one thought may be to consider why such a visible financial guru would stake his reputation on one stock as he has with CMG? He has more to lose than to gain with this short call, as he has been right on Apple's drop from 707, right on gas prices spiking during same period as Apple falling, right on Japan's stock market and the yen's ascent to $99.50, the subprime mortgage meltdown and financial crisis as a result. Jeff's been way more right than off the target over the past 7 years. So, one may want to ask ones self, what does he know that he may not be saying .... "yet". I believe, he has info on ag prices like lettuce, oninons, avacados, chicken, beef, etc.... and an insight to where these prices are heading. This alone has the potential to trim 20% out of all restaurant stocks today. So, perhaps a short of restaurant stocks or a restaurant ETF may also be a thought to entertain at this moment in time? - A Little Food for Thought
This stock/company is Teflon coated but that could change. They do have a strong track record for earnings growth. Doubters have valid reasons that Gundlach agrees with. Look at what is happening with Chipotle in Great Britain There competition eats their lunch and they have zero traction. Why this has not happened in the US is something of a mystery but for some reason their legions have remained loyal -- so far. Personally I bought one of their burritos once and while it was fine that was enough for me. I didn't think people put rice in burritos. I don't put beans in mine for that matter. and mine are better.
gundlach gets credit for one lucky call on a stock-- AAPL. beware stock recommendations from bond "gurus". bill gross has been just as famously bad on equities. if you want to listen to gundlach (and make money) stick to his calls on bonds. my bet is that he'll be eventually wrong on AAPL and CMG. CMG is our generations McDonalds. I guess it depends upon your time horizon.