Chipotle, Kraft & GM: A Look At Some Of The Earnings Coming The Week Of October 24

Chipotle, Kraft & GM: A Look At Some Of The Earnings Coming The Week Of October 24

On the earnings front, I’m spoiled for choice this week as a truckload of companies are expected to weigh in. That’s a handy problem and also creates that dilemma in terms of what to choose from since only a handful of companies can make this cut. First and foremost, this is a gigantic week for the “FAANGS” and their peers. Apple
AAPL
, Amazon
AMZN
, Alphabet, Microsoft
MSFT
, and Meta amongst others have plans to report in and energy is another biggie to focus on as we’ll see Exxon Mobil, Chevron
CVX
, Hess, and Valero, etc. chime in. Tech and energy are two sectors that fared flat-to-down in September according to the latest US Census Bureau report and their quarterly results are worth consideration.

Let’s pivot to some retail and consumer names I’ll be watching this week, the reason why, and my question.

Chipotle Mexican Grill
CMG
-Reporting Tuesday After Close

Wingstop
WING
-Reporting Wednesday Before Open

McDonalds-Reporting Thursday Before Open

Why: In July, I looked at Chipotle and wondered what impact food inflation had on it. On the 26, Chipotle reported impressive results that included an EPS beat and a revenue miss. In particular, on the conference call, CEO and Chairman Brian Niccol pointed to the “difficult hiring and retention season” that continues to plague the industry and nodded to the strength of its workforce. “We continue to offer a world-class employee value proposition that includes industry-leading benefits, attractive wages, specialized training and development, access to education and a transparent pathway to significant career advancement opportunities,” he said. “We believe these efforts, along with our growth and purpose, are helping to attract and retain great employees.” But my curiosity extends beyond just the guac. McDonald’s recently announced a partnership with Krispy Kreme Donuts at some of its locations and Wingstop is compelling depending on what analyst you ask. Food in general is (pun totally intended) a mixed bag and consumers spent $87.2 billion at dining and drinking establishments in September according to the US Census, so despite the financial pinch, consumers are still seeking out food and drink outside the kitchen.

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My Question: I am all about customers/foot traffic and labor with these three and their sector peers. The story will continue to evolve while inflation hangs around and while more of us tighten our belts or offset to prep for Holiday spend.

General Motors-Reporting Tuesday Before Open

Ford-Reporting Wednesday After Close

Why: In the previous quarter for both Ford and GM, I looked at some of the obstacles. There was an inventory issue because of the need for materials, chipmakers to make chips, and a looming potential subprime loan default wave. I asked how they had fared in the then-turbulent environment and if new inventory was on the horizon. Both companies acknowledged their struggles, outlined their solutions, and expressed a great deal of enthusiasm for the ongoing development of more electric vehicles (EVs).

My Question: What are the updates to the challenges that the companies experienced last quarter and how are their EV arms shaping up?

Kraft Heinz-Reporting Wednesday Before Open

Colgate-Palmolive
CL
-Reporting Friday Before Open

Why: Like P&G last week, these legacy names are responsible for consumer staples and they are deeply impacted by what’s keeping consumers up at night: finances. Unlike P&G, they are representative of opposite ends of the spectrum—food and personal care. Supply chain disruption and inflation are just two of many factors that influence these two and their peers. In July at Kraft Heinz, the company mentioned the current environment and pressure it has had on the consumer, while Colgate-Palmolive mentioned changes it expected to drive growth and lifted its organic sales growth guidance to 5%-7% for 2022.

My Question: If consumers are clamping down more financially right now, what impact did it have on the demand for lower-cost and private label items?

My “spidey sense” tells me that the shopping story is about to get very interesting over the coming days, and as retail chimes in with evidence for the narrative, I’m totally here for all of it—good, bad, and otherwise.

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