Today is Wednesday, July 10, 2024.

The Early Bird Index today is 75.50.

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Chipotle's Leadership Change

It’s a changing of the guard at Chipotle (NYSE: CMG), with the company announcing Tuesday that CFO Jack Hartung will retire in March 2025 after serving in the role since 2002. The stock dipped 0.21% in after-hours trading.

Details: Adam Rymer, a 15-year Chipotle veteran, will become the new CFO. Jamie McConnell will become chief accounting and administrative officer.

Quote: “Jack is one of the best CFOs in the business, and he has played an instrumental role in helping Chipotle deliver unprecedented growth while building our culture and multiple, strong teams with deep expertise.” - Brian Niccol, Chairman and CEO.

Background: Chipotle’s stock is up 28% this year. Going back to its IPO in 2006, the stock is up 6,700%. Hartung was a key part of the company’s financial success.

Early Bird’s Nest Egg Gains: Despite overall consumer spending being down in 2024, Chipotle has performed well.

• In the first quarter, revenue grew by 14.1% while comparable restaurant sales increased by 7%.

• The company's promotional campaigns, such as introducing Braised Beef Barbacoa and Chicken Al Pastor, have been effective in driving sales and transactions.

• A significant portion (36.5%) of Chipotle's total food and beverage revenue came from digital sales.

Final Thoughts: Chipotle is down 7% in the last week following its 50-to-1 stock split.

Notables

Notable Earnings Today: WD-40 (Nasdaq: WDFC), PriceSmart (Nasdaq: PSMT), AZZ (NYSE: AZZ), Manchester United (NYSE: MANU), Theratechnologies (Nasdaq: THTX), E2open (NYSE: ETWO).

Notable IPOs Today: Talen Energy Corporation Common Stock (Nasdaq: TLN), SIM Acquisition Corp. I Unit (Nasdaq: SIMAU), Intermediate Municipal Income ETF (Nasdaq: TAXE).

Notable Equity Crowdfunding Campaigns Ending Today: Posh Pop Gourmet Popcorn (Honeycomb), Kamoti (StartEngine).

Notable Economic Events Today: Fed Chair Powell House Testimony (10:00 a.m. ET), Crude Oil Inventories (10:30 a.m. ET), Atlanta Fed GDPNow (12:00 p.m. ET).

Amazon's New Powerful Chip

Amazon (Nasdaq: AMZN) revealed a technology breakthrough Tuesday, releasing its new chip referred to as AWS Graviton4.

Details: Amazon said this chip delivers up to 30% better performance than its previous version.

Powering the Story: This isn’t an AI chip. It is a generic, low-cost option for customers. It also keeps Amazon afloat in the important semiconductor race. 

Final Thoughts: Amazon is up 6.5% in the last 30 days and is expected to report earnings in a few weeks.

SMART Global Holdings Jumps After Earnings

Despite lower-than-expected revenue in the past quarter, the specialty memory solutions company SMART Global Holdings (Nasdaq: SGH) jumped 5.99% in after-hours trading after posting a strong profit.

Final Thoughts: The stock was up 26% this year before these results.

Trends to Watch

Tech Layoffs: UiPath to lay off 10% of workforce in companywide restructuring (CNBC)

Before the Launch: What Still Needs to Happen Before Spot Ether ETFs Can Trade (CoinDesk)

Balancing Act: Powell Flags Rising Risks to Jobs While Avoiding Rate-Cut Timing (Bloomberg)

Sorry, Elon: Tesla’s Share of U.S. Electric Car Market Falls Below 50% (New York Times)

Struggling: 3 reasons why Ethereum price continues to underperform against BTC in 2024 (Cointelegraph)

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_{The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.}