.1 million, compared to FactSet analyst consensus of $62.5 million. "We benefited from a steadfast focus on expanding our digital business and leveraging delivery to make it seamless for fans to access … wings, fries and sides," Chief Executive Charlie Morrison said in a statement. Wingstop announced its dividend of 14 cents a share, +27% higher than the 11 cents last quarter.The odds of a continued Uptrend are 80%. Bearish Trend Analysis The RSI Indicator appears to be shifting from an Uptrend to a Downtrend.

This summer, McDonald's   plans to hire around 260,000 people . The fast food restaurant company said that it had implemented about 50 new safety procedures, as it reopens after months of coronavirus-induced lockdown.The safety measures including closing some seating and tables, cleaning more frequently and keeping play spaces closed.  “Our local business owners are proud to help their communities and provide employment and educational opportunities to hundreds of thousands of people this summer," said Joe Erlinger, president of McDonald's USA. The company operates its restaurants at about 14,000 locations in the U.S. MCD enters a Downtrend because Momentum Indicator dropped below the 0 level on June 17, 2020 This indicator signals that MCD's price has further to drop, since it moved below its price 14 days ago.

In 23 of 34 cases where SHAK's RSI Indicator exited the overbought zone, the price fell further within the following month.The odds of a continued Downtrend are 68%. Current price $54.36 crossed the support line at $55.14 and is trading between $55.14 support and $51.71 resistance lines. Throughout the month of 05/13/20 - 06/15/20, the price experienced a +17% Uptrend, while the week of 06/08/20 - 06/15/20 shows a -12% Downtrend. Technical Analysis (Indicators) Bearish Trend Analysis The Moving Average Convergence Divergence (MACD) crossed below the signal line.

Starbucks  received a credit rating downgrade from Fitch Ratings to BBB (the second lowest investment-grade rating) from BBB+.Fitch also mentioned a negative outlook on the coffee chain, which implies a potential further downgrade. The downgrade followed Starbucks’ proposal for $3 billion of unsecured notes, which creates a “higher leverage profile” for Starbucks according to Fitch. Fitch also mentioned that Starbucks’ fiscal second quarter earnings came in worse than expected amid the coronavirus pandemic.

Shake Shack said it would return a small business loan it received from the U.S. government as part of covid-19 relief package. The fast casual restaurant chain was able to get extra funding late last week through an equity transaction,  and decided to immediately return the $10 million paycheck protection loan it received through the CARES Act, (the Associated Press reported). CEO Randy Garutti and founder Danny Meyer said, “Shake Shack was fortunate last Friday to be able to access the additional capital we needed to ensure our long term stability through an equity transaction in the public markets”.They added, “We’re thankful for that and we’ve decided to immediately return the entire $10 million PPP loan we received last week so that those restaurants who need it most can get it now”.

In January, the coffee chain had  closed more than half its China stores due to risks posed by the coronavirus outbreak. Starbucks on Wednesday also announced that it is opening a “state-of-the-art coffee innovation park in China in 2022.The facility will include a roasting plant, warehouse and distribution center; and it is expected to create highly skilled jobs and new career opportunities that will help boost sustainable coffee manufacturing, as indicated by Chief Executive Kevin Johnson . The company is hoping to have 6,000 stores in China by 2022, which is 40% more than the current 4,290 figure.