Chipotle Mexican Grill (CMG, $719.61) stands out as top performer in Pershing’s fund
Pershing Square Holdings, the hedge fund led by the billionaire Bill Ackman, delivered a strong performance in the first quarter of 2019. Its full net asset value per share rose 36.9% during the said quarter and surged 38.4% year-to-date.
Key holdings in the fund’s portfolio include Chipotle Mexican Grill accounting for 9.8% of the fund, Restaurant Brands International (QSR) accounting for 5.3%, and Starbucks (SBUX) making up 3.2% of the fund.
Chipotle Mexican Grill rose above the res, whose store sales grew by 10% in the said quarter. Its digital sales doubled y-o-y to almost 16% of overall sales coupled by a strong delivery strategy that has further increased sales and improved margins.
The hedge fund thinks that Chipotle is on a path to transformation that will expand its footprint and astounding growth in sales and profits in the future.
Restaurant Brands was the second best performer of the fund whose unit count expanded by more than 5% and EBITDA grew by 6%.
On the other hand, Starbucks grew 7% in Q1 opening another 30,000 stores globally. The fund believes the company can still have a better future in China where currently it is under-penetrated.
CMG's RSI Indicator stays in oversold zone for 7 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
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Notable companies
The most notable companies in this group are McDonald's Corp (NYSE:MCD), Starbucks Corp (NASDAQ:SBUX), Chipotle Mexican Grill (NYSE:CMG), Yum! Brands (NYSE:YUM), Darden Restaurants (NYSE:DRI), Domino's Pizza (NYSE:DPZ), Yum China Holdings (NYSE:YUMC), Shake Shack (NYSE:SHAK), Noodles & Company (NASDAQ:NDLS).
Industry description
The industry includes companies that operate full-service restaurants, fast food restaurants, cafeterias and snack bars. McDonald`s Corporation, Starbucks Corporation, YUM! Brands, Inc. and Restaurant Brands International Inc. are some of the largest U.S. restaurant-owning companies in terms of market capitalization. While restaurant spending could be viewed as discretionary for consumers, some companies in the business have been able to weather economic cycles by establishing strong loyalty among customers over the years. Many of them also have a strong global presence as well.
Market Cap
The average market capitalization across the Restaurants Industry is 6.81B. The market cap for tickers in the group ranges from 6.73K to 181.22B. MCD holds the highest valuation in this group at 181.22B. The lowest valued company is AMHG at 6.73K.
High and low price notable news
The average weekly price growth across all stocks in the Restaurants Industry was 0%. For the same Industry, the average monthly price growth was -2%, and the average quarterly price growth was -5%. DPCDF experienced the highest price growth at 32%, while ALSSF experienced the biggest fall at -17%.
Volume
The average weekly volume growth across all stocks in the Restaurants Industry was 14%. For the same stocks of the Industry, the average monthly volume growth was 32% and the average quarterly volume growth was 119%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 46
P/E Growth Rating: 64
Price Growth Rating: 64
SMR Rating: 65
Profit Risk Rating: 85
Seasonality Score: 15 (-100 ... +100)