CMG

Chipotle has been one of my investing success stories. With the current e. coli issue it is facing, the price per share has dropped dramatically. Without having delved significantly deeply into it, it seems to me that the source of the e. coli bacteria must be with one or more of Chipotle’s suppliers. I am a bit concerned that it seems to be taking a long time for the company to figure out and resolve the issue, but at the same time, I am seriously considering adding some shares to my position. I am curious as to how others are viewing this situation, as well as whether others believe buying on the large share price drop is a good idea.

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I am with you on this one and I will likely add as well however I am going to want to see some support and an uptick. I would rather lose some points than try and catch a falling knife.

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Earnings report was good not great. E coli problem has shut down CMG in a number of locations while it figures out cause which apparently was produce. This will hurt numbers for next quarter but long term I think this is a big winner. Great company. Response to e coli problem was outstanding IMO so far. I am going to add more myself.

Htownrich

Thanks, I think that is a wise position to take.

Anytime a restaurant chain is closing stores, I don’t want to be a part of it financially.

There are better places for my money.

Jim

“Anytime a restaurant chain is closing stores, I don’t want to be a part of it financially”

They are not closing stores, they temporarily closed a few stores for concerns of infection.

Yes that will hit them and it certainly has hit the stock price but the business remains intact - it is just a little cheaper.

A good entry point for someone wanting to get in.

Each to their own and certainly there are other places for your money. Whether they turn out to be better places only time will tell.

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It looked like there was support at around $601 per share. I went ahead and added a very small number of shares to may position about an hour ago, paying about $604 per share.
The thing that I am having a issue with is that I purchased my original position of 50 shares at about $340 per share. It is difficult for me, mentally, to purchase shares that are so much more expensive than my original shares, but a “foolish” thing to do is to add to your winners. So I only purchased 5 shares today. My hope/expectation is that once this e. coli issue gets behind us, the price per share will again appreciate considerably.

I am looking hard at CMG recently. I also plan on waiting for some sustained movement upwards and a complete resolution of the food safety issues before purchasing up to a 5% position with the plan of selling it within a year or two after purchase when I have gotten a satisfactory return. This seems like a no brainer to me. I think that CMG’s management is VERY likely to fix the issue with aplomb.

I saw this article today and don’t know anything about its value but the author suggests there could be significantly more downside. It seems wise for me to wait since I have no position in CMG at the moment.

http://247wallst.com/services/2015/11/03/could-chipotle-shar…

I agree that CMG has great management. However, this isn’t a classic Saul stock. Its PEG isn’t in range yet.

I think we are likely to get an opportunity next quarter, but I’m not sure. I’d buy when this has a PE in the mid 20s.

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It is still very expensive historically. I wouldn’t touch it unless it hits 300.
A

Using P/FCF in relation to other numbers and a growth rate of 15%, I do not think the drop in price has made the stock cheap at all.

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Using P/FCF in relation to other numbers and a growth rate of 15%, I do not think the drop in price has made the stock cheap at all.
Me neither.
Ant