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Recent Articles
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Chipotle Facing Consumer Spending Pressures
Oct 30, 2025
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Image Source: TradingView.
For the first nine months of 2025, Chipotle generated $1.69 billion in cash from operations and spent $468.9 million in property and equipment, resulting in free cash flow of $1.22 billion. Looking to all of 2025, management expects full year comparable restaurant sales to decline in the low-single-digit range and to open 315-345 new company-owned restaurants, with over 80% having a Chipotlane. For 2026, management expects to open 350-370 new restaurants, including 10-15 international partner-operated restaurants, with over 80% of company-owned restaurants having a Chipotlane. Though Chipotle’s business is under pressure, we continue to like the long-term growth story. Shares remain an idea in the Best Ideas Newsletter portfolio.
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Alphabet Remains a Net-Cash-Rich, Free-Cash-Flow Generating Powerhouse
Oct 30, 2025
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Image: Alphabet’s revenues eclipsed $100 billion in the quarter.
In the quarter, Alphabet generated $48.41 billion in cash from operations and spent $23.95 billion in property and equipment, resulting in free cash flow of $24.46 billion. Year-to-date, cash from operations was $112.3 billion, while the company spent $63.6 billion in property and equipment, resulting in free cash flow of $48.7 billion. Total cash, cash equivalents, and marketable securities was $98.5 billion at the end of the quarter, versus $21.6 billion in long-term debt. The company pays a quarterly cash dividend of $0.21 per share. Looking to all of 2025, Alphabet expects capital expenditures in the range of $91-$93 billion. Even in the face of higher capital spending, Alphabet remains a net-cash-rich, free-cash-flow generating powerhouse. We continue to like shares in the Best Ideas Newsletter portfolio.
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Microsoft’s First Quarter Fiscal 2026 Results Solid
Oct 30, 2025
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Image Source: TradingView.
Microsoft’s Azure and other cloud services revenue increased 40% (up 39% in constant currency) in the quarter. The company returned $10.7 billion to shareholders in the form of dividends and share repurchases during the first quarter of fiscal 2026. Looking to the fiscal second quarter, revenue is targeted to be between $79.5-$80.6 billion, growth of 14%-16%, compared to expectations of $80.08 billion. Azure is expected to grow 37% in constant currency in the quarter “as demand remains significantly ahead of the capacity (it) has available.” Though some expected more from Microsoft, we thought the quarter and outlook was solid. The company remains a core holding in the newsletter portfolios.
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Booking Holdings Looks to Robust Growth in Fourth Quarter
Oct 29, 2025
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Image Source: Booking Holdings.
Looking to the fourth quarter of 2025, Booking Holdings expects revenue growth in the range of 10%-12% (5%-7% in constant currency), with room nights growth of 4%-6% and gross bookings growth of 11%-13%. Constant currency gross bookings growth is targeted in the range of 6%-8%. Adjusted EBITDA is expected in the range of $2.0-$2.1 billion, reflecting 8%-14% growth. Looking to all of full year 2025, revenue growth is expected to be about 12% (9% in constant currency), with adjusted EBITDA growth of about 17%-18%. We continue to like Booking Holdings as an idea in the newsletter portfolios.
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