The market finally slid back on Tuesday, snapping a five-day winning streak that had lifted the Dow Jones Industrial Average to its highest levels since early January. The Dow finished Tuesday off 0.64%.
Chipotle Mexican Grill, Inc. (NYSE:CMG) looks to double up on its losses, declining nearly 2% on the day, then sitting at roughly 2% losses as Wednesday’s premarket trade unfolds. However, a couple companies making headlines — namely Blue Buffalo Pet Products Inc (NASDAQ:BUFF) and Amplify Snack Brands Inc (NYSE:BETR) — appear to be headed north.
Here’s why:
Chipotle Mexican Grill, Inc. (CMG)
CMG investors are drawing their collective breath following news of one of its Massachusetts restaurants shutting down after three employees got sick.
The Billerica Chipotle closed voluntarily, according to the Massachusetts Department of Health. The company confirmed that one worker had a case of norovirus, a vomiting bug that causes a slew of digestive problems, including gastroenteritis. Chipotle has yet to determine if the other two employees have the same illness.
This incident follows a series of cases of norovirus at Boston College, where at least 80 students became ill after eating at one of the chain’s restaurants. Investors might also have the jitters considering it’s only been a bit more than a month since the FDA declared Chipotle E. coli-free, ending a health scare that shot CMG shares down by nearly half over a multimonth span.
CMG stock declined 3.4% late Tuesday afternoon.
Blue Buffalo Pet Products Inc (BUFF)
The pet food company’s stock was set to spike Wednesday morning after reporting fourth-quarter financial results following the close of the market yesterday.
Blue Buffalo posted earnings of 16 cents per share on $265 million in revenue, exceeding the Thomson Reuters consensus estimates of 14 cents in EPS on $259.20 million in revenue.
The company also updated its guidance for the 2016 full year. BUFF expects to earn 72 to 74 cents, which beats Wall Street’s expectations for 70 cents, and its revenue range of $1.12 billion to $1.14 billion was in line with a $1.13 billion estimate.
Thanks to success at its Heartland manufacturing plant, Blue Buffalo is announcing an expanded three-year, $200 million capital investment program to build two new manufacturing facilities as well as an R&D center.
BUFF stock looks to open Wednesday more than 13% higher.
Amplify Snack Brands Inc (BETR)
This Austin, Texas-based snack food company is surging ahead of Wednesday’s trading on Street-beating Q4 results of its own.
Amplify Snack Brands posted adjusted earnings of 13 cents per diluted share on revenue of $46.37 million, beating the consensus estimate of 9 cents per share on revenue of $43.76 million. The company’s SkinnyPop popcorn brand experienced strong sales, helping lead revenue to a 40% year-over-year improvement.
Amplify Snack Brands also released guidance for the full fiscal year. BETR expects to earn 61 to 64 cents per share on revenue of $231 million to $237 million. These figures are higher than Wall Street analysts’ estimates of 57 cents per share on revenue of $230.97 million.
