Chipotle Mexican Grill (CMG) Tanks on Einhorn Short Comments
Chipotle Mexican Grill (CMG) Tanks on Einhorn Short Comments. In this "live stock trading" video we'll cover CMG short sale and how it puts in a bottom of it's big drop. Shares of CMG dropped $26.72 from the high of $319.87 to the low of $290.15 on 1.6M shares based on comments by hedge fund titan Einhorn.
Here are Einhorn's comments 11:13 Chipotle is a short. "It has been a great company, but is on its to being a good company," Einhorn says. Copy-cats will eventually catch up with Chipotle. The draught isn't helping either. The biggest problem isn't fast-casual, though. It's resurgent Yum! Brands and its Taco Bell chains. (Einhorn precedes to belt out, voice climbing in pitch, the old Taco Bell jingle.) "It's much different when a national chain decides to compete with you in 5,600 nationwide locations," Einhorn says.
He likes Taco Bell's new Cantina menu, a new selection of fresh-ingredient products meant to eat away at the distance between Taco Bell and Chipotle. A survey done by Einhorn's firm shows that Chipotle is in danger of losing frequent customers. "I guess they just really like Mexican," he says. The survey also found that over the next six months, those customers are more likely to cut down spending than increase it. "Chipotle's multiple does not reflect these risks, and the stock is vulnerable."
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