In addition to Whole Foods, many fast-food, restaurant, and coffee chains are falling due to...

In addition to Whole Foods, many fast-food, restaurant, and coffee chains are falling due to Chipotle's (CMG -22.4%) revenue miss and soft guidance, with upscale names particularly in the crosshairs. PNRA -4.5%. SBUX -3.2%. BWLD -5.5%. BJRI -4.9%. DNKN -3.5%. YUM -2.8%. TXRH -3.3%. Chipotle has been seen as best-of-breed in the fast-food space (and valued accordingly): it's little surprise a top-line miss and comments about slowing traffic growth are raising alarm bells.

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Comments (11)
  • Tack
    , contributor
    Comments (16553) | Send Message
    Maybe, CMG's performance and soft guidance is related to its ersatz "Mexican" food and has nothing to do with other firms.


    As for "valued accordingly," it's been wildly overvalued, like so many "mo-mo" names, just waiting to deliver a day like today for all its "investors."
    20 Jul 2012, 12:13 PM Reply Like
  • montanamark
    , contributor
    Comments (1456) | Send Message
    50 PE burritos and they are surprised
    20 Jul 2012, 12:43 PM Reply Like
  • GaltMachine
    , contributor
    Comments (2090) | Send Message
    " best-of-breed in the fast-food space"


    Today shows how much air exists under the prices of these "premium" stocks.


    Look at RIMM soon to be renamed RIP, NFLX, etc.


    Who's next?
    20 Jul 2012, 12:50 PM Reply Like
  • Tom Guttenberger
    , contributor
    Comments (714) | Send Message
    CMG makes a quality product, but was it ever overvalued. Typical momo buster. On another note, seeing DNKN get rocked feels pretty good, even crazier valuation, plenty of meat on the bones short.
    20 Jul 2012, 01:02 PM Reply Like
  • FWS
    , contributor
    Comments (136) | Send Message
    Next is CRM,LNKD,AMZN. Get ready to print some money!
    20 Jul 2012, 01:25 PM Reply Like
  • SarahKnows
    , contributor
    Comments (94) | Send Message
    What this "market" needs is a few more excuses to short stocks. I love the fantasy that mutual funds and equities are a great place to grow "Retirement" funds. When are the wooly masses going to wake up and smell the overpriced coffee in this poor excuse for a country? The financial markets are driven by day traders and speculators.
    20 Jul 2012, 04:58 PM Reply Like
  • Tack
    , contributor
    Comments (16553) | Send Message
    If you think you're going to build a secure future by shorting stocks, then I hope you have some rich relatives or are planning on availing yourself of the myriad Government support programs because you're going to need one of the other.
    20 Jul 2012, 07:15 PM Reply Like
  • surfnspy
    , contributor
    Comments (406) | Send Message
    21 Jul 2012, 02:52 AM Reply Like
  • The Fox
    , contributor
    Comments (831) | Send Message


    I agree with you. I have shorted plenty of stocks and it is VERY difficult. Even when you are "right" if your timing isn't perfect you are getting shelled. I shorted CRM on two occasions. One trade I made money and the other I got my head handed to me. I might be learning this lesson again. I am short UA going into earnings based on its absurd valuation. Of course, that isn't a great reason to short as evidenced by CRM. Timing is everything and nobody can time effectively....even when they tell you they can. It is impossible.
    21 Jul 2012, 08:42 AM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (13620) | Send Message
    CMG is more a fad food over-expectation pop more than a leading indicator for the restaurant industry. What is a indicator for restaurants is grocery stores which are also showing weakness.
    21 Jul 2012, 10:33 AM Reply Like
  • zipit123
    , contributor
    Comments (21) | Send Message
    No one wants to pay $7 for a burrito that is mostly rice and beans.
    23 Jul 2012, 01:45 PM Reply Like
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