Feb. 4 at 7:36 AM
$CMG | After-Hours Drop Explained
Headline numbers “met expectations,” yet stock is down ~6% AH. Here’s why:
• Traffic down -3.2% YoY, even as 132 new stores opened → growth isn’t organic.
• Premium customer base: 60% earn
$100K+, but volume matters too.
• Margins under pressure: tariffs from 2025 explicitly cited.
• Cannibalization risk: 350+ new locations could eat into existing store sales.
• One-time boost:
$27M from gift card breakage inflates the numbers temporarily.
In short: headline EPS/revenue = fine. Underlying operations? Not exactly smooth sailing. AH reaction reflects that subtle but important risk profile.