CMG is expected to report Q3 earnings tonight after the close. There is a conference call scheduled for 16:30 (the company typically does not provide any EPS or revenue guidance).

Capital IQ consensus calls for Q3 EPS of $1.62 (versus $4.59 last year) on revenue of $1.048 bln (-13% YoY).

  • For Q3, the Street is expecting Q3 comps to decline by 18%

  • The company is still seeing the impacts of the E Coli crisis which negatively impacted comps and earnings.

  • FY16 Guidance: For 2016, co expects 220 - 235 new restaurant openings & an effective full year tax rate of ~ 38.4%

Pershing Square 9.9% Stake

  • On September 6, shares spiked as much as 8% after Pershing Square disclosed a 9.9% active stake, intends to engage in discussions w/ mgmt. and the Board.
  • On October 21, Pershing Square affirmed the 9.9% active stake, disclosed the purchase of 2,328,250 shares of Common Stock for an aggregate purchase price of $947,367,983 pursuant to forward purchase contracts described in the Original 13D

PEERS TO WATCH: JACK, PNRA, BWLD, DPZ