What to Watch This Week: Earnings, 'Iron Man 3' and Margaritas
1. Chipotle Will Drink to That: Chipotle Mexican Grill (CMG) is adding premium margaritas to its menu this week at most of its restaurants.
The popular burrito roller will begin serving the alcoholic beverage at more than 900 of its 1,458 locations.
The new margarita will include Patron Silver tequila, triple sec, a blend of fresh lime and lemon juices, and organic agave nectar. The drinks will cost between $6.50 and $8 -- that's more than one of the chain's signature burritos or bowls -- and be hand-made as they're ordered.
The timing isn't coincidental. Chipotle knows that Cinco de Mayo is Sunday. However, this won't be a temporary menu addition. Chipotle just better hope that the drinks don't slow down the famously quick-moving queues.
2. Sirius XM Turns Up the Volume: It's hard to think of a better climate for Sirius XM Radio (SIRI) than what the satellite radio provider is experiencing these days.
Car sales are booming, and that's the primary source for new Sirius and XM subscribers. The economy's also holding up well, and that should bode well for retention rates for the premium radio giant.
Sirius XM began the year with 23.9 million subscribers after tacking on 2 million net additions for all of 2012. On Tuesday morning we'll get our first snapshot on the state of satellite radio in 2013. Despite the growing popularity of streaming websites and cars that allow smartphone owners to use Bluetooth to stream tunes through their car speakers, Sirius XM has continued to grow its audience.
Tune in on Tuesday to see how the top dog in premium audio entertainment is holding up.
3. Stark Will Spark the Box Office: It may technically still be springtime, but the seasonally potent summer movie season kicks off this week with "Iron Man 3."
Disney (DIS) paid big bucks to acquire Marvel a few years ago, and so far it has been money well spent. The first two installments in the Iron Man franchise have been box office juggernauts.
Disney isn't waiting until Friday to kick off the new Iron Man's theatrical run. Local multiplexes and IMAX screens will begin screening the movie -- likely the final one with Robert Downey Jr. in the role -- on Thursday night.
4. Jamba Pours It Out: Jamba (JMBA) has been leading the charge on fruit smoothies with functional boosts.
Sure, you can now pick up a smoothie at a burger joint or doughnut shop. Even your latte-brewing barista can take your order for a freshly whirred frosty fruit drink. However, Jamba Juice hasn't slowed down despite the competition.
We'll get the first glimpse at Jamba on Tuesday. Wall Street's holding out for a small deficit in the quarterly report, but this is a seasonal business. Jamba's strongest quarters are the two periods coming up when warm weather drums up demand for icy fruit beverages.
5. Hit the Deck: It's a good time to specialize in home improvement. Lumber Liquidators (LL) was one of last week's biggest winners. Shares of the hardwood flooring retailer soared 23 percent after posting better than expected quarterly results.
It's easy to see why Lumber Liquidators is doing so well. Home prices are climbing. Real estate sales are picking up. Homeowners are finally comfortable spending money to spruce up their homes as fewer mortgages are underwater.
The same trends should bode well for Trex (TREX) when it reports on Friday. Trex is the undisputed champ when it comes to wood-alternative wood decking materials. As homeowners turn to extend their living space by building backyard patios, Trex's weather-resistant planks and railings are popular purchases.
Analysts see Trex earning $1.12 a share for the quarter, well ahead of the $0.74 a share it rang up a year earlier.
Motley Fool contributor Rick Munarriz owns shares of Walt Disney and Jamba. The Motley Fool recommends Chipotle Mexican Grill, Lumber Liquidators, Trex, and Walt Disney. The Motley Fool owns shares of Chipotle Mexican Grill, Lumber Liquidators, Trex, and Walt Disney.