Core Insights - Chipotle Mexican Grill reported continued struggles in Q3, with a slight increase in same-store sales by 0.3% but a decline in transactions by 0.8%, leading to a stock drop of approximately 45% year-to-date [2][3] - The company has lowered its guidance for same-store sales for the year, now expecting a low single-digit percentage decline, compared to the previous outlook of flat sales [5] Financial Performance - Revenue increased by 7.5% to $3 billion in Q3, while adjusted earnings per share (EPS) rose by 7.4% to $0.29, aligning with analysts' expectations [6] - Restaurant-level operating margins decreased by 100 basis points to 24.5%, indicating potential profitability challenges due to inflationary pressures [7] Customer Trends - A significant reduction in visits from low- to middle-income households, which represent about 40% of Chipotle's customer base, has been noted, particularly among consumers aged 25 to 35 [3] - Increased marketing spending and new menu items have had a limited positive impact, with a noted decline in transactions towards the end of July and into August [4] Strategic Outlook - Management has revised its long-term growth expectations, indicating that future performance will depend on the consumer landscape, with a focus on increasing transactions while minimizing price hikes [5] - Despite current challenges, Chipotle is expanding its footprint and entering new international markets, although its valuation has reached one of its lowest levels in years [8]

Over the past decade or so, Porsche’s operating margins, typically between 15% and 18%, have been stellar by industry standards. But it reckons they will clock in at between zero and 2% this year https://t.co/3WIfXFrADJ ...

Core Viewpoint - Roku shares have experienced a significant decline despite reporting earnings that exceeded analyst expectations, indicating potential underlying issues affecting investor confidence [1][2]. Financial Performance - The company reported earnings of 16 cents per share, surpassing the analyst consensus of 9 cents per share [1]. - Revenues were reported at $1.21 billion, aligning with estimates [1]. Streaming Performance - Streaming hours were reported at 36.5 billion, which fell over a billion short of analyst estimates, contributing to the stock's decline [2]. - The company expressed confidence in achieving double-digit platform revenue growth while increasing operating margins in 2026 and beyond [2]. Future Guidance - For Q4, the company guided revenues of $1.35 billion, slightly ahead of the estimated $1.32 billion [3]. - The EBITDA guidance for Q4 is set at $145 million, which is above the estimated $131 million [3].

and Roblox is sharply lower today after reporting third quarter results beat on the top and bottom line but warning that operating margins could decline next year. Joining us in a first on CNBC interview to break down the quarter is Roblox co-founder and CEO David Bazooki. David, thank you so much for joining us.I would love for you to give us a little more context about the operating margin. It does seem like that's what investors and analysts are a little hung up on. Why is that going to decline year-over ...

Card payment networks have historically been very profitable, with operating margins between 55-70%.Among S&P 500 giants, this is top decile profitability. https://t.co/FCq8ypdoU8 ...