The stock just keeps on going up, with natural pullbacks -- basically buying opportunities -- here and there. But it's not just the trajectory of the stock that's incredible, it's the near-flawless execution of the business.
On Wednesday, Whole Foods announced that it beat EPS estimates, saw revenue rise by 14% year-over-year and posted same-store sales growth of 8.2% in the most recent quarter. Guidance comes in healthy and the company intends to continue full steam ahead with what is easily one of the best examples of footprint expansion in any area of retail.
The day before Whole Foods turned in a strong quarter, Panera Bread (PNRA) did the same. Starbucks (SBUX) reports Thursday. While I don't think we absolutely need to see equally-as-impressive results from Starbucks to prove the following point, it would help.Investors overreacted to Chipotle Mexican Grill's (CMG) poor quarter. I cannot believe Chipotle's peers will continue to grow, yet its days of solid forward motion are over. While I tend to agree with the caution TheStreet's Jim Cramer urged on his Mad Money television program Monday night, I'm not quite as down on the business. Cramer's right, for the time being, CMG is a broken momentum stock. But, all it takes is one impressive earnings beat to regain investor faith. In other words, proceed with caution, but do not write off a company that plans to expand by about 160 locations in 2012. Chipotle has barely scratched the surface on international expansion as well as its Asian restaurant concept. I concur with Cramer -- $270 looks like a good price for the stock. If you have the cash to support the trade selling a CMG September put somewhere in that $270 range on further weakness could make sense as a way to possibly establish a long position.
Zynga MeltdownI'm not sure I have ever witnessed a meltdown as bad as the one Zynga (ZNGA) turned in on Wednesday afternoon. First, I have to give a guy I have not always agreed with some credit. Richard Greenfield of BTIG Media sounded -- and please pardon my French, but there's no better way to illustrate this -- pissed off when he asked Zynga CEO Mark Pincus several questions on the conference call.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV