Chipotle Stock Hits Record High as Customers Return to Dining
Chipotle Mexican Grill Inc.'s shares hit a record high Wednesday as the burrito chain expressed confidence about growth, saying customers are returning to its dining rooms to eat out despite higher menu prices.
Sales for the company's quarter ended in June outpaced the same period before the pandemic, with more people eating out again, particularly at lunch, the company said.
"It was pretty amazing to see how quickly the consumer showed up," Chipotle's CEO Brian Niccol said Tuesday.
Chipotle's shares recently rose more than 12% to $1,771 on Wednesday; earlier in the session, the stock marked a record high of $1,778.29. Chipotle's shares, which have been trading for more than 15 years, are up more than 50% over the past year.
Shake Shack Boosts Pay, Benefits -- Market Talk
0901 ET - Shake Shack says it's spending more than $10M in the next year on raises, bonuses and other benefits for workers as restaurants across the US fight for employees. The burger chain employing 9,000 people in the US says hourly wages were increased in more than two thirds of locations this year, following a pay bump in half of units last year. The company says it is offering $1,000 hiring bonuses for managers, along with $500 one-time allotments for restaurant crew through Aug. 31. Managers can make more than $115,000 in total compensation at the company. (email@example.com; @heatherhaddon)
Kura Sushi Shares Falter Premarket After Public Offering Prices
Kura Sushi USA Inc. shares were under pressure early Wednesday after the restaurant chain priced an equity raising below the last closing price.
Kura, a Japanese restaurant concept with 32 locations in nine states and Washington, D.C., said the public offering of 1.1 million of its class A shares priced at $45 each. The underwriters of the offering have a 30-day option to buy up to 165,000 additional shares.
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Coca-Cola Expects Growth Despite Covid-19 Resurgence -- Market Talk
0955 ET - Coca-Cola says it expects organic revenue growth between 12% and 14% this year as the reopening continues despite Delta variant concerns. "While coronavirus-related uncertainty continues, the company remains agile in order to execute on its strategic priorities and build on the work that has been done in the past year to navigate an asynchronous recovery," Coca-Cola says, as it reports a 48% earnings growth in the 2Q. Shares rise 2.6%. (firstname.lastname@example.org; @ptrevisani)
Bakkavor 2Q Sales Rose as Covid-19 Restrictions Eased
Bakkavor Group PLC said Wednesday that it saw strong sales growth in the second quarter as coronavirus restrictions were eased, with reported revenue rising on year.
The provider of prepared foods said reported revenue in the 13 weeks to June 26 was 13% higher than in the equivalent period of 2020, and rose 16.1% on a like-for-like basis. Second-quarter reported revenue rose 0.7% compared with the same period in 2019, prior to the coronavirus pandemic, and 1.8% on a like-for-like basis compared with 2019.
Cattle Higher Ahead of Feed Report -- Market Talk
1446 ET - Cattle futures on the CME closed trading higher, ahead of Friday's Cattle on Feed report from the USDA. Analysts surveyed by The Wall Street Journal are expecting the amount of cattle on feed as of July 1 to be 98.8% of this time last year, while cattle marketed in June is expected to be 102.3% of last year's figure. "Drought in the Western U.S. continues to be an issue and is likely leading to lighter weight cattle being placed early this year which could possibly be a greater factor during the third quarter," says Steiner Consulting Group in a note this week. Cattle futures closed trading up 0.4% to $1.2525 per pound, while lean hog futures closed 1.5% higher to $1.06575 per pound. (email@example.com; @kirkmaltais)
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