I couldn't agree with you more. My experience at Chipotle was also awful. A burrito that was filled with rice (which wasn't too good) and very little specs of beef that I actually thought was either rubber or horse meat. One of the worst restaurant meals I've ever had. The place was also depressing to be in. Better choices everywhere here in Southern Florida.
The food is awful, the atmosphere is actually bleak (even for fast food), and there are better choices everywhere (local Mexican/Carribean places and Pollo Tropical), and the CEO seems unenthusiastic.
Can't believe they'll be around in a few years, no less trading at multiples like this.
Based on P/E, growth and balance sheet. That's assuming that this isn't a fad (which it appears to be) and will be around in 5 years. That's my take with all best news taken into account.
Based on my experience at CMG, it wouldn't take much to beat them. CMG is a passing fad who's time is running out.
The couple of people I spoke to outside of the restaurant raved about it.
I was surprised at how the food was average at best. The little bit of meat in the beef burrito was like leather. The food had very little taste. My wife's chicken burrito was a little better. (Maybe I ordered the wrong food?) I get much better food at the Pollo Tropical nearby. Other than the fact that it has a good location, I don't understand why anyone would go there. (Maybe I caught it on an off day ?).
How about the cash on the balance sheet that would not then be burned ? Let's call it $15 PPS share without any premium.
I agree. Why should he gamble with the entire position (whether hedged or not). He has a gonzo gain here (over $1 bil). A monster gain even for him. Might even be selling today.