Is Chipotle's Stock Too Spicy?
The following video is part of our Motley Fool Conversations series, in which industrials editor/analyst Isaac Pino and analyst Blake Bos discuss topics around the investing world.
Chipotle's stock hit a wall this week when rising-star value investor David Einhorn outlined his bearish stance on the company and announced he would short the shares. Shares of the fast-casual restaurant chain dipped more than 10% following Einhorn's remarks on Tuesday. Over the past three months, shares have tumbled more than 25%, a surprising pullback for a stock that's been on a tear since the beginning of 2009.
Einhorn's key remarks touched on rising input costs that plague the entire restaurant industry, as well as the results of a survey showing that customers were surprisingly receptive to Yum! Brands' revamped menu at its Taco Bell restaurants. In the following video, Isaac and Blake offer their take on the call and discuss reasons for optimism about Chipotle's management and skepticism about Einhorn's singular thesis on the company.
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The article Is Chipotle's Stock Too Spicy? originally appeared on Fool.com.Blake Bos and Isaac Pino has no positions in the stocks mentioned above. The Motley Fool owns shares of Chipotle Mexican Grill and McDonald's. Motley Fool newsletter services recommend Chipotle Mexican Grill and McDonald's. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.