Great article Chris. Chipotle might have good longer term potential as a consumer staple. One point in their favor is most of the entrees comprise of consistantly high quality ingredients yet are close to $6.00 each. Also it doesnt hurt the new long side that the shares have been bashed so much since late 2007.
Chipotle Mexican Grill: Too Hot To Handle? [View article]
the company raises price in about 25% of markets annually within a rotating 4 year plan. they raise the price about once every four years per market. But with commodities rising so much within the 4 year parameter this plan doesnt keep up. The short interest on the A shares is posted as 35%, but the short interest in the B shares is tiny. on friday B shares were at an amazing 20% discount. On Friday Chipotle's is taking more steps to change sluggish results advertising.
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Chipotle Mexican Grill: Too Hot To Handle? [View article]