Wall Street This Week: Chipotle Chips In, Airlines Take Off

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Inside A Chipotle Restaurant Ahead of Earnings Figures
Craig Warga/Bloomberg via Getty Images
From the leading burrito roller providing an update on potential menu increases to a pair of air carriers posting quarterly results at a time when airlines are soaring, here are some of the things that will help shape the week that lies ahead on Wall Street.

Monday -- Big Blue World

It's earnings season and that means that even the sometimes-sleepy Monday has dozens of companies stepping up to update their financials. IBM (IBM) will step up in the afternoon with its fiscal third-quarter results.

The tech bellwether was able to successfully shift its model from making PCs to selling consulting and software services, but it hasn't always been easy. Analysts see a year-over-year dip in revenue and profitability.

Tuesday -- A Chip off the Old Chipotle

Chipotle Mexican Grill's (CMG) menu prices have been inching higher. Rising food and labor costs led the fast-growing restaurant chain to implement its first major increase in three years last year, and earlier this year it suggested that soaring beef prices could lead to another hike this year for its steak and barbacoa items.

We'll get a taste of how things are going on Tuesday when Chipotle reports quarterly results. The burrito roller continues to be the market darling in the eatery space, but soon it may be testing its pricing elasticity if customers begin to balk at the escalating menu board prices.

Wednesday -- Coke Is It

We're not drinking sodas the way we used to and it's starting to sting the soda giants. Coca-Cola (KO) reports its latest financial results on Wednesday morning and weakness in carbonated beverages should be on display. Wall Street pros see revenue clocking in 4 percent lower than a year earlier, with earnings taking a slightly bigger hit.

Coca-Cola has done its best to diversify. It has invested in energy drinks, bottled water and coffee as a way to cash in on the beverage categories that are growing in popularity. Last year's "Share a Coke" promotion with cans and bottles featuring personal names and terms of endearment proved popular and Coke is at it again this summer. We'll see if there's still some fizz to be had on Wednesday.

Thursday -- You Deserve a Break Today

Another consumer giant that's been going the wrong way these days is McDonald's (MCD). The world's largest burger chain has been slumping for nearly two years and it's coming off six consecutive quarters of year-over-year declines in comparable restaurant sales at its stateside restaurants.

McDonald's has tried to shake things up by expanding into premium beverages and, more recently, simplifying its menu. We'll see if any of its more recent initiatives are starting to pay off when the company behind the golden arches reports quarterly results.

Friday -- Flying High

The skies have been friendly for air carriers lately. Low jet fuel prices are keeping costs low and a combination of sector consolidation and strong passenger demand have kept rates high. We'll close out the week with a great snapshot of the air carrier industry, with American Airlines (AAL) and Spirit (SAVE) reporting quarterly results in the morning. Analysts see strong earnings growth at both companies and that isn't a surprise in this welcome climate for the airlines.

Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Chipotle Mexican Grill, Coca-Cola and Spirit Airlines. The Motley Fool owns shares of Chipotle Mexican Grill and has the following options: long January 2016 $37 calls on Coca-Cola and short January 2016 $37 puts on Coca-Cola. Try any of our Foolish newsletter services free for 30 days and click here to check out our free report for one great stock to buy for 2015 and beyond.
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