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RVB's Market Musings

What began here as an avenue to interact and learn has far exceeded those goals.

If you are a prospective employer, please consider this site a place where you can see my passion for investing...

Tuesday, August 01, 2006

Consumer: Chipotle's Burritos Rock

Perhaps a little vindication today (not that it's the most important thing in the world). Chipotle (CMG) blew median estimates of 26 cents away, reporting a 57% rise in earnings per share to 31 cents and raised its revenue forecast for the year.

Meanwhile, Reuters headlines report: "Chipotle net income down, sees slower sales growth." Talk about misleading by technicalities. What's the agenda here? Do they feel like they need to tilt the headline to be in-line with the fact that the stock will open lower this morning?

Slower growth? Well, sure, because Chipotle's current growth rate is simply not sustainable. My 5 year old nephew might be able to tell you that! (Watching him eat a Chipotle burrito would be entertaining, though)

Chipotle is healthy, but in the same hated sector that Panera is. And perhaps its valuation is somewhat high in the short term. So we wait, and we can pick up two great companies while the markets adjust.


At August 02, 2006 3:52 PM, Blogger Howard Lindzon said...

best restaurant in the country


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