Seeking Alpha

Greenlight Capital gives up on taco thesis

  • Greenlight Capital has reportedly closed its short position in Chipotle (CMG +0.7%).
  • David Einhorn's firm never saw the reversal in Chiptole it was calling for off of the introduction of the Cantina Bell menu from Taco Bell.
Comments (2)
  • phylspilot
    , contributor
    Comments (11) | Send Message
    Like many others, Einhorn never realized that Taco Bell and Chipotle have very different customer bases. Chipotle's "food with integrity" seems to have attracted a more upscale market, while Taco Bell is in more of the mass market. Those attracted to Chipotle are, apparently, not as price sensitive as Einhorn believed. COIN's research supports this thesis.
    22 Apr, 07:49 PM Reply Like
  • User 8025871
    , contributor
    Comments (2) | Send Message
    I wonder if Mr Einhorn ever bothered to actually eat a burrito at CMG ?...or a rice /salad bowl ?.....then actually eat a supposedly similar dish at TB.....? Had he done so he would never have even considered the Cantina Line a threat. Fundamentals # 101 ..Lew Liggett
    23 Apr, 01:54 AM Reply Like
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