Hedgeye CEO Keith McCullough is adding Chipotle (CMG) to the short side of Investing Ideas. Below is a brief note.
Howard Penney is bullish on his Cannabis names and bearish on Chipotle (CMG) which is at the top-end of its Risk Range™ Signal today on an Old Wall "upgrade"...
Here's a good summary clip of content from his Consumables Pro product on how to be position on the other side of our Long Commodity Inflation view:
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CMG/QSR inflation CMG will be raising prices by 4% to offset labor inflation. Bloomberg reported on an internal Restaurant Brands memo that said the company "can see significant inflation across all regions on protein and oils" compared with historical five-year averages. Price inflation across the protein market complex has far exceeded even our most bullish forecasts." Mayonnaise is among the ingredients rising in price due to higher costs for soybean oil. Restaurant Brands employs hedges to help avoid market fluctuations but noted that the availability of processed oil is becoming a "big risk." It replenished its mayonnaise at a higher hedge price to ensure supply for about five months. |
Sellem on green,
KM
