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.
Not a member yet?Sign up now for a free account
|Tinder co-founders and 8 others sue dating app's owners|
|How America's foreclosure capital came back from the dead|
|Nio, China's answer to Tesla, plans to go public in New York|
|ATM hack: FBI warns banks about potential scheme|
|Southwest: Only cats and dogs allowed as emotional support animals|