Last week, Chipotle Mexican Grill (NYSE: CMG ) beat analyst estimates with adjusted EPS of $2.35 in the first quarter. The good news sent Chipotle shares up as much as 10% as investors regained some confidence in the company's prospects. Chipotle has become a short target for some high-profile investors in the past year, most notably David Einhorn. At the Value Investing Congress last fall, Einhorn argued that Yum! Brands (NYSE: YUM ) subsidiary Taco Bell would steal market share from Chipotle with its new Cantina Bell menu. Cantina Bell items were designed to be higher-quality than typical Taco Bell fare, but still cheap compared to Chipotle.
Wall Street seems to be downplaying the threat from Taco Bell, but Chipotle's first-quarter results were not nearly as impressive as they may seem to be. In the earnings release highlights, the company pointed out that diluted EPS rose 24.4% year over year, but later on it disclosed that much of the gain was due to one-time items. Moreover, comparable restaurant sales growth has nearly come to a halt, which is potentially ominous for Chipotle.
Hot Restaurant Companies To Watch In Right Now: MHI Hospitality Corporation(MDH)
MHI Hospitality Corporation, a real estate investment trust (REIT), engages in the ownership and operation of upper upscale and midscale hotels in the mid-Atlantic and southeastern United States. As of March 15, 2006, the company operated seven upper upscale and midscale hotels with 1,673 rooms under the brand names ?Hilton? and ?Holiday Inn?. It also owns leasehold interests in the commercial spaces of the Shell Island Resort, a condominium resort property. The company has elected to be treated as a REIT for federal income tax purposes. As a REIT, it would not be subject to federal income tax, provided it distributes at least 90% of its taxable income to its shareholders. MHI Hospitality has strategic alliance agreement with MHI Hotels Services LLC. The company was founded in 1957 and is based in Williamsburg, Virginia.
Hot Restaurant Companies To Watch In Right Now: Paulson Capital Corp.(PLCC)
Paulson Capital Corp., through its subsidiary, Paulson Investment Company, Inc., operates as a brokerage company principally in the United States. It engages in securities brokerage activities, which include acting as agent for purchase and sale of common and preferred stocks, options, warrants, and debt securities traded on securities exchanges or in the over-the-counter market. The company?s corporate finance activities comprise underwriting initial and follow-on public offerings, private investments in public equity, and private placements for smaller companies; securities trading and market making activities consist of executing trades in equity securities, corporate debt securities, and municipal bonds; and market making activities are conducted with dealers in the wholesale market and its customers. Its investment activities include holding securities for investment, which primarily include securities purchased for investment and underwriter warrants. As of December 31, 2010, the company operated 39 branch offices in California, Colorado, Connecticut, Florida, Georgia, New Jersey, New York, Oregon, Utah, and Washington. Paulson Capital Corp. was founded in 1969 and is based in Portland, Oregon.
Top 5 Healthcare Equipment Companies To Watch In Right Now: Texon Petroleum Ltd(TXN.AX)
Texon Petroleum Ltd, together with its subsidiaries, engages in the exploration and production of oil and gas properties in the Gulf Coast of Texas, the United States. The company holds interest in 16 producing wells comprising 2 producing Eagle Ford wells; 10 producing Olmos wells in the Leighton field and 1 additional Olmos well in production in the Rockingham area; and 3 wells in Jackson County from the Yegua formation. Texon Petroleum Ltd was incorporated in 2006 and is headquartered in Brisbane, Australia.
Hot Restaurant Companies To Watch In Right Now: SPAR Group Inc.(SGRP)
SPAR Group, Inc., together with its subsidiaries, provides merchandising and other marketing services to manufacturers, distributors, and retailers worldwide. The company primarily offers syndicated services, such as regularly scheduled, routed merchandising, and marketing services provided at the retail store level; and dedicated services, including store set-ups, store remodels, and fixture installations. It also provides project services comprising in-store services, such as new store openings, new product launches, special seasonal or promotional merchandising, focused product support, product recalls, in-store product demonstrations, and in-store product sampling, as well as kiosk product replenishment, inventory control, new store sets and existing store resets, re-merchandising, and remodels and category implementations under annual or stand-alone project contracts or agreements. In addition, the company offers in-home and in-office assembly services; and in-store e vent staffing services consisting of in-store product samplings and in-store product demonstrations. Further, SPAR Group provides various other marketing services comprising test market research, including testing promotion alternatives, new products and advertising campaigns, as well as packaging, pricing, and location changes at the store level; mystery shopping services, such as calling anonymously on retail outlets to check on distribution or display of a brand and to evaluate products, service of personnel, and conditions of store; data collection services consisting of gathering sales and other information for analysis and interpretation; and radio frequency identification services. The company?s customers include manufacturers, mass merchandisers, electronics store chains, drug store chains, convenience and grocery stores, and other retail outlets, such as discount stores, and home and office supply centers. SPAR Group, Inc. was founded in 1967 and is headquartered i n Tarrytown, New York.
Advisors' Opinion:- [By Cutler]
Spar Group is a merchandising and marketing services company, providing an array of services to help companies improve their sales, operating efficiency and profits at retail locations.
Shares of Spar Group surged in March after the company said fourth-quarter revenue grew 32% to $18.7 million from a year earlier, with net income quadrupling to $1.2 million, or 6 cents a share. The company attributed its success in the quarter to increased market share in domestic operations, acquisitions and organic growth, and international operations thanks to redeveloped key partner relationships.
Current Share Price: $1.87 (March 29)
First Quarter Total Return: 125%
Analyst Ratings: Spar Group doesn't have an analyst following from Wall Street research firms. However, TheStreet Ratings has a "buy" rating on Spar Group, noting the company's "revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth."
Hot Restaurant Companies To Watch In Right Now: Sunshine Holdings Limited (Y34.SI)
China Mining International Limited, an investment holding company, engages in the investment, development, and management of commercial and residential properties primarily in the People�s Republic of China. It holds properties for rental and related income; engages in the sub-leasing and management of commercial developments, service apartments, and SOHO offices; and provides hotel and property management services, as well as maintenance and related services. The company was formerly known as Sunshine Holdings Limited and changed its name to China Mining International Limited in March 2012. China Mining International Limited was founded in 1999 and is based in Zhengzhou, the People�s Republic of China.
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