Investors are growing increasingly worried about the restaurant industry’s prospects. Chipotle Mexican Grill (CMG) dropped by 4.67% to close on Monday at $30.85.
On Oct. 1, Chipotle rallied on rumors that Chipotle received a takeover offer for $40-$45. Restaurant Brands (QSR) would make the most sense as the buyer. However, QSR stock peaked at $82, forming a “double top” bearish pattern. Selling intensified throughout the last two months.
QSR stock closed at $69.87.
The rising bond yields pushed mortgage rates well past the 7% range. In response, investors dumped Lennar (LEN) shares. LEN stock lost 6.73% to close below $75. The homebuilder will likely post disappointing sales. Homeowners will not sell their existing home. That would mean that they would need to give up their low mortgage rates.
Lennar’s peers include D.R. Horton (DHI), Toll Brothers (TOL), and KB Home (KBH). TOL stock fell the least in the last year, down by 3.81%. LEN stock dropped the most, losing 41.1% in the year.
C.H. Robinson (CHRW) dropped by nearly 11% on Monday. Markets reacted negatively to its announcement of buying RXO for $5.8 billion. It will pay cash and stock. Dilution, financing, and integration risks are high for CHRW shareholders. Readers might consider the firm’s peers instead. That includes FedEx (FDX) and XPO.
