What are you forgetting. BOOOOOZE.
The ace in the hole. McD would never do beer wine etc. but here they have the cajones. That's the hidden value. No way it will not be sucessful. 400 stores later proves that. That is why they chose this model, worked out the kinks, it has been managed by MCD for 10+yrs-No brainer. Its Cool & Social; not family backwater locations, Univ towns, corp venues, traffice centers. Not a Taco Bell. I had a bad experiwnce at one a few years ago- thinking it a small local chain, I was upset but kind- if I had known it was MCD I would have sued for stock to keep quiet. AND Still would have gone long. Yeah, accumulating might be smarter than backing in 100%. I'd say in the Rest Grp I'd place 10% in allocation. But I'm not you.
The only way it can go below $40 is for someone to sell at a loss.
The people who bought at $22 will not sell below $40.
They may even be obligated to buy.
May I suggest you buy alittle every now and then
and don't worry about the price?
There's no shame in buying 10 shares/month.
The commission from an internet broker isn't that significant.
I was replying to the post previous to mine
where the posters assumed that all the growth
would come from increasing the number of stores.
This assumption is false because Chipotle does most of their business during lunch.
Stores can also increase sales by offering breakfast and dinner items.
If you go into a store for dinner, what do you see?
I see alot of empty seats that could be filled.
Same with breakfast. Have you ever had a Mexican breakfast? Its delicious.
This company is just getting started.
Where do you get 38% a year growth. They have 500 stores and plan on opening 90 a year. This is 18% a year and when they have a 1000 (in 5 years) stores it is only 9% a year. Projected earnings for full year is no more than 90 cents. Your paying 58 to one for an 18 percent grower. Does not sound like a good investment to me.
I have a small buy order in for $53.
Had it for a week.
If it goes below that, I'll buy a little more.
This is a long term growth stock growing at 38%/year.
They've got cash, repeat customers, relatively healthy food, no tipping, alot of growth ahead,
no franchises. What did I forget?