NEW YORK, NY / ACCESSWIRE / June 21, 2017 / McDonald's announced a risky move on Tuesday that had traders neither here nor there about it. Shares traded pretty flat after the company announced it would have fresh beef patties at all nationwide restaurants next year. Chipotle saw its largest one day drop since December yesterday after its outlook for comparable-restaurant sales for 2017 came up short of Wall Street's expectations.

RDI Initiates Coverage on:

Chipotle Mexican Grill, Inc.
https://ub.rdinvesting.com/news/?ticker=CMG

McDonald's Corporation
https://ub.rdinvesting.com/news/?ticker=MCD

Chipotle Mexican Grill, Inc.'s shares saw a lot of blood on Tuesday, with shares closing down 7.26%. It was the biggest one day drop for the company so far in 2017. Traders were less than happy to learn that a few Wall Street analysts have cut their price targets on the burrito restaurant chain. Among the few were SunTrust Robinson Humprey analyst Jake Bartlett who cut his stock price target to $530 from $550, and Instinet analyst Mark Kalinowski who cut his stock price target to $480. In a statement filed on Monday with the SEC, Chipotle revealed that 2017 comparable-restaurant sales would see an increase in the "high-single-digits" percentage range compared to 2016 levels. While this may have seemed like great news, the problem is that the average analyst estimate according to FactSet is a growth of 10.1% growth. Chipotle is scheduled to report its second-quarter results on July 20th.

Access RDI's Chipotle Mexican Grill, Inc. Research Report at:
https://ub.rdinvesting.com/news/?ticker=CMG

McDonald's Corporation modestly closed in the green on Tuesday with gains of 0.61%. The fast food giant made headlines yesterday when it announced that it would be adding fresh beef to its menu. According to Reuter's reports, fresh beef patties will be available in 2018 at all of McDonald's restaurants nationwide. A move like this is pretty bold considering that it was just earlier this year that McDonald's revealed it had lost 500 million US orders to competition in the last five years. Fresh beef patties could slow down customer service and push customers to eat elsewhere. Compared to frozen patties, fresh beef patties would take an extra minute longer. While one minute doesn't sound so bad, the frozen patties have often been made ahead of time and sit in warming dishes until orders come in for them. The American Customer Satisfaction Index released its 2017 survey and McDonald's ranked last again in terms of service, making it the third year in a row.

Access RDI's McDonald's Corporation Research Report at:
https://ub.rdinvesting.com/news/?ticker=MCD

Our Actionable Research on Chipotle Mexican Grill, Inc. (NYSE: CMG) and McDonald's Corporation (NYSE: MCD) can be downloaded free of charge at Research Driven Investing.

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SOURCE: RDInvesting.com