Jul. 23 at 7:36 PM
$CMG puts seem rather cheap considering:
- Revs to grow +4.7% but much of growth by new stores
- EPS to fall -3.03%
- SSS to decline -2.9% y/y (In April, posted its 1st comparable sales decline since the pandemic)
- Total number of store visits increased +0.7% y/y in 2Q25 thanks to new stores
- Valuation rich at FY25 Fwd P/E 43.5x on flat EPS growth & rev growth of +8.38% yr/est (vs
$MCD at 24x
$TXRH at 28x)
- In order to drive traffic, then higher ad spending & more offers will be needed = higher expenses
Note: many cities & counties in California to implement higher local minimum wage rates that statewide minimum of
$16.50/hour on July 1, 2025
Chart needs to resolve - Put volume see at
$52 &
$49 & Call volume at
$58.
Shares short: 22.92M
