Slack pursued an unusual direct listing, meaning it did not have banks underwrite the offering.CNBC Disruptor 50read more
President Trump says Iran may not have intentionally downed an unmanned U.S. surveillance drone.Politicsread more
Slack's CEO said that the company didn't want to go public via an IPO so that it could be as transparent and accessible as possible.Deals and IPOsread more
Oil jumped as much as 6% on Thursday after Iran shot down a U.S. military drone, prompting President Trump to blast Tehran on Twitter.Energy Commoditiesread more
If Facebook cut corners in something as basic as the branding of its nascent crypto efforts, this dispute could give ammunition to its many critics.Financeread more
CNBC analysis using Kensho found that Disney, Verizon and Home Depot were some of the best performing Dow stocks in declining-rate environments.Investingread more
For doubters thinking the rally is just a last gasp of the decade-long bull market, chart analysts are here to prove them wrong.Marketsread more
Notorious "pharma bro" Martin Shkreli has reached a settlement with his former biopharmaceutical company Retrophin just weeks ago after he sued two company directors and its...Biotech and Pharmaceuticalsread more
"The slowdown in the global economy is reaching this shore," veteran trader Art Cashin says.Economyread more
Slack's public market debut on Thursday will generate billions for venture firm Accel and healthy returns for Andreessen Horowitz and Social CapitalTechnologyread more
JetBlue is ordering the longest-range Airbus jets to expand service to more European cities.Airlinesread more
Chipotle Mexican Grill's long-term strategy to woo customers back to the troubled burrito chain won't do much to ease its near-term woes, according to Wedbush.
Analyst Nick Setyan downgraded the stock to underperform from neutral on Monday and slashed his 12-month price target, citing weaker-than-expected same-store sales growth so far in the third quarter and increased pressure on profits margins through 2020.
Setyan said Chipotle's comparable store sales won't grow as fast during the third quarter as what analysts expect, based on his preliminary research. Analysts forecast an average of 5.7 percent growth for same-store sales, but Setyan said he thinks they will come in at growth of 4.5 percent. He previously forecast comparable store sales growth of 5.5 percent during the third quarter. He also cut his price target to $445 from $450 a share.
Shares of Chipotle fell 4.8 percent Monday, last changing hands at around $496.
Setyan attributed the slowdown to an outbreak of Clostridium perfringens, a foodborne disease that occurs when food is kept too warm for too long, that was traced back to a Chipotle in Ohio, according to the Centers for Disease Control and Prevention. Almost 700 customers reported gastrointestinal problems, including nausea, diarrhea and fever, after eating at the Chipotle restaurant, according to local health officials.
The incident dealt another blow to Chipotle, which has spent years trying to convince diners and investors it has improved its food safety practices. The company said it will start retraining all restaurant employees on food safety and wellness protocols this week.
Setyan said Wall Street's same-store sales estimate of 4.2 percent for full-year 2019, might not be out of reach, but there are several "underappreciated" risks. He said menu price increases from 2017 and early 2018 will have less of an impact on sales growth and new menu items could be pushed back further than expected.
In addition, CEO Brian Niccol's compensation and bonus package is tied to achieving several financial targets in 2020, including $20 in earnings per share and same-store sales growth at a rate of more than 6.5 percent, Setyan said.
However, these incentives might not be as meaningful as some bullish investors believe, Setyan said. He noted that Niccol will be well-compensated even if 2020 numbers are not as robust as desired.
While Chipotle shares shed value on Monday, the company's stock is still up more than 70 percent since January, the result of investors' renewed confidence after former Taco Bell CEO Niccol was brought in to run the company.