the only real piece here is that average real store will sell for 8x ebitda in real life regardless of interest rates bernake is commanding.
ever thought why panera is buying back franchisees for 7-7.5x ? because no outside LBO oriented buyer (the real human) wants to pay 8x, while the worthless paper owners are fighting to pay double that.
my explanation is nothing but rationalization of wall street BS.
there are many ways to rationalize the high price of chipotle stock.
1. u can compare it to the other stocks in the restaurant sector. if restaurant stawks with negative sss are traded at 29 p/e then cmg may have higher p/e automatically
2. u can apply historic valuations this stock traded at. for example, if stock was traded at 70 p/e then it is now priced reasonably
3. u can apply historic "future valuation" based on 3 years out projections. for example, in 2011 stock was trading in the range of 20- 27 projected 2014 p/e. in 2012 stock was trading in the range of 20-30 projected 2015 p/e. if u apply $17.72/share 2016 p/e which is the consensus (assume 20% annual earnings growth) then stock is now traded at ~21x of 2016 earnings
btw, well established "flat line revenue" chipotle store will likely sell for around 8x ebitda, but this is only hypothetical assumption, because chipotle is not franchising.
as long as risk is considered low cartel members have no reasons to exit their 100%+ ownership, but those who do want to exit, likely contact blackrock and goldman who provide lifeboats from the upper deck.
with already large open interest on 164-166 Spy June monthly calls out of the wood it will be very interesting to see up Tuesday because if it isn't up then those calls are shorted by the nobel prize distribution center
i see, promenade's traffic is so huge all the time that even shophouse can't fail.
it is not how company should build the successful chain - they are clearly under pressure to deliver something new
i imagine u may be afraid to get hit by a drone, but fed has to be on the side of those few who transfer the wealth from many, because it is the real mandate.
so, cinci man result is important.
i liked the previous vwap and model stuff from u tom.
but u are pretty dense yourself when it comes to options
to go long chipotle and amazon
but the real truth is simple... the bei. tch. just likes to be spanked as it makes him feel valuable.
Friday night postings tell.
sadly, almost every stock board already has a local be. itch. like skidady, so clown has to jump on other boards to get spanked more often as the other clowns steal the action.
some people are saying existing DC location maybe suffering just because chipotle store is too close to it, so shophouse is competing against chipotle. i wonder if it holds the water, why do they want to make another mistake like this.
and start it. how much longer are u planning to use the free oxygen
people short oex ramps. especially oex that was precooked two weeks ago.
thank DAs for going long on the top of the hft parabola
thumbs up larry.
do u see now how fast they are multiplying.
simply coming out of the woodwork.
it used to be with the age people turn towards republican views, but not anymore. do u know why is that happening? and the answer is simple: stupidity requires collectivism to make consensus.
why always such pathetic comparisons.
does itb pay u rent or does it pay your mortgage or does it let u to depreciate
or does it provide serious collateral
or u can subdivide it.
boris, what do u know