Top Consumer Stocks
Consumer stocks were broadly lower in mid-day trading, with shares of consumer staples companies in the S&P 500 dropping almost 1.0% while shares of consumer discretionary firms in the S&P 500 were losing about 0.3%.
In company news, Chipotle Mexican Grill ( CMG ) rose Wednesday after activist investor Bill Ackman and his Pershing Square Capital late yesterday reported owning a 9.9% active stake in fast-food restuarant chain through a combination of common stock and forward-purchase contracts.
Describing the stock as "undervalued and an attractive investment," Pershing Square paid $224.5 million to buy 554,213 Chipotle shares and also put up $974.3 million to acquire another 2.33 million shares through over-the-counter forward purchase contracts, according to an ownership filing last night with the U.S. Securities and Exchange Commision.
Chipotle lost almost half its value over the past year following an E. coli outbreak that sickened people in several states before the contagion ended in early February. Comparable sales fell almost 27% year-over-year in the first six months of June, the company has said.
CMG shares were up nearly 5% at $433.43 apiece in recent trade after earlier topping out at $441.20 a share.
In other sector news,
(+) MBUU, (+11.7%) Adjusted fiscal Q4 EPS of $0.38 improves on $0.32 per share gain in year-ago period and beating Street view by $0.02 per share. Revenue grows 9.8% to $66.7 mln, also topping analyst estimates by $2.6 mln.
(-) SFM, (-13.2%) Sinks to record low after cutting FY16 EPS outlook to $0.83 to $0.86, down from prior range expecting $0.92 to $0.94 per share. Analysts, on average, are expecting a $0.94 per share profit this year. Also reduces Q3, FY16 same-store growth forecasts.
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