Chipotle Earnings Disappoint: According to Experts, See Which Three Restaurant and Resort Stocks You Should Sell
Chipotle Mexican Grill was the darling of all of its investors when it made millionaires overnight. Now that the honeymoon's over, some analysts are saying you should sell your stock in it as soon as possible and move on to bigger, better things.
They're not the only ones taking a serious beating. See which five restaurant and resort stocks analysts are saying you should sell-- and why they're pretty much right.
1. Chipotle (CMG) has been on a pretty constant decline all this quarter. Their stock has dropped by 24.4% this past month-- catastrophically worse than the 3.8% growth that the S&P 500 have seen over the exact same period of time. Until they diversify, or do something bold, we can expect the decline to continue. It'll be interesting, though, to see what happens when this drought ends and food prices settle down.
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2. Ruby Tuesday's (RT) has been performing abysmally lately. Their earnings and margin have not been growing. Plus, there's not much that can be said about family-style restaurants except that, in this climate, who has time to go out, sit down, and eat an inferior meal at superior prices? Ditch the fun factor and the stock in the same breath. Stay in and microwave a burger for similar, if not better results.
3. Las Vegas Sands (LVS) once performed quite well, but now they're pretty much a sell. They've been pretty static, and with no growth in the foreseeable future, you won't feel too bad about selling whatever you have in this brand of Casino Resort and Convention Centers.
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