Hello and welcome to Asking for a Trend. I'm Josh Lipton and for the next half hour, we are breaking down the trends of today that'll move stocks tomorrow. There's a lot to keep track of, so we're focusing on what you need to know to get ahead of the curve here.Some of the trends we're going to be diving into. Despite some stomach turning moves on Wall Street this week, markets posted gains for the month of January. We're looking at some of the top trades, including that massive unwind in Silver's rally.And ...

Welcome to Morning Brief. I'm Julie Hyman. It is a busy day on Wall Street.Let's get to the three things you need to know today. President Trump nominating Kevin Worsh as his pick to replace Fed Chair Jerome Pal. Worsh is a former Federal Reserve official himself who supports the president's criticism of the central bank.He still has though to go through the Senate confirmation process before taking over in May. Let's get a check on futures which are pointing to declines at the open, but they are off earlie ...

Starbucks (SBUX) came out with quarterly earnings of $0.56 per share, missing the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.69 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.90%. A quarter ago, it was expected that this coffee chain would post earnings of $0.55 per share when it actually produced earnings of $0.52, delivering a surprise of -5.45%.Over the last four quarters, the company h ...

Brinker International (EAT) came out with quarterly earnings of $2.87 per share, beating the Zacks Consensus Estimate of $2.53 per share. This compares to earnings of $2.8 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +13.39%. A quarter ago, it was expected that this operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy would post earnings of $1.76 per share when it actually produced earnings of $1.93 ...

Company Performance - Sweetgreen, Inc. (SG) closed at $6.66, reflecting a -6.98% change from the previous day, underperforming the S&P 500's 0.5% gain [1] - The stock has increased by 2.73% over the past month, which is below the Retail-Wholesale sector's gain of 5.24% but above the S&P 500's gain of 0.18% [1] Earnings Expectations - Analysts expect Sweetgreen, Inc. to report earnings of -$0.32 per share, representing a year-over-year decline of 28% [2] - The consensus estimate for revenue is $159.29 million, indicating a 1% decrease from the same quarter last year [2] Annual Estimates - For the annual period, the Zacks Consensus Estimates predict earnings of -$0.87 per share and revenue of $683.56 million, reflecting shifts of -10.13% and 0% respectively from the previous year [3] - Recent revisions to analyst forecasts for Sweetgreen, Inc. should be monitored as they may indicate changes in short-term business dynamics [3] Zacks Rank and Industry Position - Sweetgreen, Inc. currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate having decreased by 3.6% over the past month [5] - The Retail - Restaurants industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 202, placing it in the bottom 18% of over 250 industries [6]

Core Insights - Darden Restaurants, Inc. (DRI) shares have increased by 14.2% over the past three months, outperforming the Zacks Retail - Restaurants industry's growth of 7.6% [1] Performance and Growth Factors - The company is enhancing its market position through strong sales performance across its portfolio, driven by robust guest demand, effective pricing strategies, and resilient traffic, particularly at its major brands [2] - Darden's disciplined expansion strategy, partnership with Uber Direct, and ongoing menu innovation are contributing to strong results, highlighting the company's operational resilience and long-term relevance in the competitive restaurant sector [2] - In Q2 of fiscal 2026, Olive Garden sales rose by 5.4% year over year to $1.36 billion, while LongHorn Steakhouse saw a 9.3% increase in sales to $775.9 million, supported by same-restaurant sales growth and new restaurant openings [4] - The Fine Dining segment experienced a 3.3% year-over-year sales increase to $316.4 million, and the Other Business segment grew by 11.3% to $647.3 million, reflecting positive same-restaurant sales growth [5] - Darden plans to open 65-70 new restaurants in FY26, having opened 17 new locations in Q2 of fiscal 2026, indicating confidence in site availability and capital allocation [8] Menu Innovation - Darden prioritizes menu innovation as a growth driver, with successful product launches and limited-time offerings enhancing guest interest and supporting traffic growth [9] - Olive Garden's $13.99 Never Ending Pasta Bowl and the return of popular dishes have driven momentum, while LongHorn Steakhouse has reintroduced favorites that received positive guest feedback [9] Challenges - Darden faces near-term challenges from elevated beef and commodity costs, which have pressured margins despite solid sales performance [3][10] - The company has revised its 2026 EPS estimate downward to $10.58 from $10.61, reflecting these pressures and ongoing macroeconomic uncertainties affecting consumer demand [3]

In the latest trading session, Cava Group (CAVA) closed at $72.00, marking a +2.03% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.26% for the day. Elsewhere, the Dow saw an upswing of 0.6%, while the tech-heavy Nasdaq appreciated by 0.25%. The stock of Mediterranean restaurant chain has risen by 32.85% in the past month, leading the Retail-Wholesale sector's gain of 3.96% and the S&P 500's gain of 1.57%.The upcoming earnings release of Cava Group will be of great i ...

Core Insights - Chipotle Mexican Grill (CMG) is positioned to continue its earnings-beat streak, having a history of surpassing earnings estimates, particularly in the last two quarters with an average surprise of 3.35% [1][2] Earnings Performance - In the last reported quarter, Chipotle achieved earnings of $0.29 per share, exceeding the Zacks Consensus Estimate of $0.28 per share, resulting in a surprise of 3.57% [2] - In the previous quarter, the company was expected to report earnings of $0.32 per share but delivered $0.33 per share, yielding a surprise of 3.13% [2] Earnings Estimates - There has been a favorable change in earnings estimates for Chipotle, with a positive Zacks Earnings ESP (Expected Surprise Prediction), indicating a strong likelihood of an earnings beat [5][8] - The current Earnings ESP for Chipotle is +0.18%, suggesting that analysts have recently become more optimistic about the company's earnings prospects [8] Predictive Metrics - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7] Upcoming Earnings Report - Chipotle's next earnings report is expected to be released on February 3, 2026 [8]

Core Viewpoint - Starbucks is facing challenges with a projected decline in earnings per share (EPS) and a mixed performance compared to the broader market, indicating potential concerns for investors [1][2][5]. Financial Performance - Starbucks ended the recent trading session at $84.21, reflecting a -1.22% change from the previous day's closing price, underperforming the S&P 500's daily loss of 0.74% [1]. - The company is expected to report an EPS of $0.59, down 14.49% from the prior-year quarter, while net sales are projected at $9.65 billion, up 2.65% from the year-ago period [2]. - For the entire fiscal year, earnings are estimated at $2.35 per share and revenue at $38.39 billion, indicating increases of +10.33% and +3.24%, respectively, from the previous year [3]. Analyst Estimates and Ratings - Recent revisions to analyst estimates for Starbucks have shown a decrease of 3.01% in the Zacks Consensus EPS estimate over the past month, leading to a Zacks Rank of 5 (Strong Sell) [5]. - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a strong historical performance, with 1 stocks averaging an annual return of +25% since 1988 [5]. Valuation Metrics - Starbucks is currently trading at a Forward P/E ratio of 36.34, significantly higher than the industry average of 19.8, indicating a premium valuation [6]. - The company holds a PEG ratio of 1.77, which is lower than the average PEG ratio of 2.3 for the Retail - Restaurants sector [7]. Industry Context - The Retail - Restaurants industry is ranked 212 in the Zacks Industry Rank, placing it in the bottom 15% of over 250 industries, suggesting underperformance relative to other sectors [7][8].

Core Insights - Chipotle Mexican Grill, Inc. (CMG) is experiencing growth due to improved execution, a strong value proposition, and advancements in menu and digital innovation [2] - The company is focused on five key priorities: successful restaurant operations, strong leadership, brand relevance, guest engagement, and leveraging technology for growth [2] Financial Performance - Chipotle's shares have decreased by 4.9% over the past three months, while the Zacks Retail - Restaurants industry has seen a 0.5% increase [3] - The company's earnings have exceeded the Zacks Consensus Estimate in the last four quarters, with an average surprise of 3.6% [3] - The fiscal 2026 earnings estimate remains unchanged at $1.16 per share [3] Growth Drivers - **Digital Capabilities**: Chipotle is enhancing its digital ecosystem to increase customer engagement and spending, with successful initiatives like the Summer of Extras rewards program driving loyalty participation [5][8] - **Operational Efficiency**: The rollout of the High-Efficiency Equipment Package (HEAP) is expected to improve operational efficiency and throughput, simplifying food preparation and labor deployment [6][9] - **Menu Innovation**: The introduction of new menu items, such as Adobo Ranch and Red Chimichurri, has attracted new customers and increased transactions, with plans for more limited-time offerings in the future [10][11] Challenges - **Macroeconomic Pressure**: Chipotle faces challenges from food and labor cost inflation, higher operating expenses, and macroeconomic uncertainty affecting consumer demand [4][12] - The company anticipates inflation to remain elevated into 2026, primarily due to tariffs and rising beef costs, and does not plan to fully offset these costs in the near term [12]