Cmg grasping at straws. It's history repeating itself. Remember NFLX the Wall Street darling. When investors blindly bought up shares based on world expansions eventually flopped. They tried spinning off streaming and dvd's. that failed miserably then they tried price increases and that almost wiped the company out. Cmg is goin down the EXACT same path. I think my retirement is secured now. these ridiculous excuses to inflate the stock for is an inevitable dive! This will be sub 100 in time.
rlfadj, I agree with most of what you say but one point you need to consider when comparing cmg with nflx, is the Big Money ownerships. What % of nflx was/is owned by them is a factor. cmg is owned around 95% by institutions. Would they let the same thing happen to it?
Yeah, they have pricing power. NOT!!!! This is what took nflx down from above 300 to sub 100 within weeks when customers boycotted. Nflx in cramer's opinion was going to the moon And had pricing power. Guess what nflx tanked even after they reversed back old the price and had to give out more free trials. No way in hell can cmg compete w/ other restaurant when they all offer specials and coupons. Don't forget last quarter cmg was doing coupons for buy 1 get 1 and was still having problem competing. This restaurant just about to make same mistake as nflx and that is exactly the mistake we need to take this crab down to sub 100 which is still too expensive for a taco stand.