Avoid This Hot IPO

Avoid This Hot IPO

Since its IPO last Friday shares of restaurant chain Noodles & Co. have more than doubled. While insiders are celebrating, others are wondering if this is the next Chipotle or just a lot of hype. Motley Fool analyst Jason Moser digs into the numbers and examines how the two restaurants compare. Chipotle's profit margins are much more robust. That plus the fact that Noodles & Co. is brand-new to the public markets make this a stock investors should avoid for the time being.

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The article Avoid This Hot IPO originally appeared on Fool.com.

Chris Hill and Jason Moser own shares of Chipotle Mexican Grill. The Motley Fool recommends and owns shares of Chipotle Mexican Grill. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.

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