Walk by any Chipotle Mexican Grill (CMG), and the lines for burritos and tacos usually appear endless. Investors are hungry for the stock too. It's up nearly 30% this year and approaching 52-week highs.
That's not a good thing for two fund managers who have been making big bets against Chipotle's stock. Both Greenlight Capital's David Einhorn and Doubleline Capital's Jeff Gundlach have said they are shorting Chipotle.
Through mid-2012, Chipotle had been one of the best-performing U.S. stocks. In October 2012, Einhorn made a case for betting against Chipotle's stock. Investors initially fled the stock, but have since returned. It's up nearly 30% this year.
It's hard to fight restaurant stocks in general. Consumers have been gobbling them up, particularly those of chains considered fresh and healthy.
The chain Noodles & Co. (NDLS) went public last week. Its stock doubled on its first day of trading and is now trading at nearly triple its IPO price.
Calling Noodles the next Chipotle was a compliment to the chain on its IPO date (Chipotle's stock has risen 16-fold since its IPO seven years ago).
This week, Noodles looks like it is giving Chipotle a boost. Investors see Noodle's stock rising and have decided Chipotle has even more room to run.
Activist investor David Einhorn publicly called for Apple (AAPL) to give some of its $137 billion cash hoard to back to shareholders in the form of preferred stock.
Einhorn said in a press release Thursday that he has held meetings with Apple executives explaining how they could unlock "several hundred billions of dollars" by distributing a perpetual preferred stock. Apple, he said, rejected the proposal in September 2012.
"Like many other shareholders, Greenlight is dissatisfied with Apple's MOREMaureen Farrell - Feb 7, 2013 4:00 PM ET
Hedge fund manager David Einhorn's newest short target: Chipotle Mexican Grill (CMG).
Greenlight Capital's Einhorn thinks Taco Bell, owned by Yum Brands (YUM), will eat Chipotle's lunch with its new Cantina-style menu.
Chipotle was one of four stocks that Einhorn discussed during his presentation at the Value Investing Congress in New York. He also spelled out a case for why investors should buy General Motors (GM) and health insurer Cigna (CI). MOREMaureen Farrell - Oct 2, 2012 12:56 PM ET
Chasing David Einhorn can be a dangerous investing game. Investors in a tiny ethanol company should consider themselves warned.
Ethanol producers, particularly BioFuel Energy (BIOF), have been struggling this year. The drought in the Midwest isn't going away, and in late August, BioFuel Energy's investors learned that revenues for the first half of 2012 were down 20% from 2011.
But for the past two weeks, shares of BioFuel Energy, which are still MOREMaureen Farrell - Sep 17, 2012 4:47 PM ET
It looks like hedge fund manager David Einhorn, who has become something of a Delphic oracle to investors, scored big again Monday.
Last week, Einhorn's hedge fund Greenlight Capital disclosed stakes in several health insurance firms, including Aetna (AET) and Coventry Health Group (CVH), as part of his fund's quarterly reports to the SEC . He acquired these positions sometime in the second quarter. The Supreme Court's June 28th decision to MOREMaureen Farrell - Aug 20, 2012 3:44 PM ET
Not a member yet?Sign up now for a free account
|Reddit CEO Ellen Pao apologizes: We screwed up|
|Greek crisis is nothing compared to China|
|Oil prices dive below $53 as Iran deal looms|
|Starbucks is hiking prices, again|
|Cash-strapped Greece keeps banks shut|