Edgar Investment Management, LLC’s Post

📈 Ahhh, Thursday. We're almost to the weekend folks. Wednesday saw minimal market fluctuations as investors geared up for more earnings reports. The NASDAQ edged up by 0.10%, the S&P 500 barely moved, finishing just 0.02% above the open, while the Dow Jones dipped slightly by 0.11%. 🌯 Chipotle Mexican Grill Inc. (CMG) raised its annual forecast, riding high on increased demand driven by limited-time promotions like chicken al pastor. The numbers speak volumes: -Revenue: $2.70B vs. $2.67B Expected -Earnings Per Share: $13.37 vs. $11.66 Expected -Same-store Sales Growth: 7% vs. 5.13% Expected What's fueling this success? High-priced limited-time offerings such as Braised Beef Barbacoa and Chicken al Pastor, despite challenging market conditions. Although foot traffic rose by 5.4%, the average spend per customer saw a modest 1.6% increase, slightly below the predicted 2.0% rise. 🚀 Chipotle's expansion plans are in full swing. In Q1 alone, they opened 47 new restaurants, with 43 featuring Chipotlane drive-thru concepts. Their vision for the year? Introduce between 285 and 315 new establishments, with over 80% embracing the drive-thru concept. They aim to hit a total of 7,000 restaurants across North America in the future, doubling the current count of 3,500. 🛒 In 2023, Kroger clinched the top spot in Houston's grocery wars, surpassing H-E-B and affiliates to become the supermarket with the largest market share in the Houston area, commanding 22.7%. Together, Kroger and H-E-B accounted for over 45% of the region's grocery industry last year. 📊 While Kroger took the market share crown, H-E-B stood out for exceptional average performance per store. Despite securing the second position in total market share, each of H-E-B's 76 Houston locations boasted an impressive average sales figure of $79.7 million, setting a remarkable standard in the industry. 🌮💼 #EdgarDailyMarketMusings #MarketRecap #ChipotleEarnings #RetailTrends 📈🛍️

Darden Restaurants on Thursday reported quarterly earnings and revenue that met analysts' expectations and better-than-expected same-store sales growth at Olive Garden and LongHorn Steakhouse. Shares of the company rose 8% in premarket trading. Here's what the company reported, which may not compare with what Wall Street was expecting, based on a survey of analysts by LSEG:

Chipotle Mexican Grill - Anamoly in this economy even with continued price increases and hardly any innovation (they once showed a spicy chocolate shake in one of their documents a long long time ago). Stock is +30% YTD and +60% past year....... comps +5%, transactions +3% and avg check +2% "Chipotle has become the rare restaurant chain to report rising transactions despite higher menu prices. The company once again raised its prices in October, citing inflation. Others in the restaurant industry have turned to limited-time offers and deals to appeal to customers, particularly those with lower incomes." https://lnkd.in/gXuVhgUn

Casey's General Stores saw higher net income despite lower revenue in the fiscal second quarter, thanks to improved same-store sales fueled by the prepared food and dispensed beverage category. https://lnkd.in/dqpYZZJk

Earlier this week, I went through the earnings results to figure out which restaurant companies were the winners and loses in Q2. I focused narrowly on same-store sales changes, rather than post-earnings shifts to valuation or to other earnings metrics. What's interesting is the scale of the divergence between the successful and the unsuccessful, with a handful of companies seeing runaway success while others are stuck in slow sales declines. But I think the biggest Loser of the quarter is the consumer. Pricing data from BLS is unambiguous: Food away from home price increases have matched or outstripped inflation most of this year, and are rising faster than food at home prices. If this continues, it may strengthen the value proposition grocery stores have compared to restaurants and make the competition for traffic within the industry more closely resemble a zero-sum game.

Higher costs and inflation-weary consumers are starting to erode sales across much of the U.S. restaurant industry. Traffic last year, while 1% higher than in 2022, remained 8% below pre-pandemic levels, according to market research firm Circana. Many Chipotle customers, though, are still willing to pay. The California-based chain’s same-store sales grew 8.4% last quarter, outpacing rivals including McDonald’s and Starbucks’s U.S. operations. Chipotle has reported better-than-expected earnings for four straight quarters, according to FactSet. It is one of the industry’s fastest-growing chains, with plans to build around 300 new locations this year. #growth #inflation #prices #chipotle

Interesting takeaways from Darden's earnings report today: - Same-store sales down 1.1% YOY system-wide. - Eddie V's Prime Seafood & The Capital Grille had same-store sales down 6.6% YOY. - Olive Garden had same-store sales down 2.9% YOY. - LongHorn Steakhouse helped soften declines with a 3.7% increase YOY. I read this as: Low income consumers are dining out significantly less or not at all. Middle & upper income consumers are dining out, but opting for mid-priced options such as LongHorn Steakhouse rather than more full service options such as Eddie V's Prime Seafood or The Capital Grille. In short - consumers are watching their spending carefully. Darden noted significant softness in July, but reaffirmed full year guidance and said sales trend is improving. Placer.ai’s recent data supported this, reporting a 4.4% foot traffic decline in July and a 6.9% rebound in August at Olive Garden. Darden stock was up over 8% after the news, primarily related to a first-party delivery agreement with Uber Eats and a positive forward outlook. Article on Darden's earnings from Bloomberg below: https://lnkd.in/gvJxGeee #darden #restuarants #retailers #earnings #consumerspending #retailrealestate #cbre

Darden Restaurants recently reported its quarterly results, showcasing resilience amidst a challenging environment. While Olive Garden faced a decline in same-store sales for the second consecutive quarter, Darden's overall performance remained steady, with earnings per share surpassing expectations at $2.65 and revenue reaching $2.96 billion. Looking forward to fiscal 2025, Darden projects a promising outlook with expected earnings per share between $9.40 and $9.60 and anticipated net sales of $11.8 billion to $11.9 billion. The company's LongHorn Steakhouse segment notably reported a 4% increase in same-store sales, underscoring Darden's effective management and operational strength. With plans to invest $550 million to $600 million in capital expenditures, Darden is poised to enhance its offerings and maintain its competitive edge in the market. Read More Here: https://lnkd.in/eFgDC97p #hospitality #restaurants #technology #innovation Branded Hospitality Ventures Angelo Fama Jr. John Espy Dave George Daryl L. Cunningham Lisa McDowell Robert Anderson Ali Charri

Wendy’s is closing 140 lower-volume restaurants in weaker markets through the end of the year as part of a strategy the company says will strengthen the system’s overall health and prepare it for a more rapid pace of growth in the coming years. #grow🌱 #agribusiness #supplychain #trade #usa🇺🇸 #markets #wendys🍔 #commodities #closures #demand #stagflation #consumers #downturn