Selling Gas Station Chains and Burritos ๐Ÿ‘€

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Selling Gas Station Chains and Burritos

If youโ€™re looking for a good business to start, make it a gas station; low overheads; constant demand; upsell customers to crisps and sandwiches. Itโ€™s a winner!

Marathon Petroleum is looking to sell its chain of 3,900 gas stations, and investors reckon itโ€™ll have no problem finding buyers, even at an asking price of $18 billion. Thatโ€™s a hefty coronavirus discount, and the market knows full well what itโ€™s really worth.

The impetus to sell comes from corporate raider, Elliot Management. The activist investors are looking to make Marathon a lean machine so that it can focus on its core oil and gas business. This is will save on SG&A costs (paper pushing admin) and give investors a focus!

Chipotle, on the other hand, is selling a record number of burritos online. It sold triple its normal tray as customers were forced to find a way round closed physical outlets, and investors now hope Chipotle can keep up most of this momentum as society reopens.

It was a brutal earnings report released by the company yesterday, an incredible 90% of sales destroyed by restaurant closures, but this was the silver lining. Chipotle has struck deals with Grubhub and UberEats to continue living off e-commerce sales. For how long?

I am not a financial advisor and my comments should never be taken as financial advice.ย Investments come with risk, so always do your research and analysis beforehand.

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