Keurig Green Mountain in $13.9 B Deal, Chipotle Plunges 9%

Mukesh Buch
07 Dec, 2015
New York City

Keurig Green Mountain surged 74% after the coffee company agreed to go private. Chipotle Mexican dropped 9% on weak sales outlook. Devon Energy plans to acquire two assets worth about $2.5 billion. Mattress Firm net surged 53%. Vail Resorts net loss narrowed.

[R]10:20 AM New York – Keurig Green Mountain surged 74% after the coffee company agreed to go private. Chipotle Mexican dropped 9% on weak sales outlook. Devon Energy plans to acquire two assets worth about $2.5 billion. Mattress Firm net surged 53%. Vail Resorts net loss narrowed.[/R]

Tollbooth Index slid 4.11 to 10,058.64.

Earnings Review

Chipotle Mexican Grill, Inc ((CMG)) plunged 9% or $50.65 to $510.01 after the restaurants operator lowered its full-year guidance and said sales may largely be impacted due to outbreak of E. coli across the United States.

Devon Energy Corporation ((DVN)) declined 4.7% or $1.92 to $38.60 after the oil producer said it plans to acquire assets from Felix Energy in the Anadarko Basin for about $1.9 billion.

The company plans to acquire 80,000 net surface acres in the Anadarko Basin in Oklahoma and Texas.

Separately, Devon agreed to acquire 253,000 net acres in the Powder River Basin in Wyoming for about $600 million.

Fluor Corporation ((FLR)), the engineering services provider agreed to acquire the Netherlands-based rival Stork BV for about $755 million to strengthen its maintenance businesses in the energy sector of Europe.

Johnson Outdoors Inc jumped 2.6% or 63 cents to $24.50 after the outdoor recreation products maker reported net sales in the fourth-quarter ending on October 2 rose 1% from a year ago to $85.8 million.

Net in the quarter swung to profit $1.2 million or 12 cents per diluted share compared to a loss of $0.8 million or 8 cents per share from the same quarter last year.

Mattress Firm Holding Corp. ((MFRM)) advanced 2.1% or $1 $51.03 after the mattresses and bedding retailer reported net sales in the third-quarter ending on November 3soared 50.1% from a year ago to $699.5 million.

Net income in the quarter surged 53.2% to $23.9 million or 67 cents per diluted share compared to $15.6 million or 45 cents per share from the same quarter last year.

Keurig Green Mountain Inc ((GMCR)) surged 74.4% or $38.50 to $90.21 after the coffee, coffeemakers, teas and beverages maker agreed to be taken private by an investor group led by JAB Holding Co for $92 per share or $13.9 billion in cash, 78% premium to closing price of Friday.

The transaction is expected to close during the first-quarter of 2016.

Vail Resorts, Inc. ((MTN)) edged down 0.6% or 72 cents to $122 after the mountain resorts operator stated revenues in the first-quarter ending in October jumped 36.1% from a year ago to $174.6 million.

Net loss in the quarter narrowed to $59.6 million or $1.63 per diluted share compared to $64.3 million or $1.77 per share from the same quarter last year.