The Buzz

All markets and investing news all the time

Chipotle: The burrito hype continues

July 3, 2013: 12:44 PM ET

Chipotle's stock is up nearly 30% in 2013.

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.   

Anyone remember where Jeff Gundlach said he is going to short $CMG from? (only being have facetious...also serious question)

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.

$CMG wants its place at the leadership table again. Has had her medicine over the last year+. Dont fight the burrito bowl!! Weekly puuurty Bullish

It's hard to fight restaurant stocks in general. Consumers have been gobbling them up, particularly those of chains considered fresh and healthy.

There is a new restaurant on the 52-week high list every day. $CMG is the latest.

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.

$CMG doing well for a second day-- perhaps bcuz of all the $NDLS hype.

Join the Conversation
Fear & Greed
Sponsored by
About This Author
Maureen Farrell
Maureen Farrell
Staff writer, CNNMoney

Maureen Farrell is a staff writer at CNNMoney and covers Wall Street, banking, mergers and the stock and bond markets. Prior to joining CNNMoney, she covered venture capital and entrepreneurs for Forbes, and mergers and bankruptcy for Mergermarket and Debtwire, both divisions of the Financial Times.

To view my watchlist

Not a member yet?

Sign up now for a free account
Stupid Stock Move of the Day
#StupidStock Move of the Day! Yes, Urban Outfitters may be finally turnings things around. But $URBN up 17%? Seems a bit excessive, no?
Most Popular
Powered by VIP.