Get in Line: Chipotle (CMG)

| About: Chipotle Mexican (CMG)
This article is now exclusive for PRO subscribers.

This is going to be a hot IPO.

Rinse and repeat: this is going to be a really hot IPO.

After months of speculation and torture, on Thursday American icon McDonald's (latest MCD conference call transcript here) will finally spinoff fast-casual Mexican food chain Chipotle (NYSE:CMG).

The chain will raise close to $150M dollars in order to pay off some debt, cash out insiders (Chipotle opened in 1993), and raise capital for future growth & expansion.

That's expansion with a capital "E," in case you didn't hear.

Chipotle may open as many as 100 new stores in 2006.

Do you know why everyone and their grandmother wants a piece of this bad boy?

It's pretty simple, really. One, Chipotle's food rocks -- we urge you to spend an hour there; you won't want to leave. Two, Chipotle priced its food perfectly -- for less than $10, you get a mean burrito and a Corona.

Three, there is indeed a market for Chipotle. As it stands, it's biggest rival is Wendy's (WEN) Baja Grill. Based on the way investors are (mis)treating Wendy's, it's as clear as day: Chipotle's going to use Baja to mop the floor.

Chipotle is profitable and we are confident Chipotle will zoom to the $30-$35 range within its first 48 hours of trading.

« Any opinions expressed on the Seeking Alpha sites are those of the individual authors and do not necessarily represent the opinion of SeekingAlpha or its management. »