I had Chipotle last night service was quick food was very fresh and tasty. The staff was all smiles and the place was super clean. I am very happy with what they have done and now proud to invest back into Chipolte
CMG has a tangible Book value of $49.97/share, multiple food born illness disasters, and a current PE of 70.
I want to be a believer, but can someone tell me why I should invest in a company that can't get out of its own way even after a massive haircut, that still sports the statistics I just shared? I fear there are massive management controls issues that still are not fixed surrounding food handling.
On top of that, I'v been to the Chipolte in Ann Arbor a couple of times in the past month, usually around 1PM and you could have fired a cannon through it and not hit a soul both times.
Thoughts? I seriously want to be convinced why this is a company worthy of my investment dollars.
I have a horrible trading record. Almost certain negative returns over past 10 years. As I stated a few days ago. I doubled down on CMG at $326. Anticipating further declines which I will average cost with more buys. At $250 CMG is a great risk/reward. The rally today makes me think stock will now turn around before it ever gets to $250. Earnings may stink for another quarter or two but over long haul CMG is a cash machine (even if queso sucks). Also, avocados won't be forever expensive.
Interested to know what you think. 2 years ago it was E.coli outbreak due to contamination, tainted food supply. This time, it was norovirus which is common and due to a sick employee. Norovirus is highly infectious but nobody dies from it and it could happen to any restaurant. There's a world of difference between E.coli and norovirus outbreak! I think there's an over-reaction to norovirus and mice in an old building. What do you think.
Apparently people love CMG stock. Chipotle earning per share is half of Apple's , yet the stock price I'd double. Apple pays a 1.5% dividend. Chipotle doesn't even have 1.5% in earnings.
But hey, CMG stock is cheap because it used to be higher, and Achman says so.
The latest headline is that they are considering getting rid of chorizo to make way for queso. They are flailing around desperately trying to grow, grow, grow. They'll end up damaging the brand even further by chasing impossible growth goals. They'd be better off recognizing they are a restaurant chain - one that still needs to put all their focus on food safety, supply chain, and management development - rather than an early growth technology company.
I hadn't noticed that Chipotle created a new position, Chief Restaurant Officer, and has staffed it with a former Arby's executive.
Think about this for a moment. The story Ells has been spinning for over a decade is that Chipotle is nothing like traditional fast food companies. That is part of the pride he instilled in the restaurant management team. Yet they all now report up to a guy from Arby's. (And the company's newly hired mouthpiece comes from Yum!) You don't think that's a bit demotivating to the management staff?
Chance is CMG is the stock that is backed by big hedge funds for 6 years ago. This time is difference because CMG broke the cardinal rule twice in 2 years. It will find the bottom around 200, because the consumers hardly forgive CMG for two mistakes. We have classic example: jack in the box which it was put in the box more than two years. This time a lot of big boys bailed out in June, and I don't think they will come back because the consumer's trend when it changes, it is forever.
Heading over to get a chicken burrito.
Marine Core Soldier
Don't worry...Cramer said CMG was a Buy at $525...so it's all good!!
Looks like something is happening: Chipotle Shares Rallied As Much As 2.3% Over Last 10 Mins. As Traders Circulate Chatter Elliott Could Send An Activist Proposal To Co./Shareholders
At 328 I'm going short with both fists.
Moment of TRUTH IS COMING. WHO HAS THE GUTS TO HOLD CMG INTO THE WEEKEND.
Duke of Westchester
I am making my own burrito. I laid out the costs including guacamole. 78 cents total. Why pay over ten bucks too at Chipspotly? They had a price increase recently as well!
I want the "Pupi Burrito" back on the menu.
This is great day trading. I hope CMG keeps this up! Repeatable patterns showing up every day make for easy trading
Besides a short covering rally, not much interest in $cmg. Volume poor, chart looking awful. My 316 pivot bounced and is now low. If you want to get long wait for $301s. We're probably within 60 points of fair value...Still bearish until Ells gone.
My guess is the pop today was someone covering their short position, because there is no carry through and they are giving it all back. Thanks though I shorted some more at 330.01
This is troubling. At ~1% loss per trading day, this can only keep going on for about 100 days. Should I sell now?