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  • Chipotle: Setting up for Disappointment [View article]
    "I am certain that I will receive a high degree of criticism for this post given the strong investor base and positive sentiment on the company."

    Are you kidding me, this is s great analysis! Great work. I am a CMG bull but I totally see your side of the story.

    I think if you have a longer term view, CMG has a ton more room for growth, but as you say, the market will eventually pay a lot less for that growth as comps get harder and harder to beat as 2008 progresses.

    You'll recall that a lot of people dismissed CMG in early 07 and then CMG came and crushed bears as it doubled its EBIT margin and cranked out on the top line, as well. So you are dead-on: the high PE comes from investor belief in current management to execute on another blockbuster year....

    With EPS on Wed, we're long the common and would suggest hedging with puts.

    Apr 21 18:13 pm |Rating: 0 0
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