"5 Restaurant Stocks With High Valuations To Avoid Now
By Bill Edson - October 25, 2012
Even after shares dropped dramatically last week, Chipotle Mexican Grill (NYSE: CMG) is trading at a high valuation. This high price anticipates future earnings growth which may not be forthcoming either based on increasing food costs or slowing sales growth. Investors should steer clear of Chipotle to avoid disappointment and share price declines."
Although I'm inclined to agree with Edson, I've actually purchased a Jan $260 call option on CMG. The idiots have pumped this loser forever, and will continue to do so. I'm expecting it to hit $280-300 before retreating to $230 after next (failed) earnings test. I'll short it after making money to the upside.